Final 2

An Organisation Study on Mandovi Motors Pvt Ltd

CHAPTER 1

INTRODUCTION

1.1 AUTOMOBILE DEALERS AND SERVICES

NATURE OF THE INDUSTRY

Automobile dealers are the link between the manufacturer of the automobile and

the consumer. With their large inventories of cars, dealers provide consumers

with a wide array of vehicles to meet their needs at different price points.

GOODS AND SERVICES

The automobile dealer industry sells most of the automobiles, light trucks, and

vans that operate on the road today. Sales of these vehicles are subject to

changing consumer tastes, the popularity of the manufacturer's vehicle models,

and the intensity of competition with other dealers. Along with the sale of the car,

most dealers also sell additional automobile-related services to potential buyers.

These services include extended warranties, undercoating, insurance, and

financing. After market sales departments sell these services and other

merchandise after vehicle salespersons have closed a deal. Sales of these

packages greatly increase the revenue generated for each vehicle sold. Because

sales of automobiles fluctuate significantly, automotive dealers offer generous

incentives, rebates, and financing deals during slow periods to maintain high

sales volumes and to reduce inventories.

Performing repair work on vehicles is another profitable service provided in this

industry. Service departments at motor vehicle dealers provide repair services

and sell accessories and replacement parts. Although most service departments

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perform repairs only, some dealers also have body shops to do collision repair,

refinishing, and painting. The work of the service department has a major

influence on customers' satisfaction and willingness to purchase future vehicles

from the dealer.

INDUSTRY ORGANIZATION

The automobile dealer industry is comprised of two segments. New car dealers,

often called franchised dealers, primarily sell new cars, sport utility vehicles

(SUVs), and passenger and cargo vans. These franchised dealers sell and lease

vehicles manufactured by a particular company—which may include several

brands.

Used car dealers comprise the other segment of the industry, and are sometimes

referred to as independent dealers. These dealers sell a variety of vehicles that

have been previously owned or formerly rented and leased. Improvements in

technology have increased the durability and longevity of new cars, raising the

number of high-quality used cars that are available for sale. Used car dealers by

definition do not sell new cars, but most new car dealers do sell some used cars.

According to the National Automobile Dealers Association, new vehicle sales

account for more than half of total sales revenue at franchised new car and new

truck dealers. These sales also generate additional revenue in other departments

of new car dealers, which are more profitable to the dealer. By putting new

vehicles on the road, dealers can count on new repair and service customers and

future trade-ins of used vehicles.

Independent used car dealers usually have smaller staffs than their franchised

counterparts. Most are stand-alone dealers, but increasingly nationwide

companies are opening large superstores across the country. These large used

car and truck dealers typically contract out warranty and other service-related

work to other dealers or to satellite service facilities.




RECENT DEVELOPMENTS

In recent years, the sale of used cars has become a major source of profits for

many new car dealers in the wake of shrinking margins on new cars. To make

them acceptable to more customers, some dealers promote "certified pre-owned"

vehicles to customers who want a warranty on their used vehicle. This often

raises the price, but in return provides customers with peace of mind. In

economic downturns, the relative demand for these and other used cars often

increases as sales of new cars decline.

In an effort to achieve greater financial and operational efficiency and flexibility,

greater emphasis is being placed on aftermarket services, such as financing and

vehicle maintenance and repair, at both new and used car dealers. These

services typically provide large profit margins for dealers, and remain less

susceptible to economic downturns. They are also part of an effort to enhance

customer loyalty and overall customer service.

There has been a recent decline in the leasing of cars. With a car lease, a

customer makes monthly payments for the use of a vehicle over a period of time,

after which the vehicle is usually returned to the dealer. The major domestic car

makers have cut back their leasing programs significantly, instead focusing on

new car sales. Leasing is still expected to play a role in many new car dealers’

business plans in the coming years, however.

The increased use of the Internet to market new and used cars and light trucks

has also had a significant impact on automobile dealers. Through the Internet,

consumers can easily access vehicle reviews; view pictures of vehicles; and

compare models, features, and prices. Many Web sites allow consumers to

research insurance, financing, leasing, and warranty options. As a result,




consumers are generally better informed and spend less time meeting with

salespersons.

1.2 AUTOMOBILE DEALERS AND SERVICES IN INDIA

Today, the Indian auto industry is one of the largest industrial sectors with a

turnover that contributes to roughly 5 per cent of India's GDP. More importantly, it

contributes to employment of over 2 million people directly and indirectly to

another 10 million. The industry is important for national policy in that it

contributes 19 per cent of indirect taxes.

INDIAN MARKET SCENARIO

Until a decade ago, the auto sector in India had been a relatively protected

industry limiting the entry of foreign companies with high tariffs against imports.

Today, as part of a broader move to liberalise its economy, India has opened up

the sector to Foreign Direct Investments, and since then has also progressively

relaxed trade barriers.

Today, almost all of the major global companies present in India producing two-

wheelers and passenger cars in almost all segments.

For the passenger car market, this segment has been growing at a rapid pace.

INDUSTRY GROWTH DRIVERS

The passenger car penetration in India is at 8.5 vehicles per thousand

people absolute terms. It is among the lowest in the world. As per capita

GDP of a society grows, mobility needs for its population rapidly increase.




The proportion of young people, who are economically active, is rising in

the overall population. This has led to increasing urbanisation and the

need for mobility which translates into a higher demand for two and four

wheelers in India.

Relatively good availability of money and a favourable interest rate regime

has also been a strong contributor to sustained demand.

The Indian auto industry is expected to get a boost from the road

development programmes that the country has undertaken especially the

Golden Quadrilateral programme and the NSEW corridors with feeder

roads.

India's competitiveness has enabled it to make a steady foray in

International markets with passenger car exports crossing the 100,000

mark in 2004. Multinationals use India as a manufacturing hub for small

cars in addition to growing exports from indigenous makers such as Tata

Motors and furthermore, India's two-wheeler manufacturers have also

stepped up their export plans and apart from export, have also announced

CKD operations in many new markets outside India.

As India forges free trade agreements (FTA) with Thailand, MERCOSUR

and other trading blocs, the industry has the potential to emerge even

stronger. However, against this optimism, the industry has felt the effects

of cost pressure.

The global movement of oil prices has dealt a setback to the country's




economic policy. While the threat of inflation seems to have been

temporarily brought under control, sustained fuel price hikes and the

consequent hike in operating costs for vehicle owners can cause a

depression in demand.

The past two years have also seen considerable pressure for the industry

from input costs. Prices of steel, which is a primary input for the industry,

have doubled over the last three years. The situation has forced players to

resort to innovative ways to control costs whilst meeting rising customer

expectations.

FUTURE TRENDS

Buoyed by recent performance, many manufacturers have rolled out plans for

increasing capacity. Prominent among them, Maruti, Hyundai and Tata - the

passenger car makers - have announced plans for substantial scaling up of

vehicle and engine production.

India is also emerging as a credible hub for R&D and vehicle development.

Global majors (among OEMs) and several global Tier One suppliers have scaled

up operations of their Indian technical centres and the quality and value of

development in India is witnessing noticeable improvement.

As infrastructure improves, both the government and industry will need to

pay even greater attention to road safety. The safety record of India, as far as

fatalities and serious injury is concerned is dismal. This will need to be

addressed at all points: products, infrastructure and user behaviour.

DEALER ROLE




The environment, looking ahead, is expected to greatly increase the

importance of contact with customers. Every manufacturer will need to strive

even harder to ensure that customer experience with every aspect of contact

with the product (through sales, after-sales service and product use and

ownership) will exceed their expectations. Here the role of the dealer and the

network is invaluable. The increased emphasis on brand and the importance of

relationship with the customer will further change the way' we conduct our

business.

Increase in distribution reach will push up the sales of passenger cars, as it

brings a large number of households into the target population. Typically, these

households have the potential to purchase a car, but defer the decision due to

the lack of sales and service infrastructure. With most urban centres covered by

dealership networks, car manufacturers are looking for new dealerships in

smaller towns to increase penetration and sales in semi-urban and rural areas.

Current established dealers can help OEM's scale up their networks quickly by

setting up satellite dealerships along with service facilities in the neighbouring

semi urban/rural areas.

The importance of vehicle in India has reached that critical level wherein

second hand vehicle business is expected to emerge in a more organised form

than it is today. Availability of a good & credible second hand vehicle market will

not only help current owners upgrade to their next vehicle but will also bring a

large number of new low budget customers into the vehicle ownership cycle.

The time is ripe for dealerships to set up multi-brand second hand vehicle

trading and refurbishment facilities to expand the customer base in their

respective locations.

We are also witnessing a period of affordable cost for loans and easy availability




of vehicle financing. This too causes us to view the future with some optimism.

The Indian automobile industry has received positive response in the current

market scenario. The competition is getting tougher for all the small and big

players. To remain in the race, the biggies like Maruti, Hyundai and General

Motors are coming up with their latest models and at the same time introducing

several automobile service stations in India to draw the loyalty of the customers.

MARUTI SERVICE CENTRES IN INDIA

It is the world of high competition for the car manufacturing companies in India. In

this automobile race, Maruti Suzuki has been able to build a larger consumer

base on account of its world-class car models and sales services.

The company has also opened numerous automobile service stations in India

across its various regions to provide complete customer satisfaction.

Some of the Maruti's automobile service centres in India have been listed below :

Maruti Service Centres are in Karnataka., West Bengal, Tamil Nadu, Uttar

Pradesh., Andhra Pradesh, Maharashtra, Delhi.

HYUNDAI MOTOR SERVICE CENTRES IN INDIA

Hyundai Motor India Ltd stands on the second position in the list of

biggest car manufactures in India in terms of sales record. The car

manufacturing company has posted a growth of 46.1% in the market

against previous year. To keep the momentum of its growth and

to ensure highest customer satisfaction, the company has opened

various automobile service centres in India.

Some of the main car service centres of Hyundai Motors in India have been listed




below:

Hyundai Motors Service Centres are in Tamil Nadu, Andhra Pradesh,

Maharashtra, Delhi, Karnataka

GENERAL MOTORS SERVICE CENTRES IN INDIA

With registering constant growth in the Indian car market, General Motors

has become a household name here in the nation. According to reports,

the sales figures of the company surged to 11,111 vehicles from 4,921 in

the month of January 2010. The company is eyeing such robust growth in near

future also.

To keep up with this pace and to satisfy the needs of its ever growing

customer base, the car giant has opened a number of automobile service

stations in India across its diverse regions.

General Motors Service Centres are in Karnataka, Maharashtra, Kerala, Delhi,

West Bengal.

TATA MOTORS SERVICE CENTRES IN INDIA

Tata Motors is India’s largest automobile company, with consolidated net profit of

9,274 crore in 2010–11. It is the leader in commercial vehicles and among the

top three in passenger vehicles.

Tata Motors has products in the compact, midsize car and utility vehicle

segments.




Some of the main car service centres are

Tata Motors Service Centres in Mumbai, Chennai, Kolkata

FORD INDIA SERVICE CENTRES IN INDIA

Established in 1995, Ford India is a wholly owned subsidiary of Ford Motor

Company, a global automotive industry leader.

Ford India manufactures and distributes automobiles and engines made at its

modern integrated manufacturing facilities at Maraimalai Nagar, near Chennai.

The company's models include the Endeavour, Fiesta and the Figo.

Some of the main car service centres are

Ford India service stations are in Agra, Delhi, Mumbai, Kolkata, Hyderabad,

Chandigarh.




1.3 AUTOMOBILE DEALERS AND SERVICES IN KARNATAKA

It is only right that the state whose capital is called the 'silicon valley of the

country' should manifest its buoyant economy in the form of flashy cars.

Karnataka is one of the most industrialized states in the country .The opulence in

the state has spawned many car dealers who are well spread throughout the

state.

The rich automobile market in Karnataka, as is evident from the range of car

dealers in Bengaluru, has attracted car dealers from almost all the car brands.

There are lots of car dealers in Karnataka listed who are committed to provide

the best quality services when buying any car from these car dealers in

Karnataka. It is believed that it is not just cars which makes any customer a

happy customer but also car dealers plays a crucial role while willing to buy any

car for a family. A good car dealer always informs the car from the top to bottom,

from the starting to the end. One will never face any issues with the car and after

sale or after sales service if the car dealer is the best service provider.

TOP CAR DEALERS IN KARNATAKA

Concorde Motors (India) Ltd.

Prerana Motors Pvt. Ltd.

Mandovi Motors Pvt. Ltd

Pratham Motors Pvt. Ltd.

Advaith Motors

Sundaram Motors

Shahwar Motives Pvt. Ltd.




Bimal Auto Agency

Southern Motors

Garuda Autocraft Pvt Ltd

Kalyani Motors Pvt. Ltd

Akshara Motors Private Limited

1.4 OBJECTIVES OF THE STUDY




To know the service quality & standards maintained in the company.

To understand the structure of the organisation.

To know the vision and mission of the organisation.

To determine the present status and future plan of the organisation and also

determine in what way the company is different from others.

To know the various departments and their responsibilities.

To determine the corporate social responsibility carried out by the

organisation.

To understand the strength, weaknesses, opportunity, threat.

To get an exposure to the different functions of the organization and

understand how they are performed and coordinated.

CHAPTER 2




PROFILE OF THE ORGANISATION

2.1 HISTORY OF THE ORGANIZATION

Mandovi Motors was established in 1963 as a Volkswagen spares and service

dealership on the banks of River Mandovi- Goa. Then it was appointed for

Suvega Mopeds at Bengaluru in 1965.

Maruti Udyog Limited (MUL) was the country’s youngest manufacturer, which

was formed in 1983, as a result of a joint venture between Maruti Udyog Ltd and

Suzuki Motors Corporation of Japan. During its short span of ten years, until the

car industry was delicensed, Maruti Udyog Ltd has become India’s largest car

manufacturer with the sales of over two lakhs vehicles per annum and around

81% of the market share.

Mandovi Motors Pvt. Ltd. is the first and largest Dealership of Maruti Suzuki Cars

in Karnataka. Its parent company has nearly 75 years of experience in the

Automotive Industry. In the year 14th June 1984 Maruti Udyog Limited

inaugurated an era of automotive revolution across India. Down south, it was

Mandovi Motors Pvt. Ltd. Who created a pioneering impact by launching the

dealership of vehicles manufactured by Maruti Udyog Limited. Mandovi motors

Bengaluru was awarded ISO 9001 CERTIFICATION in recognition of its high

standards in 1996 and for Mangalore it was certified during 1997.

The company has a strong culture of excellence in everything that it does. This

has helped the company earn tremendous loyalty from Customers, resulting in a

large percentage of its business coming through references from the existing

Customers.

This has also enabled Mandovi to become the




First Automobile dealer in South India to cross a sale of 50,000 cars in

1997.

First Dealer in Karnataka to cross a sale of 100,000 cars.

Only Dealer in Karnataka to service more than 17,500 cars every month. It

is testimony of the trust the Customers place in the company, by

patronizing its workshops because of high quality service and personalized

attention they get.

First Auto dealership to get ISO Certification in Karnataka.

First Maruti dealer in India to get Top position in JD Power Customer

satisfaction study (Non Metro), three times in a row.

Today, Mandovi boasts of the largest network among all the Maruti dealers in

Karnataka, with 16 Showrooms and Sales Information Centers, 18 Workshops

and 5 Showrooms for Used Car Sale (True Value). It has a team of over 2100

dedicated professionals committed to provide the best possible service to its

customers.

FOUNDER

Mandovi is considered as one of the most professionally

managed Maruti Dealerships. It is guided by the high

standards set by its founder (Late) Shri Aroor Sripathi Rao, its

Managing Director and other Directors who have lead the

organisation from the front. These standards ensure that the

goals of achieving excellence in every area of its operations

are realized by Mandovi.




PERFORMANCE HIGHLIGHTS

Mandovi sells an average of 1000 vehicles per month.

All workshops put together Mandovi services around 20000 cars a month.

Mandovi has expanded its network with at least one facility per year for

customers in the last 25 years.

Mandovi is the first dealer in the south to deliver 1 lakh car in the

dealership history.

Mandovi does a turnover of 1 crore per month worth Maruthi genuine

spares.

Mandovi has the turnover of 400 crores per year.

ACHIVEMENTS AND AWARDS

Mandovi group is in this business from the past 75 years and has become

pioneer in this Industry and with the help of dedicated employees along with the

guidance, supervision and with rich experience of the core management team,

has become the recipient of many awards and recognition in the automotive

industry.

MARUTI SUZUKI AWARDS BANGLORE

S.N YEAR AWARD

1 1993 Achieving highest sales of the Omni 1992-93




2 1994 Marketing company of the year award[SME] 1994 [LIC]

3 1996 All India dealers –award best advertising campaign 1996

4 1997 All India dealers-award platinum sales, service and spare combined-1997

5 1999 No. 1 dealer for sales regional(south-2)-1999

6 1999 Award for advertisement campaign –all india-january-1999

7 1999 Special award for consistent & innovative advertising

8 1999 Award for best marketing campaign

9 2000 Highest Omni sales

10 2000 All India best body repair shop(anepalya)

11 2002 Best decorated showroom in Bengaluru-Dec ember 2002

12 2002 For achieving the highest sales south 2-january 2002

13 2002 For achieving the highest sales south 2-February 2002

14 2002 For achieving the highest sales south 2-March 2002

15 2003 Best true value channel partner -2002-03




16 2003 All India 2nd highest MGP Off take 7 years in a row from 1997-2003

17 2005 All India highest growth in service load

18 2005 All India least customer complaint

19 2005 All India service Excellence Award

20 2008 Maruti Suzuki awarded to MMPL ”For sharing our vision, our dreams a being part of this journey of togetherness since 25 years”

21 2008 Excellence in marketing-most consistent lead management-winner

22 2008 Maruti Suzuki regional award (Karnataka 07--08-sales)

23 2008 Excellence in sales 10000+club

24 2008 Workshop Consumption Growth in MGP

25 2009 Maruti Suzuki –highest sales volume –Bengaluru

26 2009 Maruthi Suzuki –excellence in sales performance

27 2009 Maruti Suzuki-overall performance-Bengaluru

28 2009 Best performance in CSI Bengaluru

29 2009 MGP workshop consumption more than 12 crores category




30 2009 All India highest growth Versa & Omni

2.2 VISION AND MISSION AND QUALITY POLICY




VISION

“To be the market leader in Karnataka passenger car industry”.

MISSION

“To achieve the customer satisfaction through quality of service”.

QUALITY POLICY

“To make quality a way of life, through commitment to continual improvement in

customer satisfaction and adhering to quality management system”.

2.3 ORGANISATIONAL STRUCTURE




SHOWROOM AND STOCKYARD


Chief Executive Officer

Management Representative

HR Manager

CGM (Sales) CGM Operations

CGM (Works)

HR ExecutiveManager (Systems)Sr. Executive

Admin

Exe (Stockyard) Supervisor (PDI)

Asst. Supervisor

Asst. stockyard

Sr. Exe (Pre-Del)

Sr. Manager

(sales)

Customer Care

Manager

Sr. Exe (Systems)

System Operator

MechanicWashingAsst. Manager Delivery (Delivery

Controller)

Cust. Care Exe.

Team Managers

Sales Executives



WORKSHOP AND SPARES




HR ExecutiveSGM (WORKS)

HR Manager

Manager Works WG/VN/JP/YP/BSV

Manager (Systems)

Manager (Spares)

Final Inspection Sup

In house Trainer

SupervisorService Advisor

Executive (Systems)

Eqpts & Tools Maintenance Supervisor

Cust Care Mgr. Technical Advisor

System Executive

MOS

Cust. Care Exe

Counter Sale

Executive

Floor Coordinator

Mechanics

Front Office Executive

Quick Repair

Supervisor



PRE OWNED CAR DIVISION

2.4 POLICIES AND PROCEDURES




Asst. general Manager (True Value) JPN & VN

HR Manager

RefurbishmentCoordinator

Data Entry

Operator

Manager (True Value) JPN & VN

CCMVN & JPN

HR Executive

CCEVN & JPN

Asst. Manager (True Value) JPN & VN

T.L. (Sales)T.L. (Sourcing)

Sales ExecutivesSourcing Executives



Mandovi Motors follows ISO 9001:2008 Quality Management System.

Mandovi pledge to make quality a way of life, through commitment to continual

improvement in customer satisfaction and adhering to Quality Management

System.

The quality management principles are as follows

Customer focused organization-strive to exceed customer expectations.

Leadership to establish unity of purpose and direction.

Involvement of people at all levels.

Process approach for efficient utilization of resources.

System approach to management for effectiveness and efficiency.

Continual improvement in overall performance.

Factual approach to decision making based on the analysis of data and

information.




Mutually beneficial supplier relationship to enhance ability of both and

create value.

System procedures have been defined and the following standards are arrived

Sales Operations Standard.

Service Quality Standard.

POC Operations Standard.

Spares Operations Standard.

HR Operations Standard.




2.5 SERVICES

Some of the services provided by Mandovi to its customer to satisfy its customers

are as follows.

MARUTI ON ROAD SERVICE

24 hour on road service vehicle which will service customer vehicle any time

when they get stranded on the road.

TOWING SERVICE

When the vehicle met with an accident Mandovi provides the towing in service

from the spot to the workshop.

PICK AND DROP SERVICE

On customer request maintenance, repair is done duly picking up the car from

customer residence and dropping it back after service.

REPLACEMENT VEHICLE

Customer gets a replacement vehicle in case repair work for his car is not done in

24 hours.

SHUTTLE SERVICE

When a customer drops his car in the morning for service, the shuttle vehicle

drops him back to the important locations in Bengaluru.




PERIODIC FREE CHECK UP

A set of customer gets selected for a free check u of vehicles. The campaigns are

done based on the seasonal needs like monsoon check-up, during rainy season,

AC check-up during summer season etc.

FREE REPEAT JOBS

Any repair work done if the problem repeats within a month that is considered as

repeat job. All such jobs are done free of labour charges.

SERVICE MARKET REMINDERS

The history of each car repaired is maintained, database is reviewed on daily

basis and customer is reminded that his car is due for service through sms, tele

call or email.

POST SERVICE FOLLOW UP

Each customer is called after 72 hours of service and repair, feedback is taken

with regard to quality of service. Any complaints will be resolved within 48 hours.




2.6 PRESENT STATUS: GROWTH

Mandovi started it’s operations in the year 1984 and completed 27 years of

association with Maruti Suzuki India Limited.

Mandovi has consistently registered growth in sales and service load in all these

years

From one sales outlet and one service outlet during 1984, today Mandovi has 16

Showrooms and Sales Information Centers, 18 Workshops and 5 Showrooms for

Used Car Sale (True Value)..




2.7 FUTURE ACTIVITIES

FUTURE STRATEGY

The future strategy is to reach out to customers in the ever expanding spheres of

sales and service. Being intensely customer focused, they strive to exceed

customer expectation by adhering to system approach to management and adapt

to changes based on customer expectation.

FUTURE PLAN

The future plan includes

Upgrading of all existing out-lets with required skill-sets in the human resource

and infrastructure.

Continuously improving processes at all the outlets for efficient utilization of

resources and further improve the customer service.

Setting up of new outlets for sales and after sales service at strategic

locations.




CHAPTER 3

DEPARTMENTAL STUDY

3.1 HR DEPARTMENT

HR is an acronym for human resources, that element within a company which

deals with the human aspects/needs of workers. Many companies have an HR

department, which may provide a broad range of services to its employees.

Some who work in HR are considered part of the department, but many people

outside of such a department may have something to do with not just the

financial aspects of work, but also “the human element” of employing workers.

The Human Resource Department deals with management of people within the

organisation. There are a number of responsibilities that come with this title. First

of all, the Department is responsible for hiring members of staff; this will involve

attracting employees, keeping them in their positions and ensuring that they

perform to expectation. It is responsible for organisation of people in the entire

Company and plans for future ventures and objectives involving people in the

Company.

The Human Resource Department’s main objective is to bring out the best in

their employees and thus contribute to the success of the Company.

HR is one of the important department of the dealership organization.

Sustainability of dealership depends on retention of quality manpower at

management and technical departments.




HR department monitors

Advertising available jobs, screening applicants, setting up interviews and

potentially hiring applicants.

Recruitment through reference, campus and advertisement.

Organizes manpower motivation program.

Monitors performance appraisal key parameters.

Organize in house and external training programs to enhance competency of

man power.

Top management will review quarterly the HR activities.

Handling complaints about employer abuses, sexual harassment,

discrimination or hostile work environment charges.

THE STRUCTURE OF THE HR DEPARTMENT


Deputy General Manager ( HR )

HR Manager Training Manager

HR Executive Trainers

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SELECTION PROCESS

The selection of employees are carried out in the following manner.

JOINING FORMALITIES

New Member is required to submit without fail certain document and details as

prescribed in the offer letter/letter of Intent. Passport size and stamp photos,

Certificate of Education, Experience Certificates, residential address proof,

relieving letter and salary slip of previous employment and medical fitness

certificate.

EMPLOYEE KIT

To get adjusted to the work and to learn the business process in a smooth way

employee kit is given to the employee. Certain set of handbooks, uniforms,

identity card stationeries, code of conduct.




COMPENSATION

Salary is paid on before 7th of each month. Salary break ups are briefed in a letter

of appointment. For employee’s knowledge is given about his/her pay system.

Leave can be availed only with prior permission.

An employee can avail earned leave of 18 days and CL 12 days only after

confirmation and 1year of service. Apart from above 5 national general holidays

and 5 festival holidays are given.

IDENTITY CARD

Is issued to all the employees and will be valid up to 3 years. In case of loss of ID

cards, the same should be reported to the HR department.

PROBATION

Every newly joined employee is kept on probation for a minimum period of

6month to maximum of 2year.

DRESS CODE

Every permanent employee is provided uniform it should be worm as per

company rules.

TRANSFER POLICY

Based on business requirement the employee transfer is processed through

management decision. Employee service will be transferred to any branch or




department of M/s Mandovi Motors Pvt Ltd, anywhere in Karnataka due to

exigencies of work and also to its sister concerns if required.

COMMUNICATION

Communication in the organization is based on the following

Daily/weekly/monthly meeting

Notice boards

Circulars

Mails/telephones

Mandovi happening, an in-house magazine.

PERFORMANCE MANAGEMENT SYSTEM

It is a method of evaluating the performance of the employee in a proper manner

to give a proper growth in respect to responsibilities, positions and

compensations as well. Based on his/her achievement,

promotion/increment/rewards will be given in a suitable way.

It identifies areas of improvement and facilities for training, improves

performance and transparency in a management system.

EXIT INTERVIEW

Exit interview is done to those employees who retire or resign from the company.

Employee will need to fill the exit interview form, to understand the reason for

separation and get some suggestions for an improvement. Also no due form

needs to be a signed by concerned departmental heads and submitted to HR

manager.




TRAINING

Training is given to employees to enhance his/her performance, efficiency in the

job, to keep abreast with the latest technology, market condition and to retain the

existing man power. The training givens are two types:

Internal

External

EMPLOYEE WELFARE

BIRTHDAY CELEBRATION AT WORKPLACE

Birthday of employees are celebrated on a particular day of the month at different

units.

SUGGESTION SCHEME

A suggestion box located at each unit. Here the employee can give his/her

suggestion which will be evaluated by a panel of evaluators, who will in turn

verify and reward them suitably.

MANDOVI ANNUAL DAY IN ALL LOCATION

Annual day is celebrated yearly once to celebrate and facilitate the employees for

get together as a family. They review themselves and they award the top

performers who have contributed the whole year.

FESTIVAL ADVANCE/SALARY ADVANCE AND LOANS

Is given to the permanent employees based on certain criteria once in a financial

year which will be recovered on EMI basis for particular number of months.




MERITORIAL AWARD TO EMPLOYEE’S CHILDREN FOR ACADEMIC EXCELLENCE

This is given to children of confirmed employees who excel in their academic (X

& XII standards).

It applies to only one child per year and if both parents are employee of Mandovi

then only one of them can claim this award.

ACCIDENT INSURANCE

This policy covers emergency situations, specially accidents which may occur

either in company or outside of the company.

GROUP MEDI CLAIM POLICY

Scheme for employees and their family members where an employee need to

pay 60% of the premium and the rest 40% is borne by the management.

HUM TUM SAATH SAATH (LOW PERFORMER’S COUNSELING)

This is done in order to motivate to employees who are showing low performance

in their job. A maximum time is given and training imparted to the employees to

motive their performance.

PERFORMANCE BASED REWARD SCHEME

The top performer in various categories is rewarded from time to time. This

reward includes certificate/memento and it is personally presented by MD.




QUARTERLY INTERNAL MAGAZINE-MANDOVI HAPPENING

Mandovi happening is an internally based quarterly magazine which gives insight

of things happening in and outside Mandovi an initiative by HR department.

COUNSELING

Is done to certain employees who are either identified by departmental head are

HR manager.

Employees can also approach the HR manager voluntarily and things are kept

very confidential.

GRATUITY

This is applicable as per the law. An employee who has completed 5 continuous

year of experience in the organization is eligible to get gratuity.

GRIEVANCE HANDLING

Grievance is handled by HR manager through certain defined procedure and

grievance handling cell is constituted to attend the aggrieved at the earliest. The

report of the same should be submitted with observation to the CEO.

CORPORATE SOCIAL RESPONSIBILITY

CSR: Corporate Social Responsibility is a part of responsibility that any

organization owes to the society and through which the organization can get a

good brand image.




Mandovi has also contributed towards this concern by the following good work.

Advertisement related to road safety.

Bus shelters for general public at various places.

Signal boards for RTO at different part at Mysore.

Campus interview at colleges (ITI, DIPLOMA... etc)

Job fair – A way in which the company provides an opportunity in giving

employment to the employed.

On the job training for ITI students.

Project for students for various professions.

Eco - Friendly Green workshops.

Blood donation camps.

Fund raising for natural calamities

CAREER GROWTH

The career growth is based on the experience level and also based on the

proficiency level of a person.




The following figure shows the career growth for employees in service and sales

department.




3.2 ADMINISTRATION AND FINANCE DEPARTMENT

The finance department is one of the most important departments in a business,

as it helps provide the financing and accounting information necessary to make

various decisions. However, this department has a role that encompasses a

number of duties. The finance department is responsible for keeping track of all

sales and capital spending at a business.

PROFIT AND LOSS

The finance department should provide management with a profit-and-loss

statement that will show the overall strengths or weaknesses of a business.

UPDATE MANAGERS

Managers need the most current information to make the best decisions for their

departments. The finance department has a duty to provide them with the most

accurate and timely information possible. This would include information such as

costs to produce a product.


http://www.mandovimotors.in/newCar-Enquiery.asp?for=ne



At Mandovi Tally accounts software is used for accounting.

Monthly trial balances are taken of each outlet, profits, income and

expenditure is monitored.

Quarterly review of business finance results is done and actions are

arrived to reduce costs and improve profits.

Half yearly and annually balance sheets are generated as per the

statutory requirements.

Total working capital deployed 40 crores.

Current ratio- 1.


DGM Accounts

Manager Accounts

Senior executive Accounts

Executive Accounts

Cashier



Return on capital employed 18%.

Earning before interest depreciation tax- 25%.

Debt equity ratio- 0.75.

Annual turnover- 400 crores.




3.3 SALES DEPARTMENT

A sale is the act of selling a product or service in return for money or other

compensation. It is an act of completion of a commercial activity.

Sales department of Mandovi Motors to all means of communications to promote

their products and services Promotion had four distinct elements

Advertising – newspaper, pamphlets.

Public relations – events conducted in Garuda or other mall in Bangalore,

exhibitions, trade fairs.

Word of mouth – telecalling and sales force.

Point of sale.

3.3.1 PDI AND STOCKYARD

Pre- delivery inspection is an important process for a car dealership.

In this department trained technical supervisors will unload the new vehicles

received from Maruti Suzuki follow the check list for inspection and ensure the

vehicle is “Okayed” and certifying that the vehicle is ready for delivery and

communicate to sales department.


http://en.wikipedia.org/wiki/Selling



The inventory, proper storage and safety of the vehicles are managed in this

department with proper stock yard.


http://www.mandovimotors.in/showroom.as



3.3.2 PRE-SALES PROCESS

The main function of this department is to identify new customers for Maruti

Suzuki cars. The sales executives identify the customers through various sources

like Walk-in, reference, advertisement, promotions etc. The demonstration and

test drive is given to the customer by sales executives.

The Team Managers assists further in providing financial facility through various

banks like SBI, ICICI, HDFC etc. Based on customer need, close the sale and

deliver the vehicle.

CUSTOMER CARE AT SALES

- Customer feedback is obtained for customer experience at various

processes from pre-sales to delivery. Customer Satisfaction index is

measured monthly and corrective actions are taken for further

improvement.





- Post sales follow up is done to understand voice of customer with regard

to sales experience at Mandovi. Any dissatisfaction, the complaint is

resolved within 48 hour.

- Periodically customer meets are conducted to have customer feedback on

the product and service and is reported to MSIL (Maruti Suzuki India

Limited) for further improvement.

- Quarterly Internal audit of all the sales process are conducted and

corrective actions are taken on weak areas.




3.3.3 AFTER SALES SERVICE PROCESS

Service Quality Standards are clearly defined, which is been followed at all MSIL

workshops.

SERVICE INITIATION PROCESS

When the customer arrives at workshop, the service advisor attends him within 5

minutes, listens o his demanded repairs, goes for a test drive if necessary,

inspects and provides clarity to customers with regard to the recommended

repairs.

He also provides cost of repair estimate and time commitment for completion of

the repair work.

SERVICE PROCESS AT SHOP FLOOR

Based on the type of repair, commitment of time, the supervisor allocates the

vehicles to the mechanics and monitors the repairs work at various stages and

ensures the vehicle is ready before 30 minutes of the promise time and ensures

final inspection of the jobs done.

Finally, washing is done and the vehicle is kept ready for delivery.

DELIVERY PROCESS

Customer is reminded once the vehicle is ready. Upon arrival of the customer, the

service advisor who opened the job card in the morning attends to him explains

the jobs done on the vehicle, explains the charges for the jobs done upon

customer satisfaction, he delivers the vehicles duly collecting the invoice amount.




CUSTOMER CARE AT SERVICE

Regular Measurement of CSI (Customer Satisfaction Index) is done monthly,

based on customer feedback received. CSI is measured monthly and corrective

actions are taken on the week process. Post service follow up is done for every

customer after 72 hours of service, feedback obtained and any complaints are

resolved within 24 hours.





3.3.4 SPARES

Spare parts are monitored through warehouse professional software designed by

MSIL is being used to monitor

Consumption pattern

Inventory ageing

Critical Parts

ABC and XYZ analysis.

Every day urgently required spares not available list is generated based on

feedback from all workshops and spares are obtained within 48 hours.




3.3.5 MARUTI GENUINE ACCESSORIES

Mandovi Motors also deals with Maruti Genuine Accessories. Maruti Genuine

Accessories (MGA) is a new initiative to offer you high quality accessories at

competitive prices. It follows world class engineering and design processes to

develop each and every item of MGA. Every MGA item has perfect mechanical

and electrical compatibility with the vehicle and offers unmatched performance.

These include:

Alloy wheels

Door Visors

Carpets

For Lamps

Designer Mats

Stereo System

Security system

Seat & Body covers




3.4 SERVICE DEPARTMENT

Mandovi is the authorized dealer for Maruti Suzuki India Limited.

It sells and does after sales service for all Maruti Suzuki cars.

For rendering of quality after sales service, the organization structure, resources

machines and equipments and procedures are followed as per Service Quality

Standards.

Customer service is the provision of service to customers before, during and

after a purchase.

Customer service is a series of activities designed to enhance the level of

customer satisfaction – that is, the feeling that a product or service has met the

customer expectation.


http://en.wikipedia.org/wiki/Customer

http://en.wikipedia.org/wiki/Service_(economics)



3.5 MAJOR PROBLEMS

Mandovi has multiple workshops in Bengaluru; there is internal competition

between the workshops to grab new customers. Few workshop had the access

to data over a following up of customers for after sales service. This resulted in

multiple calls to a single customer by different workshops resulting customer

irritation. Few workshops couldn’t follow up the customers because of non

availability of data.

Solution - The control of data distribution was centralized and every fortnight top

management distributed the leads to different workshops based on geographic

location and the problem got solved.

Mandovi Motors was facing the shortage of inventory, spares etc.. due to

communication gap between various departments.

Solution - The top management will continuously monitor the various processes

periodically and gives feedback to the middle management and down the level as

and when the corrective actions are required.

Some of the analysis are listed below

Stock analysis – Periodically detailed stock analysis is carried out and

communicated to middle management of the group to take initiative to

liquidate stock ageing.

Daily monitoring – Top management monitors key parameters on daily

basis and communicate to middle management the status and action

required.




Pending booking analysis – Periodically pending bookings are reviewed,

analyzed and middle management is alerted to follow up and close the

sale.

Some of the analysis are listed below for regular process improvement

Lost case analysis.

Repeat job analysis.

Delays deliver analysis.

Spares ageing analysis.

Re-visit analysis.




CHAPTER 4

SWOT ANALYSIS

4.1 STRENGTH

Experienced and committed manpower in the top management.

Excellent brand value in the market.

Largest after sales network in Karnataka.

Customer focus orientation of the top management.

Effective system approach to management.

1st automobile dealer in Dakshina Kannada to get the AV Belgium ISO-

9001:2008 certification for quality standards and procedures.

1st automobile dealer in south Asia to have Hunter Safe Lane (complete

brake suspension and wheel alignment diagnostic test.)

1st automobile dealer in Karnataka to build eco friendly workshop which is

located at Mangalore with passive solar cooling design.




4.2 WEAKNESS

Attrition in trained manpower.

Proficiency level of second line manpower in the dealership.

In house training mechanism, identification of training need and competency

measurement needs improvement.

Majority of the workshop are built on lease property.

4.3 OPPORTUNITY

Growth in the Passenger car market.

Manufacturers’ strength to which any type of price war in the market.

Huge volume for After Sales Service.

Huge product mix to generate volume.

4.4 THREAT

Addition of new outlets and dealership resulting in reduction of market share.




Global players entering mid car segment.

Impact of global phenomena on Indian economy.

Growing customer expectation.




CHAPTER 5

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

5.1 FINDINGS

Mandovi has a good brand image in the market.

All the workshops are over crowded and sometimes customer shows

anxiety for delivery of vehicles.

There is lack of personal attention during peak period (especially between 5

p.m and 7 p.m) at workshops.

Vehicle parking, road test and final inspection process are not efficiently

done.

Mandovi is involved in Corporate Social Responsibility such as

- Blood Donation Camp

- Free Emission Checkup Camp

- Eco Friendly – Green Workshop in Mangalore.

- Mandovi motors contribute atleast six social institutions every year.




5.2 CONCLUSIONS

Mandovi Motors has helped me in accomplishing the objective of

organization study.

Customer has the choice. The market is finding lot of dealerships and

workshops.

Leverage Mandovi’s brand value, establish more facilities for the

customers at the right vehicle population areas and be proactive in

anticipating customer expectations through feedback.

Mandovi believes in customer satisfaction and are providing quality

service to the customer.

Mandovi has a well structured organization where the feedback from

various departments are taken and necessary action is taken to improve

the process.

The attrition rate is very high in Mandovi motors.




5.3 RECOMMENDATIONS

The movement from customer satisfaction to customer delight should happen

through

Individual attention to each customer.

Doing the job right first time.

Need to reduce the attrition level by providing additional benefits to the

employees along with the salary.

Infrastructure for after sales should be further expanded to service large

customer packets.

Mandovi motors should establish Eco-friendly green workshop at all its

centres.

Parking is an important factor as the days go special attention to be given to

ensure enough parking bays at any workshops and showrooms.

Manpower retention is very important. Regular motivational programs to

retain manpower need to be planned.

The competency of manpower need to be measured as this is an important

factor to work towards customer delight.




Leverage Mandovi’s brand image for customer retention and track each

individual customer.

E- Commerce is an important media in the future for business generation.

Improve company website and make it interactive.




BIBLIOGRAPHY

1. Mandovi motors, 2011; accessed and retrieved from

http://www.mandovimotors.in on August 14, 2011.

2. http://business.mapsofindia.com/automobile . Business maps of india.com,

August 1, 2011.

3. http://www.fadaweb.com/role_of_dealers.htm . Federation of Automobile

Dealers Associations, July 20, 2011.

4. Mandovi Motors. “Mandovi 25th year anniversary” (Magazine). Number 25,

(August 2011): pp.1-40.


http://www.fadaweb.com/role_of_dealers.htm

http://business.mapsofindia.com/automobile.%20Business%20maps%20of%20india.com

http://www.mandovimotors.in/


Final 2

Documents

indian academy

mandovi motors

maruti genuine

corporate

maruti udyog

post service

good brand

automobile