An organization study FAMILY PLASTICS & THERMOWARE, 2014

CHAPTER 1
INTRODUCTION

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1. INTRODUCTION

An organization is a social arrangement which pursues collective goals, controls

its own performance, and has a boundary separating it from its environment.
Management is interested in organization is a means to an end to achieve its goals-
which are to create value for its stakeholders (stockholders, employees, suppliers,
customers, community).

An organization study encompasses the study of organizations from multiple

viewpoints, methods, and levels of analysis. An organization study involves the
study of the structure and functioning of its department. Organizing or organization
is one of the important functions of the management. Generally, all the
organizations are different but, have certain common features. They are group of
people linked together by formal and informal relationship, in hierarchical order
that are engaged in co-operative activities and everyone has identical boundaries.
So the study of people in organization is important for future manager.

Whenever people interact in organizations, many factors come into play. Modern
organizational studies attempt to understand and model these factors. Like all
modernist social sciences, organizational studies seek to control, predict, and
explain. It is vital to study the structure and functioning of successful organization
so they will guide directorial towards successful and profitable functioning. The
swift changes in the field of science and technology has revolutionized the
organizational system. Such changes have become inevitable to achieve the basic
objective of the firm.

OBJECTIVES OF THE STUDY

This organizational study has been carried out for the partial fulfillment of the
requirements for the award of degree of MBA. The objectives of the study are as
follows:-

1. To get an overview of the plastic manufacturing industry.

2. To understand the profile of the company.

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3. To understand the organizational structure and work culture.

4. To find out the functions of each department in the organization and

the work flow.

5. To analyse the efficiency of the management.

6. To do out a SWOT analysis of the organization.

METHODOLOGY OF THE STUDY

The methodology of the study is through collecting the primary and secondary
data.

Primary data refers to the data collected by the investigator directly through primary
sources.It includes;

 Direct observation
 Interview
 Questionnaire
Secondary data refers to the data collected from already published materials. It
includes;

 Annual Reports
 Websites
 Brouchers

SCOPE OF THE STUDY

 To get in touch with the industrial and organizational environment.

 To understand actual working conditions.

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Internship training will help management graduates to know about the

functioning of an organization. It is a means for bridging the gap between
theory and practice.

LIMITATIONS OF THE STUDY

 Time Constraints: Time is the major limitation since organizational study

was only for a short period.

 Bias of the respondents: I could get only that were given to me by the
authority but which may be biased .Error may be caused due to the lack of
knowledge of the respondent and the bias of them.

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CHAPETARISATION

Chapter 1 give an introduction to the study. This chapter includes scope and
objectives of the study, research methodology and limitations of the study.

Chapter 2 deals with the profile of Plastic Industry.

Chapter 3 presents the profile of Family Plastics.

Chapter 4 outlines the organization structure and overall administration of the

company. The purpose of this chapter is to give a good picture of the company
bureaucracy .

Chapter 5 deals with the departmental details of Family Plastics .This chapter
discusses the structure, Duties and responsibilities of each department of Family
Plastics.

Chapter 6 presents SWOT ANALYSIS(Strength-Weakness-Opportunities-

Threat),Porter’s Five Force Model .

Chapter 7 deals with the Findings, Conclusion and Suggestions of the study.

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CHAPTER-2
INDUSTRY PROFILE

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INDUSTRIAL PROFILE
The plastic processing sector comprises of over 30,000 units involved in producing
a variety of items . The plastic industry here includes finished plastic products to
raw materials and processing equipment.

Demand for plastics was ever growing. Mid 1990s came with a need to organize
the Indian plastics sector as much as to consolidate the global markets. The Indian
plastics industry faced intense competition from companies that were globally
consolidated. Indian plastic industry needed technological advancements to
compete the existing players in terms of product quality, cost and quantity. Joint
ventures , foreign investments and easier access to technology from developed
countries have opened up new vistas to further facilitate the growth of this
industry. Phenomenal developments in the plastic machinery sector coupled with
matching developments in the petrochemical sector have facilitated the plastic
processors to build capacities to service both the domestic market and the markets
in the overseas.

Individual industries gradually came forward displaying their inventory to the

world and giving their global counterparts a tough competition. The small scale
sector also got a platform to present themselves through our customized solutions
for them.

THE INDIAN PLASTIC INDUSTRY

INDIA-one of the fastest growing economies of the world ,is all set to attain the
premier status along with China .India is a favoured destination for overseas
investors and offers the advantages of an open economy ,increasing liberalization,
a stable democratic political scenario ,highly skilled work force with fluency in
English .Various overseas players wish to explore the Indian market and invest in
opportunities thrown open by the country,projected to be world number 3 in

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plastics consumption by 2010 .This seems a very achievable positions as since the
past decade, the Indian plastic industry continues to grow at double digit figures.

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The Plastics Industry in Indian has made significant achievements ever since it
made a modest but promising beginning by commencing production of
Polystyrene in 1957.After liberalization of the economy in 1992, the Government
of India has been quite supportive of industry in general, taking many steps over
the years for the conductive growth of business .These measures favouring
economic growth, are being continuously taken by the Indian Government,
irrespective of the change in power. The Government of India is endeavouring to
achieve GDP growth of more than 7% in the next 10 years.It is quite possible that
plastics could grow at 14%,based on historical performance.

The potential Indian market has motivated Indian entrepreneurs to acquire

technical expertise ,achieve high quality standards and build capacities in various
facts of the booming plastic industry .Phenomenal developments in the plastic
machinery sector coupled with matching developments in the petrochemical
sector ,both of which support the plastic processing sector ,have facilitated the
plastic processors to build capacities to service both the domestic market and the
markets in the overseas.

The economic reforms launched in India since 1991, have added further fillip to
the Indian plastic industry .Joint ventures ,foreign investments ,easier access to
technology from developed countries etc have opened new vistas to further
facilitate the growth of this industry.

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CHAPTER -3
COMPANY PROFILE

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COMPANY PROFILE

Family Plastics &Thermoware which is commonly known as Family Plastics is a

leader in development and manufacture of innovative plastic products .It was
established in the year 1998 under the proprietorship of Daniel A Fernandez at
Manvila ,Trivandrum .The company had made significant advances very soon after
its establishment .Now it is one among the leading plastic manufacturing
companies in India.

Daniel A Fernandez is a pioneer in India’s mold manufacturing industry .He

started with a factory manufacturing molds way before 40 years in Mumbai.
Family Plastics in Trivandrum is also having a mold manufacturing unit to meet
the in house requirements.

The competitive advantage of Family plastic over its peer is the superior quality of
all its injection moulds made in the factory using the finest class steel and most
sophisticated machineries.

Family plastics tower over the rest of the plastic companies through sheer strength
of quality.The timely delivery of quality products such as moulded furniture ,
household items, fancy articles, garden planters and flower pots ,at competitive
rates make it one of the most sought after names in the plastic industry.

Ever since its inception the relentless quest for quality has made our products a
resounding success not only in India but also in the export markets that spread
from the beautiful cities of North America to the interiors of Middle east and
Maldives.

The Laurels of excellence are many in recognition of the spirit of the enterprise and
as a celebration of his vision of excellence ; the founder Mr. Daniel A Fernandez
was confessed the udyogapathra award by the institute of Industrial Development,
New Delhi. He has also won several export awards from the government of India.

Family plastics is the leader in development and manufacture of innovative plastic

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products. Things of exquisite designs blended with charming colors and utility
made

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of pure and virgin materials is matter of fascination for everybody. Family plastics
uphold the universal spirit of beauty, purity and quality and imbibe the basic
perfection intrinsic in these values. The resounding success of Family products in
the 18 countries spread across 5 continents makes it the most sought after names in
Indian Plastic Industries.

The production unit of Family Plastics in Trivandrum is spread out in an industrial

area in Manvila purchased from the Government which can be use only for
industrial purposes .After the success of mold manufacturing unit in Mumbai,
Mr.Daniel A Fernandez(chairman)promoted the unit of Family plastics in
Trivandrum which is now managed by Mr. Simson A Fernandez(Managing
Director).

MAJOR ACHIEVEMENTS

Many achievements came to the hands of Mr. Daniel A Fernandez for his
excellence in all the businesses. Some of the major achievements are the following.

 SECOND BEST ENTREPRENEUR OF THE YEAR 1989& 1998-

NATIONAL AWARD
 UDYOGAPATRA FOR SELF MADE INDUSTRIALISTS

PRODUCTION AND THE PROCESS

Plastic is a product which encompasses a wide array of synthetic or semi-synthetic

polymerization products. The manufacturing of plastic involves organic

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condensation or addition polymers .Apart from this plastic may also comprise
some other substances so as to enhance its performance or reducing the cost .Only
few natural polymers are usually believed as plastics. A variety of films,
objects ,fibres etc. are made out of plastics.

A plastic can be defined as an artificial substance that is made from organic

polymers. Plastic can be extruded in various shapes like windows frames, sashes
etc
.Plastic facts cover up many topics like the advantages of plastics, disadvantages of
plastics, chemical composition of plastic etc .carbon, hydrogen, oxygen, and
nitrogen are the chemicals found in plastics.

USES AND ADVANTAGES OF PLASTICS

 Aeronautics:- In the field of aeronautics ,plastics are now being preferred

over other elements,for the use in spaceships.This is so because plastics and
its derivatives produce minute secondary radiation as compared to the
heavier metals like lead, aluminium etc.Hence plastics are used in the
ablative shields for the return of space shuttles.

 Building and Construction:-Plastics have the cutting edge corrosion

resistance property. This makes plastic very popular to be uses in various
pipes and valves. Plastics are lighter , cheaper and easily to install.

 Decoration:-The properties of plastics like durability, attractiveness, and

easy handling make them a astounding decorative items.
 Electronics:-The insulating and thermal properties of the plastics make them
ideal for the use in various electronics devices.

 Packaging:-Plastics are very versatile, due to what plastics are used for
various packaging purposes. Plastic can be termed as a rigid material.

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DISADVANTAGES OF PLASTICS

 Flammable:- cellulose nitrate is considered to be the original plastic. It was

highly flammable. Latest plastic products use fire retardants but they to
some extent, only increase the time taken to catch fire. A plastic when
burned produces thick and health hazard smoke containing the toxic carbon
monoxide in abundance. Once the plastic goes in flame, it burns faster and
hotter than the other natural substances.

 Decomposition:- Decomposition of plastic can be defined as the breaking of

plastics into different smaller or simpler compounds. Plastics are made by
the long-chained molecules and hence decomposition of plastics can be a
negative factor. While remolding the negativity, decomposition can increase
to a high extent. The decomposition of plastics results in the emission of
toxic chemicals like carbon mono-oxide, benzene etc.

TYPES OF PLASTIC

There exists an immense variety of plastic. It is also well known fact that plastic
has been used differently i.e. in accordance of the diverse needs . some types of
plastic, which have been used commonly are Polyethylene, Polypropylene,
Polysterenee, Polyvinyl chloride (PVC), Polyester (PES). Furthermore , there exist
certain types of plastic used for specific applications, which are termed as
speciality plastic like Polymethyl methacrylate , Phenolics , Polyactic acid etc.

There exist about 50 different types of plastics. Broadly plastics can be classified
into two types namely Thermosetting and Thermoplastic. The Thermosetting
Plastics are those that cannot be soften again, after being exposed to heat and
pressure. On the action of heat and pressure, the molecular chain of thermosetting
plastics become cross-linked, due to what it forbids the slippage when pressure and
heat are reapplied.

The thermoplastic are those that can be often again and again &remade by the
action of heat and pressure. On the action of heat and pressure, the molecular
chain of
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thermoplastics undergoes change and the polymers slide past each other, which
result in the property of plasticity. Some of the different thermoplastic and
thermosetting plastics are mentioned below.

 Vinyl Plastics:- Vinyl plastics belong to the thermoplastic group.

Vinyl plastics are the sub-polymers of vinyl derivatives. These are
used in laminated safety glasses, flexible tubing, molded products etc.

 Polyurethane Plastics:- Polyurethane plastics belong to the group

that can be thermosetting or thermoplastic. Polyurethane is the only
plastic which can be made in both rigid and flexible foams. The
flexible polyurethane foam is used in mattresses, carpets, furniture etc.
the rigid polyurethane foam is used in elasticity, some polyurethane
plastics are used in decorative and protective coatings. The high
elasticity makes these polyurethane plastics resistant to a chemical
attack.
 Polyacrylics Plastics:- Polyacrylics belong to the group of
thermoplastics. Polyacrylics are transparent and decorative.
Polyacrylics plastics can be shaped in any form like the windshields
for airplane.

PLASTIC PROCESSING

Plastic processing is a complex term which involves the use of number of highly
mechanized and sophisticated machineries. Some of the plastic ptocessing
machineries which have been used commonly are Autoclaves, Extruding
Machines, Plastic Cutters, Plasstic Shredders, Plastic Dryers, Mold Cleaning
Equipment, Plaastic Blending Machinery and many more. The aforesaid plastic
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processing

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machineries have been indispensably used in those industries used in those

industries for many years now.

Plastic processing includes those methods or processes, which are used to convert
the plastic materials into different forms like powders,sheets,pellets etc. plastic
material generally contains variety of additives which affect the processing of
plastics.

PLASTIC RECYCLING

Due to its immense use, plastic recycling hass become a major issue all across the
globe. Plastic is very durable due to what it degrades very slowly. Plastic should
not be burnt because it yields some toxic fumes. In the early 1990’s, plastic
recycling had become one of yhe common phenomenon in the U.S. territory and
some other countries.

Plastic recycling is the process of reprocessing plastic that already has been used
vefore and giving it some new reusable foem. The steps followed in the plastic
recycling are enumerated below:-

 Collecting recyclable plastic waste,.

 Categorizing the recyclable plastic waste,.
 Processing the categorized plastic waste, accordingly into various raw
materials,and.
 Manufacturing of new products from these raw materials.

PLASTIC PRODUCTS
 Plastic bags
Plastic Shopping Bags, Recycle plastic bags, Industrial Plastic Bags,
Printed Plastic Bags.

 Plastic toys
Plastic Animal Toys, Plastic Car Toys, Plastic Chess Sets.

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 Plastic sheets
Plastic Extruded sheet, PVC Plastic Sheet, Plastic roofing Sheet.

 Plastic tank
Plastic Water Tank.

 Plastic Coating
Plastic Powder Coating.

 Plastic fasteners
Plasstic Binders, Plastic Bolts, Plastic Screws, Plastic nuts, Plastic
Buckles, Plastic buttons, Plastic Clips, Plastic Closures, Plastic
Connectors, Plastic Spring.

 Plastic Stationary
Plastic Folders, Plastic Files, Plastic Covers, Plastic Card Holders.

 Plastic Fittings
Plastic Hose, Plastic Hose Fittings, Plastic Couplings, Plastic Elbows,
Plastic Pipe Fittings, Plastic Tubing, plastic Tee Fittings, Plastic
Valves, Plastic Inserts.

 Plastic Furniture
Plastic Chairs, Plastic Tables, Plastic Table Tops, Plastic Stools,
Plastic Benches, Kid Plastic Furniture,Plastic Garden Furniture.
 Other products
Plastic Buckets, Plastic Films, Plastic Sanitary Ware, Plastic pipes&
Tubes, Plastic Curtains, Plastic Helmet, Plastic Rugs, Plastic Gloves,
Industrial Plastic Products, Plastic Toiletries, Plastic Kitchenware,
Plastic Household Products, Plastic Raincoat, Plastic Dies, Plastic
Balls, plastic Boxes, Plastic Glasses, plastic Plug, Plastic Basins,
Plastic Yarns, Plastic Straps, Plastic Baskets.

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CHAPTER 4
ORGANISATIONAL STRUCTURE

ORGANISATION STRUCTURE OF FAMILY PLASTICS

Chairman

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Managing Director

General Manager

Exports Personnel Works & Quality

Stores & Purchase Finance & Accounts Marketing

The above organization chart provides a bird’s eye-view of relationships between

different departments of Family Plastics. The Managing Director, Mr. Simson A
Fernandez is into every aspect of the organization.

As far as Family Plastics is concerned overall administration of all departments are

controlled by General Manager, Mr. Omanakuttan Nair. The functional
departments of Family Plastics are personnel & Administration, Production,
Marketing, Finance, Export, Technical& Store

COMPANY ADMINISTRATION

Family plastics carries out its functions and manages its affairs through the
following managerial personnel.

1. Chairman

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2. Managing Director

3. General Manager

4. Functional Managers

Functions of Chairman and Managing Director

The business of the firm shall be managed by these dignitaries who may pay all
expenses incurred in promoting and registering the firm.They are the people who
set up policies and procedures ,mission and vision, etc of the top management
which has the of the firm and form the top management which has the complete
power on all the affairs of the organization.

Function of General Manager

1. Head of all functional departments.

2. He is directly accountable to managing Director.
3. Create better inter department and inter unit coordination to facilitate smooth
and efficient functioning.
4. Formulate a financial budget and planning in tune with the growth and
stability of the organization.
5. Taking into consideration the strengths and weakness of the
organization,conceive innovative and creative strategies to cope with the
highly competitive market condition prevailing now.
6. Advice the top management on appropriate steps to be taken to make this a
better organization so that each and every employee feels he is a valuable
member in the organization and develop better a team concept for enabling
him to contribute his best.

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CHAPTER-5
ANALYSIS OBJECTIVE WISE

WORKS DEPARTMENT
It is one of the important functions of every organization .Family Plastics has a
well structured production department .The hierarchy of production department
starts from Production Manager. There Works department is headed by Works

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Manager,

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Mr .Suresh .C . Menon.Only injection molding is used for production. Family

plastics produce more than 300 items of plastic products.The products are
categorized into four .They are

 Household articles
 Molded furniture
 Garden
 Others

STRUCTURE OF PRODUCTION DEPARTMENT

Works Manager
Assistant Works Manager

General Supervisor

Production Supervisor

Production
Production
Machine Operators Quality Controllers Mould setters
In Family Plastics there is twenty four injection moulding machines.Machines are
costing upto 1.5 crores.One mould is upto four tones of weight so cranes are used
for loading the mould.Virgin form of plastic is used as raw material .There are 300
Workers Workers Workers

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employees in the organization .Annualy Family Plastics have 5000 metric tones of
mmolding capacity.

QUALITY

Quality is maintained by Quality controllers under production manager.Commonly

quality is determined by

 Clarity
 Finishing
 Weight
 Shape

MARKETING DEPARTMENT

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The Marketing Department takes care of everything after the production.This

department is responsible for encouraging people to start or keep buying the
product
.Family Plastics has a good and dynamic marketing division .They market and sell
their own more than 600 items of plastic products.They distribute plastic products
to 11 foreign countries .They markets and sell their products through;

1) Branchers

2) Dealers

3) Non-dealers

4) Outlets

STRUCTURE OF MARKETING DEPARTMENT

Marketing Manager

Assistant Marketing Manager

Marketing Executives
Sales representatives

FUNCTIONS OF MARKETING DEPARTMENT

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 Creating awareness
 Increase in demand
 Supply
 Market Research
 Product Improvement
 Boost up distribution
 Strengthening sales network

MARKETING MANAGER

 Directly accountable to GM.

 Head of Marketing Department
 Coordinates the entire department

ASSISTANT MARKETING MANAGER

 Directly accountable to Marketing manager.

 Evaluation of Department..
 Settlement of requirements of marketing department.
 Unit wise communications.

MARKETING EXECUTIVES

 Looks after all the activities connecting to marketing department.

 Controls the marketing activities
 Planning meetings.
 Monitoring the representatives.
 Conducting evaluation meeting on daily basis.

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SALES REPRESENTATIVES

 Ensuring timely settlement of sales.

 Coordinating.

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FINANCE DEPARTMENT

Family Plastics have a centralized accounting system. The generated funds are
deposited to their respective bank account because the other departments have no
authority to utilize these funds. The department deals all the matters relating to
money or funds .Dealing all type of money transactions ,check the availability of
liquid cash in hand and cash at bank, find out the sources of long term and short
term funds are the major functions of a Finance Department.

FUNCTIONS OF FINANCE DEPARTMENT

Family Plastics has an efficient finance wing. Finance manager is the chief of this
department. The finance manager deals with planning ,organizing, directing and
controlling the finance activities of the organisation.

The functions are as follows;

1. Estimating capital requirement

2. Fixing capital structure
3. Sources of finance
4. Investment decision
5. Managing cash
6. Financial control

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ORGANISATION STRUCTURE FOR FINANCE DEPARTMENT

Finance Manager
Chief Accountant
Accounts Assistants

Cler
ks

FUNCTIONS OF FINANCE MANAGER

 Member of corporate task force.

 Accontable to GM.
 To give overall guidance to the functioning of the department.
 To maintain the finance information system like financial Analysis,
Profit and loss account analysis, Cash flow analysis, Inventory
management, Budget preparation and Project evaluation.

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CHIEF ACCOUNTANT

 To forecast and estimate the financial requirements of units and to formulate

short term and long term plans, budgets,targets,standards etc.
 To meet the financial requirements in time ,raise funds from appropriate
outside sources and schedule the repayment.
 To prepare monthly profit &loss A/c and to compare the actual with the
financial plans/target and to take control measures.

ACCOUNTS ASSISTANTS

 Undertake various reconciliation works.

 Ledger scrutiny on monthly basis.
 Preparation of monthly Profit and loss accounts.

CLERKS

 Voucher entry preparation

 Filing vouchers and its cross verification
 Preparation of receipts
 Prepare all working papers and notes made.
 Dispatch of bills

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PERSONNEL AND ADMINISTRATION DEPARTMENT

The management of Man is a very important and challenging job; important

because it is job, not of managing men ,but of administering a social system.
Human resource management involves procedures and practices through which
human resource are organized and directed towards he attainment of the individual,
social and organizational goals.HR section is headed by the manager in HR and
Administration. Administrative department plays vital role smooth running of an
organization. This division makes plans, policies, strategies, problem solving and
decision making. Administrative department is headed by an Administrative
officer.

DEPARTMENT POLICY

The policy of HR Department is to render effective administrative support to the

organization at corporate level in a systematic and scientific manner with special
emphasis on Human resource development and training with the laid down quality
policy of the organization.

STRUCTURE OF HUMAN RESOURCE AND ADMINISTRATION

DEPARTMENT

HR Manager

Assistant

HR Manager
HR Supervisor
FUNCTIONS OF PERSONNEL DEPARTMENT

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The main functions of this section are recruitment ,selection, training, wage
payment, motivating employees, provide sanctions to leave, provide insurance to
all employees and maintain good working atmosphere.HR department deals all
problems relating to employees and make a good solution for it and provide
advance payment to employees. Attendance report, leave sanctions, wage
calculations are correctly prepared by this section.HR section keeps all records
about the employees including their bio-data, qualification certificates , details
relating to their training programmes , etc.HR manager is responsible for the
management of the employees. The main functions of HR department include:

 Employment and placement

Recruitment, selection and placement as per the man power requirements of the
company are the most important functions of HR Department.

 Training

It is the responsibility of HR Department to impart Training and development to

employees both at corporate and Units whenever required.The training
programmes for employees include induction,on the job training for non
managerial staffs,off the job training for managerial staffs.

 Wage and salary administration

Compensation to employees is fixed as per the Wage rates fixed by the wage boards.

 Performance appraisal
Employee performance at work is evaluated in terms of pre-determined
standards with aview to develop a sense of belonging to the organization and
also to retain them.

EXPORT DEPARTMENT

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Export is the major process that increases the revenue of the organization
.Exporting is the process of selling products to the foreign countries.Family
Plastics export plastic products to 11 countries .They are

1. United States of America

2 .Australia

3. UK

4. Qatar

5. United Arab Emirates

6.Bahrain

7. Saudi Arabia

8.Mauritius

9.Srilanka

10.Maldives

11.Gibotti

STRUCTURE OF EXPORT DEPARTMENT

Export Manager

Assistant Export Manager

In Export payment is most important because any problem may cause huge
Export Executives
loss.There are four types of payment procedure. They are

 Advance payment
 Letter of credit

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 Document against payment

 Document against acceptance

STORES DEPARTMENT
Stores department in is headed by General Manager. This department stores virgin
form of plastic as raw material and also store finished goods. In Family Plastics raw

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materials are obtained from Reliance . Stores department must keep three months
inventory in every time.

The major suppliers are.

 Reliance Petro Chemicals

 Haldia Petro Chemicals
 Indian Oil Corporation

The main functions of this department are as follows;

 Raw material purchase

 Raw material checking
 Raw material control and evaluation
 Raw material dispatch
 Finished goods storing
 Quality checking
 Finished goods dispatch
 Packing and labeling

STRUCTURE OF STORES DEPARTMENT

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Store Manager

Store supervisor
Assistant store supervisor
Storekeeper
Accounts Assistant
Godown staff
FUNCTIONS OF DEPARTMENT HEAD

 To develop and maintain good supplier relationships.

 Duties according to the order of Managing Director.
 Planning purchase orders.
 Verification of raw materials consumption and stock statements which is
daily submitted by the materials managers .
 To control abnormal wastage .
 To handle insurance formalities of raw materials
 To verify the quality of materials received.
 Inventory valuation.

Store supervisor

 Inventory accounting
 Checks and verifies the purchase bills

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 Stores ledger
 Purchase analysis
 Order placing figures are given to the departments

Assistant store supervisor

 Issuing goods according to the daily requisition slip.

 Entering the details of the goods supplied in stocks ledger.
 Maintanance of purchase order files.

Store keeper

 The store keeper should have technical knowledge and wide experience in
stores routine and ability of operation of the stores
 Receivingh the store correctly i.e.,ensuring that every item of stores received
by the storekeeper is duly supported by an indent,purchase order ,inspection
note and goods received note.
 Entering all receipts in the bin card
 Keeping every item of stores in the allotted bin
 Helping materials manager in updating the books maintained in the
department
 Preventing unauthorized persons from entering into the stores

Godown staffs

 Godown staffs are assigned to load and unload materials to required places
on time.

TECHNICAL DEPARTMENT

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A well established technical division is functioning in Family Plastics. This

division is responsible for technical aspects of Injection molding Machines used
for production .Technical officer is the head of this department .The technicians
take full responsibility without any mistakes because the technicians working in
this department are experts.

There all totally 32 machines in the unit .capacity ranging from 450,550,650 to 850
tonnage. Any issues in the functioning of machines or deformity in molds are
promptly rectified by the technicians under the supervision of the officer.

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CHAPTER -6
SWOT ANALYSIS ,
MICHAEL PORTER’S 5 FORCE
ANALYSIS

SWOT ANALYSIS

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By doing this Analysis Company’s Strengths, Weakness, Opportunities and

Threats should be understood.This analysis is commonly known as ‘SWOT
Analysis’. Strengths and Weaknesses are internal factors. The opportunities and
Threats are external factors.

To identify the Strengths, Weakness, Opportunities of the firm and Threats and
opportunities in the environment is the corner stone of business policy formulation.
These factors determine the course of action to ensure the survival and growth of
the firm.

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. Sometimes a business
does poorly not because its department lacks the required strengths but because
they do no work together as a team.

STRENGTHS
 Good reputation
 Financial stability.
 Exporting plastic products to 11 countries.
 Able,dedicated and specialized workers.
 Good brand image.
 Group harmony.
 More than 600 number of products.
 Well structured factory.
 High quality products.
 High quality Suppliers.
 Excellent Employee-Employer Relationship.
 Efficient Top Management.

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WEAKNESS
 The price of the products is high as compared to similar industry.
 Production cost is high.
 Lack of Availability of Land.
 Increasing Material cost
 Absence of some core departments lke R&D

OPPORTUNITIES

 Huge market in foreign countries.

 A stable ,Market based and Growth oriented economy.
 Usage of plastic products is increasing.
 Acceptance of plastic products is increasing.

THREATS

 Government policies against plastic products.

 Less profit margin per commodity

PORTER’S FIVE FORCE MODEL

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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 the ‘five forces tool ’has become an
important method for analyzing and organizations industry structure in strategic
processes.

Porter identified five competitor forces that shape every single industry and
market. These forces help us to analyse everything from the intensity of
competition to the profitability and attractiveness of an industry Five Forces
analysis looks at 5 key areas namely the threat of entry ,the power of buyers, the
power of suppliers, the threat of substitutes, and competitive rivalry.

BARGAINING POWER OF SUPPLIERS

Generally supplier power is investigated through concentration of supplier,
volume importance to supplier, differentiation of inputs and switching costs of
firms in the industry.

A few factors which increase the supplier powers are

(a) Presence of few suppliers

(b) Presence of large no: of purchasers
(c) High cost of switching suppliers

Supplier power is highly reinforced when a supplier has control over prices. There
are a large no: of small firms with a variety of product differentiation. Due to the
wide applicability of nature of plastic in avariety of spheres,there is a great variety
in demand also. To cater to these diverse demands,there are some firms focusing
on producing a single product with features making it suitable for only a specific
usage. Also there are some firms producing a product with wide application areas.

Last but not the least, there are also firms that are producing too or more related
products that severs as raw materials to produce a finished product in another firm.
The Indian plastic industry is essentially an oligopolistic market. The polymer

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manufacturers and the equipment manufacturers are the suppliers for the plastic
processors.

Since there are 15 key players(Gail ,RIL, IPCL etc)in the polymer manufacturing
sector supplying essential raw materials to the large no of plastic processors,
bargaining power of these polymer manufacturers is high. But there are huge no of
equipment manufacturers which are also small firms and since there are large no of
plastic processors, competition is fierce as firms are small in size they operate in
small volume , hence no of orders are equally important for maintaining the bottom
lines. As regards to switching cost, the figures are high for switching polymer
manufactures because of their small no: but low in case of switching equipment
manufacturers due to the presence of small manufacturers in large no thus it is
clear that the firms like Family Plastics will have less control over the raw material
cost.

BARGAINING POWER OF BUYERS

Due to the wide applicability of plastic in every industry, it is evident that buyers in
this industry are huge and they range from small to big sized firms. The end user
industries for plastic are Agriculture, Infrastructure, Electronics, Packaging and
Automobiles. Each of these is again a vast sector encompassing several areas
requiring plastic usage. In this case, buyer’s power is largely determined by firm
size and its scale of operation. The firms will definitely have to face high
bargaining power due to the presence of large no of plastic processors.

The plastic processors range from cottage industries to big firms like family
plastics. The bargaining powers of the buyers are likely to be more in all premises
but comparatively less for Family Plastics since it has a wide reputation as a
quality brand.

COMPETITIVE RIVALRY

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Since a large chunk of the plastic processors are lying in the small and medium
scale range of industries, hence internal rivalry is very high. Though it is also a fact
that there are wide variety of plastic that are produced, each one with a different
feature and hence different application and enable each producer to cater to single
variety having a single consumer.

Though the industry is not stagnant but due to the presence of large no of small
players it becomes mandatory for bigger ones to steal business from their smaller
counter parts in order that the bigger ones wants to expand their output. Also due to
the divergent nature in the scale of operation, firms have different cost structures.

Family Plastics is a firm that produces a wide variety of plastic products. But the
players like Nilkamal9focused on manufacturing plastic chairs0 which is focused
only on one or two products only can be threat since they will be having more
reputation in that particular product range.

THREAT OF NEW ENTRANTS

As the no of entrants grew in an industry the net market demand gets distributed
among them resulting in the eroding away of profits of the existing players in the
concerned market. Due to the fragmented nature of the plastic industry, sometimes
new entrant faces difficulty in case that it does not achieve a substantial market
share to reach the minimum efficient scale, it usually stands at a cost disadvantage.

Due to the unorganized nature of the industry, many players will want to enter the
industry to enjoy the established market and reap advantages of economies of
scope.

Also the SSI policy of the government has given a tremendous boost to this kind of
initiatives by small players by declaring its reservation policy and also exempting it
from several kinds of taxes. Thus on one side it is evident that any player can make
a smooth entry into the market as also highlighted by the fact higher product

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differentiation is possible in this plastic industry due to the diverse and enormous
usage potential this material possess.

But at the same time after entry, getting is really tough since there are small firms
but in huge nos. with limited capital.

So if a big firm enters,it can wipe out the market share and profit margins of a no
of small players as its having sufficient capital to spend heavily on promotional
and advertising activities along with huge investments in R&D to discover and
launch new products. Also consumers generally value reputed brands so it is also
essential in this industry for a new entrant to invest heavily to establish a strong
brand reputation and awareness.

In the case of Family plastics,the business may or may not be affected by new
entrants ,however there are chances for both . if a bigger player comes to the
market, the business can be affected but small firms may not be able to disturb the
firm since it has an advantage of its experience curve.

THREAT OF SUBSTITUTES

With the growing alertness against the use of plastic in daily life at an alarming
rate, there is a threat of close substitutes for even a reputed firm like Family
Plastics. The following gives an outlook on such threats:

1. GLASS

This is a very close substitute coming up in the market. Although with the
growing awareness against the use of plastic, still it seems thst human beings
will have a tough time to live without it but nowadays there are materials that
can make this possible.

2. PHB BIOCOMPOSITES

Recent researches have invented a substance which is completely biodegradable

and environment friendly and can replace plastic because of similar properties

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and usage domain. Chemically ,it is a modified form of

polyhydroxybutyrate(PHB).

3. LIQUID WOOD

Prepared from pulp based lignin is another substitute called Liquid wood with
biodegradability and comparable properties are a promising new bioplastic,or
biopolymer. Lignin is mixed with water and exposed to high temperatures and
high pressure to create a moldable composite material that’s strong and
nontoxic.

4. ECM BIOFILM
An additive invented by ECM Biofilms .Inc when added as an ingredient in
polyolefin packaging and products makes those products biodegradable. The
resulting plastic produced with this additive in the process is insensitive to
heat or light degradation. This gives it a long shelf life. However ,it is
completely biodegradable into the soil between 9 months and 5 years.

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CHAPTER-7
FINDINGS,CONCLUSION,
&SUGGESTIONS

FINDINGS

 Family Plastics follows a culture of Continuous Improvement.

 The company is strictly adhered to quality and Safety.

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 The company believes in Improvement in relationship of trust with

Customers.
 Family Plastics follows a Functional Organisational Structure.
 The co-ordination between various departments is excellent.
 Overall Performance of the company is excellent.
 Family Plastics has high Financial Stability.
 The business relies mostly on the brand name created.
 Family Plastics has a Family Style Management system which allows
excellent employee-employer relationship. Mutual trust and confidence
are the key principles of employee-employer relationship.
 The company has total Employee Involvement in various spheres
including Improvements, Cultural activities, Social activities etc

SUGGESTIONS
 Give more consideration to research and development.
 Stress should be laid on effective delegation of responsibities and
empowerment.
 Take necessary steps to increase advertisements.
 Take necessary steps to analyze the technique to improve sales by
appointing a research team.
 Update website regularly and add recent information about the company and
the products.

Involve employees in the process of formulating policies and laying down

standards. If employees are involved in designing the new performance appraisal
system, they may be more dedicated to it and both management and the employees
can get the benefits of the same.

CONCLUSION

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Family Plastics is an Organisation which is professionally managed and follows

modern Organisational Principles and Practices. The study helped to observe,
learn, assimilate and analyze these practices and principles as well as the
functioning of its various departments.

All the workers and staff work together to increase the company’s profit and
thereby to increase its growth. Each and every department of Family Plastics work
without any failures. The industrial relations are coordinal throughout the study at
Family Plastics; this is to conclude that this company is now under its growth
stage, developing and widening its horizons.

This study helped to understand the relationship between management principles

and practical applications and how effectively the organization is making use of its
over 300 highly skilled and qualified manpower to the full extent the study was to
able to achieve its set objectives. The findings and suggestions of the study can be
well related with the objectives of the study. It can conclude that the study at
Family Plastics conducted by is a real time learning experience and it enriched my
knowledge base.

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CHAPTER-8
BIBLIOGRAPHY

BIBLIOGRAPHY

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 An organization study FAMILY PLASTICS & THERMOWARE, 2014

 Kothari, CR.(1990),”Research Methodology”,Second Edition:Wishwa

 Prakasan (New Delhi)

WEBSITES
www.Family plastics.com
www.wikipedia.com

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