INDUSTRY PROFILE

1.1 Introduction Industry plays a vital role in any kind of business activity. The term industry used to illustrate the accurate business activity or a more general business activity with the facilitate man and machine is known as industry. The term industry is having different meanings. It has taken form the Latin word industrial, meaning diligent activity directed to some purpose, and In old French word industrie, means actitvity, ablity, and a trade or occupation, and in our word originally meant skill, a device, and diligence as well as a trade. We can divide industry into four categories they are Primary, Secondary, Teriary, and Quaternary. Secondary industries are nothing but manufacture or process of raw materials into somethind different. Automobile industry is also come in this segment. Automobile industry is the business of producing and selling self-powered vehicles, including passenger cars, trucks, farm equipment, the greatest creations of man, is Automotive Car or popularly known as the Car. It is a result of mans consistent efforts and perseverance.

1.2 Evolution of Automobile Industry The ancient automobile industry actually goes back to 4000 years when the first wheel was used for transportation in India. In the beginning of 15th century Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By 1600s small steam-powered engine models was developed, but it took another century before a full-sized engine-powered

vehicle was created. The automobile industry has changed the way people live and work. Though the credit for the modern day automobile goes to Karl Friendrich Benz (form Germany) He made the first theoretical plans for a

motor vehicle was conceptualized by both Isaac Newton and Leonardo da Vinci. In 1769 Nicholas Joseph Cugnot, form France built the first self-

propelled road vehicle (military tractor) for the French Army. It was a threewheeled vehicle with a maximum speed of 2.5 mph. 1.3 Growth of automobile Industry The growth of automobile industry was emerged in India in the 1940s. Following the independence, in 1953, the Governmemt of India and the private secotor launched efforts to creat an automotive component manufacturing industry to supply to the automobile industry. However, the growth was

relatively slow in the 1950s and 1960s due to nationalization. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicle and scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A unmmber of foreign firms initiated joint ventures with Indian companies. The earliest of modern cars was manufactured in the year 1895. Shortly the first appearance of the car followed in India. As the century turned, three cars were imported in Mumbai and during the decade there were total of 1025 cars in the city. 1.4 Strength of automobile Industry The strengths of automobile industry are many, which are nothing but the power or backup which it has. In India we have large no of human rwsource and raw materials. It is the ninth largest in the world with an annual production of over 2.3 million units in 2008. In 2009, India emerged as Asias fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. India has emerged as one of the worlds largest manufacturers of small cars. Accouding to New York times, Indias strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several sutomobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki. Productivity improvements take place

in the way of Process Management, Part Planning and validation, and robotics and Automation Planning, Plant Design and Optimization, and quality management.

1.5 Global trends The global trend means, the modern era. There are some technical and design aspects that differentiate modern cars form antiques. Some particularly notable advances in modern times are the widespread of foront-wheeldrive and all wheel drive, the adoption of the V6 engine configuration, and the ubiquity of fuel injection. While all of these advances were first attempted in earlier eras, so they are dominate the market today that it is easy to overlook their

significance. The globalization offers a great opportunity for the Indian automobile manufacturers. There is global overcapacity problem, which is forcing the vehicle incustry to restructure.

1.6 Challenges faced by industry Challenges are the problems which the industry has facing now. There are several challenges, which the industry has to overcome at industry level and organizational level. The automobile industry has facing new and pressing challenges. Globalization, individualization, digitalization, Increasingly

diversified consumer aggregate patterns of behavior, Accelerated modification and diversification of the product portfolio, Pervation of automobiles with digital technology, Increased pressure for innovation and flexibility in

development and manufacturing and increasing competition are changing the face of the industry as we know it. In addition, increasing safety requirements and voluntary environmental commitments by the automotive industry will also contribute to the changes ahead. The domestic automobile industry is showing signs of improvement as sales and production increased significantly last month.

1.7 Integrated strategies-Recommendation An integrated model for comkpetitiveness is favorable environment in which the firms are proper. It is the responsibility of the government to provide appropriate inputs to create business environment, which shall nurture firms towards global leadership. The role the association is to facilitate the

government to create a favorable environment. In order to do so it has to carry out continuous interaction with the firm and the government. In the whole it is very good developing sector. Automobile industry is developing innovative ideas to survive in the market like making the hybrid cars, electric cars and solar cars etc. Many other improvements like radically improve vehicle quality, Reduce lead-time for all vehicles, Improve on-time delivery performance, establishing a corporate vision for the Order-to-Delivery process. In this connection the further study is done and it is naturally a document for further study.

COMPANY PROFILE OF MANICKBAG 2.a Background inception of company Company is a voluntary association of persons formed for the purpose

of doing business having a distinct name and limited limited liability. Two families, Darmappa mirji and Manikachand shah in the year 1920 founded Manickbag. Name Manickbag came because when it started on al land, which was donated by one Mr. Manikachend. P. Zaveri from Bombay to Jain

boarding and it was a full bomboojungle so that area was known as Manickbag and it was taken long lease,. First manickbag rice mill was started, and then it diversified to Manckbag soap factory. Due to some policy matter it was closed and diversified groundnut oil mill. This group believes in honest and quality so they were sucdessful in producing the products which was accepted also. In the

year 1950 two family members focused on the business of petrol trucks with Manickbag. So to maintain these trucks small workshop was started as Manickbag engineers. It started converting petrol trucks into diesel by changing engine. Simpsons was leading manufacturer of diesel engine they offered the dealership in 1956. At the same time Ashok Leyland sub dealership under sundaram was taken in 1956 in the name of Manickbag automobiles then for engine rebuilding machine shop was started in the year 1979. Sundaram Clayton TVS moped dealership was taken in the year 1956. After that a separate firm has opned in the name of Manickbag diesel, exclusive for mica product and after that manickbag garage and Leyland service for reports of Leyland Vehicles. In the year 1991 a branch for Mico (the previous name was

manickbg diesel) was opned in Bijapur and Ankola,.In 1991 they shifted from Ashok Leyland to Telco.

2.b Nature of business carried. Manickbag is exclusive showroom for Tata moters situated at Vidynagar, Hubli and is the single showroom which is covering 6 districts name Baglkot, Bijapur, Dharwad, Gadag, Belgum and Haveri. It is also having small

showrooms at Ankola and Bijapur to cover those areas, which are working under the guidance of Manickbag. The main branch is uding for promotional activities such as periodical advertisement; offer insurance, road show demonstration etc. sales executives are palying important role in attaining the enquiries of customers. Since Manickbag is the only showroom were the promotional activities conducted are not reaching effectively to customers of other districts it shows that most of their sales are in and around Dharwad district, simultaneously it is losing customers in other districts. Integrity, Customer focus, Corporate citizenship. Pasion for engineering and Trust are the core values of the company. It strives to maintain a balance between the needs of our customers, our employees, and our community. The company is

having different objectives like profit maximization, sales maximization. To beat competition, To maintain consumer goodwill, To render better quality service, Satisfaction of consumers, Achieving leadership in the market and Employee/worker satisafaction.

2. c Vision and mission and Core values These are the main things for the organization so that it can set definite mark for the organization. In the corporate context, vesion refers to an inspirational picture of a future that can be created, offering clarity amidst confusion, hope against despair and unity of purpose amidst diversity of personal causes an mission tells about the activates which are to be good to reach the goal.

Vision :- A strategic vision is a road map showing the route a company intends to take in developing and strengthening its business. Its paints a picture of companys destination and provides a rational for going there. The vision statement of Manickbag automobile pvt. Ltd., is Best in the anner in which we operate best in the product we deliver and best in our vaue system and ethicl. Mission :- The mission is an enduring statement of purpose that distinguishes one business from other similar firms. Defines current business activities, highlighting boundaries of current business Present products and services, Types of customers served. Which conveys who we are, what we do, and why wer are here? To strengthen the Tata brand and creating relationship with the customers by working closely with business partners to provide superior value for money over the life cycle Quality policy :- quality can be defined on two dimensions: market-perceived quality and performance quality. Both are important concepts, but consumer perception of a quality product often has more to do with market-perceived quality than performance quality, Maintaining performance quality is critical,

but frequently a product that leaves the factory at performance quality is damaged as it passes through the distribution chain. This is a special problem for many showroom people. Because customers have a belief on the Tata barands, if it happen like this means for that showroom people will be get the blaming. So they will take care of the distribution channel very well.

2.d Product and service profile Product profile is nothing g but the products which it sells in the

showroom. Which is exclusive showroom for the Tata motors (car) Tata Motors is Indias largest automobile company. It is the largest commercial vehicle manufacturer in India a d 2nd largest passenger car manufacturer. It is the 5th largest medium and heavy commerdcial vehicle manufacturer in the world. It is having many car segment and Brands passenger Cars are Indica V2, Tata Indigo CS, Indigo Marina, Indica V2 Xeta, Indigo SX, Tata winger, Indica V2 Turbo, Indigo XL, Tata Nano, Indica vista, Indigo Manza, Tata Sumo Grande, Utility Vehicle Safari Diocor, Sumo victa, Tata Indicruz (New). Service activities start with the entry of customer in the fornt office of workshop department. The customer have to handle their queries with concerned workshop with opening of handle a job card the details are entered in the job card and the vehicles are booed for serice depending upon the work load. The vehicle will be then thoroughly inspected in front of the customer and then the requirement will be explained to the customer with fault severity. Then the job card opened and the repair/service demanded by the customer are entered. The estimated cost and the estimated deliver time shall be clearly explained it to the customer, If in case there is detection of any faults in the vehicle that needs repairs then the sme will be done at extra delivery time, by intimating prior to the customer verbally or through mail.

2.e Areas of operations

Areas of operation is nothing but the company where and which type of business it has doing. Which type of business it has and where and all the branches were present. Manickbag Company is having different business. Which were strated their first business in the 1950, which is Hindustan

petroleum product selling, Simpos in 1951, Mico in 1956, Kirloskar bearings in 1979, TVS motors in 1979, Sesa goa pig iron cike and coal-in 1990. Tata motors in 1992, which is having different segmnt based showrooms. There are different branches of the company. Commercial vehicle division situated at Kundgol corss, private car divition (PCD) vidynager, Hubli, Manickgab

Bharidevarkoppa branch for moter vehicles services, Manickbag diesel for calibration of pumps etc, Manickbag automobiles Pvt. Ltd., Ankola for PCD sales & services, Manickbag automobilies ptv. Ltd., Bijapur for commerdcial vehicle. Manickbag automobile pvt. Ltd, is hving different service setup in Hubli, Belgum, Bijapur,Bidar, Baglkot and chikodi for the sutomobile segments in this Limited.

2. f Ownership pattern Ownership pattern menans who are all the owners of the company and if it is depaned on shareholders and other parities then it will give clear details about the investment and the investors who invested in the company. It is help to understand whom the company belongs and how the pattern of investment is going on. Manickbag automobile Pvt. Ltd is a private company, which is mainly promoted byu two families Darmappa mirji and Manikachand shah in the year 1991. Name Manickbag came because when it started on a land, which was donated by one Mr. Manikanchand. P.Zaveri form Bombay to Jain boarding and it was a full bamboo jungle so that area was known as Manickbag and it was taken long lease. In the Tata Manickbag automobile pvt. Ltd. They have partnership pattern of investment. There are total 15, family partners in this organization. All partners are responsible for all the profit and loss in the

company. The company has different branches like Commercial vehicle division private car division.

2. g. Competitor information Competitors are almost everywhere, whether it is a business or anything else. Competitors will give one kind of motivation to change ourselves and develop innovative things for the business. Though Manickbag automobile Pvt. Ltd. Is one of the leading companies in the north Karnataka there is a big and tough computation form some other automobile showrooms in the north Karnataka. There are main competitors for Manickbag automobiles in Hubli are : RNS Motors in Unkal, Bellad automobiles in vidynagar, Javli motors in Unkal, Shodha Toyata in Raypur, and Metoro ford.

2. h. Infrastructure facility Infrastructure plays an important role in the organizations development. Infrastructure for any company mainly contains land and building, power supply for the repair, transportation facility. Storage facility like warehouses and stores many other. All this play an important role in the overall growth of the organization. Manickbag automobiles pvt. Ltd has ggod infrastructure facilities which contribute a lot in the success of the company. In Manickbag automobiles, Infrastructure availability in particular cover area is of 1 acre and Open area is about 4500 Sq. ft. UNIT :- Manickbag automobile ltd the main unit is situated at Vidynagar, Hubli. Which contain showroom, service set ups and warehouse under one roof. The showroom is having the capacity of 6-7 vehicles to showcase to the customer which is very near to NH road so its very attractive place also. Service set ups for regular vehicle is present behind the showroom which is more convenient to both customer and the staff to enquire about their quires and feedback. Warehouse is also present behind the showroom which is open

area covering 4500 Sq.ft. which helps to reduce the time and cost to bring the vehicle from the far place of warehouse. Repair layout :- The repair layout is nothing but big or big or major things happens to the vehicle like accidents and paintings which is done in separate layout which is present near to the Sana college campus, Hubli. Various facilities available at Manickbag automobile ltd are Good infrastructure qualified and trained manpower, state of the art diagnostic equipment and innovative ideas were key elements in making Manickbag automobiles a successful operating showroom.

2.i. Achievements and award The art of accomplishing or finishing, something accomplished fruitfully, especially by means of exertion, skill, practice, or perseverance. Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence. The starting point of all achievement is desire. Without continual growth and progress, such words as improvement, achievement, and success have no meaning. The Manickbag automobile Pvt. Ltd., has got three awards from special firms like Beat dealership award from TELCO, Beat dealership award from MICO, Beat dealership award from TVS.

2. J. Work flow model Workflow concepts are closely related to other concepts used to describe organizational structure, such as silos, functions, teams, projects, policies and hierarchies. In the 1980s, the term workflow was first used in its modern form in the software industry by File Net vice president Davi Siegel. Workflows may be viewed as one of the primitive building block of the organizations. The company called its business process automation software WorkFlo. Workflow consists of a sequence of connected steps.

Managing director

General Manager

Sr. manger sales

Assistant sales

Sales satisfaction manager

Sales executive

Finance executive

Showroom in charge

Back office

FIG 2.1A Workflow Model It is a depiction of a sequence of operations, declared as work of a person, a group of persons, an organization of staff, or one or more simple or complex mechanisms. Workflows may be viewed as one primitive building block of organizations. The relationships among these concepts are described later in this entry. The adjacent diagram explains the work flow model of Manickbag automobile Pvt. Ltd., It is systematic and very smooth way of function in the company. In this organization, based on the customer need the cars will be ordered and then the General manager will give information about the vehicle to the Senior manager then it goes to Asst. Manager, then Asst. manager will

transfer the information to the sales executive, then they have

the

responsibility to commence the business who visit to the showroom and enquire bout the vehicle. Sales satisfaction manager will enquire about the vehicle problems and remind about the service and special offers to the customers. Showroom in charge will manage the vehicle showcase in the showroom.

2. K. Future growth and prospectus Manickbag automobile is having competition form the other automobile company. But it is not having competition form the same brand automobile showroom. They are monopoly in the market they are enjoying that. They are covered North Karnataka but still they have the opportunity to in and around the North Karnataka. Along with this Tata also making customer friendly vehicle so it could be better for the Manickbag automobile also. Tata is very famous for the diesel vehicle. The popular myth that Tata Motors have some distinct advantages in comparison to ther multi-national competitors especially a cost advantage as labor costs are not ture as Tata Motors has 8-9 percent of sales as compared similar percent for most multinational companies. Also employee productivity in Tata Motors is less than 1/3rd (in Smillion sales/employee) than Toyota another advantage in the increasing demand in its own backyard, Tata and fellow compatriots account for more than 60% of the passenger vehicle sales and 95% of commercial vehicle sales. There are also favorable government policies and regulations in place in order to help boost the suto industry. Tata relies heavily on its sales in India and has not yet managed to create a foothold in international markets even though it has a number of well reputed subsidiaries. The po9licies adopted by Government will increase competition in domestic market, motivate many foreign commercial vehicle manufactures to set up shops in India, whom will make India as a production hub and export to

nearest market. Thus Tata Motors will have to face tough competition in near future, which might affect its growth positively.

SWOT ANLYSIS

A SWOT analysis is an instrumental framework in Value Based Management. Similarly Strategy Formulation is very essential to identify the Strength, Weaknesses, Opportunities and Threats for a particular company. The

technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data form fortune 500 companies. It involves specifying the objective of the business venture or project and

identifying the internal and external factors that are favorable and unfavorable to achieving that objective. Identifications of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. Strengths : attributes of the person or company that is harmful to achieving the objectives (s) Opportunities: external conditions that is helpful to achieving the objective(s). Threats: external conditions which could do damage to the objective(s)

Situation analysid

Internal analysis

external analysis

Strengths

weaknesses

Opportunities

threats

FIG 4.1A SWOT Analysis

Every organization has certain techniques to enhance its production, marketing, financing etc. It will increase the productivity of the organization. Strengths and Weaknesses are internal value creating (or destroying) factors such as assets, skills or resources a company has at its disposal relatively to its competitors. They can be measured using internal assessments or external benchmarking. Opportunities and Threats are external value creating (or destroying) factors a company cannot control, but emerge form either the competitive dynamics of the industry/market or form demographic, economic, political, technical, social, legal or cultural factors.

4.1 Strength Any existing or potential resources or capability within the organization that provides a competitive advantage in the market is called strength. Strength in the SWOT Analysis is attributes or characteristics within the organization that are considered to be important to the execution and ultimate success of the project. Strengths capture the positive aspects internal to your business that add value or offer you a competitive advantage. Some of the examples for strength are Location of your business,

Cost advantage through proprietary know-how, Quality processes and procedures, Strong brand or reputation. A firms strength are its resources and capabilities that can be used as a basis for developing a competitive advantage examples of such strength include: patents, strong brand names, good reputation among customers, cost advantages form proprietary know-how, exclusive access to high grade natural resources, favouable access to distribution networks.

The demand for the automobiles is growing with the extension of income level of people and improvements in the loan facility, which is the strength of the market. In addition the growing population also bears effect on this sector. Strength is something a firm does well or an attribute that enhances its competitiveness valuable competencies or know-how, valuable physical assets, valuable human assets, Valuable organizational assets, Valuable intangible assets, important competitive capabilities, an attribute that places a company in a position of market advantage, alliances or cooperative ventures with partners. Strength is resource advantage relative to compotators and the needs of the markets a firm serves or expects to serve. It is a distinctive competence when it gives the firm a comparative advantage in the market place. Strengths rise from the resources and competencies available to the firm. In this Manickbag automobile pvt. Ltd strengths are many like They have their own finance, The customer are attended as soon as they come, The delers have high goodwill in the market for their service, Presence of effective flow of communication b/w the various departments of Manickbag is the greatest

strength which ensures smooth of operations, The area available for operation is very specious.

4.2 Weakness A weakness is something a firm lacks, does poorly, or a condition placing it at a disadvantage. The absence of certain strength may be viewed as weakness. For example, each of the following may be considered weakness: lack of patent protection, a weak brand name, poor reputation among customers, high cost structure, and lack of access to the best natural resources, lack of access to key distribution channels. Your weaknesses are determined through failures, defeats, losses and inability to match up with the dynamic situation and rapid change. The weaknesses may be rooted in lack of managerial skills,

insufficient quality, technological backwardness, inadequate systems or processes, slow deliveries, or shortage of resources. A companys weakness can relate to inferior or unproven skills, expertise, or intellectual capital in competitively important areas of the business. Deficiencies in competitively important physical, organizational, or intangible assets: Missing or competitively inferior capabilities in key areas. Internal weaknesses are thus shortcomings in companys compliment of resources and represent competitive liabilities. Nearly all companies have competitive liabilities of one kind or another. Weakness is limitation or deficiency in one or more resources or competencies relative to competitors that impedes a firms effective performance. Resource weaknesses relate to Inferior or unproven skills expertise, or intellectual capital, lack of important physical, organizational, or intangible assets, Missing capabilities in key areas. Tough competition form other companies, The dealers prefer experience rather than talent for higher post, Difficulty in marketing petrol cars as it is set in minds of public that Tata is for diesel vehicles, The dealers can conduct exchange promotional activity to increase its sales, The dealers can go for diversification, Potential market in low income group and rural areas, Can capture rural areas when they are going to launch heir new vehicle. A weakness could be: Lack of marketing expertise, undifferentiated products or services (i.e.in relation to your competitors), Location of your business, Poor quality goods or services, damaged reputation.

4.3 Opprotunities The external environment analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include: an

unfulfilled customer need, arrivel of new technologies, loosing of regulations, removal of regulation trade barriers. Any opportunity is major favorable situation in the firms environment. The opportunities are external attractive

factors that represent the reason for an organization to exist and develop. The external condition that is helpful to achieving the objective. An opportunity could be: A developing market such as the Internet, Mergers, joint ventures or strategic alliances, moving into new market segments that offer improved profits, A or strategic alliances, moving into new market such as the Internet, Mergers, joint ventures or strategic alliances, moving into new market segments the offer improved profits, A new international market, A maeket vacated by an ineffective competitor in that region. Market opportunity is a big factor in shaping a companys strategy. Indeed, mangers cant properly tailor strategy to the companys situation without first identifying tis opportunities and appraising the growth and profit potential each one holds. Depending on the prevailing circumstances, a companys opportunities can be plentiful or scarce and can range form widely attractive interesting to unsuitable. In evaluating a companys market

opportunities and ranking their attractiveness, mangers have to guard against viewing every industry opportunity as a company opportunity. Opportunities are major favorable situation in a firms environment. Key trends are one source of opportunities. Identification of a previously overlooked market segment, chages in competitive or regulatory circumstances, technological changes and improved buyer or supplier relationship could

represent opportunities for the firm. Opportunities are the most relevant to a company are those offering Good match with its financial and organizational resource capabilities, Best prospects for profitable long-term growth, Potential for competitive advantage. The dealers can conduct exchange promotional activity to increase its sales, The delaers can go for diversification, Potential market I low-income group and rural areas, Can capture rural areas by giving demonstration with the new vehicle.

4.4 threats

Changes in the external environment also may present threat to the firm. Some examples of such threats include: shifts in consumer tastes away from the firms products, emergence of substitute products, new regulations, and

increased trade barrier. Threats are the external factors, beyond an organizations control, which could place the organization mission or operation at risk. The external conditions which could do damage to the businesss performance. A threat is challenge created by an unfavorable trend or development that may lead to deteriorating revenues or profits. Globalization and privatization, any sudden change in govt. policy may have adverse effect on sales, New interacts from competitors like price and quality, Changing market trends, Competition form other models, change in market that is form sellers market to buyers market. Emergence of cheaper/better technologies, Introduction of better products by rivals, Entry of lower-cost foreign competitors, Onerous regulations, Rise in interest rates, Potential of hostile takeover, Unfavorable demographic shifts, Adverse shifts in foreign exchange rates, Political upheaval in a country. Threat could be: A new competitor in your home market, Price wars with competitors, and a competitor has a new, innovative product or service, Competitors have superior access to channels of distribution, and Taxation is introduced on your product. SWOT analysis is an important tool to measure the internal factors Strengths and Weakness and external factors Opportunities and Threats. Manickbag automobile pvt. Ltd. has certain strength which makes company to achieve the coal. Company has taken certain steps to overcome the weakness. There is an opportunity to grow in certain areas. The company is facing certain threats form competitors. The most important part of SWOT analysis is not developing the 4 lists of strengths, weaknesses, opportunities, and threats, but rather Using the 4 lists to draw conclusions about a companys overall situation and Acting on the conclusions to Better match a companys strategy to its

resource strengths and market opportunities, Correct the important weaknesses, and Defend against external threats.

FINANCIAL PERFORMANCE

Tata Motors ended the fist half of the year with profits after tax of Rs. 306.9 crore, an increase of 254 percent over the corresponding period the previous year. The companys revenues for the same period improved by 45.3 percent to reach Rs. 5,677.52 crore. To cap it off, tata motors export volumes grew by 67.5 percent in 2003 and export sales were 95.3 percent more than for the same period the previous year.

The company improved its market share in both commercial and passenger vehicles in 2003. Total commercial vehicle sales in Apri-November 2003 increased by 43 per cent and passenger vehicle sales for the same period by 420.8 percent. The India inversed in sales numbers by 10.7 percent while the

indigo maintained is market leadership position with cumulative sales for the fiscal year being 17,874 units. Tata motors passenger vehicles division made the most of increasing consumer demand, which was driven by rising incomes, lower interest rates and better financing schemes, the companys commercial vehicles business benefited form road infrastructure development as it focused its energies towards attaining higher fuel efficiency, better emission norms, safety and comfort,.

As 2004 dawned, Tata Motors is moved from a phase of consolidated to one of robust growth. While the domestic market remained of paramount interest to the company, it was looking to the international segment as a means to fuel aggressive that embraces organic and inorganic elements.

Introduction of the study

Meaning of working capital In simple wards, working capital is the amount of fund required to finance, the day to day activities operations of business.

In accounting terminology, the term working capital will conceive current inflows of funds and outflows of funds. The balancing figure of inflow and is the working capital

Technically working capital may be defined as the excess of current assets over current liabilities

Current assets Current assets are those assets that can be converted into cash in a short period that is within one year. Current assets include cash. Cash at bank, marketable securities, bills receivables Sundary debtors, stock and prepaid expenses.

Current liabilities Current liabilities are those liabilities that need to be paid within a short period that is within one year, current liabilities include, creditors, bills payable, accrued expenses, bank overdrafts, income tax liability and long term loans due for payment in current.

Component of working capital 1. The receivable management process at DMU, 2. The cash management process at DMU, 3. The inventory management process at DMU, Concept of working capital There are two concepts regarding the working capital 1. Gross working capital 2. Net working capital

1) Gross working capital

Gross working capital refers to the firms investments in current assets, gross working capital indicates the quantum of working capital in total assets with which the business has to operate,

2) Net working capital Net working capital refers to difference between current assets and current liabilities. It indicates liquidity position of the firm, A firm should maintain a sound working capital position, it should have adequate working capital to run its business operation. Both excessive as well as inadequate working capital position are dangerous from the fires point of view

Excessive working capital means ideal fund, which earns no profit for firm. It result in unnecessary accumulation of inventories or it is an indication of defective credit policy and slack collection period. Limited working caital not only impairs firms profitability but also results in production interruption and inefficiency.

Inadequat working capital stagnates growth, it is difficult for the firm to achieve the firms profit target, the firm may loose its reputation,

Advantages of adequate working capital Adequacy of working capital is a source of strength and stability to the enterprise. The is because, the day working of the enterprise is facilitated by the adequate working capital.

Following are the advantages of having adequate working capital Adequacy of working capital creates a feeling of security and confidence, It helps in the creation of sound good will, Easy availability of cash discount

 Steady work for the employees and efficiency in production. Easy laon for banks, Better market operations

Disadvantages of having adequate working capital

Following are the disadvantages of having adequate working capital The business can not earn a fair return on its investment, because excies working capital dose not earn anything for the business, whereas are distributed d on the whole of its capital, thus bringing down the rate of return to the share holders,. Excess capital may prompt the management to purchase unnecessary assets, inventories and to carry experimental plans, which may not earn any profit to the concern resulting in waste of resources. A concern with surplus working management. Firms having the adequate working capital may not develop useful links with banking urgency. The need or objects of working capital The need for working capital cannot be emphasized. Every business need some amount of working capital. The need of working capital arises due to the time gap between production and realization of cash, there is an operating cycle involved in the sales and realization of cash, there are time gaps in purchase of raw materials and production, production and sales, undertakings, whose assistance is inevitable in time of need and capital shows a sign of poor grade

And sales, and realization of cash, working capital is needed for the following purposes,

 For the purchase of raw materials, components and spaces To pay wages and salaries, To incur day to day expenses and overhand costs such as fuel, power and office expenses and salaries, To meet selling costs as packing, advertising ect. To maintain the inventories of raw materials, work-in-progress, stores and spares and finished stock,

Factors determining the working capital requirements. The working capital requirements of concern depend upon a large number of factors such as nature and size of the business, the characteristics of their operations, the length of production cycle, the rate of stock turnover and the state of economic situation. However the following are the important factors generally influencing the working capital requieement.

1. Nature or characteristics of business : The working and the working capital requirement of enterprise are interrelated. While a manufacturing industry has a long cycle of operation of the working capital the same would be short in enterprise involve in providing service. The amount required also verify as per the nature, an enterprise involved production would required enterprise. 2. Manufacture production policy: Each enterprise in the manufacture sector has it won production policy, some follow the policy of uniform production even if the demand based production which production is based on demand during the particular place of time. Accordingly the working capital requirements vey both of them. 3. Operation in

more working capital then a service sector

The requirements of working capital fluctuates for seasonal business, the working capital needs such business may increase considerably during buy season & decrease during the,

Market condition If there is high compaction in the chosen project category then one shall need to offer sops like credit, immediate delivery of goods etc for which the working capital requirements will be high. Otherwise if there is no compotation or less computation in the market then other working capital requirement will be low,

Availability of raw material: If raw material is readily available then need not maintain a large stock of thereby reducing the working capital investment in the raw material stock on the hand if raw material is not readily available then large inventory stocks needs to be maintained there by calling for substantial investment in the same, Growth & expansion: Growth & expansion in the volume of business result in enhancement of the working capital requirements. As business growth & extends it needs a larger amount of the working capital normally the needs for increased of working capital funds processed growth in business activities, Price level changes: Generally raising price level requires a higher investment in the working capital. With increase prices, the same levels of current assets needs enchased investments,

Manufacturing cycly : The manufacturing cycle start with the purchase of raw material & is completed with the production of finished goods. If the manufacturing cycle involve longer period the need for working capital would me more at the time business needs to estimates the requirements of working capital in a advance for proper control & managements.

Principal of working capital managements : The following are the principal of working capital managementss Requisite amount of working capital should be raised at minimum cost. Excess of debts & receivables should be avoided Excessive establishments expenses should be eliminated Necessary inventories should be purchased at competitive rates Suitable credit collection policy be followed to minimize the problem of collection Economy in the use of inventories and quick turnover of finished gods should be planned.

Management of working capital Working capital, in general practice, referee to the excess of current assets over current liabilities, management of working capital therefore is concerned with the problem that arise in attempting to manage of current assets, the current liabilitys

And the inter relationship that exists between them. In other workds if refers to all aspects of administration of both current assets and current liabilities.

The basic goal of working capital management is to manage the current assets and current liabilities of a firm in such a way the a satisfactory level of working capital is maintained i.e.it is neither inadequate nor excessive. This is so because, both inadequate as well as excessive working capital positions are bad for any business, 1) Dimension I is concerned with the formulation of polices with regard to profitability risk and liquidity 2) Dimension ii is concerned with the composition and level of current assets 3) Dimensions iii is concerned with the decisions about the composition and level of current liabilities. Management of working capital assets : The following are ways how the firms should manage its individual current assets 1) Management of cash balance : Cash is the most important current assets for the operations of business, it is the basic input needed to keep the business running on a continuous basis, it is also the ultimate output expected to be realized by the firm. It means every activity in an enterprise revolves around the cash. 2) Management of account receivables : Receivables refer to the debt that is the amounts receivable by a firm form its customers for the goods or service provided on credit. In other words, they are the amount outstanding in trade debtors and bills receivable. In short, they mean sundry debtors and bills receivables. Thus, receivables represent the claims of the firm against its customers and all carried to the assets side of the balance sheet under titles such as accounts receivables, trade receivables, customer receivables or book debts, 3) Management of inventory:

Inventory refers to the stock that a business firm keeps to meet its future requirement of production and sales, the different forms in which inventories exist are a) Stock of raw materials to be consumed in the process of production b) Work in progress inventories are those which are completely manufactured products and are ready for sale, c) Finished goods inventors are those which are completely manufactured products and are ready for sale, d) Stores and spare parts held for consumption by machines spare parts, lubricants, cleaning materials, oil, cotton waste etc.,

In KMF the officials always try to have large stocks of inventories to facilitate production and marketing of the product, so they require large amount of investment, following are the objective of KMF regarding the inventory management. 1) To provide the quantity and quality of inventories required by the firm proper time, 2) To prevent or minimize the loss due to obsolescence, deterioration, theft etc., 3) To ensure effective utilization of storage capacity or space, 4) To have effective control over purchase storage and use of materials,

Techniques or tolls of inventory control: There are several techniques or tools for controlling the inventory and they are follows 1) Fixing the minimum and maximum level of inventory, 2) Economic order quality, 3) FSN analysis system, 4) Re-ordering level or order level, 5) Two bin system,

6) Order cycling system, 7) ABC analysis system, 8) Budgetary control system,

Working capital analysis or operating cycle approach The operating cycle of working capital is the length of time between companiess paying for materials entering into stock and receiving the inflow cash from sales, Thus, the duration of time required to complete the following ice of events in case of a manufacturing firm is called the operating cycle, 1) Conversion of cash into raw materials, 2) Conversion of raw materials in to work in progress, 3) Conversion of work in progress into finished goods, 4) Conversion of finished goods into debtors and bills receivables through sales, 5) Conversion of debtors and bills receivable into cash,

Source of working capital : 1. Bank finance for working capital : Banks are the main institution sources of working capital finance in India. After trade credit, bank finance is the most important sources of financing working capital requirement of the firm in India, A bank consider a firms sales and production plans and desirable levels of current assets in deterring its working capital requirements.

a) Over draft : Under the overdraft facility, the borrower is allowed to withdraw funds in excess of the balance in his account up to a certain specified limit during a stipulated period. Though overdrawn amount is repayable on demand, they generally continue for a long period by annual renewals of the limits.

b) Cash credit : The cash credit facility is similar to the overdraft arrangement; it is the most popular method of bank finance for working capital in India. Under the cash facility, borrower is allowed to withdraw funds from the bank up to the sanctioned credit limit, he is not required to borrow the entire sanctioned credit at once rater he can draw it periodically to the extent of his requirements and reply by depositing surplus funds in his cash credit accounts. c) Purchasing or discounting of bill : Under the purchasing or discounting of bill, borrowing can obtain credit form a ban against its bills. The purchase or discounts the borrowers bills, the amount proided under this agreement is covered within the overall cash credit or overdraft limit, d) Letter of credit: Suppliers, the foreign suppliers insist that the buyer should ensure that his bank would make the payments if he fails to pay the amount. This ensured through a letter or credit arrangement e) Working capital loan: A borrower may sometimes requires ad-hoc or temporary accommodation

through credit limit to meet unforeseen contingencies, bank provides such accommodation through a demand loan account or separate non-opera table cash credit account.

2) commercial paper : Commercial paper is an important money market instrument in advance countries like USA to rise short term funds. In India RBI the commercial paper in 1989. The buyers of commercial paper include banks, insurance companies, unit trusts and firms with surplus funds to invest for a short period with minimum risk, there is demand only for highly credit worthy companies,

3) Factoring: Factoring is a method by which a business can obtain cash for invoices, he sent to his customer in respect of supply of goods and services rendered to them factoring is also called as invoice discounting 4) Ploughing back profit Ploughing back profit is the most suitable sources of financing for an existing and well establishment company. A well established enterprise can set aside a portion of its earnings for reinvesting in the business, 5) Public deposits : Acceptance of deposits from public is yet another method of financing to business enterprise; many industrial and commercial establishments seek to raise a part of their requirements in the form of deposits form the public. Deposits are accepted for periods, of ranging from 6 months to 5 years.

ANALYSIS OF FINANCIAL STATEMTNT Balance sheet as on 31st march 2009

5.1

In the organization Balance sheet which gives details about the expenses and the funds which is borrowed. It contains all the loans and the debtors. The profit and loss only shows only the net profit or he net loss of a business for a certain trading period. But a trader likes to know not only the net profit or net loss of his business for a certain trading period. But also the financial position of the business at the end of the period. Particular Sources of funds Owners fund Reserves & surplus Loans funds Secured loans Deferred tax liability Current liabilities & provision Current liabilities Provisions Duties and taxes Total Application of funds Fixed assets Gross block Less : depreciation Net block Current assets, loans, & advances Inventories Sundry debtors Cash & bank balance Loans & advances 14,420,534 12,583,321 580,954 1,599,618 18,607,852 20,505,997 163,854 2,896,908 26,415,842 3,486,077 22,929,765 28,629,262 6,860841 21,768,421 3,031,295 671,266 3,197,618 52,250,448 9,757,275 1,234,069 2,007,816 6,4061,381 39,712,407 49,729 45,171,064 32,169 5,509,800 77,333 5,509,800 349,188 31-03-2008 31-03-2009

Total Miscellaneous expenses Preliminary expenses Total

29,184,427

42,174,611

135,256 52,250,448

118,349 6,4061,381

TABLE:5.1A Balance Sheet as on 31st march 2009

From the above balance sheet we can identify that reserves and surplus of the company was increased due to the intention of expansion of business. Due to the sales of the some fixed assets, fixed asset came down in 2009 and current assets of the company was increased around 45% due to increase in sales. 5.2 Profit and loss a/c as on 31st march 2009: The profit and loss account is an account which shows the net profit or net loss of a business for a particular trading period. Having prepared the trading account and ascertained the gross profit or gross loss, the trader has to prepare the profit and loss account of his business. Particulars Income Sales Other income Total income Expenditure : Cost of goods sold 105,843,358 143,423,577 12,929,221 117,177,507 5,828,005 123,005,512 157,827,651 11,885,141 169,712,792 31/3/2008 31/3/2009

Selling & administration 6,322,095 expenses Financial expenses Payments to employees Rates & taxes 2,980,499 4,029,480 73,467

3,642,135 5,672,546 65,367

Depreciation Total Profit before taxation (1-2) Less: taxation Deferred tax Fringe benefit tax Profit after taxation Provision

3,401,509 122,650,410 355,101

3,374,763 169,107,641 605,150

for 21,213

235,000

125,592 208,296

17,560 115,856 271,854 77,333

Balance brought from 130,962 previous year Balance carried over to 77,333 balance sheet

349,188

TABLE : 5.2 A Profit And Loss Account as on 31st march 2009 Sales of the company were increased around 34% in 2009 compare to 2008. Which shoes company is done well in the time of recession also. And profit before tax of the company was increased around 70% in 2009 compare to 2008. It increased due to the sales and profit after tax was increased around 30%. Compare to the profit before tax is too low due to the high fringe benefit tax.

5.3 Ratio Analysis A tool used by individuals to conduct a quantitative analysis of information in a companys financial statements. Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to judge the performance of the company. Ratio Analysis is predominately used by proponents of fundamental analysis.

There are many ratios that can be calculated from the financial statements pertaining to a companys performance activity, financing and liquidity.

i.

CURRENT RATIO An indication of a companys ability to meet short-term debt obligations; the higher the ratio, the more liquid the company is. Current ratio is equal to current assets divided by current liabilities. If the current assets of a company are more than twice the current liabilities, then that company is generally considered to have good short-term financial strength CURRENT RATIO = CUURENT ASSETS/CURRENT LIABILITIES PARTICULARS CURRENT ASSETS CURRENT LIABILITIES CURRENT RATIO TABLE :5.3A Current Ratio The above table is showing current ratio: The current ratio was 4.22 in the 2008 which declined to 3.24 in 2009 which indicates that the company to discharge its current liabilities has slightly declined over the years. 4.22 3.24 2008 29,184,429 6,900,179 2009 42,174,612 12,999,160

ii.

QUICK RATIO Quick ratio is Measure of a companys liquidity and ability to meet its obligations. Quick ratio, often referred to as acid-test ratio, is obtained by subtracting inventories from current assets and then dividing by current liabilities. QUICK RATIO = LIQUID ASSETS/CURRENT LIABILITIES

TABLE : 5.4A Quick Ratio

PARTICULARS Liquid assets Current liabilities Quick ratio

2008 14,763,895 6,900,179 2.13

2009 23,566,760 12,999,160 1.81

The above Table is showing quick ratio: At Manickbag automobile the quick ratio in 2008 is 2.13 though the ratio is decreased in 2009 that is 1.81 shows companies current liabilities have increased by 188% from 2008 to 2009.

iii.

FIXED ASSET TURNOVER RATIO Measure of the productivity of a firm, it indicates the amount of sales generated by each dollar spent on fixed assets, and the amount of fixed assets required to generate a specific level of revenue. Changes in the ratio over time reflect whether or not the firm is becoming more efficient in the use of its fixed assets.

FIXED ASSET TURNOVER RATIO = SALES/FIXED ASSETS. TABLE : 5.5A Fixed Asset Turnover Ratio PARTICULARS SALES FIXED ASSETS FIXED 2008 117,177,507 22,929,765 2009 157,827,651 21,768,421 7.25

ASSET 5.11

TURNOVER RATIO

The above table is showing the fixed asset turnover ratio: The table shows that the company has maintained a good fixed assets turnover ratio. It has increased from 5.11 to 7.25 over a period 2008 to 2009. It means company is effectively using its fixed asset to generate more sales.

iv.

INVENTORY TURNOVER RATIO

Inventory turnover ratio indicates the no of times the stock has been turned over during the period and evaluates the efficiency with which a firm is able manage its inventory. The inventory turnover ratio is included in the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, Calculation, charts and explanations of each ratio.

INVENTORY

TURNOVER

RATIO

COST

OF

GOODS

SOLD/AVERAGE INVENTORY TABLE : 5.6A Inventory Turnover Ratio Particulars Average inventory Cost of goods sold Inventory ratio 2008 16,514,193 105,843,358 2009 21,174,726 143,423,577 6.74

turnover 6.40

The above table is showing inventory turnover ratio : The ITR of the company is relatively good; the best being in the year 2008 and 2009 is same. This shows company has increased its inventory capacity. v. INTEREST COVERAGE RATIO A ratio used to determine how easily a company can pay interest on outstanding debt. The interest coverage ratio is calculated by dividing a companys earnings before interest and taxes (EBIT) of one period by the companys interest expenses of the same period : INTEREST COVERAGE RATIO = EBIT+DEPRECIATION/INTEREST TABLE : 5.7A Interest Coverage Ratio PARTICULARS EBIT 2008 3,244,328 2009 4,118,236

Depreciation EBIT + depreciation Interest Interest coverage ratio

3,401,509 6,645,837 2,889,227 2.30

3,374,763 7,492,999 3,513,086 2.13

The above table is showing interest coverage ratio : The table shows that the interest coverage appears pretty healthy and thus the company has a greater ability to meet or pay the interest burden of outsiders.

Conclusion : Ratio analysis simplifies the comprehension

of financial

statements. Ratios tell the whole story of changes in the financial condition of the business. In this analysis it is infereed that e planning for the expansion and forecasting is needed for the organization. Over period of time a firm develops certain norms like expanding their business to other part of the north Karnataka which gives success.

WORKING CAPITAL MANAGEMENT GENERAL INTRODUCTION

Analysis of W.C.Mgt. facilitates to the companies to determine how the customer believe and to recognize the brand or the products. Though it is a new

phenomenon, it is inevitable for the improvements and the sturdy squad spirit and thereby rapid maturity. Business prerformance is anticipated to increase the satisfied customer and it will increase a companys competitiveness. W.C.Mgt. was conducted to find out the customer mind set and the belief on the product. This survey provides a channel for customer to communicate their view on a wide range of issue in total confidence to the company. Tata is a multinational corporation, having a-z production of products in its under. Part of the Tata Group, it was formerly known as TELCO (TATA Engineering and Locomotive company). Its headquartered in Mumbai, India. It is Indias largest company in the automobile and commercial - vehicle sector with upwards of 70% cumulative Market share in the Domestic Commercial vehicle segment, and a midsized player on the world market with 0.81% mrket share in 2007 according to OICA data. The OICA ranked it as the 19 th largest outomaker, based on figures for 2007, and the second largest manufacturer of commercial vehicles in the world. The company is the worlds fourth largest truck manufacture, based the worlds second largest bus manufacturer. In India, Tata ranks as the leader in every commercial vehicle segment, and is in the top 3 makers of passenger cars. Tata Motors has consolidated revenue of USD 16 billion after the acquisition of British automotive brands Jaguar and Land Rover in 2008. Tata Motors is also the designer and manufacturer of the iconic Tata Nano, which at INR 100,000 or approximately USD 2300, is the cheapest car in the world.

1.a. Statement of the problem In this study is to understand the Working Capital Management on TATA customer having different perception about the things. Perception is someones view. Everyone is said to have different perceptions on political, religious, and personal subjects. Perception is what makes the human race so unique. Perception is your sense of awareness. Perception can be the way you view the

world. It is your feelings and thoughts about what you see and feel. Customer what one perceives can be different from objective reality. Perception is important in the study of OB because peoples behavior is based on their perception of what reality is, not on reality itself. Perception describes How we see the world around us. There are mainly two terms Stimuli-(products,

packages, brand names, ads) and Sensory receptors. When the customer makes his buying decision, he evaluates the benefits he perceives from a particular product and compares them with the costs. The value a customer perceives when buying and using a product or service go beyond usability. There is a set of emotional values as well, such as social status, exclusivity, friendliness and responsiveness or the degree to which personal expectations and preferences are met.

1.b. Objective of the study : To study the working capital management on TATA car To study the factors influenced for the purchase of TATA To study the customer attitude about the TATA To study the customer expectation about the TATA To study the performance of the TATA

1.c. Scope of the study In todays globalizing economy competition is getting more difficult. That means it becomes more difficult for products and services to differentiate themselves from other offerings than ever before. This study would be useful for companies to know what customer perceives and thinking about small fight that is TATA and it would be useful to form strategies according to perception of people about TATA. And also this study would be useful to other students as a secondary data. Besides that, surveys should also identify the relative importance of several influencing variables in the eyes of the customer.

To know what matters most to the customer helps to set priorities for projects, and it should be based on careful customer segmentation. Customer groups that differ by frequency of use, social status, geographical region or other criteria, are likely to have different expectations and preferences. Hence, they will probably perceive an offering in different ways. It helps to the Companies that it should try to make sure that their customers are fully aware of all the ways their offering can provide value to them. They have to explain the customer how this particular product can deliver more value than those from competitors. This approach means to widen the customer perception and to extend their awareness and appreciation to more features or aspects of the offering. However, this point has to be considered very carefully in order not to produce a diametrical effect.

1.d. Methodology Research methodology is a method to solve the research problem systematically. It involves gathering data, use of statistical techniques, interpretations, and drawing conclusions about the research data. It is a blueprint, which is followed to complete the study. It is similar to builders blue print. Primary : The data collected by the surveyor, with respect to the problem under study, is known as primary data. Primary data is also the first-hand collected by the surveyor for the immediate purpose of the study. Here observation and questioning are two broad approaches available for primary data collection. Here questioning is chosen for this particular study, because the major difference between the two approach is that in the questioning process, the respondent play an active role because of their interaction with the surveyor.

Secondary : secondary data are statistics that already exist. They have been gathered nor for immediate use. This may be described as those data have complied by some agency other than the user. Secondary data can be classified

into 2 types. That is internal data and external data. Internal data is a part of the companys record, for which research is already conducted. But in this case TATA car survey its not possible to get primary data because its a new entrant in the market. Here chosen external secondary data for the survey, which is through Magazines, Data through internet sources and news papers. Research design : Research design is the arrangement for conditioned for data collection and analysis of data in manner that aims to combined relevance to research purpose with economy in procedure. A research design is a master plan for the conduct of formal investigation. It is blue print that is followed in completing study. The research conducted here is a descriptive in nature because study is focused on fact finding investigation in a well structured from and is based on primary data. Type of study : for completing this study here gone for sample study because looking at the size of population and the time limitation it was not convenient for me to cover entire population. Hence I have gone for sample study rather than census study. Sampling plan :- A sample design is a definite plan for obtaining a sample form a given population. It refers to the technique or the procedure that researcher would adopt in selecting items form sample i.e. the size of sample. Sampling plan is determined before data are collected. Steps in sampling plan Sampling frame :- the list of sampling units from which sample is taken is called sampling frame. In these cites map was studied thoroughly and samples were selected from the places in a scattered manner to get effective result. Sampling size :- Sampling size is nothing but the selected population from the region which covers the survey. Which will give the definite numbers of the customers was surveyed. Total sample size is 300. The following sample size according to area wise as follows :Dharwad-30

Sampling procedure:- The selection of respondents were accordingly to be in a right time and so the sampling were quite easy to measure, evaluate and cooperative. It was a randomly area sampling method that attempts to obtain sample of convenient elements. Field work :- Here collected the data through medium called questionnaire collecting the responses from 100 people in all. I had done my field work in the following area Hubli, Dharwad. This project was started by first educating the respondents about entire project, and asks them to co-operate with me. Mostly all the respondent were aware of this type of survey. So I didnt face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire.

1.e.Limitations of the study In this survey has tried to collect best information on W.C.Mgt. but still some limitation are there in this report, this limitation are there in the research because of the following reasons. Narrow sample size :- In this report has taken a sample size of 300 which is limited and if there is some changes in the sample size there are chance that a result may varies. So this is one of the limitations of the report. Limited sample size fails in giving a complete justice to the case study because its covers the only small parts of the population for the survey. Restricted survey area :- sampling frame or the research area for this research in limited, in this report it has concentrated on respondents of Dharwad district. For more appropriate result we need to concentrate on wide area which gives more precise result. Errors in tabulation or in interpretation :- there may be some errors in the tabulation of the data and interpretation of the data so this may be a limitation of the report, error may come in case of some faulty respondent and some

problem in the tabulation process. Some of the respondent do not give the require information which leads to the limitation of the study. Non-probability sampling technique :- In this survey has selected a non probability technique which includes judgment sampling and snow ball sampling so there may be some variation in the result or the finding if some other techniques can be used by some other surveyor. For the more accurate result it is better to adopt random sampling method or systematic smpling method which is probabilistic method of sampling. Inadequate time period :- This survey work has completed within 10 weeks due to time constraint which is very less for such kinds of the research, due to lack of sufficient time a proper judgment has not been given to the topic and there may be some limitation of the survey work, if it can be done with the sufficient time than result may be more accurate and relevant. Chapter scheme :- In this chapter scheme, the survey have given basic introduction to the project which is prescribed by Govt. first grade sirsi the partial fulfillment of B.B.A. program. The First Chapter highlights on basic information regarding the project such as statement of the problem, objectives of the study, scope, methodology used in the research for data collection and sampling technique and also the limitation of the research. The Second chapter gives a profile on theoreticl aspects of the research topic customer perception. It also consists of important definition , meaning, needs, determinants, theories, merits and demerits of the W.C.Mgt. The Third chapter includes the data analysis and interpretation of the data with the help of some Statistical tools like line graphs on the findings, which gives the brief idea about the research. All the data collected with the help of the questionnaire and interview are analyzed and interpreted in the third chapter. The Forth chapter encompasses findings from the study and some suggestions for the company; it also includes the questionnaire used to collect the data and the lists of the bibliography of the study.

Thus the above discussions comprise the basic introduction to the problem, statement of the problem. It also includes the objectives of the project, research methodology, and data collection methods, source of data, sampling method and limitations of the study. This chapter gives base to the whole project.

CHAPTER-4 FINDINGS AND SUGGESTIONS This chapter consists of major findings of the survey conducted. The survey is made based on the objectives, which were set before the survey. This throws the light on the various aspects of the customer perception and how it affects the market or to the manufacturer. The objectives were prepared on customer perception. Which includes other objectives like customer expectations, attitude, and factors influencing them to purchase the car. 1. It was found that most of the respondents who would like to go for Tatas Nano balong to income group of 10,000 to 15000. It will more convenient them to purchase the car. So it can be said that Nano is accepted by this income group. 2. The Nano car has attracted many of the private sector employees. Most of the respondents belong to the private sector. In that business man came below the level of private sector. They have great acceptance level for Nano in Dharwad district. 3. In this survey it was found that about 76% of respondents who hought its right decision. They like the Tatas Nano for various reasons like affordability, brand name, shape/design this show the preference of the respondents in Dharwad. 4. From the survey it is clear that customers feel that the price is excellent for the Nano. Because it is a lowest priced car in the world. Even though customers have complaints on Nano but human needs are unlimited. 5. The Tata Nano is more attractive for its low price. That feature has attracted the customer who belongs to age group of 30-50. It fails to attract the young people, and old age people. This age group people have great approval level for the Nano. 6. Here it is noticed that more number of respondents shown interest to purchase the basic model, because the luxury model is not giving

expected mileage. Deluxe also sold less compare to luxury because price difference is not that much. 7. The Nano car was first introduced in the media. Which was attracted many of the customers on the spot, which shows the awareness of the Nano car. This is good for the company because it cut down the advertisement cost and some banks also gave advertisement in the news paper for the loan and all. 8. From the survey it is clearly noted that for outer look most of the respondents were not given more importance, because its design is almost similar to the matiz car, and more number of customers are attracted because of the price and the mileage. 9. In the whole 66% of the reqpondents expectations were reached by the Nano. Customers what they thought they purchased the same. This is told by many of the basic model customers because they are satisfied with that price of the car and the mileage. 10.This signifies that 93.33% of the respondents are recommended other to purchase the Nano, this is an interesting thing which I heard form the customer because for the low price this much features are enough. So they recommend others to purchase.

Suggestions

1. The supply of Nano car is very delayed for the customers. They have to concentrate on the supply of the Nano car. Previously they got huge order for Nano. Still many customers didnt get the car who booked. So they have to deliver the car as early as possible to the customer. 2. In sitting arrangement Nano car has very good space but it is not having minimum space to keep the documents and other small accessories. So they have to concentrate on the small tool box or something to keep those things. 3. The deluxe model customers are having the complaints on mileage. They were getting hardly 10km but the company specified 22 to 23 km/lit. so they have to verify the deluxe model and its mileage which could help to the future customer. 4. They have to give concentration more on the safety measures. As the engine is placed backside that is rear engine. So the basic model customers has to gets the protection in the car and they have used low quality material for the car body. So they have to try to improve on the quality of the material which has been using. 5. Nano car has failed to attract the young people and the students. They like the power and the pickup for the car. They have to make some alterations like improving the power and pickup of the car. So by that, they can attract those segment customers. 6. Nano car has reached many of the customers expectation but in that 33% of the customers expectation has not reached so they have to concentrate on that protion of the customer so that it could come to the 100% 7. There is a new issue of catching the fire in the engine. They have placed the engine on backside and the backdoor is fixed. So is can difficult to see the problem. 2-3 case was found but the Tata motors didnt give may response to that. So they to solve this issue.

8. The nano car has got fiber seats inside the car, which is not comfortable for the ling journey. They can make improvement in the seating arrangement so that it will be comfortable for the customers.

General Suggestions. Customer perceptions are influenced by a variety of factors. The

important point here is the involvement of feelings, emotions and perceptions. In todays competitive marketplace, these perceptions are becoming much more important for gaining sustainable competitive advantage. On a particular occasion a situation prompted a particular behavior, it is not necceassary that a similar behavior is necessary on another occasion. The time, place and group of person might be the same but behave in different way, though circumstances and situations might be identical. 1) Increasing the price :- Human mentality is very difficult to understand. For instance if we sell a product at low price no baby will buy because they think that low price have low quality, the same product if we try to sell at higher price than people will buy. Because they think highet value means high quality. 2) Based on the manufactures expectations :- It is widely agreed that the facilitators were sincere people who were not deliberately faking the results. Their choice of keys was based on their own expectations. So, like people tasting foods or purchasing car, their perceptions were misled by their expectations. 3) Through direct personal experience :- Normally when we are confident someone is honest and they tell us that they have learned something through direct personal experience, we feel it must be true. This applies even more so when we feel us, ourselves have learned something from our own experience.

4) By price reductions :- Many products and service face new competition from substitutes and from completely new offerings or bundles from industry outsiders. Since product differences are closed at an increasing speed and many companies try to win the battle for customers by price reductions, products and services tend to become commodities. 5) Providing wider choice of prices for products :- customer behavior has become more hybrids now days. On one hand, customers are

increasingly price sensitive-searching for bargains at marketplaces. On the other hand they enjoy branded and luxury goods. For many offerings the balance of power shifts towards the customer. Customers are widely aware of their greater power, which raises their expectations on how companies should care for them. 6) Development of a strong relationship :- The development of a strong relationship between customers and a company could likely prove to be a significant opportunity for competitive advantage. 7) Customer satisfaction :- Customer satisfaction is the precondition for repeat purchases and it prevents the customer from telling others about his disappointing experiences. 8) Creating emotional bond :- the emotional bond which links the customer so closely to the company that he develops a clear reference for these products or brands and is even willing to recommend them to others. 9) Understanding customer loyalty:- The customer establishes an equation between perceived benefits and perceived costs of one product and compares this to similar equations of other products. Based on this, customer loyalty can be understood as to how customers feel about a product, service or brand and whether their perceived total investments with it live up to their expectation.

10)

Brand image :- Consumer perception will be positively related to

brand image. Brand image has been a common term in marketing research and practice for half a century. 11) Know about itself and its offerings :- First of all the company has

to find out how itself and its offerings are perceived by the customers. It is essential to identify what the customer is actually buying and which features are most important to him. Only this way it is possible to align the internal focus and resources to the customers expectation. 12) Customer expectations :- customer likes and dislikes information is

of greater value if it can be compared to the customers perception of competitive offerings. Not only will this reveal relative strengths and weaknesses, it is also a valuable source of ideas for improvement. 13) Through research activities :- any market research activities, it

should be based on careful customer segmentation. Customer group that differ by frequency of use, social status, geographical region or other criteria, are likely to have different expectations and preferences. Hence, they will probably perceive an offering in different ways. 14) Added values :- generic products can be made distinct by adding extra features, such as quality or performance with other products and

value through

enhancements. In terms of competition

companies, consumers greatly value these added benefits when making a purchasing decision, making it important for manufacturers to understand the notion of a total package when marketing to their customers. 15) The final level of consumer perception involves augmented as customer

properties, which offer less tangible benefits, such

assistance, maintenance services, training, or appealing payment options. 16) Changing Products Strategies :Products and consumer

perceptions are variable, so changes in strategy may be required to better

address customer needs, technological developments, new laws and regulations, and the overall product life-cycle. 17) Product development :- By monitoring external conditions and

shifting product development accordingly, a company can better target its consumers and learn to react to their needs. 18) Measuring Public relation :- customer perception can measure

public relations, public relations messages may not have influence on consumers knowledge, and the influence of the messages might not be positive on consumers attitude or behavior. 19) Awarencess :- Companies should try to make sure that their

customers are fully aware of all the ways their offering can provide value to them. They have to explain the customer how this particular product can deliver more value than those form competitors. 20) By solving customer needs or problems :- A common idea of many

authors is that it is not always necessary to deliver the absolutely perfect customer experience. Instead it is important to solve the customers need or problem in a matter that is perceived appropriate. 21) Responsiveness and service quality :- The degree to which the feels the actual marketing campaign addresses the most

customer

important issues, responsivencess and service quality of any affiliates, e.g. distribution partners 22) The more experience the customer accumulates, the more his

perception will shift form fact-based judgments to a more general meaning the whole relationship gains for him. Over time, he puts a stronger focus on the consequence of the product or service consumption. 23) Based on competitor offerings :- In the external environment, the

offerings of competitors, with which a customer compares a product or service will change, thus altering his perception of the best offer around.

Another point is that the public opinion towards certain issues change. 24)

can

Measurement system :- Any serious effort to mange customer

perceptions states with a good measurement system. Companies must be truly willing to look at the whole process of interaction through the customers eyes. For many companies, this requires a more or less extensive shift in mindset, since most departments from development to sales will be involved. 25) Understanding customer important :- Only if a company knows

which features of its products and services or which other points of contact with the customer are considered most important by the customers, it can develop appropriate strategies. 26) Consumers can evaluate a product along several levels. Customer

perception is basic characteristics are inherent to the generic version of the product and are defined as the fundamental advantages it can offer to a customer. 27) Power of suggestion : In the day today life When we form a

judgment about something we have experienced ourselves, like how much we like ice cream, we naturally assume our judgment is based entirely on our own perception. However if we have a prior expectation based on what someone has told us or something we have assumed, that expectation may have a strong influence on our opinion that we dont recognize. This is sometimes called the power of suggestion.

Conclusion This survey is done on perception of customer on Nano car in Dharwad district. It has given lot of knowledge. There are many things to learn and get opportunity to know what customers actually think and

what they perceive about Tatas Nano because the survey includes field work. It gives useful facts which very much needed for the students. Here questionnaire was used as a tool, through which a lot of informations were gathered. Here 30 respondents were chosen from the surrounding of Dharwad district; under the study it covered different class of people to know their perception and acceptance level for Nano. From the questionnaire it is analyzed that 66.66% respondents whose expectations are not reached even though they will tell its right decision of purchasing the Nano. They are also like the Tatas Nano for various reason like affordability, brand name, shape/design this shows the preference of the respondents in Dharwad district. All this information will be benefited to know the perception and acceptance level of people in Dharwad city. It can be also to the TATA MOTORS and TATA MANIKBAG automobile Pvt. Ltd., as I had mentioned all the likes and dislikes of the respondents in my study.

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