SUMMER TRAINING REPORT ON EXPORT MARKETING

PREPARED AND PRESENTED TO HAL

UNDER THE GUIDANCE OFCOMPNIES GUIDE NAME Faculty Guide

Submitted in partial fulfillment for the award of degree of MASTER OF BUSINESS ADMINISTRATION
SUBMITTED BY-

PREFACE
Most of the organizations prefer internal manning of positions than external hiring for obvious for motivational benefits and cost effectiveness. Even though training emphasizes on increasing the performance level of an employee, a continuous training function enables the performance level of an employee, a continuous training function enables the organization to develop employees for future responsible positions in the organization itself.

ACKNOWLEDGEMENT
Accomplishment of tasks and objective is achieved by guidance and
blessings of God, My parents, elders, teachers, and Director

__________________ And ______________ Training manager HR Department of HAL of course by the grace of Almighty. It is a great opportunity for me to register my acknowledgements to all of them. I wish to acknowledge my deep sense of gratitude project Guide and

_____________ all faculty of MBA Department for accomplishment of this project report as well as for every sphere pertaining to successful occupation of this course. Finally, I pay my regards to all, who directly or indirectly helped in collection, compilation, editing and other related works for accomplishment of this project study.

EXECUETIVE SUMMARY

Training is the most important function that directly contributes to the development of human resources which have to be developed. The organization should create conditions in which people acquire new knowledge and skills and develop neatly patterns of behavior and styles.

Topic : EXPORT MARKETING H.A.L LUCKNOW

Brief introduction about topic
Training and development programmes are necessary in any organization for improving the quality of work of the employees at all levels, particularly in the world of fast changing technology, values and environment. The main difference between two is in respect to the levels of employees for whom these are meant and the content and techniques employed. Training and development plays a major role in building ones personality. Capability of a person depends on his ability to work and the type of training one receives, therefore, more of the organizations undertake some kind of training for employees. In Indian organization, training and development activities have assumed high importance in recent years because of their contribution to the achievement of organization objectives. Employee training is the process whereby people learn the skills, knowledge, attitudes and behavior needed in order to perform their job effectively. No big industrial organization can long ignore the training and development needs of its

employees. Even the most careful selection does not eliminate the need for training, since people are not mounded to specifications and rarely meet the demands of their job adequately.

RESEARCH METHODOLOGY
Every project work is based on certain methodology, which is a way to systematically solve the problem or attain its objectives. It is every important guideline and lead to completion of any project work through observation, data collection and data analysis. Accordingly, the methodology used in the project is as follows: Defining the objectives of the study Framing of questionnaire keeping objectives in mind (considering the objectives) Feedback from the employees Analysis of feedback Conclusion, findings and suggestions. SELECTION OF SAMPLE SIZE In order to take a reasonable sample size and not to disturb the functioning of the organization, a sample size of reasonable strength of the Company has been taken in order to arrive at the present practices of training in the Company. Accordingly, 50 officers have been selected at random from all the departments of the organization and feedback forms (questionnaire) have been obtained. The data has been analyzed in order to arrive at present training practices in the organization. SAMPLING TECHNIQUE USED

The technique of Random Sampling has been used in the analysis of the data/Random sampling from a finite population refers to that method of sample selection, which gives each possible sample combination an equal probability of being picked up and each item in the entire population to have an equal chance of being included in the sample. This sampling is without replacement, i.e. once an item is selected for the sample, it cannot appear in the sample again. DATA COLLECTION To determine the appropriate data for research mainly two kinds of data was collected namely Primary & secondary data as explained below: PRIMARY DATA Primary data are those, which were collected afresh & for the first time and thus happen to be Original in character. However, there are many methods of collecting the primary data; all have not been used for the purpose of this project. The ones that have been used are: Questionnaire Informal Interviews Observation SECONDARY DATA Secondary data is collected from previous researches and literature to fill in the respective project. The secondary data was collected through: Text Books Articles Journals Websites

STATISTICAL TOOLS USED The main statistical tools used for the collection and analyses of data in this project are: Pie Charts Tables

FINDING 1. The survey showing that all the employees have attended various training programme inside the organization. They said that HAL have separate training department at head office. They organize training programme on various topic to develop the capacity building of their employees. 2. As evident from the data the training helped the employees who were a part of it to improve their strength for the job. About 90% employee said that it motivates an employee for better performance of his duties and helps in developing his inner and outer personalities. Rest 10% employees were uncertain about it because of any reason.

TABLE OF CONTENTS
OBJECTIVES Introduction Products Of HAL Introduction to HAL (ADL) Organizational profile of the company History Product line Performa Research Methodology Sources of data Methods of data collection Data analysis and Findings Conclusion Suggestions Questionnaire

Bibliography

TABLE OF GRAPHS

Graph 1 Graph 2 Graph 3 Graph 4 Graph 5 Graph 6 Graph 7 Graph 8 Graph 9 Graph 10 Graph 11

63 64 65 66 67 68 69 70 71 72 73

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HINDUSTAN AERONAUTICS LIMITED

GENERAL PROFILE
Hindustan Aeronautics Limited (HAL) based in Bangalore, India, is one of Asias largest aerospace companies. Under the management of the Indian Ministry of Defense, this public sector company is mainly involved in aerospace industry, which includes manufacturing and assembling aircraft, navigation and related communication equipment, as well as operating airports. HAL built the first military aircraft in South Asia and is currently involved in the design, fabrication and assembly of aircraft, jet engines, helicopters and their components and spares. It has several facilities throughout India including Nasik, Korwa, Kanpur, Koraput, and Lucknow. The German engineer Kurt Tank designed the HF-24 Marut fighter-bomber, the first fighter aircraft made in India. 11

HISTORY OF THE COMPANY

Hindustan Aeronautics Limited (HAL) has a long history of collaboration with several other international and domestic aerospace agencies such as the Airbus Industries, Boeing, Sukhoi Aviation Corporation, Israel Aircraft Industries, RSK MiG, BAESystems, Rolls-Royce plc, Dassault Aviation, Dornier Flugzeugwerke, Aeronautical Development Agency and Indian Space Research Organization.

HAL was established as Hindustan Aircraft in Bangalore in 1940 by Walchand Hirachand to produce military aircraft for the Royal Indian Air Force. The initiative was actively encouraged by the Kingdom of Mysore, especially by the Diwan, Sir Mirza Ismail. The British Government bought a one-third stake in the company by 12

April 1941 as it believed this to be a strategic imperative. Later in April 1942, it bought out the stakes of Walchand Hirachand himself and other promoters so that it can act freely. The decision by United Kingdom was primarily motivated to boost British military hardware supplies in Asia to counter the increasing threat posed by Imperial Japan during Second World War. However, the Mysore Kingdom refused to sell its stake in the company but yielded the management control over to the British Government. Thus, within 2 years of establishment, it was nationalized.

Hindustan Aeronautics Limited (HAL) came into existence on 1st

October 1964.HAL was set up as an amalgamation of Hindustan Aircraft Limited along with Aeronautics India Limited and Aircraft Manufacturing Depot located in Kanpur, India. Hindustan Aeronautics Limited has it headquarter located at Bangalore, India. HAL is one of the largest aerospace companies which are run by the Ministry of Defense. The principal activities of HAL involve manufacturing aircraft, aerospace, navigation, and instruments for communication purposes. Apart from these, few other activities performed by HAL are Designing, manufacturing, and collecting aircraft, jet engines, helicopters, along with their elements and spares. Hindustan Aircraft Limited which located at Bangalore was incorporated by the industrialist the late Seth Walchand Hirachand December 1940. The Government of India became a stakeholder of the company in 1941 and seized the management department in 1942. HAL has 19Production Units 13

and 9 Research and Design Centers in 7 locations in India. The Company has an impressive product track record - 12 types of aircraft manufactured with in-house R & D and 14 types produced under license. HAL has manufactured over 3550 aircraft, 3600 engines and overhauled over 8150 aircraft and 27300 engines. HAL has been successful in numerous R & D programs developed for both Defence and Civil Aviation sectors.

HAL has made substantial Progress in its current projects:

Dhruv, which is Advanced Light Helicopter (ALH) Tejas - Light Combat Aircraft (LCA) Intermediate Jet Trainer (IJT) Various military and civil upgrades. Dhruv was delivered to the Indian Army, Navy, Air Force and the Coast Guard in March 2002, in the very first year of its production, a unique achievement. HAL has played a significant role for India's space programs by participating in the manufacture of structures for Satellite Launch Vehicles like. PSLV (Polar Satellite Launch Vehicle) GSLV (Geo-synchronous Satellite Launch Vehicle) IRS (Indian Remote Satellite) NSAT (Indian National Satellite)

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HAL has formed the following Joint Ventures (JVs):

BAeHAL Software Limited Indo-Russian Aviation Limited (IRAL) Snecma HAL Aerospace Pvt. Ltd. SAMTEL HAL Display System Limited HALBIT Avionics Pvt. Ltd. HAL-Edgewood Technologies Pvt. Ltd. INFOTECH HAL Ltd

Apart from these seven, other major diversification projects are Industrial Marine Gas Turbine and Airport Services. Several Co-production and Joint Ventures with international participation are under consideration. Hals supplies / services are mainly to Indian Defence Services, Coast Guards and Border Security Forces. Transport Aircraft and Helicopters have also been supplied to Airlines as well as State Governments of India. The Company has also achieved foothold in export in more than 30 countries, having demonstrated its quality and price competitiveness.

HAL has won several International & National Awards for achievements in R&D, Technology, Managerial Performance, Exports, Energy

Conservation, Quality and Fulfillment of Social Responsibilities. 15

 HAL was awarded the INTERNATIONAL GOLD MEDAL AWARD for Corporate Achievement in Quality and Efficiency at the International Summit (Global Rating Leaders 2003), London, UK by M/s Global Rating and UK in conjunction with the International Information and Marketing Centre (IIMC).

HAL was presented the International - ARCH OF EUROPE Award in Gold Category in recognition for its commitment to Quality, Leadership, Technology and Innovation.

At the National level, HAL won the "GOLD TROPHY" for excellence in Public Sector Management; instituted by the Standing Conference of Public Enterprises (SCOPE).The Company scaled new heights in the financial year 2006-07 with a turnover of Rs.7, 783.61 Cores.

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PRODUCTS OF HAL

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PRODUCTS IN CURRENT MANUFACTURING RANGE

SU 30 MKI Twin-seater, Multi-role, Long range Fighter / Bomber / Air Superiority Aircraft.

MIG-27 M Single-seater Tactical Fighter / Bomber with Variable sweep wings.

MIG-21 VARIANTS Single-seater Front line Tactical Interceptor/

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Fighter Aircraft.

AIRCRAFT WESTERN ORIGIN

JAGUAR INTERNATIONAL HAL commenced production of Jaguar International - deep penetration strike and battlefield tactical Support Aircraft in 1979 under license from British Aerospace, including the engine, accessories and avionics. Jaguar aircraft is designed with 7 hard points (4 under wing, 2 overawing and 1 under fuselage) capable of carrying a huge load of several of weapons in different combinations meet Customers needs. to the

DHRUV (ADVANCED LIGHT HELICOPTER) With a proven track record and established technology for manufacture of helicopters and its components, the Helicopter Division commenced series 20

production of Dhruv (Advanced Light Helicopter) in 2000 - 2001. The ALH is a multi-role, multi-mission helicopter in 5.5 ton class, fully designed and developed by HAL. Built to FAR 29specifications, Dhruv is designed to meet the requirement of both military and civil operators.

CHETAK

The Helicopter Division manufactures the versatile and multi-purpose Chetek Helicopters for Civil and Military applications both for Domestic and International customers.

CHEETAH The Helicopter Division manufactures the

versatile and multi-purpose Cheetah Helicopters for Civil and Military applications both for Domestic and International customers. .

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OBJECTIVES OF HAL

To ensure availability of Total Quality People to meet the

Organizational Goals and Objectives.

To have a continuous improvement in Knowledge, Skill and

Competence (Managerial, Behavioral and Technical)

To promote a Culture of Achievement and Excellence with emphasis

on Integrity, Credibility and Quality

To maintain a motivated workforce through empowerment of Individual

and team building.

To enhance Organizational Learning To play a pivotal role directly and significantly to enhance Productivity, Profitability and improve the Quality of Work Life

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VISION OF THE COMPANY

"To make HAL a dynamic, vibrant, value-based learning organization with human resources exceptionally skilled, highly motivated and committed to meet the current and future challenges. This will be driven by core values of the Company fully embedded in the culture of the Organization".

MISSION OF THE COMPANY

Enable all those working for HAL to give their best to ensure their all-round growth as well as that of the organization. To become a globally competitive aerospace industry while working as an instrument for achieving self-reliance in design, manufacture and maintenance of aerospace Defence equipment and diversifying to related areas, managing the business on commercial lines in a climate of growing professional competence. "To become a globally competitive 23

aerospace industry while working as an instrument for achieving self-reliance in design, manufacture and maintenance of aerospace Defense equipment and diversifying to related areas, managing the business on commercial lines in a climate of growing professional competence ".

VALUES OF THE COMPANY

CUSTOMER SATISFACTION

We are dedicated to building a relationship with our customers where we become partners in fulfilling their mission. We strive to understand our customers ' needs and to deliver products and services that fulfill and exceed all their requirements.

COMMITMENT TO TOTAL QUALITY

We are committed to continuous improvement of all our activities. We will supply products and services that conform to highest standards of design, manufacture, reliability, maintainability and fitness for use as desired by our customers.

COST AND TIME CONSCIOUSNESS

We believe that our success depends on our ability to continually reduce the cost and shorten the delivery period of our products and services. We will achieve this

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by eliminating waste in all activities and continuously improving all processes in every area of our work.

INNOVATION AND CREATIVITY

We believe in striving for improvement in every activity involved in our business by pursuing and encouraging risk-taking, experimentation and learning at all levels within the company with a view to achieving excellence and competitiveness.

TRUST AND TEAM SPIRIT

We believe in achieving harmony in work life through mutual trust, transparency, co-operation, and a sense of belonging. We will strive for building empowered teams to work towards achieving organizational goals.

RESPECT FOR THE INDIVIDUAL

We value our people. We will treat each other with dignity and respect and strive for individual growth and realization of everyone's full potential.

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EVOLUTION AND GROWTH OF THE COMPANY

The Company's steady organizational growth over the years with consolidation and enlargement of its operational base by creating sophisticated facilities for manufacture of aircraft / helicopters, aero engines, accessories and avionics is illustrated below.

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ORGANIZATION STRUCTURE

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ACHIEVEMENTS / AWARDS
HAL has won several International & National Awards for achievements in R&D, Technology, Managerial Performance, Exports, Energy Conservation, Quality and Fulfillment of Social Responsibilities.

HAL is the only one PSU which has been included in NAVRATNA
category.

HAL was awarded the INTERNATIONAL GOLD MEDAL AWARD for

Corporate Achievement in Quality and Efficiency at the International Summit (Global Rating Leaders 2003), London, UK by M/s Global Rating and UK in conjunction with the International Information and Marketing Centre (IIMC).

HAL was presented the International - ARCH OF EUROPE Award in

Gold Category in recognition for its commitment to Quality, Leadership, Technology and Innovation.

At the National level, HAL won the "GOLD TROPHY" for excellence in
Public Sector Management, instituted by the Standing Conference of Public Enterprises (SCOPE)

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HALS SERVICES

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HALS DIVISONS

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HALS EXPORTS

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CUSTOMERS OF THE COMPANY

INTERNATIONAL CUSTOMERS

Airbus Industries, France APPH Bolton, UK BAE Systems, UK Chilton, UK Coast Guard, Mauritius Corporate Air, Philippines Cosmic Air, Nepal Dassault Aviation, France Dowty Aerospace Hydraulics, UK EADS, France ELTA, Israel Gorkha Airlines, Nepal

DOMESTIC CUSTOMERS

Air India Air Sahara

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 Airports Authority of India Bharat Electronics Border Security Force Coal India Defense Research & Development Organization Govt. of Andhra Pradesh Govt. of Jammu & Kashmir Govt. of Karnataka Govt. of Maharashtra Govt. of Rajasthan Govt. of Uttar Pradesh Indian Air force

FINANCIAL HIGHLIGHTS OF HINDUSTAN AERONAUTICS LTD

Hindustan Aeronautics Limited (HAL) has cruised past the Rs.10, 000 crore mark for the first time with a sales turnover of Rs.10373 crores during the Financial Year 2008-09. The profit of the Company (Profit before Tax) soared to Rs.2335 crores.

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The highlights are given below:

(Rupees in
Crores)
Particulars Sales 20.27% VOP 8791 2007-08 8625 2008-09 10373 11811 2335 1740 2255 2638 34.35% 7.90% 6.62% Growth-Over

Profit before tax 2164 Profit after tax Gross Block 16.98% 1632

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35

FLOW OF WORK

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Foreign suppliers are paid by any of the following methods as stipulated in the P.O./License agreement/contracts (a) Letter of Credit (b) Sight Draft. (c) Advance Payment (d) Direct Payment.

Bills of entry: It is a document filled by custom officers for giving custom clearance to
the goods received from foreign countries. Bills of entry are received by the agents before receiving of goods. It includes: 1 2 1. Total number of packages 3 4 2. Total amount of duty paid 5 6 7 8 9 3. Invoice value 4. Freight 5. Insurance 6. Exchange rate 7. Accessible value

RECEIVING CUM DISCREPANCY REPORT:

RDR (Receiving cum discrepancy report) is prepared at the time of receiving of goods within organization. Pricing of RDR is done by two methods: 1 2 1. If the payment is done in advance and goods received later, then the RDR is 3 priced at the value of exchange rate of the last day of the previous month. 4 5 2. If payment is done on the same day then the RDR is priced at value at which payment is done.

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FLOW OF RDR (Receiving cum Discrepancy Report) ON RECEIPT OF MATERIAL

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CORE BUSINESS OF HAL

Design and development of fixed and rotary wing Aircraft, engines, Avionics and accessories. Manufacturing, maintenance, repair and overhaul of
Fighter, transport and trainer Aircraft

Helicopter Aero engines Accessories Ground support Equipments Manufacturing of structural components for satellite and launch vehicles Software development for aerospace application Design consultancy HAL carries high burden of responsibly towards Indian Armed Forces. 95% of the product produced by HAL is for IAF.AL is engaged in production of 20 types of Aircraft out of which 11 are indigenously developed and other are developed in-house after getting technology under license from different countries. The countries from which HAL has obtained license are: U.K FRANCE
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 SWEDEN RUSSIA

ACCESSORIES DIVISION,LUCKNOW
Accessories division of HAL was established in 1970 with the primary objective of manufacturing systems and accessories for various Aircraft and Engines to attain self sufficiency in this area. At present it is turning out over 974 types of accessories. The division right from the beginning laid A lot of emphasis on developing indigenous capability for design and development of various systems and accessories. The division is diversified not only in other defence applications like Tanks and Armoured vehicle for Army, it explored possibility of commercial applications of its- accessories. The division has been in forefront of accessories development and supply not only to Indian Air Force but to division today has a prime name in Aviation market and various International countries are interested to join hands with it for future projects. Division has also made steady progress in areas of export. PRODUCT DIVERSITY Due to diverse technology the division is divided into 3 factories and more than 900 accessories are being manufactured in various engineering. FACTORY 1. Mechanical NO OF ACCESSORIES 537

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2. Instrument 3. Fuel Total

412 25 974

The division is engaged in repair and overhaul of accessories, with turnaround-time is best in the industry. This has been the forte for over two decades from piston to supervise Aircraft[both civil & millitary].Site repair facilities are extended by HAL team of expert engineers/technicians. SERVICES PROVIDED FOR; Military Aircraft MIG series Jaguar Mirage-2000 Sea-harrier AN-32 Kiran MK-I/MK-II HPT-32 SU-30[proposed] Civil Aircraft Dornier AVRO HS-748 Helicoptors

Chetak [aloutte] Cheetah [lama] ALH [IAF/NAVY/COAST GAURDS/CIVIL]

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Manufacture and supply of complete range of Components of Cheetah and Chetak helicopters,Jaguar and MIG Series aircraft to domestic and international customers to support their fleet at most competitive prices and delivery lead time.

NEED EOR MARKETING IN HAL There was a huge cut back in Defence expenditure and budgetary support. Liberalization in economy making purchasing costlier. Only best can survive in this competitive age. Large number of marketing opportunities. Large export potential Constant increase in non-civil operations.
Decrease in work load because of betterment of technology.

To earn foreign exchange and increase international trade. GOALS OF MARKETING To increase customer base To acquire new customers To improve existing order book To obtain further workload To create visibility of divisions To become financially self reliable To increase total customer satisfaction To explore the thrust areas of new avenues as customer
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 To advertise products and facilities of the division through

Exhibition, seminar etc.

Closer and prompt interaction with; -component marketing -airframe division -authorised agent in foreign countdown

ACTION BEING TAKEN TO MEET

MARKETING GOALS Defining marketing strategies HAL participates in various air shows[domestic and international]for exhibition of various ranges of aircrafts And services being offered by HAL.It also maintains a Website[www.hal-india.com] wherein it provides information about its products and services. Doing SWOT Analysis Defining Product-Market Strategy Mix 1.>It relates products with market and demands. Identifying Suitable Markets It regularly observes and studies the need of various Countries and based an their requirement identifies the Market for its products.

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 Creating Specific Marketing Material It is engaged in customized production i.e.need basic Production of aircrafts and its accessories. Closer Prompt Interaction With; -Airframe Divisions -Associated Departments -Corporate Marketing Divisions Corporate with selling agents,licensors and collaborators Manage camp offices in different countries in order to get Feed back from the customers and solving their queries. For mainting closer and better relations it also stations liaiSon offices of Airforce,Navy and Army divions of HAL. Role Of Marketing Department In HAL The Division was initially entrusted the task of fulfilling the needs of Indian Defence Forces.However,due to change in aviation scenario liberalization of the economy in the country,the management Has identified Indigenisation and Export as the key thrust areas. To pursue the above strategy,the Marketing Cell[now marketing department]was constituted in the division in December 1992 marketing department serve a single contact point for all the overseas, Civil[domestic] and DRDO customers and it deals in; Identification of suitable market.

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 Create visibility of division and its products in market. To increase customerbase/acquire new customers. Preparation of Tecno-Commercial Proposals. Improve order book/obtain work-load. To in increase total customer satisfaction. Create specific marketing materials. To advertise products and facilities of the division through

Exhibition, seminars etc. Corporate marketing Airframe divisions Authorized agents in foreign countries Licensors/collaborators Associated departments

Closer and prompt interactions with

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WORKING OF MARKETING DEPARTMENT

EXPORT MARKETING Supply of products: This is broadly categorized as under :a) b) ADL product range. Customized requirements i.e. Sub-Contract.

Technical/Commercial Proposal against RFQ/RFP : Enquiries from overseas customers for submission pf proposals / quotations for their defence & civil needs are received in Marketing Department. The Techno-Commercial proposals are prepared by Marketing Department in consultation with all associated departments and the same after approval by competent Financial Authority (CFA) is forwarded to the customer. The system flow Chart for the activities/interactions involved is illustrated at Annex-3.1A . Execution of Purchase Orders : Purchase Orders/Contracts from overseas customers received in Marketing Department are reviewed and compared with TechnoCommercial proposals submitted by ADL. It is ensured that Purchase Order is in line with ADL proposal and Technical & Commercial requirements of customers can be met by ADL differences, if any are sorted out by written communication/Purchase Order amendments.

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Repair & Overhaul : Enquiries from overseas customers regarding confirmation on ADL capability for undertaking repair/overhaul of items is received by Marketing Department. Feasibility confirmation and indicative prices are intimated to customer in consultant with associated departments and approval by CFA. On receipt of Repair Order and unserviceable unit from the customer, the unit is loaded to Assy & Test shop for Snag confirmation and repair work assessment including replacement of defective parts. Based on the work involved the Repair/overhaul prices applicable are worked out and same is intimated to customer along with Turn Around Time (TAT). On receipt of go-head and acceptance of price intimated by ADL from customer, the repair work in finally taken up.

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The System Flow Chart for the activities / interactions involved is illustrated as follows : EXPORT MARKETING SYSTEM FLOW CHART I A) Supply of Products Technical / Commercial proposal against RFQ / RFP

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Execution of Purchase Order Supply of Products

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MAIN OBJECTIVE OF PROJECT

To prepare the Aircraft / Country Matrix

To find prospective international customer and country following parameters were scanned and analysed an the basis of which above matrix is prepared:
1. ECONOMY : The consideration of economy is done in order to

evaluate the basic nature of economy. For instance a country having the industrial and mixed economy who may be self sufficient in manufacturing Aircrafts.
2. RESOURCES :

The need for this parameter arose in order to

know the real strength of the country i.e., if a country is rich in any resource then synergistic relations with the country can be easily established such as country is rich in oil and gas resources may not be good enough in other resource such as food products and this deficiency can be easily overcome by establishing synergy. There may be a country having poor resources in what we are rich and the parameter can be considered for delivering the prospective customers for HAL.
3. INDUSTRY :

The nature of Industry of a country can be helpful

in determining the real nature of country and whether there is scope of business with the country.
4. FINANCE AND TRADE :

Helps in determining financial

condition of a country, various financial institutions present,

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trading policies of country and various trading partners with whom the country is comfortable with.
5. DEFENCE EXPENDITURE : To know how much a country is

prepared to actually incur on Defence armaments. The more the percentage of Defence expenditure, the higher the rate of being prospective Customer.
6. RELATIONSHIP OF COUNTRIES WITH INDIA :

This is

most vital ingredient of all parameters. Until or unless the relationship with other countries are sound enough we cannot approach them. For example although Pakistan is having all the Aircrafts range manufactured by HAL but HAL would never like to supply Aircrafts to Pakistan.
7. THREAT PERCEPTION : this is optional criteria for judging

prospective customers. There are various countries who are having no threats from any other country like U.S.A. , Oman but still are having wide range of Aircraft to make themselves powerful whereas there are some countries who are having threats from other countries and their purpose of keeping Aircraft is to protect themselves e.g., India and Pakistan.

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OBSERVATION
After the analysis it was found out that the Oman is the most prospective customer for Jaguar (Aircraft) segment with high defence expenditure of 27.6 % with a very friendly relation with India and therefore has been rated 1st position. Then comes Ecquador in 2nd position with enormous economic potential followed by Nigeria and France. In case of DO-228, Mauritius has been rated 1st because of its good terms with India, then comes Bhutan followed by other countries. In Helicopter range that is SA-316 (Cheetah) Argentina stands at the top followed by Ecquador, Bolovia, Toga, Chile and Peru respectively. Lastly for other ranges of Aircrafts, U.A.E stands 1st due to its good trade relations with India followed by Nepal, Dominician Republic, Austria and Belgium respectively.

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OBSERVATION
Research Methodology is type of blueprints prepared depending on objective of the study. A research calls for development the most efficient plan of gathering the needed information research methodology is the specification of methods and procedures for acquiring the information needed to structure or to solve the problems. It is overall pattern of framework of the project that stipulates what information is to be collected; from which resources and by what procedures, although research designs may be classified by many criteria, but the most useful to my project were exploratory studies. The major of the exploratory research are concerned with the drawing of inferences that are used as the basis of management action Despite the necessity for flexibility, in exploratory study design, we followed three separate stages that are usually included in exploratory studies and typically conducted in the sequence listed below:

1st Stage : The preliminary data collection has been done from secondary sources ( books, company, manuals etc). 2nd Stage : collection of information from internet and encyclopedia of various countries for understanding the economy, trade, finance, relationship with India etc.

3rd Stage : Discussions with company officials, participating in companys seminar and presentation, interviewing the persons who are knowledgeable about the subject area being explored.

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SWOT ANALYSIS
Strength: Reduction of manpower.

It has 19 production units and 9 research and design centers in 7 locations in India.

Efficiency of employees is approx.100%.

Has the monopoly over the market in aircraft maintenance and manufacturing business in India.

Is one of the Navratna company.

It supplies mainly to Indian Defense Services, Coast Guards and Border Security Forces. Being totally government owned company, it gets a lot of benefits and tax exempted.

Weakness: Technology is weak in comparison to other countries. No proper work distribution because planning is weak. Work place is not cleaned before starting of shifts. No facility for entertainment during break time inside the factory. Overlapping of shifts due to which there is loss of work.

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Opportunities Proper planning, training, recruitment etc. Indigenization of parts.

The Indian government is asking for technology transfer in all its deals with HAL being the designated manufacturer of such items. HALs recent accordance to navratna status will give it more autonomy in functioning which could possibly make HAL into a success story like ONGC.

Some of HALs indigenous designs like Dhruv and the recently launched. LAH (Light Attack Helicopter) have been received with applause in the international.

Threats: Production suddenly stops due to change in government policy. If orders are not completed on time then import from outside. Inability to develop new technology may affect its customer base. Entry of foreign players. Foreign players are entering new joint ventures with local private companies to enter the market .

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Proforma

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PROFORMA: AN INVITATION TO QUOTE

Royal Air force of Oman, Supply Depot, P.O. Box No. 776, Postal Code 111, Sultanate Of Oman.

Fax No. : 00 968 320854 Email Tel : rafosupd@omantel.net.om : 00 968 320853

RAFOSD/ITQ/A/ /04

Sub: Invitation to quote for routine requirements incoterms FCA (Basis)

Please provide a quotation for the following item/s, as available ex-stock Oman on suitably packed for International Export, by land, sea or air where delivered to our contracted freight forwarded.

PLEASE NOTE: should an item offered by your company differ in Part number, description or NSN to the item requested by RAFO, we will require

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documentation traceable to OEM or other recognised Authority, confirming that the item offered is an alternative or super session to the item requested.

ITQ

Part No.

Description

Qty

DoQ

FSN/NSN

IPC details

Cell

*************

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PROFORMA: QUOTATION FOR ITEMS

Hindustan Aeronautics Limited, Corporate Office. MKTG/OMAN-13/1/694 Dated: 07 Oct 2006

The Officer Commanding, Supply Depot, Royal Air Force of Oman, P.O. Box No. 776, CPO SEEB 111 Sultanate Of Oman. Fax: 00 968 320854.

Dear Sir,

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Quote for Items

1. Reference is made to your emails forwarding us the ITQs. 2. We are pleased to submit our best unit price for the following items; some of them were not available with HAL earlier. Sl. No. 1. 2. 3. 4. *ROO: Receipt of Order. 3. The quotes are FOB, New Delhi and are valid till end Oct 04. The payment may be against HAL invoice. The purchase order may kindly be addressed to Senior Manager (Marketing), HAL, AD, PB No. 215, PO HAL, Lucknow 16, India to avoid any delay in the supplies. 4. Thanking you and awaiting your earliest PO. Yours Sincerely, For Hindustan Aeronautics Limited ,(S. Srivastava) Ref. No. -Part No./ Nomenclature -Qty -Unit Price (Us$) -Delivery Lead Time 12 weeks from ROO* 24 weeks from ROO* 04 weeks from ROO* 16 weeks from ROO*

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Chief Manager (Marketing)

*************

PROFORMA: REPAIR ORDERS

Royal Air Force of Oman. Repair Order

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Dated: 12 Feb 2007 Page_of_. Order No: Type: Repair Order (RO) Order Date: To: Hindustan Aeronautics Limited, AD Lucknow, India. Fax No 12/03/2007 : RAFO Supply Depot, P.O. Box No. 776, Postal Code 111, Muscat, Oman.

Phone No: Email Priority : : ROUT

Line Part No. --

Serial No. --

Condition TIMCNDSE

Description --

DOQ Qty EA --

Unit Price --

Repair Requisition No:________________. Total (in US$) =

Special Instruction: Critical Repairable insurance is required. Cross-references: Advice Note No. Warranty Details : : Checked Varified

62

Defect Report No. :

For RAFO use only:Remarks and cross references: For repair Vote Code : Budgeted repair Cost :

Request Advice Cost of repair/ Overhaul after appraisal. Authorisation Approved/ Unapproved Name Appointment Signature Append Order instruc. to PSCO.

PROFORMA: PURCHASE ORDERS

Royal Air Force of Oman. Purchase Order Dated: 12 Feb 2007

63

Page_of_. Order No Type (PO) Order Date : To: Hindustan Aeronautics Limited, AD Lucknow, 226016. India. Fax No : RAFO Supply Depot, P.O. Box No. 776, Postal Code 111, Muscat, Sultanate of Oman. : : Purchase Order

Phone No: Email Priority : : ROUT

Line Part No. -Description --

Serial No. -IPC Details --

Condition --

Description --

DOQ --

Qty --

Unit Price --

Quota Ref: _________. Last Order Date: __/__/____. Remarks:

P.F. No.: ___________.

Contract No.: ________.

Total (in US$) = Total Order Vale (in US$) =

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Vote Code : ____________.

Checked

Verified

For Office use only:Remarks and cross references: Authorisation Approved/ Unapproved Name Appointment Signature Append Order instruc. to PSCO.

*************

PROFORMA: PURCHASE ORDERS

HINDUSTAN AERONAUTICS LIMITED ACCESSORIES DIVISION LUCKNOW MARKETING DEPARTMENT Sale Order

65

No.

ADL/MKTG/0708 Date : 25th Mar 2007 Notification of acceptance of order only, this is not an authorisation for work to be commenced. Relevant work order will be issued by the production engineering. Customer and his address Royal Air Force Of Oman, Supply Depot, P.O. Box No. 776,Postal Code 111, Muscat, Authority Order No. Terms of Payment Advance Collected Disposal or delivery instructions Special Instruction Sl. Part no./ N o. 1. 2. 3. description Qty Unit Sl. No. Sultanate of Oman. As listed against each item. With in 30-45 days after dispatch from India. NIL (Generally we do not take it from Oman.) 1. Packages to be marked RAFO R 2. Freight charges to be paid by HAL, chargeable from customer. Inspection Authority: HAL QUALITY CONTROL. Order Reference Unit Price (US$) I M F Dely. Schd. RDR Reference Factory

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________________

Chief Manager (Marketing)

*************

PROFORMA: DESPATCH OF ITEMS

HINDUSTAN AERONAUTICS LIMITED ACCESSORIES DIVISION LUCKNOW MARKETING DEPARTMENT

ADL/MKTG (E)/OMAN/06-07

Dated: 22nd Mar 2007

The Officer Commanding, RAFO Supply depot, Royal Air Force Of Oman,
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Sultanate of Oman. [Fax No.: 00 968 320854.]

Sub: Despatch of Items RAFO. Dear Sir, We are pleased to inform you that the following items have been despatched from India to Supply depot, RAFO, as details given below: Sl Part description/ Qty . N o. 1. 2. 3. supplied/ Sl.No. Order No./ Date D.A. No. Dated Amount (US$) Airway Bill No./ Flight Details

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2. We assure you of our continued support and looking forward for further orders. Best regards, Chief Manager (Marketing) Tele Fax: 00 91 522 2340322 E-mail: halldmktg@rediffmail.com ************

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PRESENTATION OF DATA ANALYSIS AND FINDINGS

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Various countries were scanned on the basis of the factors as mentioned in the methodology, rank was provided to these countries on the basis of the factors from 1 to 10,1 being the country highly probable to 10 being the least prospective customer for Hal. But in order to give the rank weight age chart was prepared in which the maximum parameter of 10 was allotted to each parameter. The Aircraft wise rating as arrived above is given below: RATING OF PROSPECTIVE COUNTRIES JAGUAR 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. OMAN EQUADOR NIGERIA UNITED KINGDOM FRANCE MAURITIUS BHUTAN NIGERIA THAILAND IRAN MALDIVES MALWI GERMANY CAPEVERDE ERITERIA

DORNIER ( DO-228 )

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RESEARCH METHODOLOGY: It was totally based on questionnaire, personal interview, and observation. The departmental analysis is based on the observation which I made during period that I have spent during my internship and it is also based on my personal work that I was asked to work. SOURCES OF DATA: The source of data in my project was the employees of HAL. I gather the information from employees for my project. METHODS OF DATA COLLECTION: Primary Data: The primary data has been collected through questionnaire, personal interview and departmental analysis. Secondary Data: 1 1. Website of HAL. 2 2. Company monthly journals. 3 3. Training manual on cost reduction provided by HAL. 4 4. Accounting manual and Budget manual provided by HAL. 5 5. Pricing policy of HAL. TOOLS AND TECHNIQUES OF ANALYSIS: Data Analysis:
1

1. The introduction of an online website for any company of todays

world is a boon. Cause growth and expansion will be a promising factor as the internet makes the world a smaller place to do business. This was introduced in the year in the year 2000 by HAL.

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AIRCRAFT / COUNTRY MATRIX

COUNTRY ECONOMY RESOURCES INDUSTRY TRADE & FINANCE
Metals and Natural gas are leading export goods. National banks and financial institutions provide financial aids

DEFENCE EXPENDITURE

RELATIONSHIP WITH INDIA

A/C

BOLIVIA (S.America)

Agriculture (70%)

Well endowed with Zinc, Tin, Antimony, Tungsten and abundant source of energy

Mining-70% of F.E. earner, food processing etc.

1.95% of total budget

Satisfactory

SA-315B

Bhutan

Agriculture, Assistance by India, ADB, UN

Land locked country and has transit agreement with INDIA

Manufacturing

Free trade with India, 90% of imports from India

2% of total budget

Very friendly. Leading trade partner.

DO-228

73

AIRCRAFT / COUNTRY MATRIX

COUNTRY

ECONOMY

RESOURCES

INDUSTRY

TRADE & FINANCE

Fish processing. Few Financial institutions present.

DEFENCE EXPENDITURE

RELATIONSHIP WITH INDIA

A/C

Cape Verde (W.Africa)

SSIs,Agriculture earns reveue from International Airport situated

Less natural resources but rely on fish and volcanic rock

Textiles and Pharmaceuticals

7% of total budget

Satisfactory

DO-228

Chile

Agriculture

Rich mineral deposits.Copper

Mining, Fish processing, textiles, wood products

30% trade with Asian Contries

3.9% of total budget

Satisfactory

SA-315B

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AIRCRAFT / COUNTRY MATRIX

COUNTRY

ECONOMY

RESOURCES

INDUSTRY

TRADE & FINANCE

National Bank provides Finance

DEFENCE EXPENDITURE

RELATIONSHIP WITH INDIA

A/C

Eriteria (Africa)

Agriculture (80 %)

Gold, Potash, Iron, Live stock

Petroleum & Refinery

6%

Satisfactory

DO-228

Germany (Central Europe)

Advanced economy. Tertiary sector trade

Lignite, Coal, Steel. Ships, chemicals, Machinery. Low natural resources

Oil & natural gas, Steel, Electronics Machine

Trade with EC members, UN, Japan, Austria

20 %

Provide machinery to India for ALH. Leading prospective customer

DO-228

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AIRCRAFT / COUNTRY MATRIX

COUNTRY

ECONOMY

RESOURCES

INDUSTRY

TRADE & FINANCE

Bank of Greece and other state controlled banks. Trade with Germany and Italy

DEFENCE EXPENDITURE

RELATIONSHIP WITH INDIA

A/C

Greece

Least developed country of EU. Chronic BOP problems

Few resources mainly Bauxite

Steel, Alumunium, Cements & Textile

6 % of GDP

Satisfactory

DO-228

Iran

Planned economy, Industrial economy

Oil & Natural gas

Machinery & transport equipments, refining & Mineral Industry

Trade with Western Europe,Tehran, Japan, Asia

3%

Provide machinery to India for ALH. Leading prospective customer

DO-228

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AIRCRAFT / COUNTRY MATRIX

COUNTRY

ECONOMY

RESOURCES

INDUSTRY

TRADE & FINANCE

Active financial sector. Lot of foreign investment. Major partners are Japan, Singapore & S.E. Asian countries

DEFENCE EXPENDITURE

RELATIONSHIP WITH INDIA

A/C

Malaysia (S.E. Asia)

Diversified and fast growing

Rubber and Palm oil

Electronic equipments, appliances, chemical products, textiles

7%

Trying to strengthen relationship

Mirage

Maldives

Fishries

Millet, Yams, Melons, Coconut, Fish

Fishing, tourism, shipping, coconut processing

Thailand, USA & Srilanka

3%

Satisfactory

DO-228

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AIRCRAFT / COUNTRY MATRIX

COUNTRY

ECONOMY

RESOURCES

INDUSTRY

TRADE & FINANCE

Large number of Indians contribute in trade

DEFENCE EXPENDITURE

RELATIONSHIP WITH INDIA

A/C

Mauritius

Mixed

Sugarcane, Tea, Tobacco, Potatoes

Tourism, Rum processing of Sugar & Tea

5%

Very good

DO-228

Oman

Well-off Middle eastern economy

Oil

Crude oil production, refineries

Joined WTO. Privatization of economy. Low inflation have body of commercial law to facilitate F.I.

27.6 %

Very good

Jaguar

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AIRCRAFT / COUNTRY MATRIX

COUNTRY

ECONOMY

RESOURCES

INDUSTRY

TRADE & FINANCE

National banks look after financial aspect. Imports machinery & equipments and industrial raw material

DEFENCE EXPENDITURE

RELATIONSHIP WITH INDIA

A/C

Myanmar

Least developed region and agriculture economy

Opium

Textile, Pharmaceuticals , Oil refinery & Paper mills

3.4 %

Very good

SA-316

Nepal

Agriculture

Small and Barely developed

Jute, Rice

Industrial production is small segments. Depends on India and have BOP problem

4.5 %

Very good

SA-316

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AIRCRAFT / COUNTRY MATRIX

COUNTRY

ECONOMY

RESOURCES

INDUSTRY

TRADE & FINANCE

DEFENCE EXPENDITURE

RELATIONSHIP WITH INDIA

A/C

Nigeria (W.Africa)

Modern Market economy

Renewable and non-renewable, Crude oil, natural gas, coal, Tin

Mining, Cements, Textiles, canned food, Aluminum products

Central bank helps in providing financial assistance

13 %

Satisfactory

DO-228

Peru (S.Amreica)

Agriculture, less developed economy

Copper, Iron, Lead, Zinc, Phosphates

Automobiles appliances, Steel, Textiles, Cement

Central Reserve Bank, National bank and development Finance Corporation. USA chief partner of trade

2.1 %

Satisfactory

MirageSA-315B

AIRCRAFT / COUNTRY MATRIX

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COUNTRY

ECONOMY

RESOURCES

INDUSTRY

TRADE & FINANCE

National Bank provides financial aid. Major Imports are machinery, transport and construction equipments. Major partners are France & Germany

DEFENCE EXPENDITURE

RELATIONSHIP WITH INDIA

A/C

Togo (W.Africa)

Advanced Economy. Open door and non discriminate and encourages private investors

Phosphates, Bauxite, Iron-ore, uranium, Gold, Diamond

Mining and Quarrying, Petroleum refinery, phosphoric acid plants

4.6 %

Good

SA-315

U.A.E.

Oil

Oil refinery & Exploration

Imports transport machinery equipment. U.S., Australia, Japan are trading partners

40.9 %

Regular Customer of India

SA-316

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AIRCRAFT / COUNTRY MATRIX

COUNTRY ECONOMY RESOURCES INDUSTRY TRADE & FINANCE
Imports consumer goods, industrial raw goods. Banking system collapsed

DEFENCE EXPENDITURE

RELATIONSHIP WITH INDIA

A/C

Equador

BOP problems, Poverty

Petroleum

Petroleum, Food processing, wood products, chemicals

Good

Jaguar

Portugal

Services based economy

Forest (pine, Oak & Chestnut), coal, Copper, Titanium

Textile, Chemical, Paper, footwear, Glassware

Main export is wine, canned sardines, cork. Bank of Portugal looks after finance

6.6 %

Satisfactory

SA-315B

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AIRCRAFT / COUNTRY MATRIX

COUNTRY

ECONOMY

RESOURCES

INDUSTRY

TRADE & FINANCE

DEFENCE EXPENDITURE

RELATIONSHIP WITH INDIA

A/C

Thailand (S.E. Asia)

Investment oriented based on Agriculture.

Tin

Manufacturing, Cottage, Textiles, teak carving.

Bank of Thailand is central bank

11.6 %

Good

Do-228

Malawi

Agriculture.

Not enough for commercial use.

Cotton textiles, Canned food stuff.

Main export is wine, canned sardines, cork. Bank of Portugal looks after finance

3%

Satisfactory

Do-228

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Table 1: showing the improvement of the division on introduction of a website:

Feedback Management level Labor level Yes No Percentage 97% 3%

B R G A S O IN TH A R PH H W G E IM O E E T O D IS IO O PR V M N F IV S N N TH IN R D C N O W B ITE E T O U TIO F E S
Rercentage 1.2 1 0.8 0.6 0.4 0.2 0 Mn a agem n et level Labor level F eedb ack P ercen tage

F d ack ee b

ANALYSIS: 97% of the workers / employees are aware that the website has helped the division to improve in its companys dealings and has helped the company to progress in the new economy of todays world. INFERENCES: The remaining 3% are those workers who are at the lowest cadre of work who do not have sufficient knowledge about the website of the organization. 1 2. The knowledge about the website should be fair among the people who work in the organization to conclude that the workers are aware as to where the company is heading to in the 21st century. HAL being a premier defense industry in the field of aviation has to always keep up with the other nations and therefore adopt new technology.

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Table 2:showing the awareness level of the web by the workers in the organization:
Response / Levels Aware / Yes Not aware / No Management level 98% 2% Labor level 87% 13%

BAR G RAP S OW H H ING T E AWARE H NES L V OF E EL T E WE BY T E WORK RSIN TH OR ANIZ ION H B H E E G AT

100% 80% 60% 40% 20% 0%

Aware / Yes
Manag ent L em abor lev el lev el R esponse v lev /s el

Not aware / No

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Table 3:representing the customers who respond to the website:

Customers Defense customers Foreign customers Corporate customers Civil customers Percentage 85% 45% 6% 5%

B GR AR APHS HOWIN TH CUS G E TOMER S WH R O EPON TO TH WEB ITE D E S

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Defense cus ers tom F oreig n cus ers tom Corporate cus ers tom Civ cus ers il tom

Percentag e

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Table 4: representing the number of customers who respond voluntarily to the website:
Options Most of them All Few Very few Response in percentage 30% 40% 90% 70%

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% R esponse in percentag e

Most of them All F ew Very few

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Table 5: showing customers who placed order through net:

Customers who contact Defense customers State government Corporate customers Civil customers Percentage 70% 20% 7% 3%

70% 60% 50% 40% 30% 20% 10% 0% Percentag e D efens cus e tom ers S tate g overnm ent C orporate cus tom ers C cus ivil tom ers

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Table 6: representing international customers over the web:

Customers Many Few Very few In percentage 10% 20% 5%

20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% In percentag e

Ma ny F ew Veryfew

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Table 7: representing importance of customization to customers:

Feedback Very important Important To some extent Not important Response 90% 80% 50% 5%

90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0% R pons es e
Veryim porta nt Im porta nt T som extent o e Not im porta nt

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Table 8: showing the sales of the division for the past 4 years:
Years 2001-2002 2002-2003 2003-2004 2004-2005 Sales (in crores) 338.14 328.5 415.14 424.15

450 400 350 300 250 200 150 100 50 0 S ales (in crores ) 2001-20 02 2002-20 03 2003-20 04 2004-20 05

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Table 9: showing the profits of the division for last 4 years:

Years 2001-2002 2002-2003 2003-2004 2004-2005 Profit (in crores) 46.5 65.9 62.55 51.66

70 60 50 40 30 20 10 0 Profit (in crores ) 2001-2002 2002-2003 2003-2004 2004-2005

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Table 10:showing new prospective customers over net:

Customers Civil customers Corporate customers State government Defense customers Percentage 10% 15% 20% 100%

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Table 11: showing reasons for drawbacks in CRM over web:

Reasons for drawbacks Delay in reply Negligence Failure of system Other means Percentage of effect 20% 30% 40% 10%

40% 35% 30% 25% 20% 15% 10% 5% 0% Percentag of effect e D elay in reply Neg ence lig F ailure of s tem ys Other m eans

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95

CONCLUSION
HAL is one of the largest PSU under the department of defense production, GOI and is a NAVRATNA company ranked 34th in the list of worlds top 100 defense companies. HAL with its wide spectrum of expertise in design, development and manufacture of aircrafts, helicopters, engines, accessories and avionics has emerged as major aeronautical complex in Asia. As herein, the projects and items need huge investments than any other organization and confidential factor is also there too much extent but as much information is extracted shows that cost control is being performed quite good thats why it is in so much profit. In the organization, cost of inventory as well as labor is controlled very well by implementing ABC analysis but there is also some scope for cost reduction by reducing number of casuals to reduce labor cost and by implementing EOQ (Economic Order Quantity) technique to control material cost. Although for the organizations betterment its executives are working hard and trying to serve in the best possible manner with their colleagues and they all are very qualified and experienced so organization must extract optimum from them.

96

SUGGESTIONS
1. There should be facility of intranet so fax and such other things must be done through that can reduce time and money. 2. For attendance finger print system should be adopted so that actual persons attendance can be mentioned. 3. The following are some of the costs that exist in HAL; material cost labour cost employee cost inventory cost HAL may try and reduce these costs by the following ways; Labour cost can be reduced by more use of machinery. Salary and appraisal should be given according to the performance of the employees in order to reduce the employee cost. By implementing EOQ. 4. The time delay between rising of purchase order and preparation of RDR should be reduced. 5. Wages to direct workers should be given through piece rate system. 6. Efficiency of indirect workers should be measured so that slackness can be sorted out . 7. Employees should be included in brainstorming and also should be given liberty and non-monetary incentives as appreciation . 8. Officers should be promoted only on the basis of performance and not on the basis of number of years worked . 9. Workers who have talent and compatible with office grade but restricted to work only at non-supervisory position, the policy should be such so that grade promotion could be possible. 10. Profit calculation by project cell for project evaluation is different from costing section. In this way project evaluation is not proper. So it must frame its cost- benefit evaluation and focus on only licensing fee and other DRE and framing of analysis should be done as per actual recoverable profit percentage. 11. The company should give some stipend to Industry guide for summer to which they will take more interest in providing guidance. 12. Should be a separate lecture hall for summer trainees where the come and provide guidance to all trainees. There training due

industry guide will

97

13. It is also suggested that the frequency of meetings with the foreign teams should be more than presently done. For more the people we meet, the closer tie will be promoted and this will definitely increase profits.

14. The Company should distribute its brochures giving the present business standing, new technologies launched to the overseas customers, this will develop a kind of confidence in the minds of customers for you, and he will call you whenever he is in need. 15. More awareness is to be created in the minds of customers whether overseas or civil, by organized Trade Fairs, Expos, Consumer Fairs at International level so that more and more customers will come and gain knowledge about the company, its product and it servicing. 16. The company should find some new overseas customers dealing in the same business, and must try to offer him the same product that he is making in comparatively low price (per unit cost), keeping in mind the positive turnover, this will definitely bound him to purchase the product from the company. 17. The company should try to establish some more Joint Venture relationships with the foreign companies, dealing in the same business. This will again make a positive effect on the net sale.

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ANEXURE

99

BIBLIOGRAPHY
During the preparation of project I took the help of various sources which are as follows: Books

Budgetary control and standard costing BY: J.A. Scott MARKETING MANAGEMENT By. PHILIP KOTLAR
Journals :
1 2 3 Accounting manual Budget manual Company monthly journals

Internet :
1 2 www.hal-india.com www.Goolal.com

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