Company Profile of "PANCHMAHAL DAIRY"
[With Special Reference to 7S Model of Mckinsey]


By
Ami Soni
MBA II Semester (Year 2004-05)
Shree Leuva Patel Trust MBA Mahila College
Amreli–365 601 GJ
E-mail:
vijaypithadia@lycos.com
 


Introduction

There has been a total revaluation in sector like industries economic situation, political situation and trying to focus to the best to capture the maximum benefits. Milk industry has undergone a revolution in this century with the development of science and technology. Milk is most vital nutritious product upon which every human being depends. It is perishable in nature understanding the nature of perish ability of these product technologists tried their best to preserve this product so as to ensure its use in products. The dairy industry has come up to the present stage because of the well planned effective co – ordination of national dairy development board and co – ordination of the Govt. And stat federation, the nature of every organization in a country regardless of its economics system is to increase. Productivity so as to full fill the wants and needs of its citizens and then to improve the standard of living of the people.

History and Development

Sardar Vallabhbhai Patel gives the first idea to establish and Co-operative business of milk. Amul dairy has been established near about us a result at the time in Anand. Amul dairy got the milk from two Talukas as that time and it had about 1000 societies and it procures about 9000 Ltrs. Milk. And give the idea to setup Panchmahal Dairy in stage 40 to 50 villages agreed provide milk to the dairy. They collected 21,000 Ltrs. Milk from those villages in the beginning. This dairy is called Panchmahal dairy.

In 1970 National Dairy Development Board (NDDB) was also established in Anand and the state level offices NDDB is in Delhi. The NDDB's chairman is Dr. V. Kurain in beginning on account of inadequate finance the Dairy was selling very less milk. Only few people ware agree to provide milk to the dairy. For Bringing milk the truck or tempo was used.

Panchmahal District is situated in the eastern part of Gujarat state with 1900 in habited villages consisting of 33.2 Lakes (1966 census) of which 9802 thousand represent schedule tribe making sizable 45% of the total human population, which is mainly concentrated in 5 tribal Talukas and 2 pockets the undulated terrain made of hills, rocks and shallows soils. The dependences of agriculture mostly on scarcity rainfalls and merge irrigation facilities and the advises all together make an huge obstacle in the development of the district. The Panchmahal District Co-operatives milk produces union was organization as Godhra in may 1973.initially from 40 villages the dairy Co-operative daily 21000Ltrs. Of milk was produces and delivered to the adjacent district union in Kheda, Baroda on account of two lack of processing facilities at Godhra only bordering villages ware availing these benefits of arrangements so to make it in reach of a larger numbers of deep seated villages. Milk producers a milk processing plant with 30,000Ltrs.capacity holder was established at Godhra in 1977.

Under operation flood III programmers it as proposed to procedure milk from 725 dcs by 1992. The procurement expected to be of 90,000 by the end of 1992. The proposed financial outlay under III programmers for union was Rs.315lakes, which involved investment on chilling center. Expansion of existing dairy plant technical input services and support to villages dairy Co-operative. At present the dairy production of milk is 4 to 5 lakes liters.

Dairy Industry in India

The dairy industry occupies an important place in the Indian economy. As India is an agriculture oriented economy and around 65% of its people still depending on agriculture and still many farmers use the old method of farming using the cattle, cattle breeding is done on a vast scale. The cattle not only provide the means for cultivation but also it provides milk to the household.

The government of India also helped the industry to develop by giving its full assistance and with the launching of operation flood in the 7th 5 – year plans the industry got the needed impetus. At the time if independence the growth rate of the industry was less at around 1% but with the help of the government the growth rate increased to 4.2%.       

Scope of Work

Marketing Research hold very much significant in marketing subject because under research program we have the opinion of consumer's dealers, etc, with the help of research we can take decision about of price of products. We can distribution channel if needed. We can make the amendments in sales promotion by the help of research. We come to know that would be our standardized products. The competitor's products can be known about our products, their brand choice.
 
The help of research can have continence of distribution channel, consumers' preference about competitor's can be known by it. What is their tendency about our competitors and us? Pricing decision can be taken very easily knowing consumers preference and satisfaction about product, Marketing strategies adopted by us are proper or not and they are to bettered can known by conducting research. Marketing research is also for new unit or who want to establish the unit. It provides information about the product, which is expected by consumers or what kind of products they want. It also give\provides information about facilities looked for by the consumers.

Objective of Project Work

Major task of the management is to recognize and diagnose the problems. No problems exists until some one assets that it does all though the particular situation may have exited for some time recognized. Problem of discovery is the first stage of any decision process and is the main objective of study. We first consider the problem solving task and formulation of the strategy to solve it.

As said earlier, there is a problem when decision maker faces uncertainly which may concern either difficulties or opportunities. Difficulties are situation or development has negative or counter productive consequences. Some of them are over, which are all ready causing trouble.

Methodology

After deciding on the research approach and instruments, I decided to design a sampling plan. I selected sampling because it is not possible for me to cover all the areas of city (universe). Organization's Marketing Manager Mr. Mehta told me to go through the sampling procedure.

(a) Sampling:

a) Sampling Unit: Who is to be surveyed? I must define the target population that will be sampled. The target population is Godhra people. The following are the types of sample.
Probability Sample

i. Simple random sample: Every member of the population has an equal chance of selection.
ii. Stratified random sample: The population is divided into mutually exclusive groups and random samples are drawn from each group.
iii. Cluster (area) sample: The population is divided into mutually exclusive groups such as city block and the researcher draws a sample of the groups to interview.

Here, I selected Cluster (area) sampling of Probability sample. I am living in Godhra city so I selected Godhra city as my sampling unit.

b) Sample Size: How many people should be surveyed? Large sample gives more results than small samples. However, it is not necessary to sample the entire target population or even a substantial portion to achieve reliable results. Samples of less than one percent of the population can often provide good reliability, with a credible sampling procedure.

Here, as per my discussion with manager, I was given 100-150 surveys as sample size.

c) Sampling Procedure: How should the respondents is chosen? To obtain a representative sample, a probability sample of the population should be drawn. Probability sampling allows the calculation of confidence limits for sampling error. When the cost or time involved in probability sampling is too high, marketing researcher will take non-probability samples.

Here, I selected probability sampling because I had enough time and small sample size and the cost of sampling was also low.

(b) Contact Methods:
Once the sampling plan has been determined, the marketing researcher must decide how the subject should be contacted: mail, telephone, personal or online interview.

(c) Survey Research:
Surveys are the best suited for descriptive research companies undertake surveys to learn about people's knowledge beliefs, preferences and satisfaction, and to measure these magnitudes in the general population.

Research Instruments:

a) Questionnaires: A questionnaire consists of a set of questions presented to respondents because of its flexibility the questionnaire is by far the most common instrument used to collect primary data. Questionnaire need to be carefully developed, tested and debugged before they are administrated on a large scale.

b) Psychological Tools: Marketing researcher can probe a buyer's deeper beliefs and feelings using psychological tools such as laddering techniques, depth interviews and Rorschach tests.
Information and Analysis

The main stage of marketing research for developing the most efficient plan is gathering the needed information. The marketing manager should know enough about marketing research to evaluate the research plan, and know how interpreting findings is.

1) Type : For this project I have used primary data collection.
2) Sources : For collecting primary data, I have personally contacted with the officials of Panchmahal Dairy
3) Methods : For collection of required data, personal survey is used as a means of communication of personal interviews.
4) Design : To optimize research work I have used descriptive Research design

Observation and Findings

The finding and suggestion should be looked upon by the co-operative society as on opportunity to improve itself and be more competitive. In this area of multiple products most of the business look upon finding and suggestion as a positive way to improve their efficiency and effectiveness. According to me the following importing finding and suggestions should taken in to consideration.

1) From the survey, I found that the co-operative society's milk availability is not timely.
2) Secondly the milk is not available throughout the day it is limited for period of time.
3) In some areas of Godhra city, milk is not provided by home delivery, consumer has to take it from retailer. It is found that there are many local competitors selling loose milk.
4) It is demand that Panchmahal dairy should introduce the "Panchamrut butter".
5) I observed that the price of milk is little high.

At last I would like to say that the distributors of Godhra not give any information regarding the products and services, so I could not get the more information from the distributors.

Limitations

Some limitations are always in the study. I also found some limitations and they are as follows:

a) Because of very short time, I adopted Sampling method. The Lunwada city is very big city. The two months period is very short for the survey of whole city. But I tried my best to cover most of the areas of Godhra city.
b) Godhra city is a rural area. I tried my best to get all the information from the people of Godhra city. But it is not possible to get the 100% right information because lack of knowledge and awareness of the people.
c) The distributors of Dairy network are also not responded properly because they are not interested to help me. So I could not get proper secondary data.

Suggestion

1) The co-operative society should try to increase its dealership network because there are many local competitors selling loose milk.
2) The co-operative society should improve the timely availability of milk to all of its distributors & consumers.
3) If milk is made available throughout of the day the sales may rise.
4) The co-operative society, in this period of tuff competition, should try to increase the sale by providing home delivery of milk. This will bring more comfort to the consumer because the people who sale for loose milk, as it is available at the door step now may shift to pack.
5) In case of advertisement the firm should improve it's advertisement by wall paintings, hoardings, banners and posters in the regional language in the ruler area, give advertisement on local cable channel. Which many of the dealers think it is important media for the product.

Mckinsey's 7S model

The 7S framework for management analysis was developed by Mckinsey and company. 7S model provides an effective way of analyzing an organization, in terms of dynamic relationship among 7 key elements namely :

* Strategy,
* Structure,
* System,
* Style,
* Staff,
* Shared values,
* Skills.

Richard Pascal Identified These Factors In His Book " The Art Of Japanese Management." According To Pascal It Was Because Of These Factors That The Japanese Companies Excelled Over American Firms. Another Book "In Search Of Excellence: Lessons From America's Best – Run Companies" By Tom Peters And Robert Waterman Threw More Light On The 7S Model. Pascal , Peters And Robert All Worked At The Mckinsey Consulting Company Together.

A Very Important Feature Of This Model Is That Mckinsey Consultants In Their Studies Of Several Firms Have Extensively Tasted It. 7S Model Is A Very Comprehensive Tool Available To The Managers To Study The Organizations. This Study Is Important From A Strategic, Marketing, Organizational Behavior And Competitive Perspective.

A Major Premise Of The Model Is That Many Performances Related Issues Are Rooted Among The 7 Factors Outlined. The 7S Are Interconnected, Aligned And Working Together In High Performing Organizations. An Organization Can Be Analyzed By Way Of Internal Examination To Examine Where It Stands Today And What Steps Can Be Adopted To Required Levels OR An External Examination Can Be Done By An Investor, Potential Employees, Or Competitors.

Profile of "Panchmahal Dairy" With Reference To 7s

Panchmahal District is situated in the eastern part of Gujarat state with 1900 in habited villages consisting of 33.2 Lakes( 1966 census) of which 9802 thousand represent schedule tribe making sizeable 45% of the human population, which is mainly concentrated in 5 tribal Talukas and 2 pockets the undulated terrain made of hills, rocks and shallows soils. The dependences of agriculture mostly on scarcity rainfalls and merge irrigation facilities and the advises all together make a huge obstacle in the development of the district. The Panchmahal District Co- operatives milk produces union was organization as Godhra in MAY 1973 initially from 40 villages the dairy Co – operative daily 21,000 Ltrs. Of milk was produces and delivered to the adjacent district union in Kheda, Baroda on account of two lake of processing facilities at Godhra only bordering villages ware availing these benefits of arrangements so to make it in reach of a larger numbers of deep seated villages.

Under operation flood III programmers it as proposed to procedure milk from 725 dcs by 1992. The procurement expected to be of 90,000 by the end of 1992. The proposed financial outlay under III programmers for union was Rs.315 Lakes, which involved investment on chilling center. Expansion of existing dairy plant technical input services and support to villages dairy Co – operative. At present the dairy production of milk is 4 to 5 lakes liters. Recently the Panchmahal dairy honored by the ISO 9002 and H.C.C.P. Certificate The Panchmahal milk is also accept by the QAS (Quality Assurances Services) Australia.
 


Ami Soni
MBA II Semester (Year 2004-05)
Shree Leuva Patel Trust MBA Mahila College
Amreli–365 601 GJ
E-mail:
vijaypithadia@lycos.com
 

Source : E-mail August 25, 2005

 

 

 

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