Z0MATO COMPANY LIMITED

Chapter :1

INTRODUCTION

1.1 INTRODUCTION ABOUT ORGANISATION STUDY

Organization study is “An exam of how one construct organizational structures, process,
and practices and how these, shape social relations and create institutions that finally
influence people.”

The organization study about ZOMOTO. Is about the culture of company. The main
obligation of the study is to know the position of the organization. And organization study is
the integral part of the academic syllabus of MBA. Organization study is the method to link
the gap between knowledge and application through a series that will enable students of
MBA programs to pick up presentation to the Organization.

Organization study means that the study of organization as a whole and getting knowledge
with various departments in the organization. Organization studies of individual and group
dynamics in an organizational setting, as well as the nature of organization themselves

1.1.1 OBJECTIVES OF ORGANIZATIONAL STUDY

▪ To be familiarize with the business organization.

▪ To be familiarize with the different departments in the organization and their functioning.
▪ To learn how the key business process are carried over in the organization.
▪ To conduct a SOWT analysis of the particular organization.
▪ To understand the Porters 5 force analyses and McKinney’s 7S framework.

1.2 INDUSTRY PROFILE

Introduction

PESITM SHIVAMOGGA
The services sector is not only the dominant sector in India’s GDP, but has also attracted
significant foreign investment, has contributed significantly to export and has provided large-
scale employment. India’s services sector covers a wide variety of activities such as trade, hotel
and restaurants, transport, storage and communication, financing, insurance, real estate, business
services, community, social and personal services, and services associated with construction.

Industry developments
Some of the developments in the services sector in the recent past are as follows:

 In June 2021, India's exports increased by 48.34% to US$ 32.5 billion, marking the
seventh consecutive month of growth.
 The services* category in India attracted cumulative foreign direct investment (FDI)
worth US$ 87.06 billion between April 2000 and March 2021. The services category
ranked 1st in FDI inflow as per data released by the Department for Promotion of
Industry and Internal Trade (DPIIT).
 In April 2021, the Ministry of Education (MoE) and University Grants Commission
(UGC) started a series of online interactions with stakeholders to streamline forms and
processes to reduce compliance burden in the higher education sector, as a follow-up to
the government’s focus on ease of doing business to enable ease of living for
stakeholders.
 On March 17, 2021, the Health Ministry’s eSanjeevani telemedicine services crossed 3
million (30 lakh) teleconsultations since its launch, enabling patient-to-doctor
consultations from the confines of their home and doctor-to-doctor consultations.
 In April 2021, Elon Musk’s SpaceX has started accepting pre-orders for the beta version
of its Starlink satellite internet service in India for a fully refundable deposit of US$ 99.
Currently, the Department of Telecommunications (DoT) is screening the move and more
developments will be unveiled soon.
 In December 2020, a cohort of six health-tech start-ups—AarogyaAI, BrainSightAI,
Fluid AI, InMed Prognostics, Wellthy Therapeutics, and Onward Assist—have been
selected by the India Edison Accelerator, fuelled by GE Healthcare. India Edison
 Accelerator, the company's first start-up partnership programme focused on Indian
mentors, creates strategic partners to co-develop healthcare solutions.
 The Indian healthcare industry is expected to shift digitally enabled remote consultations
via teleconsultation. The telemedicine market in India is expected to increase at a CAGR
of 31% from 2020 to 2025.
 In December 2020, Gamma Skills Automation Training introduced a unique robotics &
automation career launch programme for engineers, an ‘Industry 4.0 Hands-on Skill
Learning Centre’ located at IMT Manesar, Gurgaon in Haryana.
 In December 2020, the 'IGnITE’ programme was initiated by Siemens, BMZ and MSDE
to encourage high-quality training and technical education. 'IGnITE' aims to develop
highly trained technicians, with an emphasis on getting them ready for the industry and
future, based on the German Dual Vocational Educational Training (DVET) model. By
2024, this programme aims to upskill ~40,000 employees.
 In October 2020, Bharti Airtel entered cloud communications market with the launch of
business-centric ‘Airtel IQ

1.2 INTRODUCTION ABOUT ZOMATO.

Zomato  is an Indian multinational restaurant aggregator and food delivery company founded by

Deepinder Goyal and Pankaj Chaddah in 2008. Zomato provides information, menus and user-
reviews of restaurants as well as food delivery options from partner restaurants in select
cities. As of 2019, the service is available in 24 countries and in more than 10,000 cities.

Launched in 2010, Our technology platform connects customers, restaurant partners and delivery
partners, serving their multiple needs. Customers use our platform to search and discover
restaurants, read and write customer generated reviews and view and upload photos, order food
delivery, book a table and make payments while dining-out at restaurants. On the other hand, we
provide restaurant partners with industry-specific marketing tools which enable them to engage
and acquire customers to grow their business while also providing a reliable and efficient last
mile delivery service. We also operate a one-stop procurement solution, Hyperpure, which
supplies high quality ingredients and kitchen products to restaurant partners. We also provide our
delivery partners with transparent and flexible earning opportunities.
 Chapter: 2

ORGANIZATIONAL PROFILE

2.1 BACKGROUND:

Zomato was founded as Foodiebay in 2008, and was renamed Zomato on 18 January 2010 as
Zomato Media Pvt. Ltd. In 2011, it expanded across India to Delhi
NCR, Mumbai, Bangalore, Chennai, Pune and Kolkata. In 2012, it expanded operations
internationally in several countries, including the United Arab Emirates, Sri
Lanka, Qatar, the United Kingdom, the Philippines, and South Africa. In 2013, expanded to
in New Zealand, Turkey, Brazil and Indonesia, with website and apps available
in Turkish, Portuguese, Indonesian and English languages. In April 2014, it launched in Portugal,
which was followed by launches in Canada, Lebanon and Ireland in 2015.

In 2019, thefirm acquired Seattle-based food portal Urbanspoon, which led to the firm's entry
into the United States and Australia. This U.S.-expansion brought Zomato into direct
competition with similar models such as yelp and Foursquare.

With the introduction of .xxx domains in 2011, Zomato also launched zomato.xxx, a site
dedicated to food porn. In May 2012, it launched a print version of the website named "Citibank
Zomato Restaurant Guide," in collaboration with Citibank, but it has since been discontinued.

In February 2017, the firm announced plans to launch Zomato Infrastructure services, a service
to help restaurants expand their presence without incurring any fixed costs. In September 2017,
Zomato claimed it had "turned profitable" in all 24 countries where it operated and introduced a
"zero-commission model" for partner restaurants. Towards the end of 2017, Zomato stopped
accepting updates from its active users by not utilizing moderators to verify and make updates.
Users of the app reported issues with new features to pay for orders.

Zomato reduced its losses by 34% to ₹389 crore for the financial year 2016–17, from ₹590.1
crore in the previous year 2015–16. .Zomato became a unicorn in February 2018. 
In September 2019, the firm fired almost 10% of its workforce (540 people) tending to back-end
activities like customer service, merchant and delivery partner support functions. In April 2020,
due to rising demand for online groceries amid the COVID-19 pandemic, the firm launched its
grocery delivery services named Zomato Market in 80+ cities across India.

In April 2020, Zomato introduced Contactless Dining to get ready for a post-lockdown world, by
eliminating the use of high-touch elements such as the menu, ordering, and bill payments
through bar codes or the app while the staff will wear masks.

In May 2020, Zomato further laid off 520 employees due to the COVID-19 pandemic.  Despite
the fact that demand for services delivering food from restaurants and takeaways surged,
Zomato's given reasoning for needing cuts is that coronavirus will be followed by an economic
downturn, which could hit orders.

2.2 PROFILE OF THE ZOMATO.

ZOMATO

Type Public
Industry Online food ordering
Founded July 2008; 13 years ago
Headquarters Gurgaon, Haryana, India
Key people Deepinder Goyal (CEO)

Revenue Rs. ₹1,994 crore

Net income Rs. ₹−816 crore
No. of Employees 5,000+ employees
(Source: www.zomato.com )
2.3 NATURE OF BUSINESS:

Online food ordering and restaurant search platform Zomato is a giant in its field which was
founded by Deepinder Goyal and Pankaj Chaddah in July 2008 named as FoodieBay which was
later changed to Zomato in 2010. Headquartered in Gurgaon, India , this company has raised a
total funding of USD 243.8 million in 9 rounds from 5 investors. After the acquisition of major
restaurant search service in various countries, it currently operates in 23 countries that include
India, Australia and United States as its main market. It offers detailed results about the
information of various eat-outs or restaurants providing home-delivery services of food on
entering a location. Anything from the menu to the address of the restaurant could be checked
through the website as well as the android, windows and iOS application. Users are allowed to
write reviews about the restaurant which proves helpful for the other users while visiting the
same place. The company is currently valued around USD 500 million and claims of 90 million
visits monthly. 

2.4 VISION MISSION AND QUALITY POLICY

2.4.1 VISION :

For over a decade now, we've been empowering our users in discovering new tastes and
experiences across countries. By putting together meticulous information for our users, we
enable them to make an informed choice.

2.4.2 MISION:

Our mission is to ensure nobody has a bad meal. Zomato is your best option to search for and
discover great places to eat. Serving 23 countries worldwide. Zomato is a restaurant search and
discovery service founded in 2008 by Deepinder Goyal and Pankaj Chaddah.
2.4.3 QUALITY POLICY:

If there's one thing we truly love, it's sharing in all the great foodie moments you have. Bouquets
when the food exceeds your expectations, brickbats when the service is shocking, chronicles of
your food excursions – they all count.

While we welcome your opinions and descriptions of your dining experiences, there are a few
things we expect from every user on Zomato. Your reviews and photos, as well as your profile
and the comments you share, are all subject to Content Guidelines, our Foodie Code of Conduct.

If your activity on Zomato doesn't match up to these content guidelines, we reserve the right to
take action as we deem necessary. This could include altering or deleting your reviews or
comments, restricting your review activity or deleting your Zomato account altogether, with or
without notice. Zomato also utilizes an algorithm to aid in removing suspicious reviews. If you
feel your review was deleted in error, email us at help@zomato.com.

If you see content that does not align with these guidelines or our Terms of Service, please let us
know. We will consider all reports. However, due to the diversity of our community, it is
possible that content disagreeable to you might not meet the criteria to be removed.
2.5 WORKFLOW MODEL:

Fig No – 2.1

(Source: www.zomato.com )

2.6 PRODUCT/SERVICE PROFILE:

 FOOD MENU:

Step 1: To add a restaurant in Zomato, visit the Add Restaurant Link and fill the registration
form with restaurant name, phone number, city etc. Step 2: Then click on Add
Restaurant to add the restaurant to the Zomato Listing
 (Source : www.zomato.com)

 RATING & REVIEWS:

On Urbanspoon, restaurants had an absolute rating system based on the percentage of
people 'Liking' a restaurant. So if 80 out of 100 people 'Liked' a restaurant and 20 down-
voted it, the restaurant's score would be 80% – not taking into account the people who
may not have enjoyed their experience there.

 DELIVER OF FOOD:

To begin with, through its food delivery business, Zomato charges a commission to the
restaurants on the basis of orders. While users pay a delivery fee, Zomato earns
through restaurants who pay a commission for each delivery, which is then split among
the delivery partner and the company.
2.7 OWNERSHIP PATTERN:

Holder's Name No of Shares % Share Holding

Mutual Funds 23.59 3.01%
Insurance Companies 1.25 0.16%
FI/Bank 4.83 0.62%
Foreign Portfolio investors 60.31 7.69%
Foreign Venture capital investors 8.79 1.12%
Others 1.32 0.16%

(Source : www.economictimes.com)

2.8 ACIEVEMENT AND AWARDS:

Zomato, the food delivery and restaurant discovery company that blazed a new trail with its
stellar public listing earlier this year, won top honours at the seventh edition of India’s most
prestigious awards for entrepreneurship — The Economic Times Startup Awards.

At a virtual meeting that lasted for about two hours on September 24, a high-powered jury led by
Infosys cofounder and non-executive chairman Nandan Nilekani, chose winners across nine
categories from a shortlist of 44 contenders.

The jury, comprising a veritable who’s who in entrepreneurship, finance and corporate
leadership from across the globe, chose winners with ambition to break new ground, demonstrate
the ability to build large, scalable businesses and possess the perseverance to tide over tough
times that are intrinsic to starting up but even more so amid a once-in-a century pandemic.

“Zomato has broken the glass between the private and the public universe. These two have been
a parallel universe for a decade. The fact that somebody burst out of the private universe and had
such a spectacular success on the consciousness of the public markets, that itself is astonishingly
mind-blowing achievement…,” Nilekani said.
The Gurgaon-based company, with a market cap of Rs 1.07 lakh crore on the BSE as of
September 24, joins a list of eminent winners that have previously bagged the award for Startup
of the Year such as Ola, Freshworks, Swiggy, Oyo, Delhivery and Zerodha.

Apart from being the first high-profile consumer internet unicorn to go public (unicorns are companies
valued over $1 billion), Zomato NSE -0.18 %’s successful listing, which came soon after it had weathered
the upheaval wrought by Covid-19 also found mention with the jury taking note of the company’s
tenacity and persistence. In 2014, Zomato was chosen as the Startup of the Year in this paper’s flagship
event — The Economic Times Awards for Corporate Excellence.

Notable also was the choice of Sanjeev Bikhchandani, cofounder of Info Edge as the winner of
the Midas Touch Award for Best Investor for what the jury described as his exemplary impact on
the Indian startup ecosystem first as an entrepreneur and now, as one of the country’s most
successful investors with his early bet on Zomato.

“He (Bikhchandani) is the Bhishma Pitamaha of the (Indian) startup ecosystem,” said Navi
Technologies founder and CEO Sachin Bansal, using a term denoting an elder statesman drawn
from the epic Mahabhara

The award for the Bootstrap Champ went to Kovai, a SaaS startup based across Coimbatore and
London, while the prize for Top Innovator went to Log9 Materials. Ixigo cofounders Aloke
Bajpai and Rajnish Kumar were chosen as winners of the Comeback Kid category.

The startup adjudged as the Best-on-Campus was FamPay, while Lizzie Chapman, the cofounder
of ZestMoney, was the winner of the Woman Ahead prize.

Genrobotic Innovations bagged top honours in the Social Enterprise category for the use of
robots in fostering deep and impactful social change.

While Urban Company emerged on top in the newly introduced category for this year — Covid-
led Business Transformation.
2.9 FUTURE GROWTH AND PROSPECTS:

If you look at Zomato as a company, it has been doing well. The pandemic has worked
completely in its favour because of delivery taking a sharp uptick and dine-in coming down as
restaurants are shut or open with restrictions.

The first nine months of FY21 has seen a massive turnaround. The order values have gone up by
almost 40%. Most of these trends are not sustainable in nature.

The order value went up because people started ordering food from premium restaurants. Once
things come back to normalcy, people will again go back to dine-in and pay for the entire
experience as a whole. Delivery charges went up almost 70% as the order value went up and
dine-in frequency came down.

Some of these trends in terms of AOV uptick in discounting may not be sustainable because if
you have to drive the frequency you may have to start giving discounts. If you look at a steady
state and a structural story basis, Zomato is poised for a growth of almost 25-30% and that is
driven by multiple structural factors. One is the increased penetration of smartphones in India.
Zomato is entering into new markets - Tier-II and Tier-III cities.

Info Edge trades at a very premium multiple because of the scale, market leadership and
profitability. Zomato's valuations will be based on the growth rate one is looking at. A growth
rate of 25-30% is fair at a steady state for the next five years. The second factor would be in
terms of the scarcity premium.

CHAPTER-3

MCKINNEY’S 7S FRAME WORK

 Mckinney’s 7s frame work is a tool that analyzes firm’s organizational design by looking at 7
key internal elements: strategy, structure, systems, shared values, style, staff and skills, in order
to identify if they are effectively aligned and allow organization to achieve its objectives.

The model can be applied to many situations and is a valuable tool when organizational design is
at question. The most common uses of the framework are:

 To facilitate organizational change.

 To help implement new strategy.
 To identify how each area may change in a future.
 To facilitate the merger of organizations.

7s factors :
In McKinsey model, the seven areas of organization are divided into the ‘soft’ and ‘hard’ areas.
Strategy, structure and systems are hard elements that are much easier to identify and manage
when Hard S Soft S

Strategy Style

Structure Staff

Systems Skills

Shared Values
compared to soft elements. On the other hand, soft areas, although harder to manage, are the
foundation of the organization and are more likely to create the sustained competitive

Strategy :

 is a plan developed by a firm to achieve sustained competitive advantage and successfully
compete in the market. What does a well-aligned strategy mean in 7s McKinsey model? In
general, a sound strategy is the one that’s clearly articulated, is long-term, helps to achieve
competitive advantage and is reinforced by strong vision, mission and values. But it’s hard to tell
if such strategy is well-aligned with other elements when analyzed alone. So the key in 7s model
is not to look at your company to find the great strategy, structure, systems and etc. but to look if
its aligned with other elements. For example, short-term strategy is usually a poor choice for a
company but if its aligned with other 6 elements, then it may provide strong results.

Structure : represents the way business divisions and units are organized and includes the
information of who is accountable to whom. In other words, structure is the organizational chart
of the firm. It is also one of the most visible and easy to change elements of the framework.

Systems : are the processes and procedures of the company, which reveal business’ daily
activities and how decisions are made. Systems are the area of the firm that determines how
business is done and it should be the main focus for managers during organizational change.
Skills : are the abilities that firm’s employees perform very well. They also include capabilities
and competences. During organizational change, the question often arises of what skills the
company will really need to reinforce its new strategy or new structure.

Staff : element is concerned with what type and how many employees an organization will
need and how they will be recruited, trained, motivated and rewarded.

Style : represents the way the company is managed by top-level managers, how they interact,
what actions do they take and their symbolic value. In other words, it is the management style of
company’s leaders.

Shared Values : are at the core of McKinsey 7s model. They are the norms and standards that
guide employee behavior and company actions and thus, are the foundation of every
organization.

Using the tool

As we pointed out earlier, the McKinsey 7s framework is often used when organizational design
and effectiveness are at question. It is easy to understand the model but much harder to apply it
for your organization due to a common misunderstanding of what should a well-aligned elements
be like.

We provide the following steps that should help you to apply this tool:

Step 1. Identify the areas that are not effectively aligned

During the first step, your aim is to look at the 7S elements and identify if they are effectively
aligned with each other. Normally, you should already be aware of how 7 elements are aligned in
your company, but if you don’t you can use the checklist from WhittBlog to do that. After
you’ve answered the questions outlined there you should look for the gaps, inconsistencies and
weaknesses between the relationships of the elements. For example, you designed the strategy
that relies on quick product introduction but the matrix structure with conflicting relationships
hinders that so there’s a conflict that requires the change in strategy or structure.
Step 2. Determine the optimal organization design

With the help from top management, your second step is to find out what effective organizational
design you want to achieve. By knowing the desired alignment you can set your goals and make
the action plans much easier. This step is not as straightforward as identifying how seven areas
are currently aligned in your organization for a few reasons. First, you need to find the best
optimal alignment, which is not known to you at the moment, so it requires more than answering
the questions or collecting data. Second, there are no templates or predetermined organizational
designs that you could use and you’ll have to do a lot of research or benchmarking to find out
how other similar organizations coped with organizational change or what organizational designs
they are using.

Step 3. Decide where and what changes should be made

This is basically your action plan, which will detail the areas you want to realign and how would
you like to do that. If you find that your firm’s structure and management style are not aligned
with company’s values, you should decide how to reorganize the reporting relationships and
which top managers should the company let go or how to influence them to change their
management style so the company could work more effectively.

Step 4. Make the necessary changes

The implementation is the most important stage in any process, change or analysis and only the
well-implemented changes have positive effects. Therefore, you should find the people in your
company or hire consultants that are the best suited to implement the changes.

Step 5. Continuously review the 7s

The seven elements: strategy, structure, systems, skills, staff, style and values are dynamic and
change constantly. A change in one element always has effects on the other elements and
requires implementing new organizational design. Thus, continuous review of each area is very
important.
Example of McKinsey 7S Model

We’ll use a simplified example to show how the model should be applied to an existing
organization.

Current position #1

We’ll start with a small startup, which offers services online. The company’s main strategy is to
grow its share in the market. The company is new, so its structure is simple and made of a very
few managers and bottom level workers, who undertake specific tasks. There are a very few
formal systems, mainly because the company doesn’t need many at this time.

Alignment

So far the 7 factors are aligned properly. The company is small and there’s no need for complex
matrix structure and comprehensive business systems, which are very expensive to develop

McKinsey 7s Example (1/3)

Aligned?

Strategy Market penetration Yes

Structure Simple structure Yes

Few formal systems. The systems are mainly concerned with

customer support and order processing. There are no or few
Systems Yes
strategic planning, personnel management and new business
generation systems.

Few specialized skills and the rest of jobs are undertaken by the
Skills Yes
management (the founders).

Staff Few employees are needed for an organization. They are motivated Yes
 by successful business growth and rewarded with business shares,
of which market value is rising.

Style Democratic but often chaotic management style. Yes

Shared
The staff is adventurous, values teamwork and trusts each other. Yes
Values

Current position #2

The startup has grown to become large business with 500+ employees and now maintains 50%
market share in a domestic market. Its structure has changed and is now a well-oiled bureaucratic
machine. The business expanded its staff, introduced new motivation, reward and control
systems. Shared values evolved and now the company values enthusiasm and excellence. Trust
and teamwork has disappeared due to so many new employees.

Alignment

The company expanded and a few problems came with it. First, the company’s strategy is no
longer viable. The business has a large market share in its domestic market, so the best way for it
to grow is either to start introducing new products to the market or to expand to other
geographical markets. Therefore, its strategy is not aligned with the rest of company or its goals.
The company should have seen this but it lacks strategic planning systems and analytical skills.

Business management style is still chaotic and it is a problem of top managers lacking
management skills. The top management is mainly comprised of founders, who don’t have the
appropriate skills. New skills should be introduced to the company
.

McKinsey 7s Example (2/3)

Aligned?

Strategy Market penetration No

Structure Bureaucratic machine Yes

Order processing and control, customer support and personnel

Systems No
management systems.

Skills related to service offering and business support, but few

Skills No
managerial and analytical skills.

Staff Many employees and appropriate motivation and reward systems. Yes

Style Democratic but often chaotic management style. No

Shared
Enthusiasm and excellence No
Values

Current position #3

The company realizes that it needs to expand to other regions, so it changes its strategy from
market penetration to market development. The company opens new offices in Asia, North and
South Americas. Company introduced new strategic planning systems hired new management,
which brought new analytical, strategic planning and most importantly managerial skills.
Organization’s structure and shared values haven’t changed.

McKinsey 7s Example (3/3)

Aligned?

Strategy Market development Yes

Structur
Bureaucratic machine No
e

Order processing and control, customer support,

Systems personnel management and strategic planning Yes
systems.

Skills Skills aligned with company’s operations. Yes

Employees form many cultures, who expect different

Staff No
motivation and reward systems.

Style Democratic style Yes

Shared
Enthusiasm and excellence No
Values

Alignment

Strategy, systems, skills and style have changed and are now properly aligned with the rest of the
company. Other elements like shared values, staff and organizational structure are misaligned.
First, company’s structure should have changed from well-oiled bureaucratic machine to division
structure. The division structure is designed to facilitate the operations in new geographic
regions. This hasn’t been done and the company will struggle to work effectively. Second, new
shared values should evolve or be introduced in an organization, because many people from new
cultures come to the company and they all bring their own values, often, very different than the
current ones. This may hinder teamwork performance and communication between different
regions. Motivation and reward systems also have to be adapted to cultural differences.

We’ve showed the simplified example of how the Mckinsey 7s model should be applied. It is
important to understand that the seven elements are much more complex in reality and you’ll
have to gather a lot of information on each of them to make any appropriate decision.

The model is simple, but it’s worth the effort to do one for your business to gather some insight
and find out if your current organization is working effectively
 CHAPTER 4

SOWT ANALYSIS

Strength :

The first tool of SWOT is the Strengths. These are the factors are that put the company at the top
and promising within the industry. Following are the strengths of Zomato –

 First Service Providers: Zomato was one of the first companies to start up their services
in India, resulting in a large customer base of over 90 million customers. Other directories and
various types of restaurant evaluations may exist, but owing to the user-friendliness of the
Zomato app, it is frequently the first option among customers.
 Evergreen nature of the Restaurant Industry: It is common knowledge that the
restaurant industry is an evergreen industry. Of course, there might be some kind of slump or
economic decline which might affect the industry but it will always be going to pick itself up.
This is such a steady and mandatory industry that this is bound to stay for all times and is only
going to grow in future.
 User-friendly Interface: Zomato has already bagged several awards for its fantastic
design and the user-friendliness of the app. It makes it easy and fast for the customers in their
search for restaurants in your vicinity or at the locations you’re planning to visit.
 Well Connected: Zomato is pretty well connected with various restaurants and pubs and
receives daily feedback from both customers and the restaurant personnel. This focussed
approach had helped in building the brand image and its reputation.
 Strong funding: Since this brand is being established in several nations over the years,
the firm has received excellent funding and backup from various organisations and hence has a
lot of funds available for further improvement of the app.
 Profitable: Last year it had been declared that Zomato is being profitable in 24 countries
it is operating in. Since Zomato is a start-up company and has strong funding, it is very
commendable that this is turning out profitable because there are many cases where well-funded
start-up companies are still under heavy losses despite being established for several years.
 Brilliant Marketing Strategy: Zomato despite being an online entity does its marketing
both online as well as offline. The ads created by Zomato are so creative and realistic that it
makes an instant connection with the customers. It has a strong presence and a massive following
on various social media platforms and with its daily updates about its latest offers and discounts,
it does its digital marketing superbly.

First mover advantage – One of the best competitive advantages of Zomato is that it is the first
mover in many of the nations where it is establishing itself. Directories and other forms of
restaurant ratings might exist. But as an app Zomato is excellent and many countries (like India)
have loved the usability of the Zomato app.

Evergreen industry – The restaurant industry is an evergreen industry. Sure, there may be
recessions and other downturns which might affect the industry. But overall, this industry is
going to stick around at all times and is only going to grow with rising disposable income.

Fast Expansion – It is appreciative that Zomato has expanded so fast. It is already in 24 countries
and is expanding year on year.

Fantastic design of the app – Zomato has regularly won awards for its app design and for its
user-friendliness. The App design is fantastic and it helps you discover restaurants nearby as well
as in an area you are going to visit.
 Number of users – Zomato has a huge number of users using their app. At the same time, the site
also has 90 million visitors a month approximately. With so many users following the app and
site, there are more reviews and hence more chances to find better restaurants.

Focused approach – The brand has a very focused approach and has always tried to bring the
most of out of its unique offering. It is well connected with restaurants and regularly takes
feedback from customers as well as restaurants. This focused approach has also helped the brand
image and reputation of the firm.

Excellent funding available – Zomato has picked multiple rounds of funding over the years and
because it is now so well established in many countries, there is a lot of funding available for the
app.

Multiple acquisitions – Zomato has acquired multiple companies most of which are software
or technology related.

Already turning profits – In April 2017, Zomato was profitable in all 24 countries it was
operating in. For a company which is a start-up and has so much funding, it is a big thing to turn
profitable because many funded organizations are still declaring losses even after a decade of
establishment.

Brand Equity – Zomato is valued at $1.4 billion within 7 years of inception. That says volumes
about the popularity and love for the brand.

Fantastic marketing – You can find Zomato working for its own marketing offline as well as
online. Its print ads are hilarious and make an immediate connect with the audience. It is strong
on Social media marketing and uses a combination of ATL and BTL strategies to attract and
retain customers.

Weakness :

 Security Issues: Over its tenure till now, the app has been hacked several times and the
data of at least 17 million users were being put at risk. These kinds of security issues are like
living hell for a developing internet company like Zomato.
 Inefficient Expansion: Since it has been 10 years since this app started and it has
established itself in 24 countries till now, it has been steady growth. But it could have been better
given the huge funding it possesses. Zomato is allowing other services to establish themselves in
this particular niche despite being already present in those countries first. This should not be
allowed as they are paving the way for tougher competitions by themselves only.
 Increased Competition: Competition from search engines and other similar food
discovery and delivering apps like Swiggy creates a lot of hindrance for the growth of the brand
in any particular location.

Security issues for the app – A major issue for Zomato in the past has been some security issues
due to which the app was hacked and at least 17 million users data was copied. Such security
issues are a nightmare for internet companies.

Still a lot of expansion required – Considering that the app has established in 24 countries, there
is good expansion. But at the same time, the app has been started 7 years back and with the
amount of funding available for Zomato, the expansion can be much faster. It is allowing other
services to establish themselves in this niche before it reaches their country.

Word of mouth and Facebook check-ins – Besides such apps, in many places word of mouth still
trumps apps and at the same time, Facebook check-ins are a strong competitor
wherein people might not need Zomato. Thus, it is an app for early adopters but definitely not for
laggards.

Opportunity :
 Opportunities is a useful analysis conducted within every business. This provides the
organisation with a few specific goals they need to focus on to stay a step ahead of their
competitors. Let’s look at what Zomato can seize – 

 Scope of Expansion in future: Zomato needs to expand its reach to various other

countries and it needs to establish its base faster. It is a major issue in the service sector that
services can be very easily copied and implemented. Hence Zomato needs to establish and
expand itself faster than others in order to stay ahead of the curve.
 More Acquisitions: There are many new players emerging in this field daily, both small
and big. Zomato can initiate a partnership with several of its competitors and at the same time
keep an eye on the latest technologies and trends happening around to stay ahead and grow
further.
 Online Users: In the past few years, the number of smartphones and internet users has
been increased tremendously. And so companies like Zomato has a very lucrative opportunity to
approach new users and convert them into their customers. Also due to the covid-19 pandemic,
the platform’s growth has further enhanced. 

Further expansion – The number 1 opportunity for Zomato is to expand to more countries and
establish its base faster. Service industry has a major problem that services can be copied very
fast and very easily. As a result, it is critical for Zomato to establish and expand itself faster.

More acquisitions – There are and were many small players in this space. Zomato can acquire
several of its competitors and at the same time, it has to keep an eye on the tech industry and
acquire any tech innovation it can get its hands on to keep on rising.
Cloud restaurants – Zomato is coming up with the concept of Cloud restaurants wherein
restaurants will not have to get a physical space to actually sell their food products. Instead, they
can sell from Zomato.

Creating a community – Zomato does have a huge following but the users do not interact with
each other. Creating a forum and a community out of the users already following Zomato can be
a huge benefit for the brand.

Adoption of the internet and Smartphones – There is a huge increase in the adoption of Internet
across developing and underdeveloped countries as well. Similarly, adoption of smartphone has
also increased. Thus more and more orders and research about restaurants can happen online
instead of through physical visits.

Threat :

Last, under the segment of SWOT Analysis of Zomato, we have the Threat. These factors are
important to consider as it protects the organisation from dealing with potential losses and more.

Fragile Business Model – We can not forget that Zomato is the first one in this niche to
arrive in the Indian market. It sure has the early mover advantage. There was enough scope for
the firm to exploit its business model in the international market. But lately, the company
business model has somewhat turned fragile. Any new tech company with enough knowledge
and expertise in this field can now exploit the model.
Policies by the Government – Various issues like identity theft, cybersecurity, data
privacy issues, etc have made the general public aware and really cautious about their online
activity. Due to these reasons, governments are bringing up new policies and regulations for
these internet platforms to follow. These policies really hinder the steady flow of the business
model of the companies.
Tough Competition – As this is quite evident, the online food delivery market has very
tough competition. These harsh conditions make life difficult for the company in order to grow
and prosper.

 
A SWOT Analysis provides every organisation with a specific goal and hence helps businesses
like Zomato to avoid harmful risks and benefit from opportunities. This brings us to the
conclusion of the SWOT Analysis of Zomato. We’ll wrap up the case study in the segment
below.

Google’s schema module – One of the major threats Zomato faces right now is the Schema
module of Google wherein google locations itself is getting in restaurant recommendations. Even
google homepage shows the google maps page where you can search for restaurants within your
locality. Google being such a big brand, zomato faces huge competition from them.

Market followers and challengers – In the service industry, it is very easy to replicate the success
of another service product or offering. Similarly, marketing followers and challengers can slowly
take away the market share of Zomato.
 Conclusion
 

Zomato is one of the leading companies in the online food delivery market. It is imperative that
Zomato should expand its platform and improve its reach to a greater audience base. They should
invest more in new technologies and grab hold of them. Additionally, they should take a look at
those security issues and make sure that they got resolved. And they should establish their base
on other 3rd world countries to gain the most out of them.

Zomato is increasing its reach day by day. By now it is already in 25 countries with 1.5 million
listed restaurants and this data will not stop here. They should begin establishing their base in
other 3rd world countries to gain the most out of them.

Zomato is an online-based service platform, hence they make the best use of the digital platform.
They utilise various digital marketing channels such as SEO, Emailing and Content Marketing to
promote their newer service and offers. 

To be a part of leading online service providers such as Zomato, gaining expert knowledge of the
Digital Marketing industry is vital. IIDE provides training in a variety of digital skills and
knowledge, including Short Term Certification Courses that can bring you up to speed in as little
as five days. Check out  IIDE’s short-term certification courses, which include topics like social
media marketing, media planning, and SEO.

If you enjoy the in-depth SWOT Analysis of Zomato, check out our IIDE Knowledge section for
more interesting case studies. Thank you for taking the time to read this, please comment below
with your opinions on the case study.
 Chapter 5

ANALYSIS OF FINANCIAL STATEMENT

Profit and loss account of zomoto company

Table No:5.1
Balance sheet of zomoto company limited

Mar- Mar- Mar- Mar- Mar-

Particulars 21 20 19 18 17
Equities and liabilities          
Share holders fund          
Equity share capital 0.03 0.03 0.03 0.03 0.03
Total share capital 0.03 0.03 0.03 0.03 0.03
7754. 601.4 2792. 1172. 512.5
Reserves and surplus 5 1 1 3 3
7754. 601.4 2792. 1172. 512.5
Total reserves and surplus 5 1 1 3 3
7754. 601.4 2964. 1244. 512.6
Total share holders fund 5 4 5 8 7
Non-currnt liabilities          
long term borrowings 0 0 0 0 0
Deffered tax liabilities 0 0 0 0 0
1456.
Other long term liabilities 46.69 1 48.96 2.53 2.09
long term provissions 19.73 12.87 10.94 5.71 0.9
1468.
Total Non-current liabilites 66.41 9 59.9 8.24 2.99
current liabilities          
short term borrowings 0 0 0 0 0
274.0 315.6
Trade payable 7 256.8 3 52.05 8.35
193.4 400.8 228.1
Other current liabilities 5 3 1 31.5 9.83
short term priovissions 4.85 4.95 2.29 1.73 0.05
472.3 662.5 546.0
Total current liabilities 7 7 3 85.28 18.27
 8748. 2985. 3814. 1512. 683.1
Total capital and liabilities 2 4 2 7 2
Assets          
Non-current assets          
Tangible assets 57.54 93.39 34.32 3.72 13.53
Intangible assets 1393 1486. 0.13 0.48 0.45
1
capital work in progress 0 0 0.32 0.75 2.1
Other assets 0 0 0 0 0
1450. 1580.
Fixed assets 6 3 35.19 5.48 16.09
311.7 200.3 664.2 417.5 469.6
Non-current investment 4 1 4 9 9
Deffered tax assets 0 0 0 0 0
long term loans and
advances 0 0 0 0 3.97
3009.
Other non-current assets 9 22.7 10.33 50.69 0.21
4772. 1803. 709.7 473.7 489.9
Total non-current assets 3 3 6 7 7
Current assets          
2194. 323.9 2134. 819.6 164.2
Current investments 1 2 3 6 4
Inventories 0 0 0 0 0
123.7 132.7
Trade receivables 1 2 62.66 19.05 8.95
765.1 279.3 152.5 146.6
cash and cash equivalents 8 8 1 5 13.03
short term loans and
advances 40 31.02 4.16 0.02 6.93
852.9 415.0 750.8
other current assets 5 3 3 53.52 0
 1182. 3104. 1038. 193.1
Total current assets 3976 1 4 9 6
8748. 2985. 3814. 1512. 683.1
Total assets 2 4 2 7 2

Ratios analysis

1) Current ratio

Current ratio=current assets/current liabilities

Curre Current
nt liabilitie Ratio
Year assets s s
2021 3976 472.37 8.42
2020 1182.1 662.57 1.78
2019 3104.4 546.03 5.69
2018 1038.9 85.28 12.18
2017 193.16 18.27 10.57
Interpretation: from the table we can conclude that the company had better current ratio in
some financial years. And bad current ratio in some financial years that is below standard ratio.
In 2021 the company had very good current ratio that is 8.42, in 2020 it had current ratio of 1.72
low ratio, in 2019 it had very good current ratio that is 5.49, in 2018 it had current ratio that is
12.80, in 2017 it had current ratio of 10.57.

2) Quick ratio

Quick ratio= Quick assets/Quick liabilities

Quick assets=Current assets-stock

 1 Current
Curren
2 liabilitie
1 1
3
Year t assets
2 s 1 Ratios 2
4 3 2 3
2021 3976 1 472.37
3 8.42 4
5 4
2020 1182.1 2 662.57
4 1.78 5
5
3 5
2019 3104.44 546.03 5.69
5
2018 1038.9 85.28 12.18
2017 193.16 18.27 10.57

1
2
3
4
5

Interpretation: Here current ratio and quick ratios same because zomoto company
doesn’t had inventories. The company had very good quick ratio which is good for
company. It is necessary to maintain current assets at high rate than current
liabilities so zomoto had very good quick ratios in 2021 the company had quick
ratio of 8.42, in 2020 it had quick ratio of 1.72, in 2019 it had quick ratio of 5.69,in
2018 it had quick ratio of 12.18 and in 2017 it had quick ratio of 10.57.

3)Debtors turnover ratio

Debtors turnover ratio=Sales/Average debtors

Average debtors=Opening debtors or Bills receivables + closing debtors or bills
receivables /2

Year Sales Average debtors Ratios

2021 1845.8 123.71 14.92
2020 2485.8 132.72 18.73
2019 1305.5 62.66 20.83
2018 388.46 19.05 20.39
2017 94.98 8.95 10.61
Interpretation: from this above table we could conclude that the company had very good
debtors turn over ratios. In year 2021 it had debtors turnover ratio of 14.92 times, in 2020 it had
debtors turnover ratio of 18.73, in year 2019 it had debtors turnover ratio of 20.83, in year 2018
it had debtors turnover ratio of 20.39, in year 2017 it had debtors turnover ratio of 10.61. By
considering this all over year performance company had good debtors turnover ratio.

4) Net profit ratio

Net profit ratio=Net profit/Sales(100)

Net
Year Sales loss Ratios
-
2021 1846 886.01 -48.1
-
2020 2486 245.21 -9.86%
-
- 42.24
2019 1351 570.53 %
-
388. 20.20
2018 5 -78.49 %
94.9 75.07
2017 8 -71.31 %
Interpretation: in the table we could conclude that the company had very bad net profit ratio
because it incurred net loss in lost five years. So company need to increase its profit to sustain in
market and also attract the investors. Company also had very high debtors turnover so first they
need to collect the old debts to incur profit.

5) Gross profit ratio:

Gross profit= Gross profit/sales(100)

Gross Ratio
Year profit Sales s
2021 1635.9 1845.8 88.62%
2020 2130 2485.8 85.68%
2019 1142.9 1350.5 84.62%
2018 371.03 388.46 95.51%
2017 78.84 94.98 83.60%
 Interpretation: By seeing this table we conclude that the company have very good financial
statement reason is company have good gross profit ratios. The company have good gross profit
ratio but due to high expenses company have net loss.

6) Stock turnover ratio

Stock turnover ratio=Sales/average debtors

Average debtors = Opening debtors or bills payable+Closing debtors or bills payable/2

Year Sales Average debtors Ratios

2021 1845.8 274.07 6.73
2020 2485.8 256.8 9.67
2019 1350.5 315.63 4.27
2018 388.46 52.05 7.46
2017 94.98 8.35 11.37
Interpretation: From the table we could conclude that The company had very
good stock turnover ratio it is increasing and decreasing year by year.

7) Fixed asset ratio:

Fixed-asset turnover is the ratio of sales to the value of fixed assets. It specifies how well the
business is using its fixed assets to produce sales. the higher the ratio, the better, since a high
ratio specifies the business has less cash tied up in fixed assets for each unit of money of sales
revenue. A decreasing ratio may designate that the business is over-invested in plant,
equipment, or additional fixed assets.

Year Net worth Fixed asset Fixed asset ratio

2021 8443 7656 0.9:1
2020 8832 7786 0.9:1
2019 9365 7503 0.8:1
2018 10528 7442 0.7:1
2017 11521 7427 0.6:1
 1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

Interpretation: The graphical prestation above shows that the company is over investing on
the fixed assets over that past 3 years. Here it also shows that the company is investing on fixed
assets is larger than the sales output of the company.

8) Return on equity ratio: The return on equity (ROE) is an amount of the effectiveness of a
business in relation to the equity. Since stockholder's equity can be intended by adding all assets
and deducting all liabilities, ROE can also be assumed of as a return on assets minus liabilities.
ROE deals how various dollars of profit are created for each dollar of stockholder's equity. ROE
is a metrical of how well the corporation uses its equity to make profits.

year EBIT Share holders Return on equity

fund
2021 1537 8443 18%
2020 1474 8661 17%
2019 1909 9355 20%
2018 2045 10531 19%
2017 2409 11543 20%
 1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

Interpretation: It’s the ratio that shows how much did the company’s shareholder get their
profit as compared to their share they have brought. In 2017 return on equity was 20% in 2018 it
was decreased to 19% from then the ROE was increasing drastically for all most 3 years in 2019
the ROE is 20%.

9) Capital turn over ratio: A ratio of how efficiently a publicly-traded corporation

manages the money invested in it to produce incomes. It is intended by taking the total of the
corporation's yearly sales and dividing it by the average shareholder equity, which is the average
total of money financed in the corporation.

Year Net sales Capital employed Capital turn over

ratio
2021 11433 8443 1.4 times
2020 10722 8832 1.2 times
2019 12909 9365 1.4 times
2018 14477 10528 1.4 times
 2017 15343 11521 1.3 times

1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

Interpretation: The above graph shows how the company effectively uses the capital revenue
in the company here we can see that in 2021 and 2019 the ratio capital turnover ratio is 1.2 and
1.3 respectively. Except these two other 3 years 2020, 2017, 2018 the ratio is 1.4 times of the
sales have been done to the investment of their capital of the company.

10) Proprietory ratio: The proprietary ratio is the part of shareholders equity to total assets,
and as such delivers a uneven estimation of the amount of capitalization presently used to
provision a business. If the ratio is high, this designates that a corporation has a enough amount
of equity to support the purposes of the business, and possibly has room in its financial structure
to take on added debt.

Year Net worth Total asset Proprietory ratio

2021 8443 12840 0.65:1
2020 8832 13437 0.65:1
2019 9365 14845 0.63:1
2018 10528 16055 0.65:1
2017 11521 17135 0.67:1
 1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

Interpretation: The above graphical representation shows that in the year 2019 the
proprietary ratio is 0.63. which is the lowest in the past 5 years except 2018 all the above years
has the proprietary ratio above 0.65. which shows that the ability to take the debt as increasing
over past 5 year

Chapter 6

Learning experience

Organization study is the kind of work experience offered by organization to students. I learned
so much experience and skills from this organization study, mainly I learned how behave in
organization and with sub worker. I understood the profile and images of future life style and
fashion limited. I have got confidence of doing any internship in future belongs to PHD or higher
studies. I learned future lifestyle and fashion limited 7s frameworks of micknsy’s, in that I have
learned structure, system, strategy as hard elements and shared values, skills, style, staff, as soft
elements. I also learned strengths, weakness, opportunities and threats of future lifestyle and
fashion limited. I have also learned the management and decision making power of companies