INTRODUCTION OF PORTER

The model of the Five Competitive Forces was developed by Michael E. Porter in his book Competitive Strategy: Techniques for Analyzing Industries and Competitors in 1980. Since that time it has become an important tool for analyzing an organizations industry structure in strategic processes. Porters model is based on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment. Especially, competitive strategy should base on and understanding of industry structures and the way they change. Porter has identified five competitive forces that shape every industry and every market. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The objective of corporate strategy should be to modify these competitive forces in a way that improves the position of the organization. Porters model supports analysis of the driving forces in an industry. Based on the information derived from the Five Forces Analysis, management can decide how to influence or to exploit particular characteristics of their industry.

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Bargaining Power of Suppliers The term 'suppliers' comprises all sources for inputs that are needed in order to provide goods or services. Supplier bargaining power is likely to be high when: There are no substitutes for the particular input, The suppliers customers are fragmented, so their bargaining power is low, The switching costs from one supplier to another are high,

There is the possibility of the supplier integrating forwards in order to obtain higher prices and margins. In such situations, the buying industry often faces a high pressure on margins from their suppliers. The relationship to powerful suppliers can potentially reduce strategic options for the organization.

Similarly, the bargaining power of customers determines how much customers can impose pressure on margins and volumes. Customers bargaining power is likely to be high when The supplying industry comprises a large number of small operators The supplying industry operates with high fixed costs, The product is undifferentiated and can be replaces by substitutes, Customers have low margins and are price-sensitive, The customer knows about the production costs of the product

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Threat of New Entrants The competition in an industry will be the higher, the easier it is for other companies to enter this industry. In such a situation, new entrants could change major determinants of the market environment (e.g. market shares, prices, customer loyalty) at any time. The threat of new entries will depend on the extent to which there are barriers to entry. These are typically Economies of scale (minimum size requirements for profitable operations), Brand loyalty of customers Protected intellectual property like patents, licenses etc, Scarcity of important resources, e.g. qualified expert staff

Access to raw materials, distribution channels and customer relations are controlled by existing players,

Threat of Substitutes A threat from substitutes exists if there are alternative products with lower prices of better performance limits for the same purpose. They could potentially attract a major amount of market size and hence reduce the potential sales volume for existing players. This category also relates to complementary products. Similarly to the threat of new entrants, the threat of substitutes is determined by factors like Brand loyalty of customers, Close customer relationships, Switching costs for customers, The relative price for performance of substitutes, Current trends.

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Competitive Rivalry between Existing Players This force describes the intensity of competition between existing players (companies) in an industry. High competitive pressure results in pressure on prices, margins, and hence, on profitability for every single company in the industry. Competition between existing players is likely to be high when There are many players of about the same size, Players have similar strategies

There is not much differentiation between players and their products, hence, there is much price competition Low market growth rates

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SWOT
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.. A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis. The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. The following diagram shows how a SWOT analysis fits into an environmental scan:

SWOT Analysis Framework

Environmental Scan / Internal Analysis /\ Strengths Weaknesses | SWOT Matrix \ External Analysis /\ Opportunities Threats

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Strengths A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples of such strengths include:

patents strong brand names good reputation among customers cost advantages from proprietary know-how exclusive access to high grade natural resources favorable access to distribution networks

Weaknesses The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses:

lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels

In some cases, a weakness may be the flip side of a strength. Take the case in which a firm has a large amount of manufacturing capacity. While this capacity may be considered a strength that competitors do not share, it also may be a considered a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to changes in the strategic environment.

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Opportunities The external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include:

an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers

Threats Changes in the external environmental also may present threats to the firm. Some examples of such threats include:

shifts in consumer tastes away from the firm's products emergence of substitute products new regulations increased trade barriers

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AJANTA FOOD PRODUCTS

The company produces confectionery items candies and lollipops. The company was started in year 1978. The company runs all 365 days. Also on some occasions there are holidays. The company remains close on Fridays due to cut off of power supply.

The company starts at 6:00 in the morning and ends at 8:00 in evening. The workers according to their number have breaks for snacks or lunch. There is a strong management structure in the company. The leadership in the company autocratic and discipline is always is always maintained in the company. The top level management provides bonus to the staff on Diwali and at the end of year.

The goods are not distributed in the local markets but are expored to other countries. The export process is done according to the government law and their policies

Accordingly the sales of the company include VAD tax-12.5% and CST taxes-2%. The company is also given rewards by the government for their exports.

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MANAGEMENT IN AJANTA FOOD PRODUCT

Ajanta food product is a company in ulhasnagar camp 4. It has huge number of production daily. It produces confectioner items (candies and lollipops) which are very demanding not only in India but in all over the world.

HEADS OF THE AJANTA PVT LIMITED OWNER MANAGER : MR. SANJAY M. VISHNANI : MR JAI KUMAR BHAWANANI.

PRODUCTION : MRPRAVEEN BALANI

Company: Activities: Category: State: City: Address: Phone: Fax:

AJANTA FOOD PRODUCTS FOOD RRODUCTS, CONFECTIONERY FOOD PRODUCTS CONFECTIONERY MAHARASHTRA , INDIA ULHASNAGAR P.N.11-A,INDUSTRIAL AREA +0091-25-12582636 15693381

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MACHINES:
Laminator: Laminators are used for making multiple layers of dough (laminations) for cutting process for making quality cracker biscuits. These can be either made in Vertical or Horizontal Configurations as per requirements.

Gauge roll: Gauge Rolls are used to give better finish and to adjust the thickness of sheet after the Lamina tor or Triple roll Sheeter. This is done by heavy duty Gauging Rollers made chilled cast iron. These rolls work in pairs to give a smooth finish to the sheet. A Scrapping Knife is provided to remove dough (if any) from the gauge roll. The number of Gauge Rolls depends on the Length of the Oven and production capacity.

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Molding Machines: The Rotary Molders is used to make soft dough cookies and biscuits. Stainless Steel parts are used for contact parts, are used for contact parts, covers, hoppers and trays to maintain hygienic conditions.

Sugar Grinder: The machine is used to grind the granules of sugar into fine powder. The grinder of the machine is hammer mill type. Automatic incorporated productivity. After grinding powder can either be collected in box or into bag. feeding for system is

better

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INGREDIENTS USED FOR MAKING BISCUITS

SUGAR

FOOD COLOUR

WATER

GULUCOUS

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ESSENCE

SALT

COCONUT CRUSH

MILK POWDER

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MANUFACTURING PROCESS Manufacturing process of candies: Step 1 In the manufacturing process of Ajanta food products, the first step is the mixing process. In the mixing process the fixed amount of sugar and huge amount of glucose is been put together in the mixture machine. It mixed with different acnes for adding flavors. This liquid mixture is stirred and mixed properly and heated for at least 45 minutes.

Step 2 After mixing process than comes the take away process. In this process the mixture which is mixed in step 1 is been taken out on the slab than it is mixed manually for 10-15 minutes. This mixture is mixed until it looks like bulky plastic bag. While mixing the mixture the personnel use a white powder which avoids the mixture to bond of slab.

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Step 3 After mixing and take away process than comes the rolling process. In rolling process, the taken away mixture, which was looking like a bulky plastic bag is inserted in the roller machine where they are converted into smooth layer. The rolling process involves the combination of two rollers. In rolling process the two rollers squeeze the bulk of mixture into thin layer. This process gives the mixture a correct shape.

Step 4 The 4 step consist of moulding process where the thin layer of mixture are fragmented and molds into the shape of candies and lollipops. In the moulding process the company uses many molds for manufacturing different shapes and sizes of candies and lollipops. In this process, the unwanted material, which was introduced from molding process is separated and reused. This process involves molding process of candies as well as lollipops for which different machines are being used.

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Step 5 After molding process then comes the checking process. In this process the candies and lollipops are reserved in large containers in huge quantity. Checking is done before the packaging process. In this process the necessary observation in done in order to avoid the unprocessed candies.

Step 6 Sixth step involves the cooling process in this the process the candies are kept in huge containers for 15 to 20 minutes for chilling purpose. After the candies and lollipops are cooled they are sent for packaging purpose after the essential inspection.

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Step 7 After the cooling process than comes the packaging process. In this process the cooled candies are packed. But however before packaging the necessary inspection is done by the supervisors. After inspection the candies and lollipops are kept in big plastic bags. And then at last the candies and lollipops are packed according to their flavors and quantities.

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PACKING PROCESS
The fresh candies and lollipops are brought in the packing department in bags. In packing process around 50 employees work. Amongst these 40 employees pack manually and rest do the packing by using machines. Different types of plastic bags are given to the workers. These plastics bags vary according to the flavors. There are also different types of wrappers according to the flavor of the candies and lollipops. The lollipops are been wrapped and packed in plastic jars. These jars also vary according to the flavors of the lollipops. Here in the process of packing 60% of work is done through machines while only 40% work is done manually. In the machine first the candies are been inserted and the machine start the processing. Here in the machines a plastic tape is rolled. The candies then push the wrapper and the wrapper is then been cut with a sharp blade inside the machine. These wrapped candies are then thrown out with a needle and then slide down in plastic bags. Then a plastic tape is inserted in the machine. It is been joined with a pulley which rotates the plastic tape. This pulley is joint with a sharp blade which then cuts the tape and wraps the candies. Finally the small candies are been wrapped into wrappers of different designs. These candies are then thrown out of machines with the help of a needle attached to the spring. The candies then slide downward into plastic bags.

After the candies and lollipops are wrapped they are packed in different plastic bags, they are stored in big cartoons of different packing designs. These cartoons are packed with machines with seal them. These machines contain plastic strips which automatically seal the box. These boxes are ten transferred to the warehouses where they are stored. Then they are sold in the market. These products are not only sold in local market but are sold in INTERNATIONAL MARKETS.

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TYPES OF CANDIES

PINEAPPLE

BLACKCURRANT

GINGER

STRAWBERRY

ORANGE

MINT

COCONUT

LIME

MANGO

Ajanta food products mainly deal in manufacturing of candies of various flavors which they supply to distributors. The various flavors of candies in which Ajanta food products deal are as follows: Pineapple, Blackcurrant, Ginger, Strawberry, Orange, Mint, Coconut, Lime, and Mango.

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Opportuniti es

Strength

SWOT

Threats

Weakness

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SWOT ANALYSIS OF AJANTA FOOD PRODUCTS

1. STRENGTHS OF AJANTA: Every organization has some strength. In some cases this is obvious, for example, dominant market shares. In other cases, it is a matter of perspective, for instance, a company is very small and hence has the ability to move fast. It is important to note that companies that are in a bad position also have strengths. Whether these strengths are adequate is an issue for analysis.

It is situated in an industrial area from where there is easy transportation available so they can transport their goods easily from that place This company has large working experience of over 15 years so they can manage the acrivies of the company smoothly and effectively The hierarchy the company is properly balanced accordingly The suppliers of raw material are situated near by company so which also saves time. All the products of the company are properly stored in an air conditioned room as they require cool and dry place to b stored Technology available with the firm is pretty good so the work is done more efficiently and time is saved. and the management is carried

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2. WEAKNESSES OF AJANTA: Every organization also has some weakness. In some cases, this is obvious; say for example, a stricter regulatory environment. In other cases, it is a matter of perspective, for example, a company has 99% market share and is open to attack from every new player. It is important to note that companies that are extremely competent in what they do, also have weaknesses. How badly these weaknesses will affect the company is a matter of analysis The building of company is very old and through these years the strength of building is not as much as it was before so there are many problems like leakages, growing of fungi on the walls and cracks in the walls. Company sends its goods to the retailers in plastic containers which are not clean enough so the quality of goods is also affected. There is mixing of left overs in the production of new products. While manufacturing people in the company do not wear any gloves or anything as such so the germs in the hands of workers might enter the food products. Handling of goods in the company is not proper which might sometimes leads to defect of goods. There were no proper covering of hair of workers so their hair might fall in the food products made there.

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3. OPPORTUNITIES OF AJANTA:

All organizations have some opportunities that they can gain from. These could range from diversification to sale of operations

Completion faced by company is minimal so they can easily change their strategies and can expand the business. The goodwill of company is good so they can attract more and more customers. The company can also manufacture the close substitute products as they have plenty of resources. Their business sector is expanding, with many future opportunities for success. Their competitors are slow to adopt new technologies. Manpower available to the firm is more than sufficient thus can increase opportunities for the firm As these are Fast Moving Consumer Goods there are more opportunities available for attracting customers by changing the flavors of the food products.

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4. THREATS IN AJANTA:

No organization is immune to threats. These could be internal, such as falling productivity. Or they could be external, such as lower priced international competition

There is threat of entry of new individuals and increasing competition. There is threat of our managers and supervisors going out of firm and establishing their firm thus by increasing competition. Development is technology is also a threat to the company. Changing in taste of customers is also a threat to the company Moving of customers from our firm to other competitors is also a threat to the firm. Change in duties and taxes by government are also a threat to the firm. There is also a threat of transportation strikes as due to strikes the goods will b not delivered on time.

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THE SWOT MATRIX A firm should not necessarily pursue the more lucrative opportunities. Rather, it may have a better chance at developing a competitive advantage by identifying a fit between the firm's strengths and upcoming opportunities. In some cases, the firm can overcome a weakness in order to prepare itself to pursue a compelling opportunity. To develop strategies that take into account the SWOT profile, a matrix of these factors can be constructed. The SWOT matrix (also known as a SWOT Matrix) is shown below:

DEFINATION
A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, straightforward model that assesses the what an organization can and cannot do and as well it as into its potential opportunities and threats. The method of SWOT analysis is to take information from an environmental analysis separate internal (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines what may assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results.

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BARGAINING POWER OF CUSTOMER

BARGAINING POWER OF SUPPLIERS

PORTER'S 5 FORCES MODEL

COMPETITION AMONG EXISTING FIRMS

THREAT POSTED BY SUBSTITUTE PRODUCTS

THREAT POSTED BY NEW ENTRANTS

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FIVE FORCE MODELS

Porter's 5 forces model is a powerful way of analyzing the competitive forces that shapes every industry in general. This was developed by Michael E. Porter of Harvard Business School in 1979. This tool helps you to identify whether a new product, investment, services or business have the potential to be profitable. The 5 competitive forces that are taken into consideration are: Competition in the Industry

Potential of new entrant into Industry Power of Suppliers Power of Customers Threat to substitute products

Like every company Ajantas working also depends upon porters five force models.

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BARGAINING POWER OF SUPPLIERS: As Ajanta is a CONFECTIONERY producing company so for that they deals with number of suppliers. Ajanta believes those suppliers are very important in every aspect. As without raw materials production is not possible. So they provide them with various types of discounts and schemes. As Ajanta is the small scale company manufacturing candies and lollipops, the suppliers of Ajanta supplies to more than one company. Ajanta works on small scale so it is not easy for Ajanta to manufacture the raw materials of their own hence they have to accept the rates of suppliers.. In the case of Ajanta the bargaining power of suppers is up to 50%

BARGAINING POWER OF CUSTOMER: As consumers are given first priority by Ajanta Company so they allow some kind of discounts to their customer such as cash discounts up to 10%. In Ajanta buyers purchases from more than one company so the charges are nominal. Like every other company Ajanta also have more number of suppliers as compare to buyers. As per the above given data BARGAINING POWER OF CUSTOMER of Ajanta is up to 60%.

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THREAT POSTED BY SUBSTITUTE PRODUCTS: Now a day in competitive world more than 60% of the companies face the competition and threats from the products which are substitute to their products. A close substitute is a potential threat to the companys products. Like other companies Ajanta face competition from many other types of candies and biscuits manufactured in other firms Normally Ajanta faces competition for the products like candies and lollipops which are fast moving products of Ajanta. In the case of Ajanta the threats posted by substitute products are not less than 40%

THREAT POSED BY NEW ENTRANTS

The Ajanta company was started in the year 1978. At the time when Ajanta entered in the market the 5 year plan policy changed because of which Ajanta faced severe problems. Besides problems faced due to government policies Ajanta also faced severe problems like Capital requirements Cost disadvantages irrespective of size Economies of scale Product differentiation Access to distribution channels

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COMPETITION AMONG EXISTING FIRMS

In todays world, more than 75% of the companies face the competition and threats from existing companies. A competitor is a potential threat to the companys products. Like other companies Ajanta face competition from many other companies which manufacturing same products like candies and biscuits Normally Ajanta faces competition from the companies like SAMRAT, JANTA and many more companies producing substitute goods.

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TRANSPOTATION AT AJANTA:After the manufacturing process there is the packing process and packing is with the help of machine and employees. And the workers have different type of plastic bags as there is various flavor, and different types of wrappers according to the flavor of candies and lollipop. The candies are been wrapped in transferable plastic bag according to the different flavor and the packing is done by the worker and machine the minimum packing is of 250gms and maximum there is no limit as its done to the customer needs, and then cartoons packing is done according to the order. The lollipop are been wrapped and packed in plastic jars. These jars also vary according to the flavors of the lollipops, and the plastic jars are pack in cartoons the cartoons packing is done according to the customer need which will pack by the worker manually but the packing seal by the machine as machine contain plastic strips which automatically seal the box and box are transferred to warehouse and then is carried to the truck. The goods export in locally cities some of them is Bhiwandi, Dombavali, Nasik, Pune, Dadar, and Ghatkopar. The goods are export in SOUTH AFRICA with the help of agent. The transportation is done every day according to the order expect Friday as company remains close on Friday.

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Conclusion
Hence we can conclude that the main aim of making this project was to improve not only the premise part but also the realistic knowledge by essentially visiting the manufacturing unit of AJANTA COMPANY. This object was achieved by all the members of our group. The time expend on achieving this objective proved really advantageous to us. We are grateful AJANTA COMPANY and to Mr. SANJAY for their kind co-operation in making the project prosperous.

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BIBLIOGRAPHY

WEB SITE : 1. WWW.GOOGLE.COM 2. WWW.WIKIPEDIA.COM 3. WWW.BUSINESSBALLS.COM

REFERANCE: 1. NOTES GIVEN BY SNEHA MIRCHANDANI 2. VIPUL PRAKASHAN TEXT BOOK OF STRATEGIC MANAGEMENT

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QUESTIONNAIRE:1. In what manner you give discount to your customer. 2. Who are your customers. 3. Name of your suppliers. 4. Is suppliers give you discount? If yes, than in what manner. 5. Name of your competitors. 6. Threats by competitors. 7. What measures you take to reduce your threat. 8. Do you have any substitute. 9. what are your distribution channels. 10. what is your mode of transport. 11. Did supplier give any benefit to you? 12. From where do you buy your raw materials. 13. How is the progress of your company. 14. What kind of changes you have made in past few years. 15. strategy of your company. 16. When you entered in the market which problems/threats you face at that time. 17. What are the threats you have from the existing firm. 18. If new industry enters in the market what are the problems you may have & what are the measures you take to reduce those threats. 19. What will you do to improve your quality &reduce your cost. 20. If government changes the policy will you affect that change into your business or not?

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