A

PROJECT REPORT
ON

MINI PROJECT ON PREM MOTOR

FOR PARTIAL FULFILLMENT OF THE
REQUIREMENT FOR THE AWARD OF THE
DEGREE
OF

MASTERS OF BUSINESS
ADMINISTRATION
SESSION-2023-24

Under the guidance of : Submitted by :

Miss. Shivani Sharma Km. Rani
MBA-II Sem

NEELAM COLLEGE OF
ENGINEERING & TECHNOLOGY, AGRA
(AFFILIATED TO DR. A.P.J. ABDUL KALAM
UNIVERSITY, LUCKNOW)

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 ACKNOWLEDGEMENT

This is a great opportunity to acknowledge and to thanks all those persons

without whose support and help this project would have been impossible.
We would like to add a few heartful words for the people who were part of
this project in numerous ways.

I thanks my Director for his indispensible support and encouragement

though the project.

I would like to thanks to my project guide for his indefatigable guidance,

valuable suggestion, moral support, constant encouragement and
contribution of time for the successful completion of project work. I am
very grateful to him for providing all the facilities needed during the
project training development.

I thank my counselor for their indispensable support and encouragement

though the project. I would like to thank project guide & all those who
helped me directly or indirectly.

Km.Rani
MBA-II Sem

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 CERTIFICATE

This is to certify that the research project report title PREM MOTOR submitted
by KM. Rani for partial fulfillment of the requirement of Masters of Business
Administration Degree Batch (2022-2023) as per the requirement of the MBA
curriculum from DR. A.P.J. ABDUL KALAM UNIVERSITY,
LUCKNOW, embodies the bonafide work done by her under my
supervision.

(Head of Dept.) (Internal Examiner)

Miss Shivani Sharma
(External Examiner)

Date : ……………………………
Place : ……………………………

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 DECLARATION

I, Km. Rani of MBA- II Sem from Neelam College of Engineering and

Technology, Agra affiliated to Dr. A.P.J. Abdul Kalam University, Lucknow
hereby declare that all the information, facts and figures presented in this
training report are first hand in nature. They are in fact based on my project
titled “Prem Motors”
The project training work was not earlier submitted elsewhere for the
award of any degree, diploma or equivalent.

Date (Signature of Candidate)

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 CONTENTS

 Introduction

 Company Profile

 Company History

 Company Object

 Company Product & Service

 Quality Policy

 Company Swat Analysis STR, W, OPR,Thread

 Block Chain

 7's & Porter Model

 Limitations

 Conclusion

 Bibliography

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 INTRODUCTION

Prem Motors is one of the leading names in Automobiles dealership of Maruti

Suzuki. Prem Motors Pvt. Ltd. a company incorporated under the Companies

Act having its registered office at Kanwal Complex, A G Office Road, Gwalior

came into existence as a Private Limited Company on 28 th November, 1990. Mr

Charanjeet Nagpal is the main promoter of Prem Motors Pvt. Ltd. who

established the organization in the year 1990 when he acquired a dealership of

Rajdoot Motorcycles, formerly a proprietary firm called “Prem Motors”. With

the motto of Customer Satisfaction, Prem Motors started its journey with Maruti

Suzuki in Gwalior in the year 2001. Being the Maruti Suzuki’s largest and fast

growing dealer in India - Prem Motors has extended its wings through various

network of 34 Showrooms, 21 Workshops, 6 True Value Outlets & 3 Driving

Schools spread across 5 States (Delhi, Haryana, Madhya Pradesh, Rajasthan &

Uttar Pradesh). Prem Motors is a one-stop-shop for Sales, Service, Accessories,

Finance and Insurance. We are committed to deliver the best of Maruti Suzuki

to you. Because we care for you… Always!!

Prem Motors awarded for being a ROYAL PALTINUM & ALPHA

BAND Dealer for the 2ND consecutive year in a row. Prem Motors has been

associated with Maruti Suzuki since its inception and has received several

awards for Sales, Service, Parts and Customer Satisfaction. Winning accolades

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have become a way of life with Prem Motors and we have bagged lot of laurels

and awards from Maruti Suzuki. The focus on employee satisfaction has made

Prem Motors to be better equipped to respond to faster changing customer

demands. At this point of time Prem Motors is well positioned for further

growth.

Prem Motors ensures to offer its customers a unique buying experience and

matches that with an equal commitment to offer high quality customer

satisfaction and best in class after sales services. We have delivered 25,000 new

vehicles and serviced 220,000 vehicles in the year 2017-18 across 5 States. The

Positive Approach, Determination & Vision of the Dealer Principle & the team

has been the driving force to achieve our goals. Prem Motors enjoys a very

good reputation among all the institutions it deals with, like Principal

Manufacturers, Finance Companies, Insurance Companies, Bankers, and

Customers besides its Employees. The Group is known in the auto retail

industry and among its Principals and Financiers as one of the most

professionally managed and transparent organization.

Prem Motors is having highly professional & motivated team, dedicated

leaders providing their prompt, efficient services to our customers with utmost

priority being the Quality of Service and Customer Satisfaction. Our longevity

and success represent an unmatched commitment to our esteemed customers,

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solid knowledge of the Indian Market and to a certain extent our competitive

advantage with our large customer database, distribution network and customer

services. We know that Maruti Suzuki is an integral part of all your

celebrations. Prem Motors is always ready for the same to deliver.

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 COMPANY PROFILE

Mr. Charanjeet Nagpal, Chairman and Managing Director, Prem Motors Pvt. Ltd. started

his entrepreneurial career in 1981 with a small shop at Gwalior dealing in automobile

spare parts. He took over a dealership of Rajdoot Motorcycles in July 1989 as a on going

concern known as “Prem Motors” and over the period with strong intentions,

determination and commitment to provide value for money to esteemed customers; he

emerged as the market leader and earned the image of a hardworking and self-made

successful entrepreneur in Gwalior.

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 COMPANY HISTORY

This company has been the first choice of Indian customers for a very long time now. 

India was regaining the glory after independence. People started to look out for ways to

live an elegant life. But yet, no one was spending a lot on cars. Brands like Premier and

Hindustan Motors were trying hard to gain customers to which they were a lot successful.

Sanjay Gandhi is to be credited with the establishment of Maruti Udyog Limited in

1981.

In October 1982, Maruti Udyog limited merged with the Japenese automobile company,

Suzuki. The same year, the company also set up a manufacturing unit at Gurgaon,

Haryana. With the JV between Maruti and Suzuki, the company received the right to

import 40,000 fully built Suzuki cars from Japan in the first two years, after which also

the company was planning to use about 33% of indigenous products only.

The Company, formerly known as Maruti Udyog Limited, was incorporated as a joint

venture between the Government of India and Suzuki Motor Corporation, Japan in

February, 1981. Presently, Suzuki Motor Corporation owns equity of 56.2%. The

Company’s shares are traded on the National Stock Exchange (NSE) and the Bombay

Stock Exchange (BSE).

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 COMPANY OBJECTIVE

“To be a leader in the Indian automobile industry creating customer

delight and share holder wealth, a  pride of India”

Brevity and Feasibility: Maruti’s vision is clear and specific as it wants to be “a leader

in the Indian Automobile industry”. It is also of appropriate length and it is able to

communicate its message.

b) Clarity :  The vision statement is concise.

c) Challenging:  The vision statement is very good at communication an abstract

(summary)that is clear and briefly expressed to be “a pride of India”. 

d) Organization’s Purpose: The statement describes what it intends to achieve that is to

be leader in the automobile industry and create customer delight and shareholder wealth.

e) Future focused: The statement describes the company’s on-going action

f) Desirable Goal: The statement describes goal to be a leader in the automobile

industry,the vis ion also describes the company’s fundamental values –  to create

customer delight and shareholder wealth, the statement also describes the company’s

collective identity to be “A pride of India”

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 COMPANY PRODUCT & SERVICES

MARUTI CARS

Maruti Suzuki India Limited commonly referred to as Maruti, is a subsidiary

company of Japanese automaker Suzuki Motor Corporation. It has a market share of

37% of the Indian passenger car market as of November 2012. Maruti Suzuki offers a

complete range of cars from entry level Maruti 800, Maruti Esteem and Alto, to

hatchback Ritz, A-Star, Swift, Wagon- R, Estillo and sedans DZire, SX4, in the 'C'

segment Maruti Eeco, Maruti Omni, Multi Purpose vehicle Ertiga and Sports Utility

vehicle Grand Vitara

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 QUALITY POLICY

Quality has been of paramount importance to us. We deal with only genuine components

to ensure highest standards in quality and reliability. Our quality policy has been

designed in tune with customer requirements. Our quality strategy is to maintain the

reputation of the company by constantly meeting and exceeding customer expectations

on every occasion. We ensure that all quality specifications are agreed to and clarified by

both customers and suppliers before proceeding further with the procurement process and

ensure delivery of defect free quality products always on time.

We always commit ourselves for every order equally to ensure total product quality and

reduce variation. We strive hard to constantly improve our quality, cost, delivery and

service levels towards obtaining customer satisfaction

 COMPANY SWOT ANALYSIS

Analysis of Mission Statement:

- Modernization of the Indian Automobile Industry.

- Developing cars faster and selling them for less.

- Production of fuel-efficient vehicles to conserve scarce resources.

- Production of large number of motor vehicles which was necessary for

economic growth.

- Market penetration, market development similarly product development &

diversification.

- Partner relationship management, Value chain, Value delivery network.

Analysis:

Maruti Suzuki is well maintaining the mission statement by coming up with

innovative ideas in the new era of automobile sector. They have perfectly

modernized the Indian Automobile sector. The company has recently launched a

new car “Maruti Suzuki XL6” with a most favorable price tag, as they are trying

to sell maximum car in the market with focus on low cost cars. The 3 rd mission

statement shows the company’s concern for environmental factor, that they are

putting new high fuel efficient engines so, that the scare resource could be

conserved. Maruti Suzuki always focused towards economic growth and they
are making the backbone of the economy strong (i.e. transport), they have

mentioned that they will are trying to manufacture the motor vehicles that could

help the economy to grow faster. The concern of market penetration was done

earlier but since the competition in the automobile sector has been increased so,

the market penetration is a ground breaking activity for them, but due to their

market brand and goodwill they are till at the top list in automobile sector
BLOCK CHAIN
 7'S & PORTER MODEL

There are seven shared values that make up the McKinsey 7-S Model, which include:

1. Structure

2. Strategy

3. System

4. Shared Values

5. Skill

6. Style

7. Staff
The McKinsey 7-S Framework then categorizes these seven elements into two categories:

hard elements and soft elements.

 Hard elements that are easily identifiable and influenced by leadership and

management.

 Soft elements are those that are intangible and culture-driven.

1. Strategy

The strategy element is a detailed plan that organizations create for successful change

implementation and to gain a competitive edge. A well-crafted strategy is aligned with

the other six elements of the 7-S model and is reinforced by a strong vision, mission, and

values.

2. Structure

Structure or organizational structure refers to a clear chain of command to avoid chaos &

confusion. Structure is a simple yet crucial element as it creates a sense of employee

accountability within the organization.

3. Systems

Systems refer to the business processes and operational procedures employed to complete

a business’s routine activities. An organization’s SOPs consist of such practices and

workflows that directly impact productivity and decision-making.

4. Shared Values
These are the core values governing an organization’s health. While implementing a

change, organizations expect a behavioral modification from their employees, which is

only possible in a strong change culture and organizational values.

5. Style

This element refers to the management style prevalent in a company that decides the level

of employee productivity and satisfaction.

6. Staff

This element represents the talent pool required, the size of the existing workforce, and

their motivations. It also considers how they are trained and rewarded within the

organization.

7. Skills

Skills refer to the abilities of employees to complete tasks. A study suggests that 45% of

respondents reported that a skill gap caused a loss in productivity. Skills gaps overburden

experienced employees who have to pick up the slack for their coworkers’ inexperience.

It’s essential to identify the skill gaps and create relevant employee training programs to

bridge these gaps.

 PORTER MODEL

An analysis of all five competitive forces gives you a comprehensive view of the factors
affecting profitability in your industry. When you understand each force, you
can formulate a strategy that will allow the company to better cope with competitive
forces and increase profit potential. Let's take a closer look at each force:

1. Threat of New Entrants

When an industry starts becoming profitable, it will entice new entrants. If the barriers to
entry are low, new entrants can easily capture market share and threaten profitability.

New entrants undercut prices and offer valuable alternatives to what your industry
currently provides.

A practical example of a new entry and high threat to existing players is Apple’s entrance
into the music distribution industry with the iPod. Apple entered into a new market, stole
market share from existing players, and completely changed the way we consume music
and audio content today.

On the other hand, if barriers to entry are high, it’s much harder for new entrants to
threaten your industry’s profitability.

According to Porter, there are 7 main sources that influence the height of entry barriers:

1. Supply-side economies of scale: Production at higher volumes and low costs per

unit force new entrants to come in on a large scale or at a cost disadvantage.
2. Network effect: Buyer’s willingness to pay increases as the number of buyers or
sellers for the business grows. Customer loyalty or a buyer's preference for a bigger
"network" discourages new entrants by limiting buyers’ willingness to buy from
someone new.
3. Switching costs: The higher prices/costs a customer has to pay to switch from one
supplier to another, the higher the entry barrier will be.  
 4. Capital requirement: The entry barrier can be significant for new entrants on
account of the hefty financial investment required. However, investors can provide
new entrants with the required capital if the industry returns are high and lower the
entry barrier.  
5. Unfair advantage: Industry leaders have cost or quality advantages derived from
resources that are hard to copy. An example would be patent technology, exclusive
access to raw materials sources, a strong brand identity, or a favorable
geographical location.
6. Unequal access to distribution channels: Considering the power of existing
players, it might be difficult for new competitors to break into existing distribution
channels. As an alternative, companies typically bypass traditional distribution
channels or create new ones. An example is low-cost airlines that started selling
tickets on their own websites.
7. Government policy: Government policy can lower or increase entry barriers for
new entrants. Licensing requirements, for example, can increase entry barriers. In
contrast, subsidies can make entry easier. 

2. Bargaining Power of Suppliers

Suppliers offer your industry the needed inputs to operate (e.g. components, materials,
and services). When the bargaining power of suppliers is high, there’s a strong chance
your suppliers could set higher prices for those inputs or reduce quality without
retaliation

3. Bargaining Power of Buyers

In Porter's Five Forces model, buyers are your customers. At the expense of industry
profitability, strong buyer power can lower prices, pit rivals against each other, and
demand higher quality or service.
The power of customers is higher when they are few in number and have many sellers to
choose from. Beyond this, if a large portion of a seller’s revenue is determined by a
handful of buyers, those buyers will have more leverage.

Switching costs should also be considered when determining the buyers' bargaining
power.

4. Threat of Substitute Products or Services

All firms in an industry are competing with other industries that make substitute products
or services. An example is a messaging app that is a substitute for e-mail. Or an airline
website replacing travel agents with its own ticket booking system.  

If buyers can satisfy their needs with a different product or service from an alternative
industry, that will put a lid on how high your industry can set its price.

The more attractive a substitute, the firmer the lid on industry profits. If there are many
substitutes that can perform a similar function as your product or service, then the threat
of substitutes is high.

If there are few substitutes that provide the same function as your product or service, the
threat of substitution is low

5. Competitive Rivalry

Although rivals are subject to the same industry forces as yourself, the force of
competitive rivalry is often the largest determinant of an attractive industry since it is
affected by the four previous forces. In order to capture their share of the market, rivals
will compete on price, quality, service, marketing spend, etc.

Competitive intensity is the highest when your buyers have plenty of alternatives, there is
little service or product differentiation between rivals, and when industry growth is
slowing. If the buyer can choose from a fair number of competitors, the buyer can start
bidding wars and reduce profits.

When there is little differentiation between rivals, your product or service will be
perceived as a commodity, and the buyer will purchase solely on price.

If an industry’s growth is slowing, the existing firms will be in a fight to maintain their
piece of the market share. We've written extensively about VRIO Analysis that can help
you find your competitive advantage and then turn that into a sustainable competitive

advantage.
 LIMITATIONS

Over-reliance on Small Cars: Maruti Suzuki has a significant market share in the small
car segment, which makes it vulnerable to fluctuations in the market. The company needs
to diversify its product portfolio further to reduce its dependence on this segment.

Limited Focus on Research & Development: Maruti Suzuki has been criticized for its
limited focus on research and development. The company needs to invest more in R&D
to develop new products, features, and technologies that cater to the changing needs of
Indian customers.

High Dependence on the Indian Market: Maruti Suzuki generates most of its revenue
from the Indian market, which makes it vulnerable to fluctuations in the domestic market.
The company needs to expand its presence in other countries to reduce its dependence on
the Indian market.

Limited Focus on Electric Vehicles: Maruti Suzuki has been slow in adopting electric
vehicles compared to its competitors. The company needs to invest more in EV
technology to cater to India’s growing demand for green vehicles.
 CONCLUSION

Maruti Suzuki:

 This vision statement gives voice to the objective of the company, the values they

embody and the good they are striving to accomplish. It is also designed to inspire

employees by becoming a pride of India i.e. a reputable name

 BIBLIOGRAPHY

Books:

1. K Ashwathapa, (1997) Human Resource and personnel Management,

Tata McGraw Hill 131-176.
2. C.B.Gupta, (1996) Human Resource Management, Sultan Chand &
Sons.
3. Dr. C.R Kothari,(2008) Research Methodology,

Magazines:

1. India today
2. Business world

Newspapers:

1. Times of India
2. The Hindustan times
3. The economic times.

Reports:

1. Annual report of Prem Motor 2014-2015

2. Annual report of Prem Motor 2015-2016.

Websites:
1. www.premmotor.in
2. www.en.wikipedia.org
3. www.citehr.com
4. www.scribd.com