KARNATAKA UNIVERSITY DHARWAD

BACHELOR OF BUSINESS ADMINSITRATION

BASAVERSHWAR COMMERCE COLLEGEBAGALKOT-587101

2009-2010

PROJECT REPORT ON

Internal Guide External GuideMr.Ramkishore.Jaju Prof: Aruna. Bugade

Submitted by Mr. Vijayamahantesh K. Gudur

Vijay & Raju

“Organization Structure

Mr. Rajendraprasad.S.Tegginamani 3th Semester B.B.A Bagalkot

We Dedicate

Our Prestigious Project

To

Our Divine Parents

Who Taught Us

The Value of Education

And

Hard Work

Vijay & Raju

CONTENTS 1. AKNOWLEDGEMENT.

2. EXECUTIVE SUMMARY.

3. INTRODUCTION OF BAJAJ AUTOMOBILE.a. Introductionb. Visionc. Missiond. Quick factse. Management profilef. Brand and segment

4. INTRODUCTION OF MADHUSUDHAN MOTORS.a. Location b. Surrounding areac. Buildingd. Machinery used in workshope. Staff

5. FUNCTION’S OF SHOW ROOM.

6. PRODUCTS.

7. COMPETITION ANALYSIS.

8. SWOT ANALYSIS.

Vijay & Raju

9. MADHUSUDHAN MOTORS ORGANISATION CHART.a. Salesb. Servicesc. Spare

10. CONCLUSION. ACKNOWLEDGEMENT

The outcome of ten days long project at madhusudhan motors.bagalkot is a result of contribution from many to whom I am greatly indebted.

Firstly, I wish to express my profound sense of gratitude to Mr.Ramkishore.L.Jaju, proprietor for providing me an opportunity to undertake this project in Madhusudhan Motors, Bagalkot.

I would like express my sincere gratitude to the people of Madhusudhan Motors who spend some of their precious time to interact with me in order to give me the required information. The information given by them were very helpful in the whole process of this in plant training.

I wish to avail myself of this opportunity to express my sincere gratitude to our principal shri.R.G.Allagi &Co-ordinator prof.L.T.Shasannavar whose support was invaluable.

My special Thanks to prof.Aruna.Bugade who has always been a backing hand behind me.

Lastly, I would like to thanks my parents &friends for their full support complete this project.

Vijay & Raju

Executive Summary

This project is undertaken at Madhusudhan Motors, Bagalkot who is authorized dealer for BAJAJ Automobile for Bagalkot district and was established on 20th November 2003 with a capital of Rs.65 lakhs. It has its own “Authorized service station” in Bagalkot. Its sales are spread to each and every corner of Bagalkot district. It has just crossed its 5 years and has already become a major competitor in two-wheeler industry in Bagalkot district. Its market share is about 35% which clearly indicates that its sales are increasing day by day. The showroom has got well qualified staff; mechanics etc.Owner is having vast knowledge in their concerned field. So they successfully were running their business. Since, success of every business depends on customer’s satisfaction, so Madhusudhan Motors is giving maximum importance to their customers by provident good service for two-wheeler to their customers.

Vijay & Raju

Introduction of BAJAJ Company

“Do whatever you think best, but be best at whatever you do”

-Rahul bajaj Bajaj auto is a major Indian automobile manufacturer. It is India’s largest and the world’s fourth largest two and three-wheeler maker. It is based in pune, Maharashtra, with plants in walug near Aurangabad, Akurdi and chakan, near pune.Bajaj Auto makes Motors Scooter, Motors cycle and the Auto Rickshaw. The Bajaj Group is amongst the top ten business houses in India. Its foot print stretches over a wide range of industries, spanning automobiles (two-wheeler and three wheeler), home appliances,lighting,iron and steel,insurance,travel and finance.Bajaj brand is well known in over a dozen countries in Europe, Latin America, the US and Asia. Bajaj Company founded in 1926, at the height of India’s movement for independence from the British, the group has an illustrious history. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of the group today, are often traced back to its birth during those days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close confident and discipline of Mahatma Gandhi. Infact, Gandhiji had adopted him as his son. This close relationship and his deep involvement in the independence movement did not leave Jamnalal Bajaj with much time to spend on his newly launched business venture. His son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. He not only consolidated the group, but also diversified into various manufacturing activities. The present chairman of the group Rahul Bajaj took charge of business in 1965.Under his leadership, the turnover of the Bajaj Auto the flagship Company has gone

Vijay & Raju

up from Rs.72 Million to Rs.100.76 Billion its product portfolio has expanded from one to and the brand has founded a global market. He is one of the India’s most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit.

VISION

“To attain World Class Excellency by demonstrating value added products to customers”

MISSION

→ Focus on value based manufacturing. → Fostering team work and enhancing the capability of the team → Continual improvement. → Total elimination of wastes. → Pollution free and safe environment. Bajaj Group Family Tree

Vijay & Raju

Bachchraj

Ramdhandas

Jamnalal

Kamalnayan Ramakrishna

Rahul Shishir Rajiv Sanjiv Kushagraa

Apoorv

Quick Facts.

Founder Jamnalal Bajaj

Year of Establishment 1926

Industry Automotive- Two & Three Wheelers

Business Group The Bajaj Group

Listings & its codes BSE - Code: 500490; NSE - Code: BAJAJAUTO

Presence Distribution network covers 50 countries.Dominant presence in Sri Lanka, Bangladesh, Columbia, Guatemala, Peru, Egypt, Iran and Indonesia.

Joint Venture Kawasaki Heavy Industries of Japan

Registered & Head Office Akurdi Pune - 411035India

Works Akurdi, Pune 411035 Bajaj Nagar, Waluj Aurangabad 431136

Chakan Industrial Area, Chakan, Pune 411501

E-mail rahulbajaj@bajajauto.co.in

Website www.bajajauto.com

Vijay & Raju

Management Profile

Rahul Bajaj ChairmanMadhur Bajaj Vice ChairmanRajiv Bajaj Managing DirectorAbraham Joseph Vice President(Research Development)Pradeep Shivastava President (Engineering)

S.Sridhar CEO(2WH)R.C.Maheshwari CEO(Commercial vehicles)Rakesh Sharma CEO(International Business)C.P.Tripathi Vice President(Corporation)N.H.Hingorani Vice President (Commercial)Kevin PD’sa Vice President (Finance)S.Ravikumar Vice President(Business Development)K.Srinivas Vice President (Human Resource)J.Sridhar Company Secretary.

Segment and Brands

Products BrandsMotorcycles 45 45 Champion Bajaj Avenger

Bajaj CT 100 Bajaj Discover Bajaj Platina

Bajaj Pulsar Bajaj Pulsar DTSi Bajaj Sonic

Bajaj Wind 125 Bajaj XCD 125 Boxer

Caliber Caliber 115 Kawasaki Bajaj

Eliminator

KBRTZ KB 100 KB 125

Scooters Bajaj Chetak Bajaj Kristal Dtsi Bajaj Wave

Vijay & Raju

Introduction of Madhusudhan Motors Bagalkot

A Madhusudhan Motor is a division of J.L.Jaju Group, who is exclusive dealer for Bajaj Auto for Bagalkot district. On 28th November, 2003 Madhusudhan Motors was established as the authorized dealer for vehicles with a capital of Rupees 65 lakhs with their own land. It was inaugurated by Shri.Hucheshwar Swamiji of Kamatagi. Its market share is 35% for two-wheeler in Bagalkot, with facilities like phone booking, spare maintenance, good communication with customers and good business network with Bagalkot district.

The places covered with Bagalkot district are:

Bagalkot BadamiBilagi MudholHunagund MahalingpurRabakavi GuledguddLokapur Galagali Location Madhusudhan motors is located opposite to the head Office, Station Road Bagalkot.

Vijay & Raju

Surrounding Area. Madhusudhan Motors is situated in such a place which is always busy with crowds .It is very near to railway station, bus stand, post office, telephone exchange. In simple words to say is that it is located in a so perfect area that any customer who intends to purchase the Bajaj Bikes can easily come to the showroom without any trouble.

Building The building of Madhusudhan Motors is 50 X 100 sq ft, which includes the showroom and the service station.Machineries used in the workshop The workshop of Madhusudhan Motors make use of all the modern machineries. The machineries used are 5 - Hydrolic Ramps 1 - Compressor 1 - Washing Machine 6 - Neumatic guns 1 - Co Gas Analyzer 1 - MRTB RAMP 1 - Chain Cleaning Machine 1 - Chain heater Machine 1 - Engine repair Cable 2 - Battery ChargerStaff.

There are altogether people working in the Madhusudhan motors including the security guard.

Job Section No. of EmployeesSales 02Supervisors 03Works Manager 01Spare Parts 03Mechanics 04Assistant Mechanics 02Helpers 04Reception 01Accountant 01Security guard 01Total 22

Vijay & Raju

Functions of Showroom.

1. Customer visit Customers are the king of queen of the market, and they are having their own choice to buy the product. The customers intending to purchase the any of Bajaj Vehicle visit the showroom for asking about.

* Quotation* Details of Vehicles

* Specification of particular type of vehicle etc2. Sales The person who is intending to purchase the vehicle will visit again and makes the selection of vehicle color etc after selected the sales executive of the showroom will prepare a file with customer name, permanent address, phone number etc. He will also take the information about the engine number, frame number and key number.

3. Payment Madhusudhan Motors has adopted who methods of payment.

i. Cashii. Loan or Hypothecation form or any leasing company. Insurance charges, temporary passing charges are also taken

4. Billing After the payment, sales certificate is prepared. If the payment is through hypothecation then original copy and one key is given to bank. Duplicate copy is given to the customer.

5. Insurance Before giving the delivery of the vehicle it is insured, in case if the vehicle met with any accident or fire the vehicle owner will be identified by the insurance company. The policy is valid for one year this policy is renewed every year. This policy has to be renewed every year by the concerned party.

6. Temporary Registration It is order to refer when the party goes for permanent registration. It is valid for 28 days from the rate of applied after purchasing the vehicle.

7. Workshop It is a place where the repair of the vehicles takes place in the Madhusudhan Motors. Workshop consists of some machineries and worker. Mechanics 4 members

Vijay & Raju

Helpers 4 members Spare section 3 members Work manager 1 member Supervisors 3 member (including spare division)

Responsibilities and Duties of Supervisor.a) To write the problem of customer in the job card.b) To take care of the customer until the vehicle is ready.c) To maintain the warranty claim register.d) To give proper instruction to mechanic.e) To take final testing of the vehicle.

Maintenance of different Register.

a) Ledger book h) Enquiry bookb) Sales book i) Cash bookc) Inward Register. j) Warrant Register.d) Outward Registere) Motorcycle stock book.f) Customer Address bookg) Account book

Product

Vehicle cost1) Bajaj Discover 135CC ES drum Rs.485252) Bajaj Discover 135CC ES disc Rs.513703) Bajaj Pulsar DTS-I 150CC ES Rs.583504) Bajaj Pulsar EX DTS-I 180 CC Rs.596005) Bajaj XCD Rs.421006) Bajaj Platina 100 Rs.340307) Bajaj Platina 125 DTS-I Rs.397808) Bajaj Kristal Rs.35630

Vijay & Raju

Madhusudhan Motors make sale of Bajaj Vehicles (i.e. two-wheelers). They make sale of above 8 types of Bajaj bikes.

Competition Analysis

Madhusudhan Motors is a showroom and makes sale of Bajaj bikes (i.e., two-wheelers). Since 2003 it has grown at a steady pace and acquired 35% market share. It has achieved a success in a growing manner. It has covered a Bagalkot district, through its effective services towards the customers.

Madhusudhan Motors facing some of competition from its competitors. The Competitors are

Vijay – Motors HERO HONDAKumutagi Motors TVS

SWOT Analysis The evaluation of the company strengths, weakness, opportunities and threats.

STRENGTHS

→ Good quality service → 60CC to 180CC bikes are available. → Business experience → Experience mechanics → Strong financial back up → Providing good service to customer.

Vijay & Raju

WEAKNESS

→ Location → Discipline → Awareness → Consumer Convincing power.

OPPORTUNITIES

→ Sub Branch in Navanagar → Sales of three-wheeler → Acquiring 50% market share in view of growing market.

THREATS

→ Up coming new brands offered by competitors. → Product Promotions by Competitors. → Establishment of new LML showroom and Honda showroom. → Dissatisfactions of product users resulting in spreading of bad-work of mouth.

Madhusudhan Motors Organization Chart

Vijay & Raju

Proprietor Ramkirshor.L.Jaju

Manager Purushotam Jaju

Sales

Showroom Sales

Rural Sales

Sales Supervisor Male

Sales Supervisor FemaleReception

Spare

Spare Manager

Counter 1 Counter2

Service

Work Manager

Service advisorMachine 1 Machine 2

Service advisor Helper Helper Machine 1 Machine 2 Helper Helper

Floor Incharge

Purchases

Madhusudhan Motors make purchase of Bajaj Biker (i.e. two-wheeler) from the PUNE plant i.e. Akrudi and chakan plant the plants are flexible in manufacturing facilities that are cross sourced in increasing demand situations.

Akurdi plant was set up in 1961.

The showroom purchaser the vehicles and the spare parts from this plant only & distribute the vehicles to the customers through the showroom.

Vijay & Raju

The initial investment of the showroom is 65 lakhs the Madhusudhan Motors purchases the Bajaj biker on cash basis.

Cash basis OD Working Capital

Inventory Funding Working Capital

Financial Facilities

The capital investment by Madhusudhan Morors is 65 lakhs.

As We know finance is the life blood of every business activity there must be proper inflow and outflow Finance is the basement for establishment & smooth running of the business.

Vijay & Raju

Madhusudhan Motors provides financial facilities for customers who purchasing biker in showroom through different Banks like

→ Local Bank → Credit Society → ICICI, HDFC → Co-Operative Bank

→ Leasing Company

→ Auto Finance etc

Accountant of the showroom maintains different books & accounts.

→ Ledger book

→ Sales book

→ Account book

→ Cash book

→ Balance sheet etc

Balance sheet is prepared on yearly basis

Sales Sales

Vijay & Raju

Showroom sales (Direct) Rural Sales

Sales Reception Sales Demo person 1 Demo person 2Supervisor Male Supervisors Female

Exchange Sales Cash Sales Finance Sales

Madhusudhan Morors makes sale of Bajaj bikes in two ways. They are

a) Rural Salesb) Direct Sales

Rural Sales Here rural sales mean they make sale of biker in rural places by using demo persons. These demo persons go Rural Sales includes three service centers like

* ASC-Authorized Service Center This center covers the places like Badami, Rabakavi, and Mudhol etc

* RSO-Rural Service Outlet This covers the places like Bilagi, Guledgudd, Lokapur, Hungund etc

* YES-Yong Engineering service This covers the area of vidyagiri.

Vijay & Raju

These three centers help to make sales in a easy way. Because the people of different places are not always able to come to the showroom to & for service so the above 3 centers helps these people.

2) Direct Sales Direct Sales means Sales through the showroom directly direct sales includes 3 types they are

* Exchange Sales

* Cash Sales

* Finance Sales

Exchange sales

Here exchange sales means sales is carried by a exchange person here exchange of old biker with new bikes takes place.

Cash sales

Here cash means bikes are sold through showroom directly for cash to the customers. No credit transactions take place here.

Finance sales

Here finance sales is related to that sales where customers can purchase the bikes on the basis of financial facilities provided by the madhusudhan motors.i.e they can purchase an the basis of loans from different banks.

The target customers of madhusudhan motors are

→ College students → Business man → Corporate

Vijay & Raju

Service Service

Work Manager

Service Advisor Reception Service Advisor

Mechanic 1 Mechanic 2 Floor Incharge Co-Ordinate Mechanic 1 Mechanic 2

Helper Helper Helper Helper

After sales next comes service providing good services after sales to the customer is main aim of the showroom. Because customer satisfactions helps the madhusudhan motors to develop further and to increase sales through which profit will be more.

Service department mainly includes-1 work manager, 2service advisor, 1 floor in charge etc. When any customer has a problem related to vehicle then he can come to the showroom in order to get solution to his problem.

Procedure of servicing.

a) When a customer enters the showroom with his vehicle his vehicle problem is entered in the “JOB CARD”.

b) In the job card the name, frame number and engine number of the vehicle and the problems of the vehicles are entered and the supervisor receives the key and asks the customer to come after few hours.

Vijay & Raju

Spare

Spare is a department where repairs of the bikes are carried.

Spare in next segment comes after service. Spare includes the following person.

Spare (Spare Incharge)

Counter Sales (1) Billing person Workshop Sales

In spare section the problem related to bike which is entered in the “JOB CARD” is given to the mechanics in order to correct the problem.

While making the repairs of the bikes the necessary spare parts are taken from workshop sales where all necessary spare parts are available and there bill of the spare parts which are taken for repairs.

Vijay & Raju

Conclusion

In order to run a sustainable business in the long run, it is important for any automobile manufacturing company. Sales are only the beginning of the process. At the point of sale of the consumer has only purchased the bike not the driving experience. This service continues as long as person drives. The bike in its lifetime.

By seeing the performance of Bajaj vehicle and service provided by the madhusudhan motors. As per showroom is concerned is having good prospects in real feature. it is providing good service and majority of the people are satisfied with Bajaj company vehicle.

Vijay & Raju