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7/22/2019 A Study on Overall Performance of Tip Top Furniture Pvt Ltd
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An Organization Study on TIP TOP Furniture PVT LTD
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Chapter: 1
INTRODUCTION
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AN ORGANISATIONAL STUDY ON TIPTOP FURNITURE PVT LTD
1.1: INTRODUCTION
In an environment of rapidly escalating competitive challenges, every company has to
invest across the value chain to achieve world-class competitive capability in each of the
businesses in its portfolio. These strategic interventions results in progressive transformation of
traditional organizations into internationally competitive organization, where the focus is superior
value for all stakeholders. Each business within portfolio is continuously engaged in upgrading
competitive capability to effectively address growth challenges in the fast globalizing Indian
market, and over time in the world markets. The vision of every company is now apparently is the
creation of unique business models that foster international competitiveness of not only its
business but also the entire value chain of which it is a part. This has made functioning of each
organization much complex than the olden days.
Systematic and organized approach is indispensable to meet this challenge of complexity.
Every organization cannot do the same since it is costly and time consuming. All these leads to
the emergence of a modern organization concept which relies on identifying and grouping the
work to be performed, defining and delegating responsibility and authority , and at last
establishing relationships for the purpose of enabling people to work most effectively together in
accomplishing objectives. The success of a firm is determined by how far they are effective in
these aspects.
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1.2: OBJECTIVES OF THE STUDY
The objectives of the study are explained as under. They are
1. Understand the history and objectives of the firm.2. Study, the organizational structure of Tip Top Furniture Pvt Ltd.3. To understand all the functional areas of Tip Top Furniture Pvt Ltd.4. Evaluate accounting procedure and book of accountant attached and maintained by the
firm.
5. Apply the SWOT analysis, Porters 5 forces model and Mc kinseys 7s to understandthe competitive position of TIP TOP Furniture.
6. Offer suitable suggestions for the improvement of the performance of Tip TopFurniture.
1.3: LIMITATIONS OF THE STUDY
The limitations of the study are described as under
1. Time is the one of the limitation, so the intensive study of the concern is impossible.2. No businesses reveal every business secrets. So only available information are used for
analysis.
3. The study period is for 45 days. Hence the data cannot be compared to the longer lifeof the company.
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1.4: SCOPE OF THE STUDY
The study describes the history, genesis, activities, and achievements of Tip Top Furniture
Pvt Ltd. Kottakkal.
This study covers information on the present organizational system of Tip Top Furniture
Pvt Ltd. This information can help in better understanding the firm, its policies and strategies.
This study gives hints on how effectively an organization can design its functional areas
like marketing, finance, HR practices, operations and supply chain management and how they can
be constructed to improve organizational effectiveness.
1.5: METHODOLOGY OF THE STUDY
The study was based on primary data and secondary data
PRIMARY DATA
Primary data were collected through the repeated personal interaction with the authorities
of Tip Top Furniture Pvt Ltd. It was also collected through the method of careful observation and
interaction with the employees, customers and officers of the organization.
SOURCES OF SECONDARY DATA
The secondary data were collected through the careful study of the extracts of the accounts
of the company and some of the basic information about the company was collected by browsing
the company website, www.tiptopfurnishing.com.Some other information related to the project
were also downloaded from the internet.
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Chapter:2
INDUSTRY PROFILE
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2.1: PROFILE OF FURNITURE INDUSTRY
All the companies and activities that are involved in the design, manufacture, distribution,
and sale of functional and decorative objects of household equipments are known as furniture
industry.Furniture has existed throughout history for many reasons. Obviously, the first is that of
function and practicality. Chairs were designed to be sat upon; tables and stands for putting things
on; beds and couches to rest upon; chests and wardrobes to store things in. Historians contend that
furniture also played a very important role in indicating ones social status. Comfort and
practicality often took a backseat to form and beauty. Only within the last century has technology
had a drastic effect on furniture making techniques and even materials than ever before. Everyone
has their favorite piece of furniture. Ones choice may be inspired by form, function, comfort,
craftsmanship, price tag or a combination of any of these. The furniture industry in India is
considered as a non -organized sector, with handicraft production accounts for about 85% of the
furniture production in India.
The furniture sector in India only makes a marginal contribution to the formation of GDP,
representing just a small percentage (about 0.5%). Among all the types of furniture used, office
furniture segment is the one that boasts the most important companies, both from the point of
view of size and of the technological innovation of the production. The furniture industry employs
a total of around 300,000 workers. The total production of furniture in 2001-02 (according to
Annual survey of Industry) was USD 3580 million.
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2.2: OVERVIEW OF FURNITURE INDUSTRY
Furniture is the name given all movable and immovable accessories provided for rooms or
other areas of any structure from cottage to place or religious edifice. It may be made from a wide
range of materials but wood and metal are usual. What is known about furniture stretches back to
the ancient Egyptian and progress with some breaks to the present day. During these long span
basic forms, such as chair, table and bed were evolved and passed on to the succeeding people
and culture.
2.3: HISTORY OF FURNITURE
Modern furniture design after world war was first were of three kinds functionalist
modern, transactional modern and commercial modern. The commercial modern became
associated with the extra values which commercial furniture often offered by the manner in which
it was advertised. All furniture design was influenced by the social and economic trends of the
era, formal living standard declined, and mechanization of the household labor expanded. Living
spaces shrank, particularly in height and home entertainment became important after world war
second especially people married at a younger age. As total population growth accelerated and
generally raising standard of living was enjoyed by a vastly enlarged middle-income group.
Furniture become smaller, lighter, easier to maintain and more widely distributed
The word furniture comes from the French word FURNITURE which means equipment.
In most other European language, however the corresponding word (French Meoble, Germany
mobile, Spanish Meoble, Italian mobile) is derived from the Latin adjective mobiles, meaning
movable.
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The continental term described the intrinsic character of furniture better than the English
word. To be furniture it must be movable. In general furniture produced in the last 5000 years has
not under gone innovative development in any profound sense. An Egyptian folding stool dating
from about 1500 BC fulfills features as a modern one. Only in the mid-20 th century with entirely
new synthetic material such as plastic and completely new fabrication, techniques such as casting
have there been signs of a radical revision of the concept of furniture
The global furniture market can be broadly categorized in to four categories domestic
furniture, Office/corporate furniture, hotel furniture and furniture parts. Globally, domestic
furniture accounts for 65% of the production value, whilst corporate/office furniture represents
15% hotel furniture 15% and furniture parts 5%. According to a World Bank study, the organized
furniture industry is expected to come from the rapidly growing consumer markets of Asia,
implying significant potential for growth in the Indian furniture
2.4: WORLD FURNITURE INDUSTRY
Furniture industry has changed over the years. It no longer restricts itself to a production
of a chair or a table or a bed but today it includes manufacturing of a range of furniture and home
furnishings and designed interiors which spell class and elegance. There is a boom time for
furniture industry. Every country sports a string of furniture showrooms of all kinds and sizes.
Changing lifestyle, disposable incomes, economy growth, increasing migration to urban areas
have all contributed to the demand for furniture and in turn the growth of the furniture industry as
whole.
Furniture industry comprises not only the production of a wide range of products related
to office, living room, bedroom, kitchen, garden, school furniture but also mattresses, furnishings,
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upholstery, parts of furniture etc. A wide variety of raw materials are used in production of
furniture like wood, rattan, plastic and metal and more recently silver. Including various varieties
of wood, wooden furniture is the major production and exports of the furniture industry in almost
every country.
2.5: CHARACTERISTICS OF THE FURNITURE INDUSTRY
Furniture manufacturing worldwide forms a regionally centralized competition patternunder the clustering effect.
The furniture industry is both an organized and a non-organized sector. Utilization of skilled and unskilled workers. Utilization of handcrafted tools, machines and CAD/CAM for manufacturing and
designing.
Source of employment for rural workers. Employment is spread across many sectors showing the diverse nature of the industry and
a broad product range.
Consumer expectations and purchasing behaviors have marked regional variations.
2.6: INDUSTRY TRENDS
As the world economy is developing fast in the past 10 years, the furniture markets have
opened up more and the world furniture industry has been growing fasttraditional furniture
making countries continue to firmly take up over 70% of the global market. This is possible
because of their long established production capacity, advancement in science and technology,
solid funds and rich management experiences.
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Meanwhile, developing countries and regions like China, Southeast Asia, Poland and
Mexico, with China taking the lead, have built upon their respective competitive advantages and
gradually have covered almost 30% of the world market. The furniture industry in such countries
is developing strongly and showing great potentials.
The European Union furniture industry accounts for about half of the world's furniture
production. The production value of this industry in this region is around 82 billion. Considered
to be a labor-intensive industry it provides employment for around 1 million people. Among the
European countries, Germany takes the lead as the largest furniture producing country, accounting
for about 27% of total EU production. This is followed by Italy (21.6%), France (13.5%) and the
UK (10.4%).
The Canadian Furniture Industry is the 5th largest exporter of furniture in the world.
The major furniture producing countries in South East Asia are Philippines, Indonesia, Malaysia,
Singapore, Thailand, Korea, Taiwan and India. In the context of global furniture trade, Asia
shows healthy signs of growth with respect to its other international competitors. Asian furniture
has always been popular in developed countries like USA, Europe and Australia.
2.7: FURNITURE EXPORT INDUSTRY
Furniture is one of the most basic requirements of every home and every organization,
regardless of size or worth. This fact also makes furniture one of the most solid industries to
invest in, whether it is through manufacturing or exporting. Internationally, the trend is a distinct
tilt towards furniture exports, since more and more people are exposed to international styles and
are willing to spend money on getting exclusive designs into their drawing rooms or lobbies.
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In India, there are two distinct trends. One is to get furniture imported from Europe,
especially Italy. The other is a return to traditional handcrafted designs or antiques.
Simultaneously, there is also an increasing demand for handcrafted furniture exports from India.
Furniture is traditionally wooden, though most regions have their own special preferences.
Tribals use bamboo, for example, while Kashmir is use walnut. South India was known for
ebony and rosewood, and Rajasthan is famous for latticework and painted, collapsible chairs.
In offices, there is a demand for plywood surfaces, plastic or metallic chairs and tables,
in combination with glass or wood. In homes, the drawing rooms are mostly filled with
upholstered furniture, like sofas. Handicrafts are mostly cottage or small-scale industries, and they
contribute to over 80% of furniture produced in India. Besides, the furniture sector in India is not
very organized; most craftsmen have their own small shops, with customers paying a visit to
order whatever they like.
Perhaps this is one reason why India is low on the list of furniture exporters (according to
one survey, India ranked 48th in year2000). Part of the reason could be that local artisans are not
aware of international trends and tastes, making exports difficult
Furniture industry in India has started growing in a vast manner. Furniture being a
necessity its need have risen to a large extent. Furniture industries have grown in the states of
Delhi, Mumbai, Kerala, Uttar Pradesh and Tamil Nadu. Now days they have started developing
the industry and have more of premium products. Heavy competition is there in this field.
Furniture companies must look towards the important and potentially giant Indian
consumer markets since all world leaders in different industrial sectors have already established in
their production in joint venture in India.
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2.8: MARKET SIZE
Indias total population is near 1000 million people, of whom about 80 million live in 8
metropolitan middle cities. There are around 40 million consumers in the upper class and upper
class.
Presently the Indian market size of furniture is about US$ 2 billion and almost 85% of
total sales are realized in tidy workshops owned by carpenters. There are only a few companies
which manufactures and market brand furniture. Since furniture in India is still sold mainly as no-
name product and consumers do not express any brand preference, there is a tremendous sales
potential for leading companies.
According to infinitum Management Services the household segment absorbs 65% manor
local manufacturing companies are to be found more in the office furniture segment rather than in
home furniture.
.
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Chapter: 3
COMPANY PROFILE OF TIP TOP
FURNITURE PVT LTD
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INTRODUCTION ABOUT THE COMPANY
3.1: COMPANY PROFILE
Name of the Firm : TIPTOP FURNITURE PVT LTD
Place : Kottakkal, Malppuram, Kerala
Date of Registration : 19/09/1998
Nature of Organization : Private Limited Company
Registration Number : 8179
Industry Category : Manufacturing
Main Products : Wooden furniture, Handicraft
Status of Firm : 551
Power Used : Electricity from KSEB
Number of Employees : 300
TIN Number : 32101038505
CST Number : 321010138505-C
Total Investment : 15000000
Tip Top Furniture Private Limited has become landmark in history of Kottakkal,
Malppuram. Tip Top Furniture Private Limited is a golden feather in the crown of the nation as it
is biggest kind of in Kerala.
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This organization established in 1979. It was gradually expanded as small scale unit
through the years of 1982 to 1990 and later in the year 1994 it was incorporated under the Indian
companys act, there by affecting phenomenal in the nature of the ownership of the company.
The main objective of the company is to carry on the business of export, manufacturing,
assembling and in all type of wooden furniture having at showroom at Kottakkal and is largest
wooden furniture showroom in India.
Tip Top is today one of the largest manufactures of wooden furniture. They have very
good demand for their products in spite of huge price tag. Tip top is today one of the leading
furniture giant which believes in loyalty and hard work. Today the company has grown in to a
position of leadership with a very short span of time. It is in deeded a matter of wonder and
greater appreciation that tiny furniture shop emerged the current status of large multi storied and
multi-dimensional one. An eight storied building with a floor area of 35000 square feet
accommodating the registered and sales cum showroom is right by the side of the national
highway 17 Kottakkal.
Tip Top Furniture Private Limited company incorporated under the companys act 1956.
The main objective of the company is to carry on the business of export, manufacturing,
assembling and in all type of wooden furniture having at showroom at Kottakkal and is largest
wooden furniture showroom in India. Tip Top group is dealing in furniture business since 1982.
The major competitors are Royal Global Furniture, Damro Furniture, Classy Furniture and Masco
Furniture.
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3.2: ORIGIN AND DEVELOPMENT
Mr. K.T. Siadalavi started Tip Top Furniture Pvt Ltd as a tiny furniture trading unit in
1979.Currently K.T. Siadalavi is the managing director of the company. It was gradually
expanded as small-scale unit through the years 1982 to 1990 and later in the year 1994 it was
incorporated under the Indian companys act, there by affecting a phenomenal change in the
nature of the ownership of the company. At present it continue-e to be a private limited company
under the visionary stewardship of the managing director, K.T. Siadalavi.
3.3: PRESENT STATUS OF THE COMPANY
Tip Top Furniture Pvt Ltd has become a land mark in the history of Kottakkal. An
institution which had been instrument in projecting the name of Kottakkal to the forefront of the
furniture industry of the world apart from its unchallengeable supremacy in the field of Ayurveda.
It is deeded a matter of wonder and greater appreciation that is a tiny furniture shop
emerged the current status of a large-multi storied and multi-dimensional one. An eight storied
building with a floor area of 35000 square feet accommodating the registered office and sales cum
showroom is right by the side of the national highway 17 at Kottakkal. The magnificent building
is constructed that anyone who passes by the highway couldnt resist the impulse of watching it,
so captivating and enthralling is the appearances. No doubt a large amount of pain should have
been taken bringing up this current position. It is nothing but dedicated and committed vision of
team led by Managing Director Mr. Siadalavi who redefined the scope of marketing furniture
from a local circle to global arena, crossing, international frontiers.
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3.4: ORGANIZATION AND MANAGEMENT
Organization refers to a group of people who works together in a structured way to
achieve specific goals as objective. On the other hand, management is the practice of consciously
shaping the growth of organization.
Tip Top Furniture is Private Limited Company, in which all equity shares of the firm are
distributed in the hands of 38 members. The entire management of the firm is in the hand of board
of directors
The board of directors consist the following members
Mr. K.T. SAIDALAVI Managing Director
Miss A. THITHUMMA Directors
Mr. K.T. SULFEEKARALI Director
Mr. K.T ASKARALI Director
Mr. YASAR ARAFATH Director
The managing director Mr. K.T. SAIDALAVI is also the CEO of Tip top Furniture Pvt
Ltd.
3.5: COMPANY BACKGROUND:
Tip Top Furniture Pvt Ltd. is a private limited company incorporated under the companys
act 1956. The main object of the company is to carry on the business of export, manufacturing,
assembling and dealing in all type of wooden furniture, having showroom at kottakkal, which is
largest wooden furniture showroom in India. Tip Top group is dealing in furniture business since
1979.
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3.6: LOCATION:
Regd. OFFICE AND SHOWROOM
The main showroom and head office are situated by the side of the national highway 17,
the city Kottakkal. The sale cum-showroom is a well-furnished eight storied building having a
floor area of thirty five thousand square feet. The magnificent building is also constructed that
any one passes highway could not resist the impulse watching it, so captivating and enthralling is
the appearance. The administrative office and accounts department are located in the ground
floor.
3.7: PRODUCTION CENTER
The main production Center of Tip Top Furniture Pvt Ltd is situated near Chapanangadi,
A remote area where the company can eliminate the waste very easily the production center is
well established which areas the least technology for the production process.
3.8: BRANCHES
Trivandrum
Kottayam
Ernakulum
Kunnamkulam
Kottakkal
Calicut
Kannur
Karunagapally
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3.9: FRANCHISE
Kollam
Cherthala
3.10: MISSION, CORPORATE OBJECTIVES
Tip Top Furniture Pvt Ltd is dedicated to keeping a definite and distinct focus on
products development, services and training. Tip Top addresses all its business in a holistic way.
The corporate mission of Tip Top is to achieve and maintain customer satisfaction through
sustained quality in the products and services at all time.
3.11: OBJECTIVES
To spread the operations globally where Tip Top is new, by developing a mix ofinternational markets and businesses.
Maintaining the highest quality and be a leading manufacture in the industry. To maintain technological leadership through continuous efforts to update product
technology and manufacturing methods.
To managing with a global perspective. To maximize productivity.
3.12: RECOGNITIONS
VANIJYA RATHNA AWARD of 1998-1999 by southern vanijya federation
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Award by CONSUMER PROTECTION CENTER (KERALA) for outstandingcontribution in design and quality
Award by KOTTAKKAL ARYAVYDHYASHALA for the best interior decorated arc intheir centenary celebration 2002
KERALA STATE SMALL SCALE INDUSTRIES KOTTAKKAL wings award for theideal entrepreneur 2001
Best entrepreneur award by KERALA VYAPARA VYAVASAYA YEKOPANASAMATHI 2001
Memento by AL- AZER YOUTH CENTER KOTTAKKAL for congratulatingvanijyarathna award
To honor vanijyarathna award given by POURA SAMRAKSHKA SAMITHI KAIRALI- a unit of handicraft development corporation of Kerala limited, Had certified
that the products manufactured by TIPTOP are maintaining hand carved hand crafts,
almost 100% of the ornaments works to create artistic nature is made by manual labor
only
Award for the best stall exhibition held in NSS ENG.COLLEGE
3.13: FUTURE PROSPECTS AND GROWTH PLANS
Tip top Furniture Pvt Ltd is planning to start business in gulf countries their business in
Kerala is reaping huge profits, so they want to establish their units abroad they are also planning
to strengthen their exports.
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Tip top Furniture also wants to increase the economic growth and industrial development
of the state.
3.14: BUSINESS OPERATIONTip top Furniture Pvt Ltd is very popular worldwide organization. Its fame and popularity
does not only exist in India alone but throughout the world. The furniture supplied from Tiptop
adorns the palaces of many sultans of the Gulf as well as many VIPs of Europe, UK and US.
Tiptop is associated with classic and value added design furniture created out of superb ethnic
craftsmanship at spectacular best which is acclaimed both in the domestic and international
market, particularly in the gulf countries. Tip top Furniture Pvt Ltd. has introduces a new unit in
export and government has approved it.
3.15: PRODUCT PROFILE
Tip Top Furniture Pvt Ltd. has spectacular range of furniture that transforms the house in
to luxurious home. In this chapter a brief sketch on the product ranges, the product features, prices
and items of manufacture are made.
Tip Top Furniture Pvt Ltd. Is one of a never ending treadmill of progress by incorporating
the latest trend in the market, constantly probing its design strategy and fine tuning its craft Tip
Top Furniture Pvt. Ltd. remains committed to improving its range so that costomers have the
latest for theirhouse.
3.16: MAJOR PRODUCTS
Tip Top Furniture Pvt Ltd Is associated with classic and value added design furniture
created out of superb ethnic craftsmanship spectacular best which is acclaimed both in the
domestic and international market, particularly in the gulf market. They make their products of
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the best Indian teakwood and rosewood that last for generations all their products are available in
different model. The specialty about their furniture design is its of traditional and modern
furniture exclusively made by hand.
The various types of products are
1. Sofa2. Divan cots3. Dressing tables4. Tea poi5. Dining table6. Cots7. Cutlery shelf8. Wardrobe cabinets9. Chairs10.Stools11. Study tables12. Doors13. Side box14. Mirror frames15. Book shelves16. Kitchen units17. Stair cases18. T.V stand and units19. Office and computer tables20. Partition and paneling21. Antique clocks22. Phone stands23. Flower stands and other fancy items
The registered brand name of their product is Alpine Regalia the major products are
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PRODUCT
NAME
MATERIAL
USED
NO:
DESIGN
SEMENTATION PRICE
RANGE
Settees Rosewood/teak More than 10 Middle, Upper,
Muddle class&
NRIS
Rs18,000-
3,50,000
Divans cots Teak&
Rosewood
According to
customer need
,, Rs16,000-
100,000
Dressing tables Teak&
Rosewood
According to
customer need
,, Rs20,000-90,000
Coffee table
chairs
,, ,, ,, Rs8,000-30,000
Dining table &
chairs
,, ,, ,, Rs35,000-
3,50,000
Cots ,, ,, ,, Rs10,000-
2,00,000
Monarch Teak, Veety Special
material
Special
personality
Rs1,90,000-
2,00,000
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VISION AND MISSION OF TIP TOP FURNITURE PVT LTD.
3.17: VISION :
Tip Top Pvt Ltd providing home furnishing interior decoration and life style through
continuous reinvestment in our valuable customers, our passionate people our loving society and
spirituality being
3.18: MISSION :
Unlimited and continuous creativity Customer satisfaction achieved through customer service excellence program by putting
customers priority first and build their trust
Continuous improvement in all aspect of enterprise
Applying up to date information technology as well as production technology in allaspects of enterprise
No compromise on product quality as well as customer service quality
World class products with competitive price achieved through constant companywideefficiency
Leadership in facing global competition through trained human resource
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3.19: ORGANIZATION STRUCTURE OF TIP TOP FURNITURE PVT LTD
MD
Personal manager Marketing manger Accounts manger Production manger Purchase manger
Territory managerOffice asst /clerks Executives Supervisors Store keepers
Telephoneoperators
Sales executive Clerks Office staff Clerks
SecurityCarpenters/polishe
rs/laborsUnskilled labors
Board of directors
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3.20: MAJOR COMPETITOR
Mr. K T Saidalavi started Tip top Furniture Private Limited Company as tiny furniture
trading unit in 1979 with an initial capital of around 20 lakhs. It was gradually expanded as small
unit through the year 1982 to 1990 and later in the year 1994, it was incorporated under company
act. 1996 the present capital of the company is around 1.8 crores.
Tip Top Furniture Private Limited enjoys a market share of forty percent in the market
area. The major competitors are Royal global furniture, Damro Furniture, Classy Furniture and
Masco Furniture, the graphically representation is given below.
Figure no: 1
Major Competitors
TIP TIP
CLASSY
DAMRO
OTHER
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Chapter- 4
DIFFERENT DEPARTMENTS/DIVISIONS OF TIP
TOP FURNITURE PVT LTD.
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FINANCE DEPARTMENT
4.1: SYSTEM
Accounting department is fully computerized and this department uses tally software
package.
4.2: STRUCTURE OF FINANCIAL DEPARTMENT
4.3: ACCOUNTS AND ADMINISTRATION
Finance is that administrative area or set of administrative functions in an organization,
which is related to the arrangement or cash and credit so that the organization may have the
means to carry out its objectives as satisfactory as possible.
Administrative cum accounts department is situated in the fourth floor of the showroom.
The managing director is the top executive of the administrative system.
ACCOUNTS MANGER
EXECUTIVES
CLERKS
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In the accounts department there are three officers. The company follows double entry
book keeping system and the accounting section is fully computerized.
The company keeps the following books of accounts, journal, ledger and cash book. In
fully computerized accounting system there is no need of manual posting only transaction are
entered and posting, balancing etc. are done by the computer itself.
4.4: CAPITAL STRUCTURE
Capital structure of the firm refers to the making up of its capitalization and it includes all
long term and short term capital and borrowed funds (debts). The capital structure of the company
is very important because of the profitability and financial strength of the firm depends upon the
capital structure.
The main components of the Tiptop furnitures capital are as follows,
1. Share capital: equity shares of RS 10 each2. Loan from State Bank of India (secured)3. Vehicle loan from ICICI Bank
The major portion of the capital provided by the equity shares. The company owns four
vehicles. The equity share holders of the company loan to meet the specific requirements of the
firm.
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KEY TRENDS
YEAR PURCHASE SALES
GROSS
PROFITNET
PROFIT
GROSS
PROFIT
RATIO
2003-2004 19064363.36 21954877.25 4333258.95 239125.74 19.74
2004-2005 20908596.38 27128627.56 6495739.17 1157955.03 23.94
2005-2006 23145271.34 27652464.56 5304635.41 265619.54 19.18
2006-2007 36654347.64 40515579.73 6577825.75 1125936.54 16.24
2007-2008 41485332.30 49437690.39 10583360.30 1455420.27 21.41
2008-2009 54562385.08 66638665.44 9682413.20 1576639.81 14.53
2009-2010 73479891.89 79485709.09 9021006.59 1110744.26 11.53
2010-2011 94908571.00 109590741.00 14016752.00 896743.00 12.79
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HUMAN RESOURCE MANAGEMENT
4.5 STRUCTURE OF HUMAN RESOURCE DEPARTMENT
SECURITY
With the increase in the size of business, manpower has become the most vital factor in
business. Personal management is a specialized branch of management that deals with people.
Human beings are principle asset of the business or industry. People are main subject matter of
personnel management and its business to educate employee, managers, line and staff and
supervisors to place high value of the dignity and individual human being.
Personnel management is the part of total management of Tip-Top Furniture Pvt Ltd,
which specifically deals with human resource in respect of
a) Recruitmentb) Training and developmentc) Remuneration and wages
PERSONAL MANAGER
OFFICE ASSISTANT
TELEPHONE OPERATOR
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Tip-Top Furniture considers their worker as an asset of the organization. The workers are
grouped in to two.
4.6: FACTORY WORKERS
In the factory, workers are widely spread in the various sections. In each section there is
one foremen and supervisors all workers are supervised under the control of factory manager. The
labor classified into four groups they are:
WORKERS
OFFICE WORKERSFACTORY
WORKERS
GROUPING
OF
LABOUR
FOREMAN
&
SUPERVISORS SKILLED LABOUR
SEMI SKILLED
LABOUR UNSKILLED LABOUR
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4.7: RECRUITMENT AND SELECTION
Recruitment is mainly in two ways:
Internal
The internal recruitment means that fill the vacancies from within the organization by
promotion and transfer etc.
External Recruitment
External recruitment includes advertisement, personal contacts, recommendation and labor
contact. The qualified, experienced personal are made available through advertisement. This
method usually applied for selecting the office staff, supervisor staff etc.
In Tip-Top external recruitment mainly does newspaper advertisement or personal
contacts are used for this purpose. The applicants are given practical tests to assess their skill and
if satisfied they will be kept under probation for one year. After the probation period they are
permanently appointed in the factory.
RECRUITMENT
INTERNAL EXTERNAL
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4.8: TRAINING AND DEVELOPMENT
The selected candidates are to be given training in the various jobs of the different
department and sections. At the end of training period the trainees must be capable of taking
works as per conditions.
4.9: WAGES AND SALARY ADMINISTRATION
The workers are remunerated on the basis of hourly rate, Rs.20-50 per hour according to
their work, speed and accuracy. The skilled workers can get Rs.400-500 per day. The semi-skilled
labor can get Rs.300-600 per day; the average labor can get Rs.250-500 per day. All payment is
made on monthly basis.
4.10: OFFICE WORKERS
Office workers are classified into three.
1. Accountant Staff2. Clerical Staff3. Store Keeper
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PURCHASING DEPARTMENT
The principle functions of the purchasing departments are:
1. Locating and selecting sources of supply for materials or service required.2. Interviewing suppliers, represent arranging conference.3. Requesting for quotations and conducting negotiation.4. Procuring material and service when required.5. Verifying quality and quantity received.6. Approving invoices and handling rejection and adjustments.7. Maintaining records necessary for proper operation of its function.8. Keeping informed on business trends, assembling and analyzing.9. Pertinent, data on market supply, demand, price trends etc.
4.11: STRUCTURE OF PURCHASE DEPARTMENT
UN SKILLED LABORS
PURCHASE MANGER
STORE KEEPER
CLERKS
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4.12: METHODS OF PURCHASING
Methods of purchasing vary according to the nature of demand in the plant and condition
in the market in which goods are to be bought. There are seven principal methods of purchasing
are as follows.
1. Purchasing by Requirement
Purchasing by requirement means that no purchase is made until need arises and then only
the quantity which is necessary to meet the need. This method applies principally to emergency
requirements or to goods used to infrequently that they should not be carried in stock.
2. Purchase for a specified future period
Purchase for a specified future period is standard purchase for buying goods regularly
used but not in great quantity and on which price variations are negligible.
3. Market Purchasing
Market purchasing is defined as purchase according to the condition of the market to take
advantage of price fluctuations, rather than in strict accord with a prearranged program or for a
specified period.
4. Speculative Purchasing
Speculative purchasing consisting in buying, when the market is low, more than can be
possibly used in manufacturing with the idea of later reselling much of the material at a
considerable price advance to users who may come on the market when the price is high.
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5. Contract Purchasing
All purchasing is by contract, but the term contract purchasing is applied to that special
type of contract, which falls for deferred delivery over a period of time. Though this medium
advantage can be taken at low price of materials, which are in effect at the time of placing the
order while providing for delivery of the material to meet the estimate future requirements.
Contract purchasing often provides the means of assuming a continuous flow of material in to the
plant.
6. Group Purchasing of Small Item
There are number of small items, so prevail in value of the goods purchased. Arrangements
may be made to send orders for all such item to some dealer who agrees to handle the bill them a
fixed percentage profit above dealers cost.His cost records being open to inspect by the buyer on
demand.
7. Scheduled Purchasing
Essentially this plan of giving suppliers approximate estimate of purchase requirement over
a period of time. This enabling them to anticipate the receipt of orders and be prepared to fulfill
them when they arrive.
4.13: PURCHASE PROCEDURE
Marketing department prepares their target about the products to be marketed. The
production department prepares their target keeping in view of the marketing target. This should
be sent to the material department and they get information about the requirement of these two
departments. Thus the material department gets an idea about the materials to be purchased.
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Chart showing Purchase Procedure
Ascertaining requirement of material
Exploring the source of supply
Calling quotations
Preparing comparative stamen of quotations
Sending purchase order
Follow up the purchase order
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PRODUCTION DEPARTMENT
4.14: PRODUCTION
The production function of a business is concerned with the creation of a product or
services required to satisfy customer needs, wants and desires. In any business that supplies a
product or service, it is believed that activities of production system must be closely related to the
customer demand in the continuous flow of orders.
Production function will be considered most effective when it serves a dual purpose.
1. It must operate to satisfy, customer demand particularly relating to quality, quantity, priceand above timing of delivery as scheduled in the orders.
Production Manager
Supervisors
Office staff
Carpenters/polishers/labors
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2. It must permit production activities to operate in an economical and efficient mannerbecause cost of production is a vital factor in facing the market competition and is
ensuring normal profit or return on the investment.
4.16: PRODUCTION PROCESS
Tip-Top Furniture is able to keep up their unique position in the market because of its
particular style of production. High quality furniture with excellent design is made in the
company. The production function is carried out to the following process.
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Chart Showing Production Process
SIZING
SEASONING
CARPENTARY
POLISHING
STORE
CARVING
UPHOLSERY
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Sizing
In the first stage the round logs are cut in they required size by sawing. Then the pieces are
planned according to their necessity and design of the product. Various types of machines named
Banso, Renso for sizing process.
Seasoning
It is an important process of keeping the quality of the product the sized timbers are
seasoned in this stage. It is the process of removing the moisture from the timber by parsing heat
and cold at particular condition. By seasoning timber will become dry and hard and its quality
will be improved. There are two type of seasoning.
1. Chemical Seasoning2. Natural Seasoning
1. Chemical Seasoning
Chemical seasoning is done in low quality timber. Certain Chemical used for this purpose.
Usually chemical seasoning is donning in rubber wood, due to this process it becomes hard and
dry. Now this kind of timber is very popular in office furniture and house hold equipments.
The Tip Top Furniture Pvt Ltd uses high quality wood (Rose wood, Teak wood,
Mahogany etc.) for making furniture. There is no need of chemical seasoning for then, as they do
not use low quality wood.
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2. Natural Seasoning
In this case timbers are seasoned purely by way of natural storing in river or in open area
for long days. It is subject to rain and sunshine for some days. In this way all moisture is removed
from the wood and become dry.
Natural seasoning is time consuming process and same time causes delay in executing
orders. Hence to speed up seasoning plan is installed. Wood is kept in standard size and thickness
in the special plant and certain amount of steam and cold is passed through it. This may be done
for a period of 6 to 7 days. After completing the seasoning process. The wood is passed to the
carpentry section.
Carpentry
This is the main stage of production process. Carpentry section is biggest section in the
factory where more workers is required, compared to other sections. In this stage timber a log
checked and if any defective part detected that part is not used for further operation. Skilled labors
are given full freedom in their work. One worker is assigned the complete work of one product.
So there will not be any confusion and if any repair is needed he can easily do it.
Assembling of furniture is carried out in this section. If any carving work is necessary it
will be sent to carving section before assembling or after assembling, as the case may be.
Carving
After carpentry the semi-finished product are sent it the caving section. If necessary all the
carving on one product is done by the same worker. Highly skilled labors are employed for this
work. In Tip-Top carving is done only by handwork. There is no machinery used for this purpose
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because the quality of carving by machinery will not reach carving by machinery will not reach
carving by hand work.
Polishing
After carving the furniture is passed to the polishing section. In polishing the first process
is surface finishing by applying sand paper.
Secondly filling the surface by using transparent wood filter. It is used to fill up the holes
and small damages. After drying the filler sand paper work is three or more times. Thirdly the
surface is coated with sealer. Each time the sand paper work is repeated then putty work is done
in each furniture by using matching color of wood. Then the designing works are done on
furniture and then using seal mix stains it.
After these processes polishing is Carrie does it. There are two methods of polishing
namely hand polishing and spray polishing. The different type polishing is:
1. Natural polish2. Lacquer polish and semi lacquer polish3. Meal mine and glucose melamine polishes4. Matt polish5. Ordinary wood polish.
In the some are glazy and some are not glazy. The polish works takes more than 10 days.
After polishing is completed the furniture is moved the upholstery section, is found necessary.
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Upholstery
Upholstery is not used all type of furniture. It is used only in sofa, Divan coat, dining
chair, settee chair etc. this section uses various type of cloth, velvet (US, Indian, and other
countries) cotton etc. also high quality politeness form is used in inside the cover. After the
upholstery work the furniture are stored in the warehouse a transferred to the shop as and when
required.
4.17: TRAETMENT OF WASTE
In furniture industry the production takes various stages. Certain amount of loss occur
various stages of production. There is always some waste and effective woods (sap-wood). The
wastes are sold as fire wood and saw dust.
4.18: PRODUCT MANUFACTURED AT GLANCE
PRODUCT WOOD
Wooden cot - Teak, Rose and Red
Dining table with chair - Teak, Mahogany and Red
Sofa set and Divan cot - Teak, Rose and Red
Dressing table - Teak, Rose and Red
Cupboard - Teak, Red and plywood
Door and Door frames - Teak and Rose
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4.19: COST OF PRODUCTION
Cost of production is apportioned into various elements are as follows.
Items Percentage
Timber 30
Polish 30
Wages 20
Upholstery 20
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Figure no: 2
Cost of Production
Timber
Polish
Wages
Upholstery
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4.20: MATERIAL DEPARTMENT
Material management is concerned with planning, directing and controlling the kind
amount, location, movement, and timing of the various flows of commodities used in and
produced by a business enterprise. The term material management is of very wide importance
encompassing within its scope all the activities relating to
1. Purchasing2. Stock keeping3. Inventory control
1. Purchasing
It relates to the procurement or purchase of raw materials, intermediate product and suppliers
in the case of the manufacturing concern and finished products in the case of the trading business.
Purchase of capital equipments and tools for the business is also included in the function the
overall objective being to organize and regenerate purchasing activity in such a manner that
materials of the right time and at the right price are bight from the right source.
Material Trading
It refers to the art and science involving the moving packaging and strong of substance in
any form. It includes all those activities that are concerned with the preparation, placing and
positioning of materials to facilitate their movement and storage. Their activities are
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1. Receipt of material and products and their storage
2. Issue of materials and product from the store house
3. Internal transport of material and products including interposes transfer
4. Packaging and dispatching of products.
Classes of Material
In the material flow system, we include the following
1. Raw Materials
These are the materials that are used in the product, which is in an unprocessed condition,
cotton, jute, leather hides iron and steel.
2. Purchased Parts
These are item used in the assembly of the product e.g.: nuts, bolts, screws etc,
3. In Process Materials
They are called work-in-progress inventories. These are semi manufactured goods
demanding further process.
4. Suppliers
These are consumable goods used in the process of manufacturing e.g. stationery, pencils
oils etc.
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5. Equipment Items
All necessary equipments like fixtures and fitting etc. are including in it.
4.21: MATERIAL HANDLING EQUIPMENT
There are various groups of material handling equipment
1. Conveyors
a. Gravity operatedb. Hand operated monorail pulley blocks and light cranesc. Power operated
2. Elevators-bet, chain, bucket
3. Cranes
a. Mobile cranesb. Overhead traveling cranes
4. Transporting and storing equipment
a.
Still age pallet hand trucks, platform trucks and dollies
5. Earth moving equipment
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Advantages of Material Management
The important advantages of material management are follows.
1. An ideal system of material management minimize the movement of material andreduction of handling cost
2. It eliminates unproductive handling of material like back tracking re handling etc.3. It eliminates the factory hazards and thus increases the safety of the operation.4. Every inch of factory places are properly utilized.5. It helps and maintaining effective production planning and control.
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SALES AND MARKETING DEPARTMENT
4.22: STRUCTURE
Sale management is the term applied to the process of distributing goods from the
producer to the ultimate user. It consists of advertising, selling, transporting and handling
financing or risk taking. The objective of sales management is not merely to sell goods to
distributors but to get them consumed or get them into use. The responsibility of the sales
manager is to ensure that system of distribution works very efficient and effectively, allowing no
stock lying idle at any stage. These objectives can be achieved only with proper planning and
organization of the sales division.
In TIP TOP Furniture Pvt Ltd, sales division is located in the main building of the right in
the heart of Kottakkal. Each floor of eight storied building is filled with the rich expiation of its
various furniture items.
MARKETINGMANAGER
TERRITORY MANAGER
SALES EXECUTIVES
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The sales department looks into the various activities in connection with both domestic
and export sales, delivery, after sales service etc. this selection is under the direct control and
supervision of the sales in charge.
TIP TOP Furniture follows the indoor selling. They sell goods to the customers who visit
the show room to purchase furniture. Seven sales executives are appointed in the showroom.
When the party visits the showroom the salesman take him to all the floors and show the price,
quality and deferent design of furniture. TIP TOP alpine regalia furniture range is suitable for
different customers.
4.23: ADVERTISING
Advertising and sales promotions are two most important function of the sales department.
Advertising is the most pivots of modern trade and commerce. It is often defined as printed
salesmanship and is daily receiving fresh recognition as the greatest insurer of the quickest,
cheapest and most efficient selling of any commodity or services. Advertising is the art of making
known to the present and prospective customers the existence of services and commodities meant
for sale. It is any paid from of non-persons presentation and promotion of ideas, goods or services
by an identified sponsor.
4.24: MEDIA OF ADVERTISING
The sales message of the advertiser can be conveyed to the public in variety of ways. TIP
TOP Furniture Pvt Ltd have chosen some media for the purpose, advertisement newspapers,
magazines, periodical and journals radio advertising(i.e., painted and flex board in public places),
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direct mail advertising (i.e., the issue of date cards and calendars, booklets, catalogues etc.)
delivery van (sides of the van contains bold type of the name of the manufacture and articles).
TIP TOP has a Web site. This media focuses the world level customers. The website is
www.tiptopfurnishing.com. This year had already spent Rs. 15 lacks for advertisement.
4.25: CUSTOMERS OF TIP-TOP FURNITURE
Most of the products of TIP TOP are highly costly priced. There for the customers of TIP
TOP are from the middle class and upper class people. They are mainly bothered about the beauty
and quality of the product rather than the price. If any customer is not satisfied by the furniture
designs available in the showroom, then specification them are collected and furniture is made
and supplied to them. Once a customer is always be a customer. It is the peculiarity of TIP TOP.
The Kottakkal AryavaidyaSala (AVS) is famous for Ayurveda in India and abroad. A number of
patients and other European countries peoples also came to AVS for Ayurveda treatment. The
foreigners as well as native patients visit TIP TOP. The visitors held to popularize the product
inside and outside India. They also purchase some furniture. There are some exclusive pieces of
furniture. Kept exclusively for VIP. When they visit nearby places TIP TOP will transport these
pieces in to the places where VIP visit. This is simple marketing technique of Tip-Top.
4.26: SELECTION OF VENDER (SUPPLIERS)
After the receipt of quotation from the suppliers the purchase officer will compare
different factors connected with the materials and suppliers. The purchase department wants to
make a careful study on different aspects of the quotations. For the purpose of analysis of the
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quotations a comparative statement of quotation is prepared on various quotations received. While
selecting the suppliers to whom order is to be given for purchase of materials, the purchase
department carefully studies the
Manufacturing / supplying capacity Reliability of the supplier Quality of the supplier Financial condition of the supplier Management of supplying firm
Price quoted
Quantity for which price quoted is applicable Terms of payments Terms of delivery
Thus, the supplier should be dependable and capable of supplying materials of uniform
quality at right time and at reasonable price. The materials department gives more performance to
the supplier who offers who offers high quality materials at lowest price.
After selecting some suppliers whose offers are reasonable the purchase section will call
the concerned parties for negotiation if necessary. It includes deliberation of quality, quantity,
price, time and place of delivery, mode of transportation, packing and forwarding.
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4.27: MARKETING OF FURNITURE
TIP TOP Furniture Pvt Ltd. Markets its products both in the domestic market and
international market. Major portion of the products are sold in the domestic market.
4.28: HOME MARKET
The home market comprises of the area within the state and outside the state. Their
customers mostly belong to the district of Malappuram, Calicut, Trissur, Kannur and Kasargode
etc. The product are also demanded from the southern district of the state and other neighboring
states like Tamilnadu, Andrapradesh, Karnataka etc. they also cater to orders from north Indian
costumers. The company gives at most care and attention to maintain the quality and perfection of
its product, from the row material to the ultimate stage. Hence, the furniture made by the TIP
TOP furniture Private Limited is comparatively costlier than that of its peers. Still company finds
it hard to meet its demand in time.
In the domestic market costumers are mainly from metropolitans cities like Bangalore,
Mumbai. They have customers from Coimbatore; Cochin etc. 60% of the production is brought
by the domestic market itself. Products sold thought their branches and dealers.
MARKET
DOMESTIC
MARKET
INTERNATIONAL
MARKET
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4.29: BRANCHES
Tip Top has branches and franchisees across Kerala
Branches at Trivandrum, Eranamkulam, Kunnamkulam, Perithalmamma, Calicut, Kannur,
kunnamkulam and karunagapally
Franchise at Kollam, Cherthala
4.30: INTERNATIONAL MARKET
Now the company concentrate in foreign market as it started export in the year 1995.
Mainly the export is done to Middle East countries like Bahrain, UAE, and Saudi Arabia. Their
exquisite and explicit models excellent design and exemplary furnishing are the key factors for
capturing the international market. This year Tip-Top was starts 100% EOU (export oriented
unit). It is a separate unit. So they more concentrate the export. There is good demand for Tip-Top
product from UAE, Saudi Arabia and Middle East countries.
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Chapter-5
PORTERS FIVE FORCES MODEL,
MC KINSEYS 7s MODEL AND SWOT ANALYSIS.
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5.1: PORTERS FIVE FORCE ANALYSIS OF TIPTOP :
Michael Porter identified five competitive forces that shape every single industry and
market. These forces helped us to analyze everything from the intensity of competition to the
profitability and attractiveness of an industry .The following image shows the relationship
between the different competitive forces influencing and determining the competitiveness and
profitability of an industry.
1. Threat of New Entrants
According to TIP TOP Furniture the threats of new entrants is considerably very low. For
new furniture industry to enter into a place like Kottakkal is very difficult as majority of the
market share is divided among tip top, Classy and Damro Furnitures in the same location. Not
only because of the competitors new entrants would be less, its also because of the huge amount
of cost incurred to set up a furniture industry.
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2. Bargaining Power of Suppliers
In TIP TOP Furniture there are suppliers for
Timber Polish materials Miscellaneous
The suppliers may ask for higher price for the products they are supplying or may provide with
low quality items with the same price. The purchasing department must be very careful regarding
purchasing of everything and to ensure that all items conform to their quality standards
3. Threat of Substitute
Furniture made of steel; plastic, fiber etc. are threat to companies like Tip Top furniture
which make their furniture out of wood. Such furnitures are less costly compared to those made
of wood and are also available in a number of designs. They are long lasting and easily portable
from one place to another. So, there is a chance that customers may get attracted towards such
furnitures. So the threats of substitutes are more
4. Bargaining Power of CustomerThe bargaining power of customers in furniture industry is high, but in Tip Top furniture it
is low since they give life time guarantee for their products. But, at times when the customers who
come are related to the managing partners or relatives of other officials in the company, they will
be forced to give some reductions in the product.
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5.2: MCKINSEYS 7s MODEL
After several years of research, Peters and Waterman concluded that there are seven
interdependent hunks of complexity to actively consider, not just two. The 7Ss are:
Strategy: The key strategic trusts that build sustainable competitive advantage and createvalue.
Structure: The way the organization is structured including the reporting lines. Systems: The business processes and procedures. Staff: the number and allocation of employees between the various constituent parts of the
organization
Skills: The capabilities and competencies of the employees within the constituent parts ofthe organization.
Style: The management style of leadership adopted. Shared values: The core values that constitute the corporate culture.
The first three are known as the hard Ss and the latter four as the soft Ss.
When applying the McKinsey 7S framework, it is helpful to compare where an
organization is at with where it desires to get to. Action plans for each of the 7Ss can then be
developed to bridge the gap. All 7S is needed to considered and crucially aligned.
1. STRATEGIES OF TIP TOP FURNITUREProduction level strategies to improve customer satisfaction
Improving communication within the production department. Reporting adverse events. Increasing customer involvement. Developing protocols and guidelines
http://www.competetowin.co.uk/know-how/strategic-planning/strategy/http://www.competetowin.co.uk/know-how/finance/creating-and-destroying-value/http://www.competetowin.co.uk/know-how/finance/creating-and-destroying-value/http://www.competetowin.co.uk/know-how/finance/creating-and-destroying-value/http://www.competetowin.co.uk/know-how/finance/creating-and-destroying-value/http://www.competetowin.co.uk/know-how/strategic-planning/strategy/7/22/2019 A Study on Overall Performance of Tip Top Furniture Pvt Ltd
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Organizational level strategies to improve customer satisfaction
Managing human resources. Public disclosure. Giving guidelines to customers on how to maintain the quality.
Other strategies
Providing a number of different designs. Providing a culture of safety. Providing Training and Continuous Education. Improving Reporting Systems. Conducting research programs.
2. STRUCTURE OF TIP TOP FURNITURE The managing director and board of directors are the head of company. The head of the each department (finance, production, purchase, marketing, personal)
comes under the managing director.
The human resource department followed by the human resource manager, officeassistant, telephone operators and securities.
Marketing department followed by the marketing manager, territory manager and salesexecutives.
Accounting department followed by the accounts manager, executives and clerks. Production department followed by the production manager, super visor, carpenters,
polishers and labors.
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Purchase department followed by the purchase manager, store keeper, clerks and unskilled labors.
3. SYSTEMS
Quality assurance policy Caring for someone with communication disabilities Complaints policy and relation procedures Corporate records management policy Disability equality scheme Dress code and uniform policy Equality and diversity Fire safety Policy Flexibly working and work-life balance Freedom of information Gender equality scheme Health and safety policy Interpretation and translation services Policy Mandatory training policy Personal development policy Providing good compensation Waste management Policy Records management strategy Employment welfare measures policy
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4. STAFFNumber of employee in different departments
Human resource manager 01
Office assistances 15
Clerks 05
Telephone operators 04
Securities 20
Marketing manager 01
Territory manager 25
Sales executives 30
Accounts manager 01
Executives 20
Clerks 07
Production manager 01
Super visors 20
Office staffs 15
Carpenters 35
Polishers 25
Labors 45
Purchase manager 01
Store keepers 09
Clerks 05
Un skilled labors 15
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Total employees 300
5. SKILLSThe skills required in the constituent parts are
Technical skills
Involve process or technique knowledge and proficiency in a certain specialized field,
such as engineering, computers, accounting, or manufacturing. These skills are more important at
lower levels of management since these managers are dealing with employees doing the
organizations work.
The technical skill involves the managers understanding of the nature of job that people
under him have to perform. It refers to a persons knowledge and proficiency in any type of
process or technique. In a production department, this would mean an understanding of the
technicalities of the process of production. Whereas this type of skill and competence seems to be
more important at the lower levels of management, its relative importance as a part of the
managerial role diminishes as the manager moves to higher positions. In higher functional
positions, such as the position of a marketing manager or production manager, the conceptual
component, related to these functional areas becomes more important and the technical
component becomes less important and the technical component becomes less important.
Human Skills
Involve the ability to interact effectively with people. Managers interact and cooperate
with employees. Because managers deal directly with people, this skill is crucial. Managers with
good human skills are able to get best out of their people. They know how to communicate,
motivate, lead, and inspire enthusiasm and trust. These skills are equally important at all levels of
management.
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Human skills are also the ability to interact effectively with people at all levels. This skill
develops in the manager sufficient ability.
a) To recognize the feelings and sentiments of others.
b) To judge the possible reactions to, and outcomes of various courses of action he may
undertake and
c) To examine his own concepts and values this may enable him to develop more useful
attitudes about himself.
Conceptual Skills
Involve the formulation of ideas, conceptualization about abstract and complex situations.
Managers understand abstract relationships, develop ideas and solve problems creatively. Using
these skills, managers must be able to see the organization as a whole. They have to understand
the relationships among various subunits, and visualize how organization fits into its border
environment. These skills are most important at the top management levels.
Conceptual skills refer to the ability of a manager to take a broad and farsighted view of
the organization and its future, his ability to think in abstract, his ability to analyze the forces
working in a situation, his creative and innovative ability and his ability to assess the environment
and the changes taking place in it. In short, it is his ability to conceptualize the environment, the
organization, and his own job, so that he can set appropriate goals for his organization, for himself
and for his team. This skill seems to increase in importance as a manager move up to higher
positions of responsibility in the organization. Thus, technical skill deals with things, human skills
concerns people, and conceptual-skill has to do with ideas.
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6. STYLEParticipative Management Style
Also sometime known as consultative management style, this decision making style in
management revolves around getting lots of feedback from your staff before coming to a
conclusion and making a decision. This means that the process can take a bit longer as there are
more voices to be heard, but getting a consensus on major decisions can lead to buy in from those
who might otherwise have been opposed to the implementation of such changes. The downside to
this style of management and leadership is that employees may feel that you dont value their
opinion or are too stubborn if after all of the feedback is received you go off and make the
decision in your own without incorporating any of their feedback.
If you are going to make company or departmental policy changes, this type of style can make the
team feel involved and more apt to go with the flow of whatever changes are coming down. This
style also works well for brainstorming sessions as you work on new product ideas or marketing
promotions.
7. SHARED VALUESStewardship
The management of Tip Top Furniture develops and manages their human, financial, material
and other resources to benefit and support those the management of Tip Top Furniture serves.
Accountability
The management of Tip Top Furniture is responsible for our actions and focus on how each
person can contribute to the success of the organization.
Collaboration
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The management of Tip Top Furniture works as a team and partner with other organizations
to benefit our customers, their families and the society.
Respect
The management of Tip Top Furniture treats all people with compassion, concern, fairness
and equity.
Excellence
The management of Tip Top Furniture strives each day to constantly improve the quality of
the product and services provided to the customer.
Dignity
The management of Tip Top Furniture acknowledges the uniqueness of each person in the
eyes of God by honoring their inherent value and worth.
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5.3: SWOT ANALYSIS OF TIP TOP FURNITURE PVT LTD.
The basic objective of SWOT analysis is to provide a frame work to reflect on the firm
ability to overcome barriers and to avail of opportunities emerging in the changing environment,the diagnosis of strength and weakness can be fruitfully on if the environment factors and market
conditions are considered always with the internal capabilities. SWOT analysis is important tool
to find strength, weakness, opportunities and threats. Strength, weakness, opportunities and
threats are the elements or key factors that influence the survival and development of any
organization.
Strengths:
Largest distribution within India. Superior product quality and wide range of products manufactured out of quality wood. Strong brand equity. Superior understanding of the market. Healthy financial structure. Timely delivery and customer satisfaction. Well established manufacturing base. Dealing in imported furniture items. Highly skilled professionals and qualified workers. Leadership attitude, energy and aggression in the market place.
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Weaknesses:
Priced charged are high and not affordable to all classes of people. Since furniture manufactured is made out of quality wood. It is heavy for easy transportation. Lack of awareness among many people. Lack of staff is hindering the smooth flow of the organization. Cost of production is high. Industry has slow absorption of innovation change. Lack of quality awareness.
Opportunities:
Big potential market in Design sector & emerging new market segment in Services. Availability of well qualified manpower. Research & Development capability. More efficient production method. Availability of new developed technology and equipment. Need modernization of infrastructure. Expansion of profit.
Threats:
Compensation from few new entrants in to industry. Chances of prices of wood going up which will further increase the cost of production. Lack in the shortage of supply and availability of materials in time.
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Unfavorable government policies affect the entire furniture industry. Low differentiation products. High price war.
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Chapter -6
A SURVEY ON THE CUSTOMER SATISFACTION
LEVEL AT TIP TOP FURNITURE PVT LTD
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Table no: 1.
Occupation level of the respondents.
Occupationlevel Frequency Percent
Business 35 35.0
Profession 20 20.0
GOVT 20 20.0
Others 25 25.0
Total 100 100.0
Figure no: 3
Occupation level of respondents
INTERPRETATION
From the analysis of the above table and figure it becomes clear that majority of the customer of Tip Top
Furniture is their own business (35%) followed by that the above tables shows professions (25%)
Are to by Tip Top furniture. 20% are government and 20% are others.
0
10
20
30
40
Business Profession GOVT OTHERS
Perecentage
Occupation level
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Table no: 2.
Qualification level of the respondents.
Qualificationlevel Frequency Percent
UG 50 50.0
Graduate 20 20.0
PG 30 30.0
Total 100 100.0
Figure no: 4
Qualification level of the respondents.
INTREPRETAION
From the analysis above table and figure most of the respondents are under graduate
(50%), graduate (30%), post graduate (20%), because most of the under graduates are employed,
rest of the categories are still continuing their study.
0
10
20
30
40
50
60
UG Graduate PG
Percentage
Qualifiaction
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Table no: 3
Marital status of the respondents.
Maritalstatus Frequency Percent
Single 15 15.0
Married 85 85.0
Total 100 100.0
Figure no: 5
Marital status of the respondents.
INTERPRETATION
From the analysis above table and figure shows that most of the respondents are married,
85% are married and 15% are single. Married couples need more furniture compared to bachelors.
0
10
20
30
40
50
60
70
80
90
Single Married
Percentage
Maritial status
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Table no: 4.
Income level of the respondents.
Income level Frequency Percent
Below 15000 10 10.0
15000-20000 25 25.0
20000-30000 48 48.0
above 30000 17 17.0
Total 100 100.0
Figure no: 6
Income level of the respondents
.
INTERPRETATION
The above table shows that most of the respondents income levels are 20000 to 30000, 10% are
below 15000 income level, 25% are up to 20000, 48% are up to 30000 and 17% are above 30000.
Tip Top furniture mainly focuses on people with high level of income. A person having an
income of above 20000 is 68%.
0
10
20
30
40
50
60
Below 15000 15000-20000 20000-30000 above 30000
P
erecentage
Income level
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Table no: 5
Classification of awareness.
Classification ofawareness Frequency Percent
Others 20 20.0
sales person 14 14.0
Friend 25 25.0
Advertising 41 41.0
Total 100 100.0
Figure no: 7
Classification of awareness
INTERPRETATION
The above table showings most of the respondents are awareness through friends,
41% are advertisement, 25% are friends, 14% are sales persons and having 20% are other sources.
Most of the customers know about the product through advertisement.
0
5
10
15
20
25
30
35
40
45
Advertising sales person friend others
Percentage
Awareness
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Table no: 6
Classification of price level
Frequency Percent
High price 45 45.0
medium price 40 40.0
low price 15 15.0
Total 100 100.0
Figure no: 8
Classification of price level.
INTERPRETATION
The table showings that most of the respondents are likely to buy high priced furniture,
40% buy medium priced, and 15% are likely to invest buy low price furniture. This is because Tip
Top furniture provides products from high quality wood and other materials which are imported.
0
5
1015
20
25
30
35
40
45
50
High price low price medium price
Percentage
Price level
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Table no: 7
Opinion about variety.
Frequency
Weighted
mean
Poor 11 11.0
Average 28 28.0
Good 34 34.0
Ex