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Various Functions of the Departments

Marketing Department
Marketing department is entrusted with the function of planning and executing the
conception, pricing, promotion and distribution of ideas goods services, to create exchanges
that satisfy individual and organizational boards. In simple terms the marketing function is
catered around the customer and his needs.

Marketing Policy
Prakash Corrugated Products sends its products directly to its customers through delivery
trucks. Prakash Corrugated Products does direct delivery to its customers. Logistics and
supply of products is however done through third parties who own a fleet of trucks. Even
inter-state delivery is done through trucks.

Functions of Marketing Department:

Demand Forecasting: It is one of the main functions of the Marketing Department.


Demand forecasting is predicting future demand for the product. In other words, it
refers to the prediction of probable demand for a product or a service on the basis of
the past events and prevailing trends in the present.
Market Control: Various tools used for marketing control are cost control and a
market share analysis. Cost control is one task for monitoring the cost of marketing
and it is compared with planned cost standard, so as to identify deviations and take
corrective action. Market share analysis is also used for marketing control.

Objectives of Marketing Department:

Customer Satisfaction through Quality Products: Marketing activities aims at


achieving customer satisfaction by offering quality products. It is also help more
increasing profit, increasing goodwill, increasing image of the organization.
Maintaining Price Leadership: Companys important objective is to maintain price
leadership. Company is always trying to become a price leader. It does not like
become a price follower.
Achieving Maximum Market Share: Companies another objective is to achieving
maximum market share. In order to achieve maximum market share, company will
spend more on advertising and offering quality products to the customers.
Other Objectives:
o Increasing firms sales.
o To guarantee firms survival.
o To meet customer needs.

o To utilise the available resources to its fullest expense.


Pricing Strategy
At Prakash Corrugated Products, pricing strategy is a special kind of plan formatted in order
to meet the changes of external factors particularly from the policies of competitors. Pricing
strategies change with competitive situation. Some of the common pricing strategy followed
at Prakash Corrugated Products are:

Competitive pricing: It depends upon market condition competitors price, seasonal

variation etc. customers are very much aware of the quality and price of the product.
Premium pricing: In the case of suction and delivery hose, adopted a premium price
strategy to utilize the ISI marking and brand image. As the brand awareness is less
with customers market will still depends on price of the product.

Price Fixation:
Price of the product depends on two components:

Cost of raw material - variable.


Operational & Processing cost - fixed.

Product price changes with change in raw material price, which is considered as a variable.
Minimum period of two weeks taken for price revision, though in some cases raw materials
price fluctuates each day.

Risk Involved
The usual credit period given to customers is 25 days. If one customer delays the payment,
they collect the amount by the way of sending reminders to him, although they are keeping
some amount as reserve for bad and doubtful debts. The society is keeping large quantities of
direct materials as stock because the price of such materials is growing day by day. Therefore
these excessive raw materials dont result in loss though some heavy investment is required
in it.
To avoid the risk involved in transportation of goods to customers outside Goa, the goods are
insured accordingly. It helps the society to avoid the risk involved in transporting goods to
distant places.

Production Department

Production is the core function of Prakash Corrugated Products since it is a manufacturing


company.Prakash Corrugated Products has a wide range of products and certain products are
made after direct instructions from the customer regarding the size and strength of the
corrugated box.
There is a lab where the kraft paper is first checked in order to ensure whether or not the
correct kraft paper has been sent or not.
Then, either the customer will send a layout of the box with the details or else they will send
a layout cutter which is used when a special layout is chosen by the company. After having
written down the details (such as which type of paper, 3 ply or 5 ply boxes), the paper is sent
into production.
There are mainly 3 types of boxes 3 ply boxes (1 flute between 2 flat sheets), 5 ply boxes (2
flutes between 3 flat sheets) and 7 ply boxes (3 flutes between 5 flat sheets). The company
places an order by specifying how many boxes they want and how much wright the box
should be able to sustain.
Turning the kraft paper into flutes is an automated process. Sticking the flutes with the flat
sheet is an automated and manual process both. However, if 5 ply or 7 ply boxes are to be
made, it is don only through manual labour. The stapling of the boxes is done by a machine in
the presence of a labourer.
After the boxes are glued together and stapled, they are kept for drying for a day or two,
depending on the amount of time it takes to dry off.
After the drying process is completed, the boxes are then printed according to the instructions
given by the customer. If the printing on the boxes contains of 3 colours or less, the printing
is done in the factory itself. However, if the boxes have 4 or more colours to be printed on it,
the print is out sourced and the glued on the boxes and then kept for drying again.
Once the boxes have dried off, the boxes are sent to the customer in a truck.

Quality Control Department

Quality control is a process through which a business seeks to ensure that product quality is
maintained or improved and manufacturing errors are reduced or eliminated. Quality control
requires the business to create an environment in which both management and employees
strive for perfection. This is done by training personnel, creating benchmarks for product
quality, and testing products to check for statistically significant variations.
A major aspect of quality control is the establishment of well-defined controls. These controls
help standardize both production and reactions to quality issues. Limiting room for error by
specifying which production activities are to be completed by which personnel reduces the
chance that employees will be involved in tasks for which they do not have adequate training.

Aims and Objectives of Quality Control

Improvement of quality.
Reduction of scrap and rework.
Efficient use of men and machines.
Economy in use of materials.
Decreased inspection costs.
Reduction in cost per unit.
Scientific evaluation of quality and production.
Quality caution at all levels.
Reduction in customer complaints.
To decide about the standard of quality of a product that is easily acceptable to the
customer.
To check the variation during manufacturing.
To prevent the poor quality product reaching to customer.

Purchase Department:

The purchase department is entrusted with the function of purchasing raw materials. In the
present scenario with the cut throat competition, cost reduction is practiced in every sphere of
the business and purchase is one of the important functions where cost can be highly
controlled. High quality materials with lower cost became the motto of every organization for
a meaningful survival, for this organizations practice supplier rating and vender management.
There is a centralized purchase department headed by purchase manager who is responsible
for taking purchase decisions for all units. The decisions are made on the basis of following
factors:

Market conditions
Availability of raw materials
Price of raw materials

Procurement and Issue of Materials:

Purchase:
The production department, usually factory manager informs the purchase department
about the requirements of materials. The information is passed through the purchase
intent issued by factory manager to the purchase manager.
In case of regular product like stationary and small purchase, the store in charge issues
the purchase intend giving a copy to the factory manager item specification, required
quantity, name of the manufacture, approximate costs etc. are mentioned in the
purchase intend.
The purchase department then enquires with the suppliers and invites quotation. From
the received quotation mentioning the offered price, mode of payment, discount if
any, time need for dispatches etc., purchase department chooses the most appropriate
by considering all the criteria.
Purchase manager consults with accounts department about the availability of cash,
payment condition, balance of any paid, whether the account with the supplier
crossed the credit limit etc. with the approval of accounts department, purchase
manager then sends a purchase order to the supplier.
In case of new materials or new supplier, purchase department insist or samples to be
supplied before the purchase. These samples are tested within house laboratories.
Orders are given only when the sample confirms to the required quality levels.

Store:
Store is very important to arrange different items of materials in a systematic manner.
Store records information relating to receipts and issue of materials and products.
Proper storage is essential for material cost control. Store is headed by the store in
charge who report to the factory manager and purchase manager. Material purchasing

is done as a centralized activity and then it is supplied to stores at production centers.


Store is divided into two:
o Raw materials stores
o Finished goods stored

Finance Department:
Finance department manages the fund available for the operations of the business, by making
a balance between the fund inflow and fund outflow. The management of all activities related
to finance requires considerable expertise and specialized knowledge of banks, financial
institutions, the different sources of finance and ways to profitability utilize these funds.

Finance Manager directly does the planning, organizing, directing and controlling financial
activities in the society.

Companys Financial Policies

Low cost of operation of funds.


Efficient receivable management, through acceleration of funds.
Faster sourcing of funds from institutions.
Functions of Finance Department
Finance function is concerned with all aspects of business operations. It is very difficult to set
limits to the finance function. The key activities under finance department are:

Management of firms assets structure.


Financial analysis, planning and control.
Management of firms financial structure.
Estimating capital requirement.
Determining sources of fund.
Utilization of fund.
Disposal of surplus.
Management of cash.
Financial controls.

Accounts Department under Finance Department


It deals with day to day book keeping, daily collections, salaries of all employees, etc.
Accounts department is headed by chief accountant. He is assisted by one assistant
accountants.
Chief accountant works in coordination with finance manager, on the fund flow issues and in
case of any shortage of cash occurs. Finance manager canalized the shortage from financial
institutions in case of emergency and normal cases, chief accountant tightness the payment
collections from the whole sellers and other sources.
Other main function of accounts department is tax payments. They deal with the central sales
tax, K VAT, excise and other department. Monthly returns are prepared by the accounts
department.