A PROJECT REPORT ON ORGANISATION STUDY AT RUBCO

CONTENTS
LIST OF TABLES
CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 CHAPTER - 5 CHAPTER 6 CHAPTER 7 INTRODUCTION RESEARCH METHODOLOGY INDUSTRY PROFILE COMPANY PROFILE DEPARTMENT PROFILE SWOT ANLAYSIS CONCLUSIONS 1 5 12 37

BIBLIOGRAPHY

CHAPTER 1 INTRODUCTION

INTRODUCTION Organizational study is a direct investigation about the functions and activities carried out in an organization. It gives a clear insight into real life situation. Such studies enable others to know about the functions and the importance of each department in an organization. Organization refers to the structure of relation among positions and jobs which are building up for the realization of the common objectives it prescribe the relationship with various positions and activities in the business which is help by persons. In other words organization is a harmonious adjustment of some common purpose. Organization involves the dividing and grouping to the work to be done in an enterprise. To know more about the organization, its functions and activities, an organization study of RUBCO CO-OPERATIVE LTD was done. This short time study helps to get an overview about production department, finance department, marketing department and H.R. Department of Rubco.

CHAPTER II RESEARCH METHODOLOGY

RESEARCH METHODOLOGY The study is about the major functioning of RUBCO rubberized coir mattress division; Pampady. The study is mainly based on the details collected from each department. Each and every activities of the company is studied very carefully with the data available. This study is very beneficial to the future managers as they put into the real life situations. A study on all the departments can help to improve the process and there by overall improvements in the companys performance can be made. 2.1 Objectives of study The organization study was done on behalf of the fulfillment of MBA degree. The organization study was conducted for the following purpose. i. To have an understanding of the profile of Rubco Mattress Division and its various activities ii. To acquire knowledge regarding the functional as well as the managerial aspects of the company iii. iv. v.
vi.

To find out problems if any and to put forward suggestions To get an idea of the organization and its various departments To get familiarize with various activities of the company To get the feel of actual working environment and to get acquainted with it

vii.

To learn and maintain a good relationship with the organization

2.2 Reason for selecting the company

For conducting an organization study that would be beneficial, the company selected should have large number of departments and also should be one that is engaged in active performance in production. Service and marketing, and higher growing opportunity. The prime consideration in selecting Rubco RCM LTD for the study is its tremendous growth during the past years. It has all the major departments including finance, marketing, purchase, production and planning, maintenance, quality control, human resource and exports. 2.3 Limitations of the study The period available for the study was limited. A detailed study of all the functions in the organization couldnt be completed in the time frame.

Busy schedule of the officers and employees prevented lengthy discussion.

Reluctance from the organization to give all information required for the study. Information collected from workers and employees are only true to certain extent.

2.4 Data collection method The study includes both primary and secondary data
1.

Primary data Data were collected from various sources like formal and informal

interview and discussion with mangers and other officials at various levels. They are the actual data collected by the researcher through the following source. Formal and informal interviews managers Direct observations Interview with the employees 2. Secondary data Secondary data were collected from published and unpublished sources like official records, organizational manuals etc. these are the secondary source of data which are obtained indirectly. The researcher has taken information from the following ways. Official records of RUBCO Organizational manuals Annual reports Websites Magazines

2.5

Period of study

The period of study was 46 days commenced from the month of July 20 th to September 4th 2011

CHAPTER III INDUSTRY PROFILE

10

INDUSTRY PROFILE Rubberized coir mattress segment is a high competitive. This segment is having more than 50 % of the market share in the mattress industry. Rubberized coir mattress industry has more than 45 odd brands and over 200 different models. The major players in the industry are Kurl on, Duroflex, Sulfex, Rubco and Sunidra.

The birth of rubberized Coir Industry is quite amusing and interesting. Prior to the year 1960 people hardly had any idea of this novel and high utility product. In those days the world famous car manufactures, M.S. Volks Wagon of Germany, were using horse hair as cushion filling material for their car seats. As their production increased from 100 cars per day to 300 cars per day, there was dearth of this raw material. This necessitated a suitable alternative product for rubberization and which would suit to their specifications, after various alternative tried like sisal fiber, jute fiber, the coir fiber was decidedly found to be the best. This was the beginning of Rubberized coir industry. The Indian rubberized Coir Industry is nearly five decades old. It was in 1964 that M/s/ Bharat Motors of Chennai established its manufacturing unit. Many other units came up during sixties itself.

11

After nearly one decade of its introduction. Government of India recognized Rubberized coir mattress as a healthy and hygienic product. Slowly many state Governments recognized rubberized coir as Wealth from waste and advocated the use of rubberized coir mattress in various hospitals, health clinics etc.

OTHER TYPES OF MATTRESS ARE Cotton Mattress Form Mattress Spring Mattress

COTTON MATTRESS The cotton mattress mainly targets lower income group. This mattress is priced very low. The cotton mattress industry has a market share of 50%.

FORM MATTRESS Form mattress segment comes at next place after rubberized coir mattress industry. This industry having a market share of 9 to 10% this industry mainly target consumer belonging to upper income and upper middle income group. The major players in form industry are MM form, sleep well.

12

SPRING MATTRESS

The industry target consumers belonging to the upper income group. The major players in spring industry are spring well, Sealy Kurl on etc.

GROWTH DURING LAST 4 DECADES

From a handful of manufactures, during early 60s this product got some market recognition in early 70s. In the next 3 decades over one hundred manufactures have entered rubberized coir field. Today rubberized coir products are increasingly used in many industries notably in transport industry like railways and buses, packaging industry (Pharmaceuticals, heavy engineering, electronic etc), hospitals theatres and auditorium. The basic raw material for Rubberized Coir Industry is the brown coir fiber and the natural latex rubber. Over the last decade, the brown coir sector has registered a tremendous growth.

13

WORLD SCENARIO There are mainly three major players in the industry and are as follows a) Sealy Corporation Sealy Corporation is the major mattress manufacturer and it got the name from the place it started, Sealy, Texas. King Coil Founded in 1988, Koil has over a century of experience crafting high quality, affordable bedding both in United States and throughout the world. C) SIMMONS BEDDING COMPANY Simmon Bedding Company is a major manufacture of mattress and is one of the oldest companies in the United States, for over 152 years. INDIAN SCENARIO The rubberized coir mattress market of India is estimated to be highly fragmented with little brand loyalty. The major players in the rubberized coir mattress industry in India are.

b)

14

a) Kurlon Limited

Kurlon Limited, a Manipal group company came into existence in 1962. Kurlon Limited is the brand leader in the mattress industry and has acquired major market share in the branded mattress segment. Duroflex

b)

Duroflex is the largest exporter of sleep and comfort products from India started its operations in 1963. Now the company has got three manufacturing units for rubberized coir mattress.

c) Century Mattress Century fiber plates Pvt. Ltd. Started its rubberized coir plant at Hyderabad in 1988 under the brand name CENTURY. Century is the first mattress manufacturer with ISO 9001 -2000 series and ISI Certification. STATE SCENARIO In India, the coir industry has developed very well especially in Kerala where they produce Retted Fiber. Green husks of coconut are immersed in the salty back waters for 10 to 12 months. The main players in rubberized coir mattress industry are

15

a) Duroflex

Duroflex is the leading mattress manufacturer in India which started its operations in 1963. Duroflex is the largest exporter of sleep and comfort products from India . b) Eastern Sunidra

Eastern sunidra Mattresses pvt. Ltd.. Is a part of Keralas renowned business conglomerate, the Eastern Group of Companies.

C) RUBCO

Kerala State Rubber Co-operative Limited (Rubco) was set up in the year 1997. Rubco was incepted with prime objective of effectively utilizing the abundant rubber resource of Kerala.

16

The Indian coir industry has a diversified structure, reflective of the board ranges of raw materials and value added products involved. The industry provides at least part time employment to an estimated 40,000 persons. At the beginning of the value chain are approximately 300 fibers milers with usually less than 10 employees and an estimated 500 supplies of coir pith, or dust. Their output is either purchased for direct export or undergoes manufacturing for twine, mats and brushes, rubberized coir mattresses and pots, geo textiles and pith products. Products, which are technically more demanding or better, suited for mass production, such as high end twine, brushes, rubberized coir and erosion control blankets are predominantly produced in larger facilities, employing more persons. Now in rubberized coir mattress industry the competition is more and more, the demand of the product is in growth stage. So only the quality mattress industry can survive in the competitive world.

17

CHAPTER III COMPANY PROFILE

18

COMPANY PROFILE Kerala state rubber Co-operative limited (RUBCO), is situated in Kannur; Kerala State, India, is promoted by the provisional Government of Kerala to promote Rubber based industries in this part of the country. Today India enjoys 4th position in the production of natural Rubber (NR) in the world. Among the total production, small state of Kerala contributes 92%. So rubber has become the backbone of our economy. Due to the bad impact of globalization the overall market of rubber fell down Kerala, that time instability in price of rubber was one of the major problem that farmers facing in the market. The farmers were no getting fair price for their effort. But this problem has come to an end since 1997, because The Kerala State Rubber Co-operative Ltd. (RUBCO) came into existence in this year on the purpose of exploring the infinite possibilities of rubber. Since its inception in 1997, RUBCO has traveled long. It has entered into various Rubber and Rubber wood based industries like Hawai Chappel with reputed Malaysian Technology, Cycle Tyres and Tubes, Rubberized Coir Mattress, conventional and procured tread rubber, block Rubber (SMR), Pale Latex Crepe (PLC), casual shoes etc.

19

VISION AND MISSION

For last half decade with a vision to become a global leader in the production of Natural rubber products and innovative product development, RUBCO adopts the best and latest process in the production.

RUBCO means Rubber and Rubber means RUBCO

Today, from a single unit company, RUBCO has grown into a Rs. 280 Crore Conglomerate with well diversified operations. Divisions operating under Rubco Group are involved in a wide range of business such as footwear, furniture, cycle Tyre and Tube, Rubberized Coir Mattress and Natural Rubber. Rubco is the largest Exporter of Natural Rubber to all leading Rubber based companies in India. Rubco is led by a professional management team and supported by a committed workforce. Rubco is now poised to enter a high growth phase with several initiatives that will take the Group on path Expansion and Diversification.

20

OBJECTIVE SOCIAL To ensure a steady market with remunerative price to rubber growers for their natural rubber

Welfare of rubber grower particularly of small and marginal segment

OBJECTIVE COMMERCIAL To Promote, establish, maintain and manage the business related to manufacture and sale of tyres, both radial and bias for Heavy Vehicles, LCV, Passenger Cars and other four wheelers. Tyres for three wheelers and two wheelers Purchase and sale of rubber in any form such as Latex, Sheets, Crumbs and Laces Manufacturing of Rubber Wood based on products GROWTH AND DEVELOPMENT OF ORGANIZATION Kerala State Rubber Co-operative Ltd (RUBCO) has in a short span, redefined the way the cooperative sector functions and set the pace for the cooperative Movement in Kerala today. Rubco was set up in the year 1997 with the objective of effectively utilizing the abundantly available rubber resources of Kerala. Today, from a single unit company, Rubco has grown in top an Rs.280 crore conglomerate with well diversified operations and market presence extending beyond the boundaries of Kerala. Rubco manufactures and markets variety of products from footwear to furniture, from Cycle tyre tube and tyres to mattress. 21

Rubco has also entered into technological alliances with world leader in the respective field; sourcing from them state of art technology. Substantial investments in modern manufacturing facilities, coupled with well organized marketing activities, have seen Rubcos products earn a reputation for quality and significant market shares.

Rubco is largest exporter of natural rubber in the country today. Even in the domestic market, Rubco is a major supplier of natural rubber to all leading Tyre combines in India. Rubco is also a Government intervention agency towards market stabilization and has been serving the farming community directly and indirectly to get reasonable price, arresting drastic fall in price during peak production periods; natural rubber trading has being a blend of social obligation and commercial practicability led by a professional management team and ably supported by a committed workforce, Rubco is now poised to enter a high growth phase, with several new initiatives that will take the group on a path of expansion and diversification rubber holds immense potential, Rubco hopes to create opportunities and bring Industrial progress to a land that accounts for 92% of the countrys natural rubber production.

22

ADMINISTRATION AND MANAGEMENT The Administration and management of RUBCo vests in the Board of Directors consisting of fifteen members as follows: Nine directors elected by A class shareholders from among themselves Two directors elected by B class shareholders from among themselves. Four ex officio directors viz Register of cooperative societies, Kerala Chairman of the Indian Rubber Board President, Kerala State Cooperative Bank Ltd. Managing Director, Rubco CHAIRMAN : Mr. E. Narayan He is a veteran Co-operator and is holding various positions as Chairman in Central and state level cooperative organization. MANAGING DIRECTOR : Mr. Jacob D. Mathew He has more than 25 years of experience as CEO in corporate sector. OTHER DIRECTORS 1. Sri. M.V. Koman Nambiar
2.

Sri. Panneri Mukundan

3. Sri George Mathew 4. Sri V. N. Vasavan 5. Sri U. Azzez 6. Sri N. Chandran 7. Sri K. Manoharan 23

8. Sri V.P. Saseendran 9. Sri K.S. Gopi 10.Smt Satyabhama K.N. 11.Smi Jacob D. Mathew 12.The Chairman Rubber Board, Kottayam 13.The Registrar of Cooperative societies, TVM
14. The

President,Kerala State Cooperative Bank, Trivandrum

PROMOTERS

Government of Kerala along with Indian Rubber Board and some district and primary Cooperative Banks in Kerala are the promoters of RUBCO. Government of Kerala holds the majority of the shares. The top share holder are Government of Kerala, Rubber Board, Kottayam District Cooperative Bank,Ernakulam District Cooperative Bank, Palakkad District Cooperative Bank, Kannur District Cooperative Bank, Thrissur District Cooperative Bank, Trivandrum District Cooperative Bank and Kollam District Cooperative Bank.

24

MILTESTIONS OF RUBCO

9th June 1997

Registered

RUBCO,

Commenced

operations in October in the year same 15 October 1997 17th February 1998 28 May 1998
th th

year Commenced procurement of rubber Commenced procurement of rubber from farmers through depots Foundation stone laid for foot wear manufacturing rubber Koothparambu, factory and thread at manufacturing unit

Vaiuavelicham

June 1998 July 1998

Industrial Centre. Exported rubber to Singapore & Nepal RUBCo takes over the reins of Sreekandapuram Latex (Pvt). Ltd

11th February 1999

Entred in to an important agreement on technological collaboration for manufactures of ultra light weight

2 March 1999

nd

footwear with H-tech sectors Foundation stone laid for P.L.C. factory in Sreekandapuram

25 23rd June 1999 Signed long significant technical

collaboration agreement with

Huat Berhad of Malaysia for the processing of wood and furniture that 13th August 1999 19th October 1999 Rubco Footwear hit the market Foundation Stone laid for the rubber wood processing and furnituring unit 30th October 1999 Foundation stone laid for Rubberized coir foam Factory at Pampady , Kottayam 9th December 1999 Entered into to an agreement 15000 with M/s Tog Teik (Pvt) Ltd of Singapore from India. 8th March 2000 Entered in to a technical collaboration with Pancarwarna management and Consulting service. Manufacture shoes. 6th May 2000 1st January 2001 Foundation stone laid for Malaysia of casual for of Export Metric tons of rubber first time

casual shoe project Rubco factory huat wood furniture commenced

commercial production

26

16th June 2001 20th April 2002

Incorporation of RUBCO tire India Pvt. Ltd Started activities of coconut complex for the production of virgin coconut oil and ancillary products

6th December 2002

Started RUBCO RUFAS Scheme (collection of natural rubber latex from farmers)

20th December 2002

Expression

of

interest

submitted to the government of Kerala for setting unit for the production for of rubber components million USD 23rd January 2003 Signed the MOU with of Coconut Coconut Pacific Pvt. Ltd of Australia for production Virgin oil automobiles

and with a capital. Outlay of 20

27

PRESENT STATUS OF THE ORGANIZATION

Rubco is a well diversified industrial conglomerate with a strong presence in the rubber based industrial segment. Rubco was formed with the prime objective of utilizing abundantly available rubber resources of Kerala. In a short span of time Rubco has successfully introduced a wide range of fast moving rubber based products. Today Rubco group of companies has established new factories of Rubber Footwear, Cycle Tyres & Tubes, Rubberized coir mattress, processed rubber and rubber molded coir mats.

RUBCO FOOTWEAR DIVISION-Making Impressive Strided Rubcos footwear division manufactures a range of quality casual rubber Footwear. The plant employs sophisticated machinery and has production capacity of 3.6 million pairs annum. The product range includes sturdy regular and comfy ultra-light (manufactured under the renewed Malaysian technology), perfect blend, quality raw material and superior manufacturing methods make the Rubco range second to none. In the short span, Rubco has made its presence felt in fiercely competitive markets on account of the excellent quality of its products. This division also manufactures honey comb rubber mats in fascinating colors.

28

Rubcos footwear range presently comprises of three leading brands Rubco Hawaii, Rubco Rainbow and Rubco Classic, Rubco Hawaii has durable flexi strap, soft insoles and power grip technology, offering true value for money, Rubco Rainbow is a colorful range of ultra light casual footwear with cushioned insoles and extra soft straps. Rubco classic is a top quality Hawaii that provides excellent wearing comfort and durability.

RUBCO CYCLE TYPES& TUBE DIVISION- On the Fast Track

Rubco Cycle Types & Tube division has already gone on stream manufacturing a range of sturdy, technologically superior cycle tyres and tubes suitable for rough terrains and track. The production facility spread over 25000 sq.ft. Is equipped with modern imported machinery including Taiwan made CNC mould which imparts better finish to the tyre. The plant has an annual installed capacity of 3 million tyre and tube. Rubcos range of cycle tyres and tubes has advanced features such as high non skid depth improved wet-skid resistance. High tensile copper coated steel bead wires add durability and rim holding capacity. The entire range of cycle tyres is being exported to the U.K.

29

RUBCO HUAT WOODS PVT.LTD- Design on the Future.

A joint venture with Long Huat Group Berhard of Malaysia, a world leader in rubber wood furniture, this division manufactures a range of elegant furniture and quality edge-geld panels using the eco-friendly rubber wood. Rubber wood properly treated and processed, is emerging as the deal substitute to rain forest wood, as it offers the same strength, durability and finish as the latter, and also helps preserve the environment. The furniture manufacturing plant has a processing capacity of 40.000 metric tons per year. The products are being exported to UK, USA, Japan and many other countries across the globe.

Rub wood, the furniture range, comprise of dining tables and chairs, designer wardrobes, futons kitchen cabinets and computer and office furniture and is available in the choice of designs and finish. The edge-geld panels manufactured using sophisticated finger jointing technology, are easy to saw, drill, bore on stain and have excellent nail- holding capacity.

30

RUBCO SREEKANDAPURAM LATEX PVT. LTD- Tapping opportunities.

new

Rubco Sreekandapuram Latex Pvt. Ltd became a part of the Rubco group when a loss- making unit was taken over by Rubco by acquiring 65% of its shares. In a short span of time, by sound backroom operations unit was turned around and is today posting profits. The company manufactures Block Rubber ( ISNR) and pale Latex Crepe( PLC).Rubco is in the process of expanding the scope of operations of this unit in line with market trends .

RUBCO SALES INTERNATIONAL LTD- Crafting Winning strategies

Rubco Sales International (RSIL) is a public Ltd. Company promoted by Rubco to spearhead the sales and the marketing activities for Rubcos entire range of product in the domestic and international markets. Within a short span of its inception, RSIL could effectively develop a deft, competent network domestically as well as globally and undertaken the successful launch of Rubcos product. Apart from gathering market information and monitoring the supply chain system, this division sustaining excellent customer relations. is also responsible for nurturing and

31

VIRGIN COCONUT OIL

The project envisages establishment of 100 co- operative coconuts processing units in kerala. To start with, this will be increased to 200 units subsequently for the production of coconut oil directly from green coconut nuts without going through conventional copra or milk route. The process methodology is commonly known as Direct Micro Expelling (DME) Technology. The centralized packing unit is at Thalassery in Kannur District. The place is accessible by road and rail from all other parts of the country. The place is blessed with all infrastructure facilities for setting of such a project. Coconut oil extracted from fresh coconut kernel by Direct Micro Expelling Technology is of very high quality and commands a premium price because of its use as a health product. This is a highly sought after item as a health product and is used as massage oil and also as baby oil for massaging small kids. Coconut oil is a much sought after product for edible use in the households and non-edible use as hair oil and as cosmetic and industrial oil. The project also proposed to set up a centralized packing cum marketing unit for Virgin coconut oil manufacturing the cooperative processing units.

32 FUTURE OF THE ORGANIZATION:

The main future plans and the progressing proposals of Rubco group are:

RUBCO TYRES INDIA(PVT) LIMITED

Rubco is in the process of setting up a project for the manufacture of tyres and tubes for two and three wheelers, passenger cars, heavy duty trucks and light commercial vehicles. The ground work is underway and the division will be launched in the near future. It will have a production capacity of 6 million tyres and tubes annually. Location: The project will be located in the proposed industrial growth centre being developed at Valiyavelicham, about 35 Kms from Kannur city.

Capacity and Product Mix:

The plant will have a 2.33 million numbers of radial and bias tyres per annum which 75 million would be utilized for the truck drivers, 1.5 million for light type passengers tyre and balance would be for two or three wheelers.

33

RUBCO CASUAL SHOE PROJECT

Investment: 96 million Employment:600 persons Location :Thalassery, Kannur district, Kerala Capacity:1.5 million pair per annum. 75% of the production is earmarked for export.

RUBCO MATTRESS DIVISION

Rubcos rubberized coir mattress division, at Poothakuzhy near Pampady, Kottayam which started its operation in 2001, is an ambitious project realized with an investment of 260 million. The manufacturing plants among the very few in the country to employ advanced Austrian machinery, sourced from DOA-Austria a technology leader in rubberizes mattress. Rubcos rubberized coir mattress division is an ambitious project realized with an investment of Rs. 280 Millions. The manufacturing plant is among very few in the country to employ advanced Austrian machinery, sourced from DOA, Austria.

34

Rubco rubberized coir mattresses are scientifically designed to provide proper back support without compromising on comfort. By virtue of their ingenious design and constructing and the unique 3-D technology, Rubco rubberized mattresses are very comfortable and ensure a healthy and restful sleep. Rubco rubberized coir mattresses are crafted from the finest materials and finished to perfection in one of Indias most modern manufacturing plants.

The furnishing section is equipped with most modern computer controlled machines imported from U.K and U.S.A. Strict quality control is observed at every stage of production to ensure that Rubco rubberized coir mattress always measure to the highest quality.

A unique of the main sheeting plant is that it facilities Vertical fiber Orientation, a proceed that result in a deeper penetration of latex in to the sheet, making it very elastic. This provides the mattress with uniform density throughout and an extra cushioning effect. The plant has an annual installed capacity of 4.8 million units, consisting of mattress and other rubberized coir products.

35

THE UNIQUE VFO ADVANTAGE

Rubco rubberized coir mattresses are manufactured using the machinery as well as technology from DOA sheet forming machine has the unique advantage of producing uniform density vertical oriented fiber sheets. Vertical Fiber Orientation (VFO) ensures extra cushioning effect and high durability in the mattresses. Further, considerable sheet thickness and densities varying from 80kgs to 250kgs can be obtained.

36

PRODUCT PROFILE OF RUBCO RCM DIVISION Rubco manufactures a wide range of mattresses catering to diverse segments of the market. The range consists of: a) HEAVEN Premium model that provides unmatched sleeping comfort is available in 3 inch and 4inch thickness. Also available in customized dimensions and thickness for large quantities (100 and above) b) HEAVEN PLUS A luxury model that is elegant as well as comfortable, which is available in 5 inch thickness. c) HI-TECH A hi- end model with an accent on finish and luxury available in 5 inch thickness. d) HITECH PILLOW TOP Superior quality mattresses finished to world class standard is available in 7 inch thickness. e) DOSTH An economy model that offers true value for money is available in 2 and 3 inches.

37 f) SAFAL A regular mattress that combines comfort and durability is available in 3 and 4 inches (g) YATHRI An elegant mattress meant for hotels, Tourist resorts etc. Yathri combines superior sleeping comforts with perfect back support, enabling a relaxed healthy sleep. Layer upon layer of rubberized coir and latex enhance the comfort while soft and elegant quilting adds a luxurious feel for use in hospitals is available in 3 & 4 inch thickness. h) HEAL A quality product suitable for use in hospitals. Available in 3 inch and 4 inch thickness. i) RELIEF A special mattress scientifically designed for orthopedic patients. Available in 5 inch thickness. (J) 9.30 PM Economy model. Available in 3 inch and 4 inch thickness. OTHER PRODUCTS FROM FACTORY i. ii. iii. iv. Rubberized coir block Coir block Cushions Soft touch pillows

38 ORGANIZATIONAL GOALS AND OBJECTIVES GOALS The organizational goal of Rubco RCM division is to make Rubco a leader in the market of rubberized coir mattress. OBJECTIVES
1.

Maximize the capacity utilization of the existing plant

2. To increase the profitability of the company and to maximize generation of surplus to enable Rubco to finance its diversified projects. 3. To execute production on time, in accordance with the market demand of the product and to make them available to the distributors. 4. To maintain and improve the existing cordial relationship between employees and management by mutual interactions levels and further improve efficiency of executives, supervisors to meet future challenges. 5. To ensure strict quality control and ISI standards of the product to compete in the global market. 6. To maximize the cost reduction. 7. To introduce new varieties of mattress so as to increase the range of mattress catering to the diverse segment of the market.

39

PRESENT STATUS OF THE ORGANISATION

RUBCO is a well diversified industrial conglomerate with a strong presence in the rubber based industrial segment. Rubco was formed with a prime objective of utilizing abundantly available rubber resource of Kerala. In a short span of time Rubco has successfully introduced a wide range of fast moving rubber based products. Today rubco group has factories of rubber footwear, cycle tyre and tube, rubberized coir mattress, processed rubber and rubber coir mats.

ORGANISATIONAL STRUCTURE

Organizational structure is the structure of relationship among positions and job created for the purpose of accomplishing the objectives of the enterprise. It represents the pattern of relationships among the components of an organization. They are: -The form of structure. -The form of structure. -The functions to be performed. -The human aspect

40

The pattern of relationship governs duties and activities of persons who are dependent upon each other for accomplishing the objectives of the enterprise. An organization structure should be designed to clarify who is do what tasks and who is responsible for what results, to remove obstacles caused by confusion and uncertainty of assignment and to furnish decision making and communication networks reflecting and supporting enterprise objectives. The company organization structure is diagrammatically represented by an organizational chart. The organization chart shows the lines of responsibilities between various departments of the company.

41

CHAPTER IV DEPARTMENT PROFILE

43

DEPARTMENTS

Departmentalization is a method of arranging activities to facilitate the accomplishment of organizational objectives. The organizational process of determining how activities are to be grouped is called departments. The departments show the horizontal differentiation in an organization.

The main departments are:

1. Administration cum personal department 2. Finance and accounts department

a. b.

Stores department Purchase department

3. Production department a. Production (main plant) b Production (furnishing)

c. Product development d. Production planning and control e. Lab and quality department f. Engineering department 4. Marketing department

44 ADMINISTRATION CUM PERSONNEL DEPARTMENT

Human Resource Management HRM is the process of acquiring, training, appraising, compensating employees and attending to their labour relations, health and safety and fairness Concern. In other words HRM is the people concerned dimension in management. Since every org is made up of people, acquiring their services, developing their skills, motivating them to higher level performance and ensuring that they continue to maintain commitment to the org are essential to achieve organizational objectives. This is true regardless of the type of the organizational, government, business education, health recreation and social action. HRM refers to a set of programmes, functions and activities designed and carried out in order to maximize both employees as well as organizational effectiveness. The main functions are; a. Conducting job analysis b. Planning Labour needs and recruiting job candidates c. Selecting job candidates d. Conducting orientation and training programs for new employees. e. Managing wages and salaries f. Providing incentives and benefits g. Appraising the performance h. Communication discipline) i. Training and developing managers j. Building employee commitment with employee9 interviewing, counseling,

45

STRUCTURE OF THE DEPARTMENT .. Picture(page maker files attached).. ..

RESPONSIBILITIES OF HR MANAGER

(a) The HR manager is responsible for the manpower planning, recruitment, selection, training compensation package, performance appraisal, maintaining discipline and harmonious industrial relationship Rubco RCM.

(b) He is responsible for providing advices and guidance / assistance to the officers and staff working in the unit under the control of The General Manager in the matters connected with performance appraisal, discipline, harmonious relation, training, optimum use of time, achieving the targeted production etc.

(c) HR manager is responsible for obtaining necessary function for the creation of posts, pay scale and other required sanctions from managing director / chairman for filling up manpower requirements from time to time.

(d) HR manager shall be responsible for the proper administration of the statutory and non statutory welfare programming in the Rubco rubberized coir mattress division.

(e) HR manager shall be responsible for complying with various labour legislations.

47

(f) The HR manager is responsible for formulating HR policies and interpretation of different labour laws. (g) The HR manager is responsible for preparation of wages and salary bills and passing it to finance department for disbursement.

(h) The HR manager is responsible for identifying the training needs of the organization and its employment and prepare training calendar and arrange various training programmes for the employees. In its essence HRM is the qualitative improvement of human being who is considered the most valuable asset of an organization, the organizational resources and end users of all products and services. In brief the function of HRM are. 1. Job analysis Job analysis is the procedure through which a HR manager has to determine the duties of the position and characteristics of the people to hire for them.
2.

Human Resource Planning.

Human resource planning is understood as the process of foresting an organizations future demand and supply of the right type of people in the right time at the right place. In other words HRP is the process by which an organization ensures that it has right number of and the right kind of people at the right place at the right time, capable of effectively and efficiently. Completing those tasks that will help the organization achieve its overall objectives.

48 3. Recruitment:

RUBCO RCM division follows a centralized system of recruitment programmes and its implementation is done at corporate level. Recruitment is the process of searching for and obtaining applicants for jobs from among whom the right people can be selected.

4. Selection

Selection is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job. Selection is concerned with picking the right candidates from a pool of applicants. Selection is negative in its application as it seeks to eliminate as many unqualified applicants as possible in order to identify the right candidate. In RUBCO RCM division selection of employees are done at two levels-workers level and at the managerial level. 5. Job Description:

Job description is preparing for a number of different purposes in an organization. The area follows. To define responsibilities of a job. To review the organization structure and distribution of duties with the organization for the job evaluation. For the foundation of performance appraisal

To provide information about a post to be filled for recruitment/selection purpose. 49

6. Personal Specification:

Personal specification is a set of criteria developed from the job and organization context which describes the skill and attributes of a job holder.

A personal specification helps to:-

- Provide an objective standard against which candidates can measure. It helps to avoid purely subjective judgment. - Personnel specification will help identify training and development plans for successful candidates. It is most useful to find a candidate for a job who fulfills all requirements. Rubco rcm division is conducting interviews in their selection process. The question and acceptable response are specified in advance and are rated for appropriateness of content. 8. Orientation and placement. Orientation, also called as induction, is provide a new employee with the information he or she needs to perfume comfortably and effectively in the planned induction programme for the fresh employees about their job, their co workers and the organization . Thus orientation programme conveys three types of information.

50

General information about the daily works routine. A review of the organization history, founder, objectives, operations and products or services as well as how the employees job contributes to the organizational needs. A detailed presentation of the organization polices, work rules and employee benefits. After the orientation programme, the evaluation of the programme is conducted by time interview. After giving orientation programme for the new employees, Rubco rubberized coir mattress division is taking care of the placement of the employee because when an employee has been hired or oriented he or she must be placed in his /her first job. Placement is understood as the process of allocation of people to the job . It is the assignment or reassignment of an employee to a new or different job.

9 .Training and development

RUBCO RCM DIVISION HR authority is conducting training and development programe for employee to improve current and future employee performance by increasing an employees ability to perfume through learning, usually by changing the employees attitude for increasing his /her skill and knowledge .The need for training and development is determine by the employees performance deficiency.

51

10. Performance appraisal Performance appraisal is the systematic evaluation of the individual with respect to his/ her potential for development. Rubco RCM division conducts performance appraisal once in a year. The method for performance appraisal is for evaluating performance of employees on rating scale method because this is the simplest and most popular technique for approving employee performance . The typical rating scale system consist of several numerical scale, each representing a job related performance criterion such as dependability, initiative, output, alternatives, attitudes, cooperation and the like . Each scale ranges from excellent to poor. 11.Welfare measures: Labour welfare is a term which must necessarily be elastic, It has some what different interpretation from country to country according to the different social customs, the degree of industrialization and educational level of workers. The management of Rubco is well aware of the growing necessity of welfare activities and pursues a policy of improving the facility aimed at total well being of its workforce . They are: A. Al employees in the organization are covered under the employee state insurance (ESI) scheme. No other insurance scheme prevails in this organization B. Festival allowances are given to the employee on the occasion of notified festivals.

C. Annual bonus/ incentives are paid out to the employees as per the company rules.

52

12. Relation between employees and management : The relationship between manager and employee must be handle effectively as both the employee and the organization are to propose together whether or not some of the employees rights must be addressed. It is important to develop communication and update HR polices and rules so that managers and employees will know what is expected.

13. Trade Union

Employee association constitutes one of the stakeholders relations. This association are popularly known as trade union. The trade union that exists. In RUBCO RCM is RUE (Rubco Employee Union) . There is a cordial relationship that exist between and union . The union is lead by CITU.

Safety measures in Rubco Mattress Division Cleanliness and drinking water: The factory and its premises are kept spick and span. The accumulation of dirt is removed daily. Effective arrangement is made at suitable points suited for all workers employed there with sufficient supply of drinking water.

First aid: First aid facilities are provided in the factory for all the employees. Safety : A well equipped security force is provided for safeguarding everything inside the factory premises. 53 FINANCE DEPARTMENT

Financial Management Financial management, also referred to as corporate finance or managerial finance ,emerged as a distinct field of study at the turn of 20 th century. Finance theory in general, rests on the premise that the goal of financial management should be to maximize the wealth of shareholders. Finance Management Department Finance refers to the application of skills in the manipulation in the use and control of money. The finance in the modern business world is the life blood of the business economy. We cannot imagine a business without finance because it is a central point at all business activities. Financial Function a. Passing and settlement of all miscellaneous advances. b. Perform works connected with insurance coverage of fixed asset. c. Keeping personal life of employees relating to salary computation and annual increment. d. Prepare profitability trend reports and wage analysis. e. Quarterly and yearly financial report preparation. f. Making banks statements g. Preparation assisting the coordination at all works connected with finalization of accounts.

h. Assisting statutory/ Vigilance / auditors from head quarters. i. Make internal and external purchases.

54

Picture(page maker attached).. .

Capital budgeting The capital budgeting is done at the being of the year itself. The requirement of capital will be specified for approval. During the budgeted year, if any further requirement of capital is faced then a proper justification has to be made . If the requirement is seen as an important one then approval of the capital is sanctioned.

Cash management Cash management system is done of the key areas in any business. Apart from the fact that it is the most liquid asset, cash is the common denominator into which all current assets can be reduced because other major liquid assets, receivable and inventory get eventually converted into cash.

Credit control function

A trade credit arises when a company sells on credit and does not received cash immediately. A company grants credit to protect its sales from the competitors and to attract potential customers to buy its product at favorable terms, Credit period allowed is 6 days to 90 days. The collection of credit will be handled by senior sales officers up to 180 days and it will be handed over to the factory manager. The company will give the creditors a further of one month, then legal

action will be taken against the person or the company. If the cheque has bounced or has been dishonoured then the company can sue or take legal action against the person or the company. 56

Planning of funds. Planning of funds is a careful estimate made by the manager about the total funds required. This is the estimation done by the observation over the physical activities of the company. Allocation of funds. Providing funds to proper place at proper time is also an importance task to be done by the financial manager. He studies the cash requirement of each department and then funds are distributed. Recording transactions Each and every transaction that takes place in the company has to be recorded properly for the purpose of having better control over the funds optimality. All the transaction are recorded in journal and posted to the ledgers. Fixed assets. Fixed assets from the major part of the working of any company. Depreciation of fixed assets is charged on diminishing balance method. Cost control The cost is controlled either in the acquisition of raw materials or reduction in operating expenses or both, as there should be limitation in the utilization of funds. The company will always have a comparison of budgets and actual.

57 Stock in Stores Store department is an auxiliary department of the financial department . The major purpose of this department is to receive raw mate materials from the suppliers to different departments and there after verify the bill/ invoice to ensure of incoming materials and to confirm the quality and value with purchase order. Inventory management Management of inventory means an optimum investment in inventories . It should neither be too high to block the funds unnecessarily nor be low to halt the production for the wants of materials. The inventory management includes the following aspects.

Size of inventory maximum level and minimum level. Establishment- timing schedule procedure and lot of size orders. Ascertaining minimum safety level. Coordinating sales, production and inventory policies. Providing proper storage facility. Arranging the receipts, disbursements and procurement of materials and developing the form of recording the transaction. Arranging responsibilities for carrying out inventory control function and providing the report necessary for supervising the overall activities. for new

For effective inventory management in a business unit there should be proper coordination of activities and policies of the purchase, production and sales department. 58

Working Capital management.

Working capital management is managing the current assets and current liabilities of a firm in such a way that a satisfactory level of working capital is maintained. i.e. it is neither inadequate nor excessive. Working capital management policies of a firm have a great effect on its profitability, liquidity and structure wealth.

STORES DEPARTMENT

Stores department is an auxiliary department. It function under accounts officer.

STRUCTURE OF STORES DEPARTMENT

..Picture .(pagemaker attached)

Functions of Stores department

1. Receipt of incoming material. 2. Efficient and orderly record keeping of all materials in storage. 3. Storage of material in safe and conventional location 4. Issue of material against written authority 5. Timely intimation to proper authorities regarding out of stock condition. 6. Prevention of damages, losses and unauthorized uses etc. 7. Rejected materials managements. 8. Sales return management 9. Maintenance of accounts.

Material documents of this department are produced in coordination with the production department. Monthly check and other periodical checks are done to certify the actual inventory values in quantities . There is a separate section for rejected product. Rejected products are stored in stores department itself. Such products are inspected before and after by the quality control department. Such products are sold out as separate sale items.

60

Classification of materials Raw materials -Latex -Coir -Chemicals -Cloths -Fabrics

General Engineering Materials -Electrical items -Mechanical items -Capital item tool etc Stationery Items and Furniture -Furniture

-Paper -Bill books 61

PURCHASE DEPARTMENT

This is the department which purchases the required raw materials for the production of mattress. So this department can be said as, the backbone of Rubco. The store keeper verifies the materials and if it goes beyond minimum require level, he will inform it to the accounts officer and he will pass on the information to the general manger. The general manager then does further action to buy the required raw materials. The main function of purchasing department is to ensure unintempted flow of production.

STRUCTURE OF PURCHASE DEPARTMENT

PURCHASE OFFICER

JR. CLERK

JR. CLARK

62

Purchase Functions : Source identification:

Source identification involves the identification of suppliers from which purchase are to be made. Source selection: Source selection involves selecting the best supplier from different suppliers, which is based on desired quality, quantity, price ,service etc.

Vendor rating: This responsibility lies with Rubco head office. Vendor rating is done on the basis of product, price of the materials and the reports from the production department in the case of latex or chemicals.

Receipt of material: Materials are collected by the receipt store and the details will be given to the section for inspection. Number of items passed, rejected and the reason for rejection if any will be specified. Receipts store will then prepare materials

receipt report and then sent it to the concerned sections i.e.; purchase and accounts .The original will be retained by the receipt store.

63

CLASSIFICATION OF MATERIAL

The materials used in Rubco RCM division are broadly classified as: RAW MATERIALS: Latex, coir rubber chemicals, cloths and qualified fabrics, PU forms and threads.

GENERAL ENGINEERING ITEMS: Electrical items, Mechanical items, spare parts and capital item tools.

STATIONARY ITEMS AND FURNITURE: Office equipments, papers & bill book, cleaning products.

PURCHASE PROCEDURE 1. Requisition The power of approving material requisitions is with rubco head quarters. 2. Purchase Proposal:

After purchase requisition has been approved by the head office, the order is placed.

64

3. Purchase order: After fixing the right supplier, purchase order is prepared and placed with proposed party. The order rate, quantity, delivery schedule and terms of payment will be mentioned.

4. Vendor rating: The responsibility lies with the Rubco head office. Vendor rating is done on the basis of product, price of the material and reports from the production department in the case of latex or chemicals.

6. Receipt of materials: Materials are collected by the receipt store and the details will be given to the section for inspection. Number of items passed and reason for rejection if any will be specified. Receipts store will then prepare materials receipt report to be sent to the concerned section i.e.; purchase and accounts. Original copy will be retained by the receipt store.

PRODUCTION DEPARTMENT

RUBCO RCM division has progressively recorded high productivity and profitability. Production department is equipped with efficient and qualified managers and supervisors. 65

STRUCTURE OF PRODUCTION DEPARTMENT

PRODUCTION MANAGER

PRODUCTION MAIN PLANT

PRODUCTION FURNISHING

PRODUCT DEVELOPMENT

LAB AND QUALITY DEPARTMENT

PRODUCTION PLANNING

ENGINEERING DEPARTMENT

1) Production (Main Plant) : The main raw materials used for the production of bare mattress are the curled fiber. The purpose of rubber latex is to bond the resilient curled coir fibers together and to impart a shape to the product. Raw materials and coir is

acquired by the company from internal sources. Along with the main material compounding, chemicals are also required for the production. Most of the compounding chemicals are purchased internally.

66

STRUCTURE OF PRODUCTION DEPARTMENT (MAIN PLANT)

Shift IN-Charge

Production Supervisor

Production Supervisor

Production Supervisor

Skilled Operator

Skilled Operator

Skilled Operator

Skilled Operator

Skilled Operator

Highly skilled Workers

Skilled Workers

Semi Skilled Workers

Unskilled Workers

67

PRODUCTION CAPACITY:

Rubco mattress production facility is among the very few in the country to employ state-of-the-art Austrian machinery. The machinery as well as the technology is sourced from DOA of Austria. The plant has annual install capacity of 4.8 million units comprising of mattress, pillows and other rubberized coir products. The furnishing section is equipped with most modern computer controlled machines imported from UK and USA. Strict quality Control is observed at every stage of the production to ensure that Rubco rubberized coir mattress always measure up to the highest standard.

The no: of workers are Highly skilled Skilled workers Semi skilled Unskilled Casual worker 19 23 30 45 99

Temporary worker -

13

68

2) PRODUCTION (FURNISHING): Furnishing department is carrying vital part in the total production function of rubberized coir mattress division. . The furnishing department shall be responsible for the furnishing of different models of mattress and cushions as per standards. The section is also responsible for the inspection of mattress and cushion labeling, packing and dispatching of mattress and cushions. The bare mattress from production department is brought into furnishing department and it is fabricated with rexin and clothes and is packed and made ready for dispatch.

STRUCTURE OF FURNISHING DEPARTMENT

Shift In-Charge

Production Supervisor

Production Supervisor

Production Supervisor

Highly Skilled Workers

Skilled Workers

Unskilled Workers

Semi Skilled Workers

69 MAJOR MACHINES IN THE FURNISHING DEPARTMENT 1. Quilting Machine

2.

Border Stitching Machine

3. Tape Edge Machine 4. Sewing machine 5. Comer Cutting Machine 6. Fabric cutting Machine 7. Sealing Machine 8. Handle stitching machine

Consumables required for furnishing department 1. Quilted fabrics 2. PU Forms 3. Clothes 4. Threads 5. Expanded poly ethylene sheets 6. Threads 7. Labels 8. Poly ETHYLENE covers 9. Tapes

Labels Fixed on the Mattress

1. IS1 Sticker 2. Brand Name 3. MRP sticker 4. Quality CHEK sticker 70

3) Product development

The product development carried out is concerned with the identification of the most economically feasible method for applying the principles through research It involves design, redesign and fabrication of new or modified product and testing it to find its usefulness .Product development essentially involves developing product to suit customers' needs and conditions .The purpose is to ensure that it meets the requirement and quality standard. This is applicable to all product modification of the existing company. -

4) Production Planning and Control

It is done on the basis of specification or orders placed by RUBCO Sales international & based on domestic order placed by authorized distributors. The required quantity and quality is specified through production planning and the production is done according to this planning. Operations planning involves the organization of an overall manufacturing operating system to produce a product. Objective of production planning is to provide a physical system together with a set of operating guidelines for efficient conversion of raw material, human skills and other inputs into finished products.

71

5) Lab and Quality Control Department The adoption of quality management system should be a strategic decision of an organization. The design and implementation of an organization's quality management system is influenced by varying needs, particularly the objectives the products provide to sustain and win product's acceptability in the market. Rubco's products have found domestic and international acceptance largely due to its stringent quality maintenance and quality control of mattress produced Rubco's quality policy is to give enhanced satisfaction to the customers through the manufacture and supply of rubberized coir mattress by the use of modem manufacturing equipments .They voluntarily meet the entire product and process related regulatory requirements and are committed to improve their performance in all spheres of activities. Quality objectives:

In order to implement the quality policy, the quality objectives are established as follows. 1. Higher capacity utilization 2. Higher level of profitability 3. Lower level of rejections 4. Lower level of breakdowns 5. Least possible customer complaints

6. Higher level of customer satisfaction.

It is ensured that quality policy and objectives are understood, implemented and maintained by all the personnel in the organization. 72

6) ENGINEERING DEPARTMENT

Hierarchy of Engineering Department

ELECTRICAL MAINTENANCE ENGINEER

Electricians

Skilled Workers

Functions of Engineering department: 1. Instrumentation 2. Electrical maintenance

3. Maintenance & utility 4. Boiler unit maintenance

73

MARKETING DEPARTMENT The traditional definition of marketing is the performance of business activities that direct the flow of goods and service from producers to consumers. The marketing concepts hold the key to achieving its organizational goals which consists of the company being more effective than competitors in creating, delivering and communicating consumer value to its chosen target markets. The American Marketing Association offers the following definition "Marketing is a process of planning and executing the conception of pricing, promotion and distribution of ideas, goods & services to create, exchange values that satisfy individual and organizational goal". Theodore Leavitt of Harvard drew a perspective contrast between the selling and marketing concepts: Selling focuses on the need of the seller: marketing focuses on the needs of the buyer. Selling is preoccupied with the idea of satisfying the needs of the customer by means of the of activities associated with creating, delivering and finally consuming it. product, while marketing is the whole cluster. MARKETING STRATEGIES Rubco mattress has attained wide market coverage in Kerala within the short period time of it being established. Now Kerala market is dominated by Rubco mattress industry. The effective marketing strategy that they have adopted is the reason behind this explosive growth of Rubco. Expansion of

existing market into other geographical areas, i.e., now Rubco is the market leader in Kerala mattress industry and they are about to expand their market all over South India in order to attain their target turnover. Planning for introducing new products into market and entering untapped segments is their innovative strategy. 74

STRUCTURE OF MARKETING DEPARTMENT

Marketing Department

Marketing Manager

Sales Executive

Clerical Staffs

MARKETING MIX Marketing mix is the set of marketing tools that Rubco RCM Division uses to pursue its marketing objectives in the target market. It is classified as four Ps of marketing i.e.; product, price, place, and promotion

- Product - Price - Place - Promotion 75

PRODUCT: Rubco rubberized coir mattress are scientifically designed to provide proper back support without compromising on comfort by virtue of their ingenious design, construction and the unique 3-D technology. Rubco mattress are firm without being hard and are extremely durable. As they do not sag, they are very comfortable and ensure a healthy and restful sleep. Rubco rubberized coir mattress is available in nine variants each catering to a specified user segment. The range comprises of everything from regular mattress to special orthopedic models and high-end luxury varieties. They come in varying sizes and thickness, depending on the specific use they are meant for. Rubco manufactures a wide range of mattresses catering to diverse segment.

PRICE:

Price denotes value of a product or service expressed in money. Pricing is one of the most important activities for any organization. Pricing policy adopted by RUBCO RCM division is Transfer Pricing. Rubco setup its price at transfer price. Transfer price is the price at which Rubco transfers products to distributors. A general guideline as to the total markup of 11% of the distributor,

a markup of 25% to the retailers. Price quoted is inclusive of transportation charges. Rubco allows 2% discount on cash sale. Various schemes and offers are announced for distributors during festival season.

76

PROMOTION: To win the battle of competition every manufacture has to choose a number of promotion tools which can be classified as- advertising, publicity, Personnel Selling and sales promotion.

ADVERTISEMENT AND PUBLICITY

The major purpose of advertisement and publicity is to promote effectively through providing information to customers to make them aware about the characteristics of the product.

The effective formulation strategies are formed by the marketing department. the advertisement methods that Rubco RCM follows are given below: 1. Wall paintings 2. Sales promotion schemes 3. Visual/electric media 4. Hoardings

5. Exhibitions 6. Laminated boards 7. Retailers trade 8. Turnover discount to distributors 9. Sales incentive scheme 77

PLACE (DISTRIBUTION)

Rubco mattress is made available all over Kerala and Tamilnadu by its wide distribution network. Now they are going to expand their marketing network all over south India.

The distribution network is given below: Exporting Activities:

As Rubco RCM division strictly follows its quality policy, the products satisfies the expectation of the customers. Rubco receives inquiries from SriLanka, UAE, Netherlands, Germany and other middle East countries regarding export of rubberized coir mattress. Rubco plans to market in other countries also.

78

CHAPTER V SWOT ANALYSIS

79

SWOT ANALYSIS

The overall evaluation of company's strength, weakness, opportunities and threats is called SWOT Analysis.

1. Rubco mattress division has lot of product varieties and price ranges. 2. In the company there does exist a cordial relationship between employees and top level management and among dealers and distributors.
3.

Through effective marketing Rubco products could have acquired wide market acceptance & customer preference within a short period of being established.

4. Rubco has well developed corporate strategy; this is one of their major strength. 5. Style of leadership that the company follows is Leadership through dedication and coordination. That encourages employees of the organization to work towards their organizational goals. 6. The strength of the company lies with the quality of their product, wide range of products is capable to challenge variable environment

conditions, goodwill and customer service, technical advice marketing intelligence, wide network and interaction with customers. 7. Effective management system is one of their strength. 8. Ability of the top level management to manage strategic changes. 9. Good financial management system that is existing in the organization. 80

3.

WEAKNESS:

1. The company is newly established: therefore most .of the employees are freshers. Therefore the company has to conduct a lot of training programmes to make the employees suitable for the work environment: so large volume of productive time is consumed to make them experienced workers and to familiarize with a work procedures.
2.

The weakness appearing most conspicuous to make their product acceptable by customers is the higher prize compared to their competitors. Rubco is going to expand their market in overall south India; but transportation from Kerala to other markets will be a big Burden they are facing in the market when comparing to their Competitors they can easily supply goods into market according to Market demand because they are having manufacturing plants in other States.

3. OPPORTUNITIES

1. The company has introduced lots of product varieties into the market therefore customers have lot of alternatives to make their own decisions.

2. RUBCO RCM division has not yet fully tapped their 100% utilization of existing machine capacity, so opportunities lies there. Undertake new. 3. Rubco mattress is facing high level competition in the market but their products are having higher demand in the market, it is because of the quality policy that they are adopting in their production process. 81

4. THREATS

1. RUBCO RCM Division has very high regional and domestic Competition from other companies like Kurl-On . Duroflex and Sunidra mattress. 2. Competition in the market is increasing day by day because of lot of unauthorized companies in the market. They are products of low quality at less price and attracting small customers. This is the major threat that company is facing in the market. 3. Each and every company is facing threats in the market because customer's requirements are changing day by day. 4. Change in the environmental factors can make influence in the sales growth. 5. Taste of consumers are changing day by day. 6. Rising labour cost is another threat that each company faces today.

82

CHAPTER VI FINDINGS, SUGGESTIONS, CONCLUSION

83

FINDINGS 1. Presence of good industrial relations with local unions and there is a greater co-operation between management and employees. 2. Workers fear of loss of jobs and hence resist modernization of plant. 3. Wage system is fair in Rubco. 4. Workers health and safety are given prime importance. 5. Labour turnover is very low. 6. Trade union plays a vital role as bargaining agents. The management is sometimes forced to accept unreasonable demands made by the unions.

SUGGESSIONS

Considerably within a short period of time being established Rubco divisions has earned the reputation of being a leading manufacturer of rubberized coir mattress by virtue of an enviable manufacturing infrastructure. As a result of efficient monitoring and quality control at every stages of production, wastages and rejections are brought down. Whatever be the orders, whatever be the risk, whatever be the tasks Rubco RCM division will live up to the expectations of the people by providing a wide range of mattress and other rubberized coir products, catering to drive segment of the market, enforcing strict quality measures and standards for its products. We can see Rubco as non competent leader in the field of rubberized coir mattress in the near future itself.

Based on the study conducted, the following suggestions are made: 84

In the present market Rubco Mattress is facing overall demand in the market, in order to tap market demand. Rubco has to tap their 100% utilization of existing machine capacity that they are not yet fully tapped.

Rubco has to adopt a strategy that would result in lowering the production and distribution cost than that of its competitor to win the market. The company has to make strengthen their supply chain in other states, in order to tap the target market. The company has to take about the conveyance facility to employees.

85

CONCLUSION

The organization study has helped to make a valuable conclusion through the analysis of different functional department of the Rubco rubberized coir mattress division. It enjoys the confidence and support of its employees. This is one reason that makes the Rubco rubberized coir mattress division, the most innovative brand in the industry. Presently it is the prominent niche in the market. It is preferably ranked at the top with consideration to quality. The core competencies of the organization is as follows:

1. Professional management 2. Effective leadership 3. Cordial relationship between employees and top management 4. The company has well established network in industry with sound manufacturing and marketing experience. 5. The company has adequate resources available for expansion.

86