ContentsPage no: Introduction: 2 History of the company Introduction to Company Philosophy of the company Organizational Design: 6 Top Management Departmentalization Organisational Chart Production: 10 Product Portfolio Plant operation Quality Control Marketing: 20 4 P’s of Marketing Target customers Place: Distribution Network Promotion and advertising campaign: Competitors Exports Finance: 26 Sources of finance Personnel: 28 Strength of personnel department: Recruitment policy Training and Developments Swot Analysis: 31 Awards and Achievements: 33 Bibliography 35 Sources of Information: 37 1 Introduction 2 History of the company With blessings from Mahatma Gandhi, Sir Narandas Desai set foot on Indian soil in the year1982. After gaining experience in tea business as an owner of tea garden in South Africa which then was mired in racial misgivings that made the continuity of his business a futile endeavor there. He started WaghBakri Tea Company in the year 1982, which then was represented by small company retail shop at Ahmadabad, Gujarat. Since then the growth of the endeavor has been phenomenal and presently WaghBakri Tea Company has an employee base of professional managers and skilled personals with ever increasing space for more, to tend to the expanding group enterprise in India and abroad. WaghBakri tea house markets various tea brands in loose leaf cartons and tea bags for tea lovers all over the globe – the finest certified black teas from Darjeeling tea estates, Assam and Nilgiri. The company sells organic black and green tea for the health conscious. 3 Introduction to Company WaghBakri Company is a family owned tea business amongst conglomerates and mega corps that tower the International business scenario all over the world. WaghBakri house is one of the largest tea producers and sellers in India today. The group is making leading strides in tea exports and ships in bulk and retail consumer packing to countries all over the world. Its outstanding performance is credited to excellence in management and a spirit that results into a quantum jump in annual growth in face of stifling competition and cut throat scenario that dominates the tea industry today. 4 Philosophy of the company Sir Narandas Desai, our founder, believed that his Company was not just about tea, but more a confluence of his values and beliefs. Wagh- Of the strong and the meek Bakri- Of co-existence and harmony. To make Tea a common denominator that overrides differences of caste, creed, culture or color. The same beliefs are reflected in out Corporate Philosophy even today. • • • • Build long lasting relationships through trust and fair play towards all stakeholders. Is result oriented. Contribute positively. Be progressive and lead from the front. Change with the times. Be socially responsible. Return to the society a share of the gains from commercial enterprise. 5 Organizational Design 6 When two or more persons work together towards a common goal, authority and responsibility are allocated among them so that their efforts may become effective. This is the task of organizing. It is known as designing of organizational structure. Top Management Top management consists of those executives who have the authority to take the important policy decision. Top management is referred to as top level or highest level or director level. It is made up of the board of directors, managing directors and the other key officers. Top management is found invariably in all types of business organization. It is made up of the owner himself in the individual proprietorship, active partner in the partnership, firm and director and chief executive in a joint stock company. The managing committee is treated as top-management in co-operative society. At the top level management, there is more of management than administration. The degree of the success of the business unit mainly depends on the degree of efficiency of its top level management. The WaghBakri group is led by Mr. Piyush O. Desai, a highly regarded tea expert and tea taster, with rich experience in the tea business. He plays an active role in the tea industry by being an involved member and leader of various tea associations. He was the Chairman of Federation of Tea Traders Association (FAITTA) of India during the years 1998-2002. Mr. Desai is also strongly committed to philanthropic cause and regularly contributes to the society. Supporting him are Mr. Pankaj R. Desai, Managing Director - Finance and Mr. Rasesh R. Desai, Managing Director - Marketing. Mr. Pankaj R. Desai has won WaghBakri a respectable, profitable and committed standing in the financial community. An able tea taster himself, he has over 30 years experience in the tea industry. Mr. Rasesh R. Desai has created a formidable Marketing network that is enviable even among multinationals. Our systems have been a source of emulation for many companies. It also attracts attention as a case study in premier business schools of India. Mr. Parag Desai and Mr. Paras Desai, management graduates from prestigious business schools in United States, are hands-on contributors among the fourth generation of management. Mr. Harish Parekh, Ex-Chairman of J. Thomas Company and a veteran tea professional, is on the Board of Directors. Mr. M.P. Shah, Management Consultant from Mumbai is also part of management team. 7 Departmentalization Meaning: Departmentalization is the process of grouping activities into unit for purposes of administration. With the help of departmentalization, an organization can take the advantage of specialization. Various activities can be grouped into departments on following several basis; • • • • • • • Functions Customers Products Regions Time Process Combined base Among the above mention basic, function is the most popular basis of departmentalization. The enterprise is divided into the departments on the basis of functions like production, sales, personnel, finance, etc. From a one man Company to over four hundred employees, the WaghBakri Group is today a large family. While a strong sense of family bonding overrides the organization, professionalism is encouraged by including experts in the team from various fields. The work environment extends adequate freedom for creative and positive contributions to the organization and society. In the same light while forging ahead to aggressively tap the packaged food industry, WaghBakri welcomes talented human resource to share and nurture its success. At the same time, we are proud to avoid typical large organizations ills like bureaucracy and high overheads. 8 Organisational Chart Top Management Production Department Finance Department Human Resource Department Marketing Department Research & Development Quality Control 9 Production 10 Introduction Production is regarded as the most important economic activity in the present day world economy. Production is apart of the business activity. Production is the preliminary objectives of business. From the society point of new products is of most important because without production it is impossible to satisfy human needs and desires. Production takes place when something gifted by nature is transported into a useful product. In other words Production is defined as creation of activity. Business of every kind has production function in greater or lesser degree. Several types of company in particular industry have to do with production. Production is creation of goods and services but the manufacturing mining, farming, fishing of manufacture is the most direct concern with production manufacturing changes the form utilizing the goods. Plant location When the promoters of an industry take a conscious decision regarding the site of the industry, it is called location of industry. Location has a very great influence on productivity, efficiency and profitability of the particular industrial unit. The plant base is at Dholka in a impressive spread of 65000 yards with a modern Processing plant and state of art blending and packaging unit that conforms to International norms in processing, blending and packaging of the finest tea for worldwide consumption 11 Product Portfolio What is Tea (Camellia Sinensis)? Tea, as you popularly know it, or Camellia Sinensis -- the plant credited with beginning a million refreshing mornings. Taste is its character. Aroma its identity. Color its personality. And flavors its ultimate differentiation. A tea plant is sensitive to its soil and atmosphere. So much so, that its very flavour and taste could vary within a single estate and from one day to another. Only the discerning sense of a seasoned tea taster can distinguish what are similar looking tea granules to an untrained eye. WaghBakri tea house dates to the 19th century and is one of the oldest hot tea brands in India. Seth Narandas a pioneer in tea growing, and blending entered tea business in India in year eighteen ninety two. Since then the tea company has grown four fold and is one of the largest tea producer and exporter from Indian sub continent. On strength of entrepreneurship he mastered the art of blending finest organic green tea leaves which undergo less oxidation and for the warm full bodied flavor, aroma and special taste black tea. Sir Narandas added wide range of high quality premium teas to buy online of many fine varieties as oolong, red and white tea for the benefit of tea lovers all over world. WaghBakri Organic Tea delivers optimum health benefit. 12 WaghBakri offers a basket full of brands for different need groups and price segments. Good Morning True to its name, Good Morning is a blend of premium Assam CTC tea and traces of orthodox tea which is high on taste and aroma. Its fruity flavour tempts you to reach for another cup. In keeping with the Group’s high quality standards, the blend is not offered in the market if good quality tea is not available due to external factors. No wonder, Good Morning enjoys a strong customer loyalty. Good Morning has been rated by experts as one of the best blends in the world. Available in pack sizes of 250 Gms. And 500 grams. Soon to be introduced in 100 Gms. packs too. 13 Wagh Bakri Our very raisons deter. A legendary brand with extraordinary brand loyalty built and preserved painstakingly for more than 5 years. It’s the best selling brand in Western India. Customers are known to carry along supplies on long and overseas journeys! A blend of select Assam teas, WaghBakri is high on strength and instantly refreshes a person. Consistency of quality through the years is another feather in our cap. It is available in Leaf, Dust and Fanning varieties. WaghBakri (Leaf) with large granules brews a strong and sweet taste (earning it the sobriquet of ‘Kadak Meethi’). WaghBakri (Dust) with very fine granules is the strongest variety and is preferred by institutional segment. It produces largest number of cups per kg of tea. WaghBakri (Fanning) is a blend cut between Leaf and Dust. It is strong in taste and bright in color. Available in pack sizes of 25 grams, 50 grams, 100 grams, 250 grams, 500 gram poly pouches and 1 kg PET jar. Now also available in 500 Gms. Lined cartons. Special International Blend WaghBakri is now available for export markets in special packaging. Available in PET jars of 1/2 lb., 1 lb., 2 lbs. WaghBakri International tea bags are available for those who prefer tea bags. 14 Tea Bags Wagh Bakri Masala Chai Tea Bags An Aromatic Delight with a Difference now gets more out of your regular cup of tea, with the WaghBakri Masala Chai. A fine International blend of the rich Assam tea and the spices, WaghBakri Masala Chai, in every sip, is truly an enticing experience. The hand plucked leaves are blended with exotic spices, which enhance the flavour of the tea, and the tea tastes deliciously different. No wonder then, the refreshing aroma of WaghBakri Masala Chai fills up your senses like never before, cup after cup. Good Morning Tea Bags (Assam) Good Morning Tea Bags make for the 'fast and fashionable' way of drinking fine tea. The Assam blend is available in a pack of 100 tea bags. These tea bags have a double chamber for faster infusion of tea, and come sealed in an envelope to keep the tea fresh and flavourful. Good Morning Tea Bags (Darjeeling) Good Morning Tea Bags make for the 'fast and fashionable' way of drinking fine tea. The Darjeeling blend is available in a pack of 100 tea bags. These tea bags have a double chamber for faster infusion of tea, and come sealed in an envelope to keep the tea fresh and flavourful. 15 Wagh Bakri Tea Quik Tea Bags Tea bags are convenient and hygienic where the normal elaborate preparation is not feasible. Tea Quik tea bags from WaghBakri was one of the first ones to enter the Tea Bag segment. Tea Quik is especially favoured as it creates a cuppa that is very close to the normally brewed tea. Moreover, the advanced imported production facility of Tea Quik produces tea bags free from staple pins. Available in packs of 25 & 100 tea bags. Milli Mili is an ideal brand for those who otherwise prefer loose tea. Mili offers good taste & strength with consistent quality and hygienic packaging along with great pricing value. Mili is a blend of good Assam teas and comes in Leaf and Dust form. It comes in an attractive bandhani pack design. Available in 1Kg Pack and Pet jars of 500 Gms and 250 Gms. Plant operation 16 The company produces product range from 1rs. 4gm. packs to 5 kg packs. It produces on an average 6 lacs packs daily In 1 single month the company packs 2.5 crores tea packs of various range Mainly all the machines in the factory are hi-tech excluding few hand operated machinery. About 8 lacs packs of tea in raw materials form is stored in company’s go down. Quality Control 17 In the absence of quality control many products may be found defective and worthless at the end of manufacturing process and may be thrown away as scrap. Quality control avoided such a situation and saves the cost of labour and materials involved in the production of defective products. Similarly, it also saves the loss which will arise out of re-working on the rejected products It ensures the maintenance of high standards of quality and helps the concern using it to build their goodwill. It reduces the expenses of inspection considerably and enables the products to be produced economically. If certain products are not up to the desired standard of quality, they may have to be downgraded and sold cheaper. It maintains the standard of quality and thus enables the producer to secure the standard price for all products. Art of Tea Tasting Tasting is a refined art which encompasses a large number of variables. A taster’s palate and olfactory senses are finely sensitive and highly discriminatory. An experienced taster can identify the garden, ambient conditions of the plucking day and can even suggest adjustments in the manufacturing process. A taster uses his sharp sense of sight, smell, touch and taste while judging the quality of the tea. A taster must also have an in-depth knowledge about the prevailing market conditions, consumer preferences and manufacturing techniques while evaluating the tea. These are endowments of birth - it would be true to say that tasters are born and not made. These natural talents, however, have to be trained and developed through long years of practice before the palate is proficient enough to register the minute differences. Distinguishing between qualities of teas is possible by the human palate only - no wonder this craft is viewed with a tinge of awe and wonder. The art of tea tasting is valued much at WaghBakri Group. The Tasting Procedure 18 In the tasting procedure, pots and cups made of the finest china, kept spotlessly clean, are used; 2.5 gm of each tea is weighed into pots and water which has just come to the boil is poured over it. The pots are then covered with a lid and the tea is infused for either 5 or 6 minutes, depending on the individual taster’s preference. The liquor is poured out into a cup and the tea is ready for tasting. The colour and evenness of the infusion, as also its nose, are an index to the intrinsic value of the brew. This examination takes place in a well lit room away from direct sunlight, shade and shadow. Light from the north, which is steady and uniform, is ideal. The scrutiny of the leaf and infusion over, the taster turns his attention to the liquor and takes a sip from the cup, rolls it in his mouth and spits it out. In that split second, the palate registers the taste - Flavors, Briskness, Strength and any faults and flaws are recorded and the taster is ready with his judgment. 19 Marketing Introduction 20 After the industrial revolution marketing has become an important tool for all the organizations. According to Philip Kotler & Gary & Armstrong, “Marketing means the social and managerial process by which individual group obtain without they need and want through creating and exchanging production and value with others”. According to Mr. Henry H. Henson, “Marketing is the process of discovering and translating consumers need and want into products and service specification, creating demand for this product and services and then in taken expanding this demand”. Defination: A social and managerial group obtains what they need and want through creating and exchanging products and value with others Market: The set of all actual and potential buyers of a product or service. These buyers share a particular need or want that can be satisfied through exchanges and relationships (transactions). The size of a market depends on the number of people who exhibit the need, have resources to engage in exchange, and are willing to offer this resource sin exchange for what they want. 4 P’s of Marketing:21 Although some marketers have added other P’s such as personnel and packaging, the fundamental dogma of marketing typically identifies the four P’s of the marketing mix as referring to: Product: An object or a service that is mass produced or manufactured on a large scale with a specific volume or units. A typical example of a mass produced service is the hotel industry. A less obvious but ubiquitous mass produced service is a computer operating system. Typical examples of a mass produced objects are the motor car and the disposable razor. Price: The price is the amount a customer pays for a product. It is determined by number of factors including market share, competition, material costs, product identity and the customer’s perceived value of the product. The business may increase or decrease the product if other stores have the same product. Place: Place represents the location where a product can be purchase. It is often referred as the distribution channel. It can include any physical store as well as virtual stores on internet. Promotion: Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: Advertising, Public relations, Word of mouth and Point of sale. A certain amount of crossover occurs when promotion uses the four principle elements together, which is common in the film promotion. Advertising covers any communication that is paid for, from television and cinema commercials, radio and internet adverts through print media and billboards. One of the most notable means of promotion today is the promotional product, as in useful items distributed to targeted audiences with no obligations attached. This category has growth each year for the past decade while most other forms have suffered. It is only form of advertising that target all five senses and has the recipient thanking the giver. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and public relations. Target customers: 22 Mainly the tea packs are for domestic consumption which are supplied to various region of India Place: Distribution Network: 23 Most producers use intermediaries to bring their product to market. Then try to forget distribution channel. A set of independent organization involved in the process of making a product or service available for use or consumption by the consumer or business user. Distribution network facilitates to reach customer throughout the country by a strong chain of distribution outlets. Company distributes through hyper market, super market, grocery stores, hotel & restaurants. Promotion and advertising campaign: 24 Promotion and advertisings is mainly done through electronic media like TV, radio etc. and print media like news papers. Competitors: The main competitors of Wagh Bakri are Tata and HUL. Exports: Wagh bakri exports tea to countries like North America, USA, Canada, The Middle East countries, West Africa Next face target export countries are Germany, France and Ireland. 25 Finance Definition: 26 "In a modern, money using economy, finance may be defined as the provision of money at the time it is wanted". Meaning: Financial management is concerned with: A raising of funds on as favorable terms as possible and The efficient allocation of funds within the enterprise. So financial management is concerned mainly with such a matter as, how a business co-operation, rises its finance and how it makes use of it. Since finance is a life-blood of any business, its management merits special attention. The first aspect to be attended to is the estimation of how much a business organization requires and for what purposes. Unless the financial forecast can be prepared on sound basis the business is likely to run into difficulties arising from insufficiency or excess of capital fund. It will have to ensure that the business goes on smoothly and without any interruption and the company remains not only solvent as a going concern but it also able to grow on its own resources generated through surpluses. There must be constant flow of funds in and out of business unit. A business firm requires finance to commence its operation, to continue operating and for expansion. Financial management is concerned with planning, organizing, directing and control the financial activities of the firm. Sources of finance: The company mainly manages its financial needs by retaining profits Wagh bakri is having the growth rate of 11.6% where as the overall growth rate of industry is 6 to 7% 27 Personnel Human Resource Management:28 Defination: These are the few definitions of human resource management. Which cover all the 5 points given below: HRM is a series of integrated decisions that from the employment relationship, their quality contributes to the ability of organization and the employees to achieve their objectives. HRM is concerned with the people dimension in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher level of performance and ensuring that they continue to the organization are essential to achieving organizational objectives. This is true, regarding of organization-government, business, education, health, recreation or social action. HRM is the planning , organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end of that individual organizational and social objectives are accomplished. Meaning: Simply put, Human Resources Management is a management function that helps manager recruit, select, train and develops members for an organization. The various points, which are found in herm, are as follows: Organizations are not mere bricks, mortars, machineries or inventories. They are people it is the people who staff and manage organizations. HRM involves the application of management functions and principles. The function and principles are applied to acquisitioning, developing, marinating and remunerating employees in organization. Strength of personnel department: 29 The company has an employee strength of 350 who results in a turnover of 250 crores. Recruitment policy: According to Flippo, “Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organization” As Yoder has said. “Recruitment is a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient work force” The company recruits people according to their needs from available sources. Training and Developments: According to Michael J. Juius, “The term training is used here to indicate any process by which the aptitudes, skill and abilities of employees to perform specific job are increased”. The unit takes various types of labour welfare activities. 30 Swot Analysis Strength: • The company has an advantage of its marketing research. 31 • • • The company has the quality consistency in their products and they are very keen about the quality of their product. The company has a variety of quality product according to the taste of consumers. The company has a great advantage of their goodwill in the market. Weaknesses: • • • Though the company has third position in the market, yet they have not captured the all over world market. One of the weaknesses of the company is ‘oolong tea’, it is mainly exported but it is not sold in domestic market even if may captured a good market share. It is tuff to sell tea in those regions were mainly people are non-tea drinkers. Opportunities: • The company has good opportunities to grow in the market by introducing more variety of products according to preferred tastes of consumers. Threats: • • The company faces competitions by HUL who has 10% growth in market. The company faces severe competion with regional players in some regions. 32 Awards and achievements Serving the taste of trust. An idea that's integral to that everything to form part of continuous development at Wagh Bakri. The chant to excel is the only constant in our mission philosophy and what propels our vision. As we keep pace with the rapid strides 33 of changing times, the pursuit only fosters as we imbibe every contemporary inspiration to nurture the pedigree that's build on faith. Presented herewith are some of the coveted quality certifications that hold testimony to Wagh Bakri quality commitment and bespeak the excellence the name reverberates in millions of hearts every morning. 34 Bibliography 35 Books referred to: Principles of marketing by Philip Kotler,9th edition, published by Prentice Hall of India Pvt. ltd., year of publishing-1992 Financial management by Khan and Jain, 2nd edition, published by TATA MCGRAW Hill, year of publishing-1992 Production and operational management by Ashawathappa and Bhatt, 1st edition, published by Himalaya publishing house, year of publishing-1999. 36 Sources of Information: 37