GENERAL PROJECT

ON

“A STUDY ON PRIDE SHIPPING PRIVATE LIMITED”

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF

MASTER OF MANAGEMENT STUDIES (MMS)
(UNDER UNIVERSITY OF MUMBAI)

SUBMITTED BY
APARNA NAIR
MMS HR
(ROLL NO.: 171208)

UNDER THE GUIDANCE OF

Dr. Betty Sibil

2017-19
MAHATMA EDUCATION SOCIETY’S
PILLAI INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH
PANVEL- 410206

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 DECLARATION

I, APARNA NAIR (Roll No. 171208), student of Pillai Institute of Management Studies and
Research, hereby declare that this report on “ A STUDY ON PRIDE SHIPPING

PRIVATE LIMITED” has been submitted for the academic year 2018-19, in partial
fulfillment of the requirements for the award of the Master in Management Studies (MMS)
degree, as prescribed the University of Mumbai. This is a bonafide work undertaken by me
and has not been submitted to any other University or Institution for the award of any
degree/diploma/certificate or published anytime before.

I further certify that the information provided here is true and original to the best of my
knowledge.

Date:

Place: Navi Mumbai Signature:

Name: Aparna Nair

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 CERTIFICATE OF APPROVAL

This is to certify that Ms. APARNA NAIR student of Pillai Institute of Management Studies
and Research, New Panvel, has completed her project on “ A STUDY ON PRIDE

SHIPPING PRIVATE LIMITED” during the IV semester in partial fulfillment for the
award of Masters in Management Studies (MMS), for the academic year 2018-19. This
project work is original and has not been submitted to any other University or Institution for
the award of any degree/diploma/certificate or published anytime before.

Date:

Place: Navi Mumbai Signature of Faculty guide:

Name of the Faculty guide: Dr. Betty Sibil

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 ACKNOWLEDGEMENT

I would also like to thank my faculty guide Dr. Betty Sibil for her valuable expertise and
support.

I would also like to express my gratitude towards the director, Prof. Satish Nair and all other
faculty members of Pillai Institute of Management Studies and Research.

Finally I would like to thank all my friends who helped me directly or indirectly for
successful completion of this report. I feel privileged to have come in contact and worked
alongside such wonderful people.

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 EXECUTIVE SUMMARY

Operations management is often referred to as supply chain management process which

combines the process of all operations from the scratch by procuring of raw material, through
manufacture to the recycling of products at the end of the process.

Supply chain management is a component of logistics management that is used to meet

customer demands through the planning, controlling and implementation of effective
movement and storage of related information, goods and services from origin to destination.

In this project there is a brief explanation on the industry analysis as well as shipping analysis
is discussed with the help of various models. This project showcases the shipping industry
and its competitors. It also explains freight forwarders and the importance of documentation.

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 Sr. No Contents Page No.
Chapter 1
1 Introduction To Project
2 Chapter 2
3 PESTEL
4 PORETR’S FIVE FORCE
Chapter 3
5 SWOT
6 7s Framework
7 Value chain analysis
BCG Matrix
8 Stakeholder Matrix
References

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1. INTRODUCTION TO THE PROJECT

Operations management is often referred to as supply chain management process which

combines the process of all operations from the scratch by procuring of raw material, through
manufacture to the recycling of products at the end of the process.

Supply chain management is a component of logistics management that is used to meet

customer demands through the planning, controlling and implementation of effective
movement and storage of related information, goods and services from origin to destination.

Operations handle strategic issues including estimation of the size of manufacturing plants
and project management methods and implementation of structure of information technology
networks. The issues included in operations are the management of inventory levels,
including work-in-progress levels and raw materials acquisition, quality control, materials
handling and maintenance policies.

Operations study the use of raw materials and optimal use of resources. Managers utilize
numerous formulas such as the economic order quantity formula to determine when and how
large of an inventory order to process and how much inventory to hold in hand.

Operations management studies global and local trends, customer demand and the available
resources for production. Operations management understands the acquisition of raw
materials and use of labor in a cost effective and timely manner to deliver customer
expectations with zero error policy. Inventory levels are measured to have the excessive
amount in hand. Operations management is responsible for finding vendors that supply the
appropriate goods at reasonable prices and have the ability to deliver the product when
needed.

Problems are a part and parcel of any operation. Finding out solutions to problems adds to the
essence of work. Thus like any other trade, International trade does face problems in and
around the domain of air cargo logistics. Delving into the details of the various types of
problems would be of much help. Freight forwarders at times do not prefer to take the risk of
storing the shipper’s cargo at their own warehouses, so as to avoid giving demurrage for any
damages done to the cargo, to the client.

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2. INTRODUCTION OF THE COMPANY

Pride Pvt.ltd offers diligent, competent and efficient services and having total combined
strength of 30 staff and executives having 25 years experience and well versed in custom and
port formalities related to handling Export & Import of various types of cargos. 

2.1 ORGANISATION HISTORY

The Pride team, lead by Mr. Ajith Kodoth, Director, Pride Agencies Pvt. Ltd., has been an
expert in Logistics, Consolidation, NVOCC, Liner activities & Liquid Cargoes. The team
comprises of experienced, young and highly motivated professionals, dedicated to fulfil
customer expectations and providing the ideal global freight transport solutions that
international markets require from transportation partners worldwide. They are our back bone
and strength.

2.2 Brief detail about top management

The team is led by the top management that is Mr. Ajith Kodoth. There is a centralised
system followed by one person and others tend to follow the same.

2.3 Size of the organisation.

The size of the organization is small and consists of 25 employees. The company follows
centralised system where the head of the company decides the crucial and timely decisions.
When a company’s strength is small it can have a positive or negative impact. The positive
impact is of timely decision making. Negative impact is of centralised process leaving the
most vital part in the hands of the head of the company.

As part of the expansion / development plan, Pride Team are looking for a stable and reliable
partner to explore the possibilities entering into Consolidation, NVOCC, project cargo etc for
various destinations. 

Activities

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 The company is involved in the custom clearance of both imports and exports offering
shipping, consolidation, freight consultancy, documentation, warehousing, transportation,
octroi and drawback related services, arrange marine insurance, sea-services and air booking.

2.4 Vision, Mission & Values

 Vision
 Pride shipping wants to be in the position of most globally acclaimed professional and
innovative logistics solutions provider with greater emphasis on safety, quality and
timely delivery of goods and service.

Mission:

 To exceed the expectations of the customers by delivering high quality and cost-
effective service on time.
 To be the market leader in integrated logistics segment.
 To build good customer relationships.
 To implement zero error policy

Values:

 Passion- Energized action.

 Integrity- Honesty in every action.
 Quality- Perfection in every action.
 Commitment- Deliver as promised.
 Pioneering- One step ahead always.

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Chapter 2
INDUSTRY ANALYSIS

PESTEL
Political
The profitability is affected by the government policies and regulations of Logistics industry.
The political environment affects economic environment of a nation and international supply
chains of businesses. Moreover, political issues can also become hindrance to smooth
business operation. However, the government and Red tape can be a big problem in the Asian
nations. India is one such among countries where firms face more often political instability
due to the change in the government rule which affects the interest in Foreign Direct
Investment in our country. All these factors can make it difficult for the retail brands to
operate profitably in the international environment.

With GST now having replaced the multiple state taxes, there is no longer the long-prevalent
need to install a hub across all states. Companies can remodel their supply chains and
consolidate their hub operations to benefit from large-scale operations. It will also help them
to use efficient practices like bulk breaking and cross-docking through a centralised location.

Under GST, the tax on warehouse and services involving manual labour has increased to 18%
from the previous tax rate of 15%. With this change, a third-party Logistics Company will

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have greater incentive to provide services where the degree of value addition is high and
where input tax credit can be claimed. This, in turn, will help in the consolidation of storage
and warehouse sector.

With the convenience of entry across states by measures like the e-way bill, transportation
delays will be reduced, although it will also call for streamlined IT systems and readily usable
documentation at the entry points. For the third-party logistics companies, the costs of
designing a logistics network will be less, and asset-light firms will be able to adapt quickly
and reap more advantages in comparison to asset-heavy firms.

Political instability can be very difficult for a company to cope up. This can be battled with
the help of proper knowledge in policies and regulations.

Impact of GST on supply chain

Before we look at the GST impact on supply chain, it must be understood that supply chain
management is vital for the running of business organisations producing and distributing
merchandise. Each business has standards for inventory turnaround, and these must be
diligently adhered to in order to ensure optimum profit for the organisation. A loss of
inventory at any point will result in a loss of value.

Post the implementation of GST, the benefits accrued by entities in supply chain management
mechanism include:

1. Customisation of supply chain – Under GST, manufacturers can shift towards

tailored supply chain models as per customer requirements. The removal of stock
transfer benefits can help in increasing the share of direct dispatches for medium and
large-sized dealerships.
2. Superior inventory management – After the elimination of multiple state-level taxes
in lieu of a uniform GST rate, the stock points have been optimised and channel
inventories reduced. There will be fewer transit stays after GST, which will help in
advancing lead times while also reducing inventory levels at stocking points. With
more potential for consolidation, warehouse management can also become more
efficient.
3. Tangential decrease in incoming logistics costs – An impact of GST on supply
chain will also be seen in the form of tangential benefits for direct out-of-state

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 procurements and logistics costs. This can help manufacturers to expand their vendor
base outside state boundaries and alter the sourcing models profitably.

Economic:
For Trade and business economic factors has always been a centre piece. The state of the
world economy decides the state of sale and profits for the industry. The world economy has
rebounded and is growing.. India is one among the Asian nations who fetches one of the
highest labors export in the foreign market, which indirectly drives more opportunities and
growth for our nation. As Logistics industry is booming in India, the labor market is taking
off a lift at a good pace; hence this shows a good sign in the economical structure in our
country. All of these are very good sign for the Logistics industry. The better the shape of the
economy, the higher will be the revenue and profits for Logistics. Better economic scenario
means a growth in sales and overall better shape of the Logistic sector.
With GST now having replaced the multiple state taxes, there is no longer the long-prevalent
need to install a hub across all states. Companies can remodel their supply chains and
consolidate their hub operations to benefit from large-scale operations. It will also help them
to use efficient practices like bulk breaking and cross-docking through a centralised location.

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The country's logistics industry which is worth around USD 160 billion is likely to touch
USD 215 billion in the next two years with the implementation of GST, Economic Survey
today said. "With the implementation of GST, the Indian logistics market is expected to reach
about USD 215 billion in 2020, growing at a CAGR of 10.5 per cent," Economic Survey
2017-18 tabled in Parliament said. 
The Indian logistics industry which provides employment to more than 22 million people has
grown at a compound annual growth rate (CAGR) of 7.8 per cent during the last five years, it
said. It will be helpful in facilitating the credit flow into the sector with longer tenures and
reasonable interest rates, it said adding the infrastructure status will simplify the process of
approval for construction of multi modal logistics (parks) facilities that includes both storage
and transport infrastructure. 

Social:
Consumerism today, like trades unionism some century ago, is a pre‐dominantly middle class
concern. It provides an avenue for the articulate who are dis‐satisfied with the economic
balance of power in our society and/or its emphasis on materialism, to walk along. That it
should have become so is a matter for deep concern to marketing professionals since it was
supposedly their philosophy and belief that they were in communion with customers and their
role in a business was to ensure that it was meeting those customers needs and wants. 

The container shipping industry has for years taken responsible approach to different issues
regarding industry. In recent years, market, stakeholder, customer, and regulatory pressures
related to industry has driven significant changes in the way international container shipping
lines operate and do business. Considering that the industry transports more than one-third of
the value of global trade and provides more than 4.2 million jobs and represents a heavy
social and environmental footprint, these are developments that have a big impact in a variety
of sectors.

Technology:
Technological factors are now all the more important whether in terms of supply chain,
customer service. Due to the growth of technology, there has been an immense growth in
customer retail industry. Technology affects several things including experience. If Logistics
has enjoyed exponential growth then it is because of the additional convenience provided by
technology. A number of new technologies like AI and machine learning are going to change

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Shipment Tracking Systems. Internet of Things (IoT) and Radio Frequency
Identification (RFID) Autonomous Trucks and Drones. Enhanced GPS Accuracy. 
Iot in logistics helps in 1. Track deliveries from the vendor to the manufacturing facility. 2.
Track deliveries and materials around your manufacturing facility. 3. Track deliveries and
materials inside your manufacturing facility. 4. Monitor sensitive goods to avoid damage or
loss. 5. Monitor assets to mitigate risk.

The RFID reader is a network-connected device that can be permanently attached or portable.
It uses radio frequency waves to transmit signals that activate the tag. Once activated, the tag
sends a wave back to the antenna, where it is translated into data.

Enhanced GPS Accuracy

Innovation in GPS tracking app development offers a number of benefits to your
transportation business. From shipping, back-office procedures, performance, and
communication vehicle

Environmental:

Like the other industry sectors, the Logistics sector is also affected by the sustainability
concerns. Waste reduction, renewable energy and several other concerns related to
sustainability are there before the Logistics sector. The big companies have already invested a
lot in reducing their carbon footprint and in renewable energy. A carbon footprint is the
amount of greenhouse gases—primarily carbon dioxide—released into the atmosphere by a
particular human activity. Societal trends such as transparency, regulated carbon and resource
constraints, rise of rights and local governance, and socio-economic shifts have also speed up
the process of industry changes. These trends have brought to the industry additional
challenges such as greater expectations to control what goes inside the ‘box’ as well as
increased pressures to switch to low-sulfur fuels. While current environmental regulatory
changes are wide-ranging and have a significant impact on the industry, convinced that
further changes will come in the coming years. The rise of guidelines to achieve a regulated
industry to the top of the management agenda is happening at a time when customer demands
for greater reliability, agility, and lower costs already are exerting pressure on the industry’s
operating model. Customers are adding improved performance to the mix of expectations for
their supply chain logistics providers. Indeed, in the years ahead, some customers will want

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to look to transportation companies as strategic innovation partners instead of simply service
providers, thereby forcing greater differentiation in the industry. Until recently the industry
has chosen to take a defensive approach to sustainable behavior; many companies have
sought cover under the claim that sea transportation is inherently sustainable. This is no
longer a viable strategy for carriers that seek to service the world’s largest companies—
organizations that increasingly see performance as critical to their business. While most
major carriers have adopted performance-oriented measures such as slow steaming,
scrubbers, retrofitting, and new designs, few, if any, of these companies have taken a
strategic approach.

Legal:

To obtain necessary registration and compliance certifications logistics services require

certain registrations and Government compliance. In India, registration with International Air
Transport Association (IATA), Air Cargo Agent Association of India (ACAAI) are very
useful for freight forwarders. It may also be beneficial to be part of industry forums such as
CII Institute of Logistics to raise logistics industry related issues. Other important
registrations in India include Directorate General of Foreign Trade (DGFT) registration,
registration with the Income Tax Department, Registrar of Companies and related
Government Departments.

The following registrations are suggested for a logistics business:

 Private limited company registration

 Import export code (IEC)
 VAT (value added tax) registration
 Employee’s state insurance (ESI) or PF registration
 Trademark registration, when there is a unique brand name.

The distribution, transportation, and logistics industry is a tough environment governed by

the laws of distribution. Yet, companies also need to face economic crime or fraud which
forces them to navigate the regulatory minefield not only in their home country, but also in
every single territory in which they hold operations. The fact is that 45% of transportation
and logistics companies have experienced fraud in one form or another over the last two

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years. Although the damage is not counted in human lives, it remains damaging in many
ways and includes substantial financial costs, as well as damaging employee morale, the
vendor-supplier relationship, or the company’s competitive edge

ACTS that impact logistics

Restriction of Hazardous Substances

Registration, Evaluation, Authorization and Restriction of Chemicals

Traceability of pharmaceuticals and medical equipment

Regulations

Logistics has strictly been in abiding the law for its operations worldwide. The organization
also provides information security online and stands answerable in case of lawsuit

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PORTER’S FIVE FORCE ANALYSIS

The research analyzes the Retail Industry as a whole which is studied through

Michael Porter's Five Forces Analysis. The Porter's Five Force Analysis basically helps us to
understand the power of supplier, power of buyer, what are the new entrant threats, threat for
substitute etc. This analysis helps us to contribute more information on how industry can
sustain in a new environment and retain its position even after there are new entrants in the

Threat of
new
entrant

Rivalry
among Bargaining
Threat of
Substitute existing firms power of
Suppliers
within an
industry

Power of
Buyers

market

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1.        Threat of New Entry

Overall threat of the new entry is moderate to high.

Profitable industries that yield high returns will attract new firms. New entrants eventually
will decrease profitability for other firms in the industry. Unless the entry of new firms can be
made more difficult by incumbents, abnormal profitability will fall towards zero or perfect
competition, which is the minimum level of profitability required to keep an industry in
business.

Shipping Industry has following characteristics:

      High capital requirement

      Profit margin is high.
      Chance of expansion into new sector is less.
      Government restriction is less as industry is globally driven

Capital requirement of the shipping industry is huge, so the threat from the new entrants is
less. As the capital is very large the profit depends on the success. Because all exporters and
importers know the best mode of transport for their goods is the shipping line.

2.        Threat of Substitution

Overall threat of substitutes is moderate to high.

Substitution threat is the result of change in the behaviour of the buyer towards competitor or
against company. Substitution may also result due to change in quality of service, increase in
freight rates and increase in transit time. It may affect the company to certain extent as they
have to start new search of customer, establish strong relations and educate them on company
policies and systems. Switching costs increase more at times of downturn due to decrease in
supply of business from customers.

If the oil price shoots up then the company is forced to increase their transportation charges.
Due to the increased rates in shipping and delayed timing to reach the destination on time,
customers will go for the substitutes like airline, or even trucks.

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If they are not satisfied by the service they will jump to other substitutes who can give better
rates and services.

      Availability of the substitutes is high.

      Price of substitutes is high.
      Quality and performance of the substitutes is high.

3. Bargaining Power of Suppliers

Overall bargaining power of suppliers is low.

The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw
materials, components, labor, and services (such as expertise) to the firm can be a source of
power over the firm when there are few substitutes. If you are making biscuits and there is
only one person who sells flour, you have no alternative but to buy it from them. Suppliers
may refuse to work with the firm or charge excessively high prices for unique resources.

Suppliers barely make any difference to companies involved in shipping line business,
especially to the dominating shipping companies. While it may affect to certain extent to
small players who are struggling to establish within the industry:

      Profit of the supplier is less.

      Switching cost of the supplier is high.

4.        Bargaining Power of Buyer

Overall bargaining power of Buyers/customers is high.

Buyer is one of the strongest factors in shipping line business. Buyers may be in form of
importer or exporter, clearing agent, freight forwarder or manufacturer of goods.

Shipping business is based on two main core factors price and quality of service. Price refers
to freight rate at which one container is decided by shipping company to transport from one
place to another.. The bargaining power of buyer is summarized as follows:

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  Numbers of the customers are high.
 Switching cost is low.
 Customer's information and awareness is less.
 Customer's ability to demand is high.

Number of customers is high in this field due to the export and import of goods from
different parts of the world. But the similar price and quality will lessen the attractiveness.
Customer's ability for demand is high, because operators are in threat of losing customers.
Switching cost of customers is low because of more number of operators.

5. Competitive Rivalry/ Competitive Environment

Overall competition in the industry is high.

For most industries the intensity of competitive rivalry is the major determinant of the
competitiveness of the industry. Having an understanding of industry rivals is vital to
successfully market a product. Positioning pertains to how the public perceives a product and
distinguishes it from competitors. A business must be aware of its competitors marketing
strategy and pricing and also be reactive to any changes made.

Rivalry exists in every field and it is part of the day to day businesses. It is sometimes bad
because companies have to share hard earned profits with competitors and sometimes goods
because it gives opportunities to one company to stand in line with another in terms of quality
of service, business strategy, job satisfaction etc. The competitive rivalry can be summarized
as follows:

  Number of competitors is high.

  Industry growth is high.
 Competitor's move to new customer is low.

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Chapter 3

COMPANY ANALYSIS

4.1 Swot analysis

SWOT analysis is a framework used to evaluate a company's competitive position by

identifying its strengths, weaknesses, opportunities and threats. Specifically, SWOT analysis
is a foundational assessment model that measures what an organization can and cannot do,
and its potential opportunities and threats.

SWOT analysis is a basic, analytical framework that assesses what an entity — usually a
business, though it can be a place, industry or product — can and cannot do, for factors both
internal and external. Using environmental data to evaluate the position of a company, a
SWOT analysis determines what assists the firm in accomplishing its objectives, and what
obstacles it must overcome or minimize to achieve desired results: where the organization is
today, and where it may go.

Given below is the SWOT analysis of pride shipping limited :

Strength

End to end logistics services

Pride provides end to end logistics, where service providers take care of inventory
management, storage and distribution. By eliminating as many layers and steps as possible,
logistics specialist can optimize distribution and minimize disruptions from road congestion,
vehicle breakdowns and many errors possible in documentation.

Good in house training programs

The training programmes starts right from the beginning when an employee enters the
organisation. The organisation sees were the employee lacks and trains accordingly.

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More experienced workforce

The head of the firm has more experience by working in many companies and having a hands
on experience in this field.

Use of participatory management and bottom up approach

The firm follows participative style of management. Where the employees get to give
feedbacks and their voice is being heard.

Strong brand equity and loyal customers

Due to the prompt and timely service, the firm has more loyal clients which increases the
business and is more profitable.

Specific interest group provides specific, relevant information to clients

The specific interest group is specialised department who has more experience and aware of
the dynamics in their respective area.

Weakness

Lack of professional working teams

Lack of professional working is all about not making best use of the time given. This can be
considered as a lack of discipline

Limited brand awareness

The firm should start marketing their brand using various platforms. It is not easy going
around with less awareness.

Technical weakness

This comes with very little knowledge in softwares and getting more technical assistance.
The softwares are more expensive which makes the work harder.

Lack of skilled manpower

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It is very hard to find skilled human resource in the market. Even if one finds the skilled
personal it is very expensive to hire one. It may cost the organisation a life time of
investment.

Opportunity

Global expansion through tie ups

The major opportunities to keep the market open for expansion and new tie ups. This could
improve the business in long run.

Expansion and penetration

Penetrating into a market is very important, it is all about grabbing that particular grabbing
the opportunity and being visible in the market.

To use cooperative strategies

A cooperative strategy is an attempt by a firm to realize its objectives through cooperation

with other firms, in strategic alliances and partnerships (typically joint ventures), rather than
through competition with them. In the global economy, many of these strategic alliances are
international in scope. Pride uses this strategy to cooperate its working style with the
management. by taking new initiatives to expand into new ventures like tying up with Fedex
in European countries and Aramex in gulf countries.

Threats

Tough competition from local and domestic services

Threat of new competitions is a well discussed area were the firm notices potential threat
from outside and should be considered affectively. This acts as a threat because you could
lose your clients to the market without a prior notice. Which if not considered could drain
your business.

Threat of new player entering in this industry

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The new player in the market could be anything like an enormous threat which could give
better services and could have a hold of better technology.

Increasing cost of fuel due to government policies is a threat which increases the
transportation cost of cargos.

Unstable macroeconomic and political environment

New policies like GST became more complicated

Service complaints of customer can portray bad image

Complaints are not good for any business. This could blacklist you from the market which is
the end of business.

7s framework

1) Organization structure: Pride gives employees the authority to make their decisions
and makes them more accountable through participative style. More feedbacks
should be encouraged by pride. The structure of pride is very easy and less

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 complicated as shown below.

CEO

OPERATIONAL
MANAGER
MANAGER

EXECUTIVE Asst.
EXECUTIVE
OFFICER MANAGER

STAFFS STAFFS STAFFS

2) Strategy: Pride uses the strategy of centralisation. Centralisation is about giving the
maximum authority to the top management by relying less on the employees. This can
help them manage their employees precisely. In addition, in order to increase the
bargaining power of SMEs which can even reduce the cost of operations. The strategy
used in the company is to utilize the network of people and connecting with clients.
Another strategy is to be creative with competitive pricing and allocating cheaper
methods for providing services

3) Systems: The issue is very important and can help an organization’s work efficiency
like new software with less complicated systems are adequate trainings. The firm uses
Management Information System and training design system.

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 4) Styles: It is traditional run business. Entrepreneurs should embrace modern styles and
technologies. For example, using GPS in trucks for delivering goods to customers can
reduce the cost of transportation by saving time because of no lost drivers. In addition,
the management styles of owners are very important because they have to perform
many rule of the organization and how they handle various situations depends on their
style of management and how the employees adopt to the same

5) Skill: SME often do not send employees to training, most of them train by doing, so
sending employees to train at outside organizations can help them gain more
knowledge and can refresh their work attitudes. In addition, owners should also go to
outside training in areas such as modern management or marketing strategy. This will
help them be receptive to new ideas to develop their business and transfer knowledge
to their employees.it is 10 unskilled employees and remaining are the skilled workers
who can train the rest to improve the working.

6) Staff: Pride consists of 25 employees. The staff size is small and manageable. Job
development is important, and is completed by creating employee motivation using
various tools. These tools include raises in income, greater benefits, and year-end
bonuses. These could motivate the employees to work more efficiently and feel more
responsibility to their organization.

7) Shared values: Creating a strong organizational culture and letting employees help set
up the culture is important because it can help people work well and can make a
business survive; however, a good organizational culture needs serious support from
the owner and manager.

Value chain analysis

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 Inbound

 Documentations. The main work done by the shipping company is the

documentations of various products imported and exported through the freight forwarders.
 Agricultural commodity chains. They include a sequence of fertilizers and
equipment as inputs and cereal, vegetable and animal production as outputs. Several
transportation modes are used for this production system, including railcars, trucks and grain
ships. Since many food products are perishable, modes often have to be adapted to these
specific constraints. Agricultural shipments tend to be highly seasonal with the ebb and flows
of harvest periods. Ports are playing an important role as points of warehousing and trans-
shipment of agricultural commodities such as grain. A growing share of the international
transportation of grain is getting containerized. In 2007, 100 million tons of grain were
carried on bulk ships while an additional 10 million tons was carried by container.
 Energy commodity chains. Include the transport of fuels (oil, coal, natural gas, etc.)
from where they are extracted to where they are transformed and finally consumed (see for
instance International oil transportation). They are linked to massive flows of bulk raw
materials, notably by railway and maritime modes, but also by pipeline when possible. They
tend to be very stable and consistent commodity chains since a constant energy supply is
required with some seasonal variations.

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 Metal commodity chains. Similar to energy commodity chains, these systems
include the transport of minerals from extraction sites, but also of metals towards
the industrial sectors using them such as shipbuilding, car making, construction materials, etc.
 Chemical commodity chains. Include several branches such as petrochemicals and
fertilizers. This commodity chain has linkages with the energy and agricultural sectors, since
it is at the same time a customer and a supplier.
 Wood and paper commodity chains. Include collection over vast forest zones,
namely Canada, Northern Europe, South America and Southeast Asia, towards production
centers of pulp and paper and then to consumers.
 Construction industry. Implies movements of materials such as cement, sand, bricks
and lumber, many of which are local in scale.
 Manufacturing industry. Involves a much diversified set of movements of finished
and semi-finished goods between several origins and destinations. These movements will be
related to the level of functional and geographical specialization of each manufacturing
sector. Such flows are increasingly containerized.

Operations

 Management of shipments. Refers to cargo transported by the owner, the

manufacturer or by a third party. The tendency has been for corporations to sub-contract their
freight operations to specialized providers who provide more efficient and cost effective
services.
 Geographical coverage. Implies a wide variety of scales ranging from
intercontinental, within economic blocs, national, regional or local. Each of these scales often
involves specific modes of transport services and the use of specific terminals.
 Time constraint. Freight services can have a time element ranging from express,
where time is essential, to the lowest cost possible, where time is secondary. There is also a
direct relationship between transport time and the level of inventory that has to be maintained
in the supply chain. The shorter the time, the lower the inventory level, which can result in
significant savings.
 Consignment size. Depending on the nature of production, consignments can be
carried in full loads, partial loads (less than truck load; LTL), as general cargo, as container
loads or as parcels.

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 Cargo type. Unitized cargo (containers, boxes or pallets) or bulk cargo requires
dedicated vehicles, vessels and transshipment and storage infrastructures.
 Mode. Cargo can be carried on a single mode (sea, rail, road or air) or in a
combination of modes through intermodal transportation.
 Cold chain. A temperature controlled supply chain linked to the material, equipment
and procedures used to maintain specific cargo shipments within an appropriate temperature
range. Commonly relates to the distribution of food and pharmaceutical products.

Outbound

 Just-in-Time (JIT) and synchronized flows are becoming the norm in production and

distribution systems. International transportation is shifting to meet the increasing needs of
organizing and managing its flows through logistics. In spite of the diversity of transport
services supported various value chains, containerization is adaptable enough to cope with a
variety of cargo and time constraints. This makes the deliveries on time without considerable
delays. This builds the loyal customer build up and reduced complaints.

Marketing sales

The marketing sales in logistics are high on word of mouth and less in the marketing of the
forwarding company. Mainly the company tries to come up with zero defects to please the
customers with amazing services and JIT concepts.

Services

This mainly runs with the application of just in time with prompt services and less errors in
the process easier and less complicated. The business mainly runs on customer satisfaction
and less in terms of going door to door.

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BCG MATRIX

Star
High Market growth and high relative market share
a) Storage and warehousing
The storage and warehousing plays an important role in the freight forwarding
industry to export fresh products. It is positioned in the high market growth and high
relative market share, as it is in turn profitable and placed in star.
b) Cargo handling services
Cargo handling comes as the middlemen and the container services. The post
important aspect in the import and export business is cargo handling as the main
source of the business is cargo and the right container with right temperature.
c) Courier services
Courier services turn out to be profitable and belongs to star with which it can be seen

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 to be part of the logistics services, the company has to deliver services and handle the
documents with help of courier services. Major part requires courier service
Question
High market growth and low market share

a) Wholesale trade service

The wholesale trade services belongs to the high growth and low market share
segments and the growth of such sectors seems to be high but the services yield very
less market share and cannot be compared with any other market domain.

b) Retail logistics
Retail logistics’ is the organist process of managing the flow of merchandise from the
source of supply to the customer.
Large retailers deal in a wide variety of products. This has created a need for a
systematic planning of movement of numerous goods until they are delivered to the
customer. Retail logistics ensures that everything is in place to offer better delivery
and service at lower prices by way of efficient logistics and added value

c) 4pl
Fourth-party, the 4PL organization is an interface between the client and multiple
logistics services providers are ideally, all aspects of the client’s supply chain are
managed by the 4PL organization

Cash cow
Low growth and high market share

a) Road transportation
Road transportation makes for high market share as sea and air is preferred, yet it has
low growth. It has got higher investment rates and slowly growing.

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Dog
Low market growth and low market share

a) Railways transport
One of the main reasons for low growth and low market share is rail transport is
heavy cost. Trains need high capital to build and maintain and the cost is magnified
when a whole rail network is to be built. The cost of construction, maintenance and
overhead expenses are very high compared to other modes of transport. Also, rail
transport cannot provide door-to-door service as it is tied to a particular track.
Intermediate loading or unloading involves greater cost, more wear and tear and
wastage of time.

b)

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STAKEHOLDER MATRIX

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1. Keep satisfied
High power low interest
a) Cargos
Cargos are usually used when the goods are transported via plane or ship. This
is the main reason why there are cargo ships and cargo planes. The term “cargo”
is used specifically on goods only; it does not mean the payment or the money
being charged for the transport. Thus, they have a higher power and lower
interest.

2. Manage closely
High power high interest
a) Indian government
Indian government mandates the rules and regulations mandated in the documentations of the
goods exported or imported. Thus, they have an important role in the business while they are
crushed by various rules and change in taxation policy also affected the industry.
b) Government regulations of exporting nation
The rules and regulations of another country is looked upon closely without any mistakes.
Even the slightest possible mistake can cost the industry a lifetime of their job. Thus, it is
important to look after the rules because they have a high interest and high power.

3. Monitor
Low power and low interest
a) Households
The households has a very little interest and power towards the shipping industry as the
freight cannot control the taste and preferences and they only act as a middlemen and not the
producer of goods.

4. Keep informed
Low power and high interest
a) Clients
The clients have low power when it comes the rules and regulations of shipping and when it
will be shipped. Once it is with the freight forwarders it depends on the documentations and
the person who receives the products.

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b) Employees
Employees in a business have a very little power on the business but they have a higher rate
of interest on getting the work done. Thus, they are needed to work on time to time basis and
the job is more challenging.

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References
1. Economic times, 2nd July, https://economictimes.indiatimes.com › ... › Transportation ›
Shipping / Transport/
2. Capital float blog, 7th nov,2017, https://blog.capitalfloat.com/gst-impacts-logistics-
supply-chain-industry-india/
3. GST INDIA ,Jan 21st, 2017
https://www.gstindia.com/impact_of_gst_on_logistic_company/
4. Linkedin https://www.linkedin.com/pulse/challenging-opportunity-freight-forwarders-
india-vijay-kumar-chouhan
5. Slideshare, 2015, https://www.slideshare.net/ResearchOnIndia/freight-forwarding-
market-in-india-2015-sample
6. Prnewise https://www.prnewswire.com/news-releases/logistics-market-in-india-
2015---forecasts-to-2020-for-the-301-billion-market-505212221.html
7. Bizevibe, april 10, https://www.bizvibe.com/blog/logistics-industry-in-india/
8. Business today https://www.businesstoday.in/current/economy-politics/domestic-
logistics-sector-likely-have-robust-2018-cbre-report/story/276001.html
9. Simplilearn, https://www.simplilearn.com/reasons-to-do-six-sigma-certification-
article
10. Edx, https://www.edx.org/learn/six-sigma
11. Master of project academy, https://blog.masterofproject.com/six-sigma-certification-
eligibility/
12. ASQ, https://asq.org/cert/faq/required-experience
13. APL, https://www.apl.com/wps/portal/apl/etools/tracking
14. Slideshare, https://www.slideshare.net/aditya30990/export-import-procedures-
documentation-logistics
15. Small business, https://www.thebalancesmb.com/transport-documentation-2221059
16. Six sigma, https://www.isixsigma.com/methodology/kaizen/kaizen-six-sigma-
ensures-continuous-improvement/
17. HBR, https://hbr.org/2014/01/what-vuca-really-means-for-you
18. Ipleaders, https://blog.ipleaders.in/logistics-laws/
19. Investopedia, https://www.investopedia.com/terms/e/end-to-end.asp
20. Small business, https://smallbusiness.chron.com/start-logistics-firm-33193.html

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