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By Kaushiki Chattopadhyay Registration No: 421020334 Under the Guidance Prof. Durgaa Prosad
ACHARYA INSTITUTE OF MANAGEMENT & SCIENCES 1st Cross,1st Stage, Peenya Industrial Area Bangalore-560058 2010-2012
DECLARATION
I,Kaushiki Chattopadhyay hereby declare that this organizational study report entitledAn Organizational Study Of Bajaj Finserv Lending,Bangaloreis based on original study conducted by me under the guidance of Prof.Durgaa Prosad.
Acknowledgement
I wouid like to place on record my most sincere and heardfelt thanks to all those who have helped guided and directed me to complete my Organization Study at Bajaj finserv lending, Bangalore. I gratefully acknowledge my sense of gratitude and indebtedness to Mr Kunal Mehta sales manager of Bajaj finserv lending providing me an opportunity to do my organizational study in their prestigious organization and necessary information for my internship. I also thank all other staff members of this Bajaj division in Bangalore who have helped me to complete my study successfully. I sincerely thank Prof Suma (Faculty Guide) for his expert guidance and support towards completion of this project. I also thank Prof Dr. Kerron G Reddy, principal and CEO of AIMS, who had provided all the required facilities to carry out the report work and nurturing my skills to excute the requirement. I would also like to express grateful thank to all the respondents who helped me to proceed at every step of a perfect destined life and favoured me with their valuable feedback about the survey and cooperation. Last but not least my gratitude goes to my family members and friends, who showered upon me their of good wishes and help, towards successful completion of this report.
CONTENTS SHEET
CHAPTER CONTENTS
Profiles 1.1 Introduction 1.2 Industry Profile 1.3 Company Profile 1.4 Products Profile 1.5 Competitors Profile Organization Structure Functional Departments 3.1 Marketing department 3.2 Human Resource Department 3.3 Finance Department 3.4 Production and Operation Department. CHAPTER 4 SWOT Analysis
Page
CHAPTER 1
CHAPTER 2 CHAPTER 3
LIST OF TABLE
Table No.
1.1 1.2 1.3 1.4 1.5
Title of Table
Page No.
LIST OF CHARTS
Figure No
1.1 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 3.1 4.1
Title of Figure
Page No
Matrix Structure Functional Structure Product Structure Customer Structure Geographic Structure Narrow Span of Control Wide Span of Control Organization Structure of Bajaj finserv lending Bar chart showing revenue and operation income Classification of the SWOT factors
labour intensive economy, has benefited immensely from outsourcing of work from developed countries, and a strong manufacturing and export oriented industrial framework. With the economic pace picking up, global commodity prices have staged a comeback from their lows and global trade has also seen healthy growth over the last two years. The GDP growth rate is 8.5 per cent in 2010-11 due the strong contribution of the agricultural sector and the constructional activities along with the financial services. The fourth quarter growth rate is just 7.8 per cent as opposed to 9.3 per cent growth in the third quarter . The service sector is the major contributor which grew by 9 percent in the March quarter this year as compared to 6.3 percent of last year.
1. Industry Profile
1.11 Introduction
India is undergoing rapid development. This means that there are millions of people who dream of better home, better infrastructure and a better life. This opens several avenues of
potentially limitless growth in the infrastructure and construction sector. Bajaj Finserv Lending will helps grab this opportunity to grow your business.
Financial Sector
A category of stocks containing firms that provide financial services to commercial and retail customers. This sector includes banks, investment funds, insurance companies and real estate. Financial services perform best in low interest rate environments. A large portion of this sector generates revenue from mortgages and loans, which gain value as interest rates drop. Furthermore, when the business cycle is in an upswing, the financial sector benefits from additional investments. Improved economic conditions usually lead to more capital projects and increased personal investing. New projects require financing, which usually leads to a larger number of loans "Finance" is often defined simply as the management of money or funds management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created for transacting and trading assets, liabilities, and risks. Finance is conceptualized, structured, and regulated by a complex system of power relations within political economies across state and global market
Areas of finance
Personal finance
How much money will be needed by an individual (or by a family), and when? How can people protect themselves against unforeseen personal events, as well as those in the external economy? How can family assets best be transferred across generations (bequests and inheritance)? How does tax policy (tax subsidies or penalties) affect personal financial decisions? How does credit affect an individual's financial standing? How can one plan for a secure financial future in an environment of economic instability?
Identification of required expenditure of a public sector entity Source(s) of that entity's revenue The budgeting process Debt issuance (municipal bonds) for public works projects
An easily avail on a loan for products like LCD, LED, Color TV, Refrigerator, Washing Machine, Air Conditioner, Music System, Microwave amongst a host of other products. Bajaj Finserv Lending consumer durable loan comes with 0% financing and with a small fee. One can apply online on their website and get an instant approval or visit a dealership to easily avail a loan. It provides on the spot approval with minimum documentation & fast processing. They offer finance for various infrastructure related equipments in the field of Construction, Mining, and Material Handling businesses so you can go ahead and construct your own path to success. They extend finance with attractive benefits for both new as well as used equipment.They provide loans on the basis of Consumer Durable Loan Construction Equipment Finance Home Loan Insurance Services Loan Against Property Loan Against Securities Personal Loan Small Business Loan Two Wheeler Loan EMI Card
Credit Card Bajaj Finserv Lending offers loans for various needs. We offer loans for Bajaj Auto Two Wheelers under the name of Bajaj Auto Finance Ltd. We offer Consumer Durable Loans, Personal Loans, Loan Against Property, Small Business Loans, Construction Equipment Loans, Loan Against Securities and Insurance Services under the name of Bajaj Finserv Lending. Bajaj Finserv Lending is one of the most diversified NBFCs in the market catering to more than 5 million customers across the country. Apart from being a well recognized organization, They pride ourselves for holding the highest credit rating of FAAA/Stable for any NBFC in the country today.The product offerings include Consumer Durable Loans, Personal Loans, Loan Against Property, Small Business Loans, Two-wheeler and Threewheeler Loans, Construction Equipment Loans, Loan Against Securities and Insurance Services. Unique products feature across all categories and offer a compelling value proposition to our customers. The strong presence in the Indian market for over 23 years has enabled us to establish a strong foothold here and we aim to continuously provide our customers with premium service and exclusive benefits.
Highly experienced management Product design and development capabilities Extensive R & D focus Widespread distribution network High performance products across all categories High export to domestic sales ratio Great financial support network (For financing the automobile) High economies of scale High economies of scope Hasn't employed the excess cash for long.
Weaknesses
Still has to establish a brand Not a global player in spite of huge volumes. Not a globally recognizable brand
Opportunities:
Double-digit growth in financial loan market. Untapped market above other lending companies. More maturity and movement towardsproduct introduction. The growing and improvised schemes in the market. Growing demand for 0% financial schemes especially in emerging markets. It is also proposing to launchmore other financial schemes and more product introduction
Threats
The competition catches-up any new innovation in no time. Threat of other financial lenders like future finance etc offering the same benefits Margins getting squeezed from both the directions (Price as well as Cost)
1.15 Mortgages
Loans from 50 lacs to 15 crores. Product offerings catering to residential,commercial, Lease rental discounting.
Experts feel that the rural initiative will make an immediate impact on the company's business. "Bajaj Auto will be able to improve its market share to more than 30% with the rural push," said Fortune Financials analyst Mahantesh Sabarad. "But the rising input cost will put pressure on margins," he added.
Government will ensure transparent and accountable use of loans by strengthening parliamentary oversight
v) Growth Prospects
India's economy is booming and looks set to continue its strong growth, with real GDP growth accelerating from 7.0% to 7.8% in the coming fiscal year. This in turn will financially empower more and more citizens thus creating an ever-growing middle- and upper-class consumer base which will drive up food, drink and mass grocery retail (MGR) sales in the country.
At the turn of the new millennium, this business conglomerate is ranked amongst one of the largest business family in India by the Centre for Monitoring Indian economy (CMIE). It has under its umbrella over 25 companies and strength of over 25000 employees.Its core strength, however, is the unshakeable foundation based on its tradition of trust. With the demerger of Bajaj Auto Ltd, following separate corporate entities came into existence in May 2008
o o o
Bajaj Finserv Ltd (BFL), Bajaj Auto Ltd (BAL), and Bajaj Holdings and Investment Ltd (BHIL)
Bajaj is present in over 50 countries all over the globe Dominant presence in Africa, Latin America and South Asia with increasing market share every year Market leader in motorcycles in Colombia, Central America, Sri Lanka, Bangladesh, Philippines, Nigeria, Uganda and Kenya 891,002 units exported in 2009-10, an increase of over 15 % over the previous year Largest exporter of three wheeled commercial vehicles in the world: 164,887 units exported in 2009-10, a rise of 19% over 2008-09
Do whatever you think best, but be best at whatever you do Rahul Bajaj, Chairman- Bajaj Group
Bajaj Finserv Lending is one of the leading financiers in the market offering consumer durable loans on EMI. An easily avail on a loan for products like LCD, LED, Color TV, Refrigerator, Washing Machine, Air Conditioner, Music System, Microwave amongst a host of other products. Bajaj Finserv Lending consumer durable loan comes with 0% financing and with a small fee. One can apply online on their website and get an instant approval or visit a dealership
to easily avail a loan. It provides on the spot approval with minimum documentation & fast processing. They offer finance for various infrastructure related equipments in the field of Construction ,Mining, and Material Handling businesses so you can go ahead and construct your own path to success. They extend finance with attractive benefits for both new as well as used equipment Bajaj Finserv Lending offers loans for various needs. We offer loans for Bajaj Auto Two Wheelers under the name of Bajaj Auto Finance Ltd. We offer Consumer Durable Loans, Personal Loans, Loan Against Property, Small Business Loans, Construction Equipment Loans, Loan Against Securities and Insurance Services under the name of Bajaj Finserv Lending. Bajaj Finserv Lending is one of the most diversified NBFCs in the market catering to more than 5 million customers across the country. Apart from being a well recognized organization,They pride ourselves for holding the highest credit rating of FAAA/Stable for any NBFC in the country today.The product offerings include Consumer Durable Loans, Personal Loans, Loan Against Property, Small Business Loans, Two-wheeler and Threewheeler Loans, Construction Equipment Loans, Loan Against Securities and Insurance Services. Unique products feature across all categories and offer a compelling value proposition to our customers. The strong presence in the Indian market for over 23 years has enabled us to establish a strong foothold here and we aim to continuously provide our customers with premium service and exclusive benefits.
1.23 Mission
Focus on value based lending. Fostering team work and enhancing the capability of team. Continual Improvement. Total elimination of fraud practices. Ensuring easy and quick accessibility to customers.
1.24 Objective
Bajaj Finserv Lending is one of the most diversified NBFCs in the market catering to more than 5 million customers across the country .Apart from being a well recognized organization, they pride ourselves for holding the highest credit rating of FAAA/Stable for any NBFC in the country today.To cater products To the customers changing financial requirements based on customer feedback and improvising the existing products.
1.25 Goals
To catapult Bajaj Finserv as the countrys largest financial lending firm.
ii)Flexibility
We are ever willing to learn and adapt to the environment, our partners and customers evolving needs.
iii)Entrepreneurship We always strive to change the status quo. We innovate with new ideas and energies with a strong passion and entrepreneurial skills. iv)Transparency
We believe we must work with honesty, truth and the inmate desire to do good.
PRODUCT PROFILE
Bajaj Finserv Lending offers loans for various needs. We offer loans for Bajaj Auto Two Wheelers under the name of Bajaj Auto Finance Ltd. We offer Consumer Durable Loans, Personal Loans, Loan Against Property, Small Business Loans, Construction Equipment Loans, Loan Against Securities and Insurance Services under the name of Bajaj Finserv Lending. Bajaj Finserv Lending is one of the most diversified NBFCs in the market catering to more than 5 million customers across the country. Apart from being a well recognized organization,They pride ourselves for holding the highest credit rating of FAAA/Stable for any NBFC in the country today.The product offerings include Consumer Durable Loans, Personal Loans, Loan Against Property, Small Business Loans, Two-wheeler and Three-
wheeler Loans, Construction Equipment Loans, Loan Against Securities and Insurance Services.
1.15 Mortgages
Loans from 50 lacs to 15 crores. Product offerings catering to residential,commercial, Lease rental discounting.
ORGANIZATIONAL STRUCTURE
2.1 Introduction:
A key issue in accomplishing the goals identified in the planning process is structuring the work of the organization. Organizations are group of people, with ideas and resources, working toward common goals. The purpose of the organizing function is to make the best use of the organizations resources to achieve organizational goals. Organizational structure is the formal decision making framework by which job tasks are divided, grouped, and coordinated. Formalization is an important aspect of structure. It is the extent to which the unit of the organization is explicitly defined and its policies, procedures, and goals are
clearly stated. It is the official organizational structure conceived and built by top management. The formal organization can be seen and represented in chart form .an organization chart displays the organizational structure and shows job titles , lines of authority and relationship between departments. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities. Ordinary description of such entities is as branch, site, department, work group, and single group of people. 2.2 Types of Organization Structure Functional Structure Divisional Structure Matrix Structure
I.
Functional structure: Under the functional type of organization, all identical activities are grouped together under one functional department. Each functional department is managed by an executive who is a specialist in his own field. There may be a separate department based on important functions such as finance, marketing, personnel. Divisional structure: In a divisional organization, corporate divisions operate as relatively autonomous businesses under the larger corporate umbrella. In a conglomerate organization, divisions maybe unrelated. Divisional structures are made up of self-contained strategic business units that each produces a single product. Functional departments accomplish division goals. A weakness however, is the tendency to duplicate activities among divisions.
II.
III.
Matrix Structure :In a matrix organization, teams are formed and team members report to two or more managers. Matrix structure utilizes functional and divisional chains of command simultaneously in the same part of the organization, commonly for one-of-a-kind project. It is used to develop a new
product, to ensure the continuing success of a product to which several departments directly contribute, and to solve a difficult problem. By superimposing a project structure upon the functional structure, a matrix organization is formed that allows the organization to take advantage of new opportunities. This structure assigns specialists from different functional departments to work on one or more projects being led by project manager.
Organization structure
CEO
BH ZSM NSM
EAST
WEST
NORTH
SOUTH
RMS
KOLKATA
MUMBAI
DELHI
BANGALORE
JHARKHAND
MAHARAS HTRA
UTTAR PRADESH
TAMIL NADU
ORISSA
GUJARAT
RAJASTHAN
ANDHRA PRADESH
ASM
SM
LEADERSHIP
Rajeev Jain Chief Executive Officer Amit Gainda Business Head Mortgages
3.1.2 Objectives
To recruit quality personnel & to provide necessary training and development etc To poster commitment for the individuals to the success of the company. To utilize people to their full capacity by providing them meaningful job, tasks, responsibilities and recognition & uplift the moral of employees. To encourage willingness to operate flexibly in the interests of the adaptive organization and the pursuit of excellence.
3.1.3 Functions
Recruitment Target setting and performance appraisal Promotion and transfer Training and development Motivational activities Human resources development
Referral policy
3.1.6 Opportunities
They are committed people, they work towards creating an environment in which employees can perform their best and thus provide quality service, service that is customer oriented. They enable encourage and empower employees to learn, look for the following attributes in individuals when they hire: Communication, Teamwork, Quality Consciousness, Customer Focus and Result Oriented.
3.2.2 Objectives
To provide support to all its sales departments, promotional activities. Customer satisfaction is primary objective of FieldFresh Foods Pvt. Ltd. To develop an intelligence in appreciation of modern changes. To provide guiding implementation. policies regarding marketing procedure and their
To analyze the shortcoming in the existing pattern of marketing. To enable successful distribution of the products.
3.2.3 Functions
Providing marketing material. Enabling new branch setup.
Events/stalls conducted by branches. Market Occasions like Diwali, New Year and budget. commentary and research reports.
d) Occasions
March Budget and Beyond-An investor meet is held after the release of the budge in major cities. For this occasion marketing department has the responsibility to equip branches with Banners, invitation cards and assistance of PPT presentations.
3.3.2 Objectives
Dealing with bank and finance institutions. To monitor the budget and budgetary control. Monitoring the funds, collection and payments. Finance planning and mobilization of cash. Controlling inflow and outflow of cash. To exercise cost control and cost reduction techniques. To see the financial interest of the company.
To protect the financial interest of the company. It helps in achieving the business results profitably.
Waste management.
3.3.3 Functions
Allocation of funds. Raising of funds. Profit planning. Book keeping and accounting. Financial control.
Preparation of financial statement.
3.4.2 Objective
Right quality Right quantity Pre-determined cost Pre-determined time
3.4.3 Functions
Production is an organized activity and it as specific goals and objectives to achieve.
Production system is subsystem of large organization. Production system transforms various inputs into useful outputs. There exists a feedback system, which helps to take steps to improve the performance of the productivity system.
William D. Guth in Business Policy, Text and Cases (Homewood, IL: Irwin, 1969). The General Electric Growth Council used this form of analysis in the 1980's. Because it concentrates on the issues that potentially have the most impact, the SWOT analysis is useful when a very limited amount of time is available to address a complex strategic situation. The following diagram shows how a SWOT analysis fits into a strategic situation analysis.
Situation Analysis
Internal Analysis
External Analysis
Strengths
Weakness
Opportunities
Threats
The internal and external situation analysis can produce a large amount of information, much of which may not be highly relevant. The SWOT analysis can serve as an interpretative filter to reduce the information to a manageable quantity of key issues. The SWOT analysis classifies the internal aspects of the company as strengths or weaknesses and the external situational factors as opportunities or threats. Strengths can serve as a foundation for building a competitive advantage, and weaknesses may hinder it. By understanding these four aspects of its situation, a firm can better leverage its strengths, correct its weaknesses, capitalize on golden opportunities, and deter potentially devastating threats.
When the analysis has been completed, a SWOT profile can be generated and used as the basis of goal setting, strategy formulation, and implementation. When formulating strategy, the interaction of the quadrants in the SWOT profile becomes important. For example, the strengths can be leveraged to pursue opportunities and to avoid threats, and managers can be alerted to weaknesses that might need to be overcome in order to successfully pursue opportunities.
The SWOT analysis summarizes the internal factors of the firm as a list of strengths and weakness.
Customers Competitors Market trends Suppliers Partners Social changes New technology Economic environment Political and regulatory environment
Product design and development capabilities Extensive R & D focus Widespread distribution network High performance products across all categories High export to domestic sales ratio Great financial support network (For financing the automobile) High economies of scale High economies of scope Hasn't employed the excess cash for long.
b) Weaknesses
Weaknesses of a company or organization are things that need to be improved to perform better, which are under their control. Weaknesses are also things that place behind competitors, or stop you being meet objectives. This section will present main weaknesses of Bajaj Finserv Lending
Still has to establish a brand Not a global player in spite of huge volumes. Not a globally recognizable brand
Opportunities:
Opportunities are the external changes, trends or needs that could enhance the business or organizations strategic position, or which could of a benefit to them. This section will outline opportunities that Bajaj Finserv Lending is facing
Double-digit growth in financial loan market. Untapped market above other lending companies. More maturity and movement towardsproduct introduction. The growing and improvised schemes in the market.
Growing demand for 0% financial schemes especially in emerging markets. It is also proposing to launchmore other financial schemes and more product introduction
Threats
The competition catches-up any new innovation in no time. Threat of other financial lenders like future finance etc offering the same benefits Margins getting squeezed from both the directions (Price as well as Cost)