An
Assignment on
Management control system
Of
Suzlon Energy Ltd
Submitted to:
Prof Kaumudi Upadhyay
Submitted By:
Shruti velani(359)
Mrunal Vaza (358)
Sachin Nandha (341)
Darshan Shah (348)
Disha Shah (349)
MARKETING DEPARTMENT:
1) Strategic planning & Budgeting:
Indian market according to the states where they are identifing suitable sites
for wind energy projects, specifically Maharashtra, Gujarat, Rajasthan, Tamil
Nadu, Karnataka, Madhya Pradesh and Andhra Pradesh.
The marketing team focuses on three types of customers: (a) companies that
have manufacturing units with high power consumption; (b) companies with
high profitability and/or surplus liquidity that seek investment opportunities
with stable returns and that offer tax benefits; and (c) power utilities and state
nodal agencies
They are not giving more budget on promotional activites but they are more
focused on fixed assets investment.
2) Controlling:
Marketing for each state is under the supervision of a senior management
executive who directly reports to our Chairman and Managing Director. We also
have sales offices in key cities such as Pune, Bangalore, Chennai, Coimbatore,
Hyderabad, Ahmedabad, Rajkot, Surat, Jaipur, Calcutta, Mumbai, Indore and
New Delhi.
3) Performance evaluation measurement:
As in Suzlon the debtor’s credit period and creditor’s credit period is too much
long. So to solve that problem company should employ profit center concept and
for that keep performance evaluation measure as PBIT.
Financial Department:
1) Strategic planning:
Strategic planning in suzlon is very much important for suzlon. They had well
planed about its future expansion in different countries like china, India, Belgium
etc. They also do planning for merger and acquisition strategies.
2) Budgeting:
Suzlon is giving more focus on budgeting in financial department. As they are
going for expantion so they are keeping fund as a reserve. They are also raise fund
from debt for acquisition because they have an advantage of good market
reputation.
3) Controlling & performance evaluation measure:
As in finance department they are lacking in working capital management so they
can keep ROI as performance evaluation measure and in investment base they have to
include current liabilities and if the time period is more than 30 days than it should be
added in investment base.
Production department:
1) Strategic planning & budgeting:
Suzlon is very much conscious in planning & budgeting of production wind
energy. Because it is totally backwardly integrated company and its acquired the
supplier by taking loans so for that they are well managing its budget for
acquisition.
2) Controlling & performance evaluation measure:
As suzlon is efficient in production but it is lacking in inventory
management. So it can keep ROI as performance evaluation measure
and add current assets in investment base.
Human resource department:
1) Strategic planning & budgeting:
In human resource department strategic planning and budgeting is not that much
important because they are only hiring skilled employee.
2) Controlling & performance evaluation measure:
To control the activities of employee they are giving compensation on
the basis of their performance. So they are bound to perform well.
Research & Development department:
1) Strategic planning & budgeting:
In suzlon research and development is too important. So In this company planning
and budgeting is too much important. They allocate budget for research and
development so for that they have to plan its fund investment very carefully.
2) Controlling & performance evaluation measure:
In suzlon the controlling of research and development department is not
done because they have given freedom to do research and innovation.
The philosophy of suzlon is as “we because we innovate”
