CHAPTER- 5 SWOT ANALYSIS

5.1: STRENGTHS

Highly qualified and efficient staff management. Employees are working from many years in the same company which is one of the advantages to the company in molding the relationships and experiences.

Freedom to share their work related problems ad opinions to management. Company is following ethical and transparent business practices. Good industrial relations. Market capitalization. It is the FIRST Best Company in the entire beer industry. And 6 bottles of beer is sold per second in the world.

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ISO certified company known for its quality. The LAN connection of intranet and internet facilities throughout the UB Group helps in quick communication between inter plant & intra plant activities.

Cost reduction through economies of scale. Automated plant with lesser man power. Creative and aggressive advertisement and brand promotion techniques in the government controlled environment through sports, fashion and ambassadors.

Creation of Brand Equity and increasing product width. Induction of latest brewing and logistic technology as practiced in Europe & USA.

Implementing new methods of cost reduction techniques. Outsourcing few areas like handling E.T.P, Contract Labours in order to concentrate on the key areas like product quality control & marketing.

Flavored low alcohol beverage with new variants like the 330ml beer pack has driven sales growth across the state.

Strong distribution channels. Efficient R&D department.

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5.2: WEAKNESS

Ignoring the future competitive environmental forecast. High sales of beer is major only during the seasons. Beer is the perishable product having shelf life of 6 months. Decreasing skilled work force due to retirement. Lower level of resistance towards change. Lower level of resistance towards change among employees/ workers. Government controls on advertisements, manufacturing capacities, distribution, retail and pricing, heavy excise duties and taxes pose a challenge to the organizations.

Distribution schemes vary from state to state. Government treats the beer industry in par with the liquor industry. It is considered equal with the liquor industry legally, politically & socially.

Industry and its production process is subjected to licensing, rules and regulations, laws and bye-laws.

Stringent rules and regulations to be followed in production, marketing and logistics.

Strict maintenance of the records.

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5.3: OPPORTUNITIES

Ban on arrack by the government leads to the high sales of beer. The company can introduce rewards based on seniority, competency, and performance.

The company may emphasis more on team building and quality circle for better performance and results.

The company can consider more of 360 degree appraisal about employee performance and facilities greater development of employees.

Concentrating on semi-urban and rural markets, which give the industry the bulk of its revenue.

GDP growth, raising per capita income, changing life styles and removal of market distortions will fuel the growth of the beer market.

Low bitterness, no after taste, low calories, low alcohol content encourage consumer to use UBs product in household recipes.

Regularized sales in other states with the formation of Distribution Corporation similar to Karnataka.

The demographic profile in the country and the low per capita consumption of beer in comparison to the other countries offers the expectation of substantial and sustainable growth for beer in the next several years.

The alliance with Scottish and New Castle Plc (S&N) open a new arena to expand the United Breweries Ltds distribution network.

The beer segment is expected to grow by 17.2% by 2012. The Indian Spirits market is protected because of high tariffs on foreign liquors.

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5.4: THREATS

Future or potential competition from already established market participants. Growing competition from foreign companies. As other leading international brands in this category- Bud light, carls Light, Old Milwaukee Light or Miller Lite are planning to launch in the Indian subcontinent in the near future.

SAB Miller is attracting the semi urban consumers falling in the age group of 25-30. Excise duty and stringent norms has an adverse impact on the growth. The higher railway freight has pushed up cost of raw materials and inputs such as sugar and all these add to cost of production. Increase in the price of essential raw materials for production of alcoholic beverages due to shortage and inadequate availability, has affected production adversely.

Inflation is affecting the profit margin of the industry.

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CHAPTER 6 SUMMARY OF FINDINGS AND SUGGESTIONS

6.1: FINDINGS
Ware House: Negligence of the workers: Negligence of workers is become a treat to preserve and utilize the cartons in the required manner avoiding unreasonable wastage of the same. It appears as if they are not been instructed of their work-procedure and the expected manner of working. Workers are efficient enough to work, experienced, but not skilled. They look as if they are completely ignored of the sensitivity of bottle. They realize the fact only when they listen to the noise of bottle breakage. The coordination during work among the workers is lacking to the major extent due to which they have lost the consistency in working,

Lack of good supervision The irresponsibility of the workers been taken as granted: They are not made aware of the instructions of working procedure or working rule. They require the supervision in each and every step and people to control them. They are no people to ask them what they are doing and enquire them for misbehaviors. Misuse of the beer: They have the practice of drinking beer inside the warehouse. Even women drink the beer and are been supported by each other. Some of the torn cases torn by the workers for steeling of beer bottle are also been shown by the security guard.

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Traditional way of working: It is not the systematic procedure adopted in the work but illiterate skills and blind styles. They are bothered of loading the truck but not of how to load the truck in the better careful manner.

Workers are tearing the cartons with full of there conscious: It is the negligence of supervisors inside the warehouse who failed in detecting the activities of the workers. The result of which is the wastage of cartons and misuse of beer. The security inspite of knowing has failed to inform the authority. They tear the cartons putting there fingers in to the holes of the carton to steel the bottles.

Workers standing on the cases leading to the breakage of bottle: When the workers stand on the cases because of the weight-age and pressure the bottles inside the cartons especially the below kept cartons are breaking which is not avoidable unless the other measures are taken. But the workers sitting on the cartons, standing, walking for relaxing and recreating themselves should be avoided compulsorily which is causing major breakage of bottles inside the cartons.

In most of the places the wooden stands are not kept ignorantly, the consequence of which leading to the flow of liquid below the cases and spoiling the cartons kept packed for delivery.

The unsealed cartons are loaded to the truck ignorantly inspite of the knowledge : No doubt that they put the tapes to pack the cartons even while loading the truck but not by all and all the times. Tapes are not put even when storing inside the warehouse.

Workers throwing the wet cartons with the broken glasses pieces inside which on top of the cases leads to the further spoiling of the fresh cartons.

The new bottle packs are also been opened and few bottles are been taken off.

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Proper utilization of manpower to be looked into: Especially the young workers need observation and guidance. Benefit as well as the loss is more from that work group.

The corners of the warehouse are been misused, it can be considered as the dark place.

The upstairs portion of the warehouse may be utilized to the optimum. And there is a need of keeping palettes before storing the cases.

GODOWN

The gunny bags in which the barley/malt is packed are torn because of which the wastage of raw material is more and is spoiled too.

Some of the empty bottles were kept hidden inside, chances of breakage is more and it may get mixed up with raw material which is very difficult to find the micro glass pieces

Bulk of raw material is been wasted falling on the ground. It is also been moisturizing. (Its loosing its crispiness and freshness).

There are chances of rats being there in the godown. Also the place inside the godown may still be utilized to optimum level. No supervision so there is chances of steeling and misappropriations.

STORES:

The place inside the stores shall be widened, and can be utilized to optimum extent.

The leakage of rain water from the roof resulting in spoiling the materials kept on the stores.

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BOTTLING HALL [ENGINEERING] :

First and foremost there need to be affixed bottom tray to the conveyers in the bottling hall, which avoids major leakage of liquid falling and the ground which in turn avoids the major dust and helps in maintaining cleanliness.

The filling machines do not have the top hood facility, top hood is very essential to avoid the particles falling on to of the bottles to avoid the unwanted particles entering inside the beer bottle

It is very much necessary for the safety guards especially near the pasteurizers, conveyer passing from pasteurizer to labeling machine, and near the labeling machine also. In those places quantum of bursting of bottles is very high in numbers.

The hall requires the air out facility to the greater extent. So we can affix the exhaust fans for air out purpose.

And some openings may be made to get the good air from outside. The place of collecting the bottles should be made separate from the bottling hall. We can avoid dirt coming from outside, wastage of time and helps in selecting unbroken bottles.

Man power is not utilized properly. We may reduce the man power also. The Places, where the manual observation is required is ignored. That has to be vitally taken in to consideration.

We have more workers near the collection of bottles, it resulted in haphazard working condition, if we separate collection of bottles it helps in improving the working conditions, avoids accumulation of un-required

workers in the same place. They may be placed in the required places, or may also be removed.

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WORKERS ISSUES

They majorly require recreation facilities. They the sense of unsafety. It is of their requiremental observation that the maintenance is not been done properly, especially in watering, bottling and refrigeration departments.

They are very much disappointed with the maintenance of sanitation (toilets), their place of work (working environment).

They have the problem of mishandling of machines by previous shift workers who does not inform regarding it with the other before that other handles it.

The proper required tools are not provided to the departments. They have to borrow them from other departments.

It is of there response that they are facing the internal conflicts. They could not able to interact with there higher executives.

They are not satisfied with their wages, comparing with the other company workers.

OTHER PROBLEM AREAS

Water taps should be repaired or replaced, unnecessary wastage of water. In most of the places the leakage of rainwater from the roof causing damage to the materials and also on of reasons for dirtiness on the ground, measures shall be taken to stop the same.

In some of the places materials (storage tanks, pipes) are getting rusted. No dust bins anywhere. Lack of cleanliness. No proper sanitation facilities, especially to the visitors. Lack of recreation facilities, lack of appreciations. The dirt of bottling hall is spreading in warehouse premises too. Page | 96

Some part of warehouse premises is extended in to bottling hall. We have the unreasonable breakage of bottles and wastage of cartons while loading the truck.

There is no air outs in the bottling hall, which blocks the breathing air , lack of good air even to breathe. The hall is blocked or completely closed, there must be some openings so that we may get good air from outside.

Improper allocation and utilization of manpower.

CONCLUSION
UB Ltd is the well know organization with the brand Kingfisher, famous for beer especially India. As we can observe the growth of the company and advantages for its stability in the marketing point of view, the company has good vision in par with its mission in acquiring the first place in the market. One of the visions of any manufacturing company will be its increase of selling its product. The aim of the UBL is also to increase its sales from the sale of 6 bottles per second to be increased to 12. The company is also interested in launching the new products in order to cover the whole market and the company also has the required capability to fight against its rivalries. In the company cc cameras has to be fixed to avoid drinking of beer inside the bottling hall and warehouse.

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6.2: SUGGESTIONS
Supervisors may be placed in the warehouse and for godown. To avoid theft of bottles To bring fear and consciousness among workers. Workers negligent behaviour may be brought down to major extent. It is helpful for the Management in getting day to day accurate information. Opening of new bottling packages may be avoided completely. Cleanliness can be brought in maintained to greater extent. Supervisors can see to it that working instructions are strictly followed and the proper use of dustbins etc., are made of. The executives will be bit relaxed of supervision and work stress, and also can get accurate details regarding the working behaviour of workers. Avoiding the wastage of cartons lowers the cost of ware house department. Many other advantages may be expected.

The workers should be strictly instructed with the properly framed working rules. That makes them work in the expected qualified manner. Avoids mishandling of work, wastage of cartons, Helps in maintaining cleanliness, Moulds the workers working behaviour, They can also learn skills Workers also find interested in learning different working styles

Measures may be taken to avoid the bottling wastes in to warehouse. If possible the warehouse may be separated from bottling hall.

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 There must be affixed some exhaust fans in the bottling hall. Any other measures must be taken to avoid the polluted air block inside the hall

The doors/ entrances of the warehouse may be widened so that more than one truck may be loaded at a time in the same place. And it also saves the time, helps for good supervision, and avoids wastages to the major extent.

6.3 LEARNING EXPERIENCE IN THE ORGANISATION About working in the organization:

By working in this organization within the period of one and half month, I felt UNITED BREWERIES LIMITED is considering its employees as an asset of the companys growth. Hence it is a golden opportunity to interlink what I have learned in the classroom with practical functions of an organization.

I learnt the various managerial skills, Time management, Decision making, Coordination, and execution, and communication skills. I learnt from the employees the co-operation, commitment and decision in work environment.

About co-operation extended by management & employees:

Yes it was very good on the first day when I reported to the organization, the management allotted a project guide to help me in the course of organization study. My project guide gave me a brief description about the UNITED BREWERIES LIMITED. Then he further explained about the company in brief like number of departments and their respective heads.

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