12-11-2012, 01:20 PM
An Organization Study on Mandovi Motors pvt ltd
An Organization Study.doc (Size: 551.5 KB / Downloads: 149)
INTRODUCTION
ORGANISATION STUDY
Organization study is the examination of how individuals construct organizational structures, processes, and practices and how these, in turn, shape social relations and create institutions that ultimately influence people.
INDUSTRY PROFILE
NATURE OF THE INDUSTRY
Automobile dealers are the link between the manufacturer of the automobile and the consumer. With their large inventories of cars, dealers provide consumers with a wide array of vehicles to meet their needs at different price points.
GOODS AND SERVICES
The automobile dealer industry sells most of the automobiles, light trucks, and vans that operate on the road today. Sales of these vehicles are subject to changing consumer tastes, the popularity of the manufacturer's vehicle models, and the intensity of competition with other dealers. Along with the sale of the car, most dealers also sell additional automobile-related services to potential buyers. These services include extended warranties, undercoating, insurance, and financing. After market sales departments sell these services and other merchandise after vehicle salespersons have closed a deal. Sales of these packages greatly increase the revenue generated for each vehicle sold. Because sales of automobiles fluctuate significantly, automotive dealers offer generous incentives, rebates, and financing deals during slow periods to maintain high sales volumes and to reduce inventories.
Performing repair work on vehicles is another profitable service provided in this industry. Service departments at motor vehicle dealers provide repair services and sell accessories and replacement parts. Although most service departments perform repairs only, some dealers also have body shops to do collision repair, refinishing, and painting. The work of the service department has a major influence on customers' satisfaction and willingness to purchase future vehicles from the dealer.
INDUSTRY ORGANIZATION
The automobile dealer industry is comprised of two segments. New car dealers, often called franchised dealers, primarily sell new cars, sport utility vehicles (SUVs), and passenger and cargo vans. These franchised dealers sell and lease vehicles manufactured by a particular company—which may include several brands.
Used car dealers comprise the other segment of the industry, and are sometimes referred to as independent dealers. These dealers sell a variety of vehicles that have been previously owned or formerly rented and leased. Improvements in technology have increased the durability and longevity of new cars, raising the number of high-quality used cars that are available for sale. Used car dealers by definition do not sell new cars, but most new car dealers do sell some used cars.
According to the National Automobile Dealers Association, new vehicle sales account for more than half of total sales revenue at franchised new car and new truck dealers. These sales also generate additional revenue in other departments of new car dealers, which are more profitable to the dealer. By putting new vehicles on the road, dealers can count on new repair and service customers and future trade-ins of used vehicles.
RECENT DEVELOPMENTS
In recent years, the sale of used cars has become a major source of profits for many new car dealers in the wake of shrinking margins on new cars. To make them acceptable to more customers, some dealers promote "certified pre-owned" vehicles to customers who want a warranty on their used vehicle. This often raises the price, but in return provides customers with peace of mind. In economic downturns, the relative demand for these and other used cars often increases as sales of new cars decline.
In an effort to achieve greater financial and operational efficiency and flexibility, greater emphasis is being placed on aftermarket services, such as financing and vehicle maintenance and repair, at both new and used car dealers. These services typically provide large profit margins for dealers, and remain less susceptible to economic downturns. They are also part of an effort to enhance customer loyalty and overall customer service.
There has been a recent decline in the leasing of cars. With a car lease, a customer makes monthly payments for the use of a vehicle over a period of time, after which the vehicle is usually returned to the dealer. The major domestic car makers have cut back their leasing programs significantly, instead focusing on new car sales. Leasing is still expected to play a role in many new car dealers’ business plans in the coming years, however.
AUTOMOBILE DEALERS AND SERVICES IN INDIA
Today, the Indian auto industry is one of the largest industrial sectors with a turnover that contributes to roughly 5 per cent of India's GDP. More importantly, it contributes to employment of over 2 million people directly and indirectly to another 10 million. The industry is important for national policy in that it contributes 19 per cent of indirect taxes.
INDIAN MARKET SCENARIO
Until a decade ago, the auto sector in India had been a relatively protected industry limiting the entry of foreign companies with high tariffs against imports. Today, as part of a broader move to liberalise its economy, India has opened up the sector to Foreign Direct Investments, and since then has also progressively relaxed trade barriers.
Today, almost all of the major global companies present in India producing two-wheelers and passenger cars in almost all segments.
FUTURE TRENDS
Buoyed by recent performance, many manufacturers have rolled out plans for increasing capacity. Prominent among them, Maruti, Hyundai and Tata - the passenger car makers - have announced plans for substantial scaling up of vehicle and engine production.
India is also emerging as a credible hub for R&D and vehicle development. Global majors (among OEMs) and several global Tier One suppliers have scaled up operations of their Indian technical centres and the quality and value of development in India is witnessing noticeable improvement.
As infrastructure improves, both the government and industry will need to pay even greater attention to road safety. The safety record of India, as far as fatalities and serious injury is concerned is dismal. This will need to be addressed at all points: products, infrastructure and user behaviour.
DEALER ROLE
The environment, looking ahead, is expected to greatly increase the importance of contact with customers. Every manufacturer will need to strive even harder to ensure that customer experience with every aspect of contact with the product (through sales, after-sales service and product use and ownership) will exceed their expectations. Here the role of the dealer and the network is invaluable. The increased emphasis on brand and the importance of relationship with the customer will further change the way' we conduct our business.
MARUTI SERVICE CENTRES IN INDIA
It is the world of high competition for the car manufacturing companies in India. In this automobile race, Maruti Suzuki has been able to build a larger consumer base on account of its world-class car models and sales services.
The company has also opened numerous automobile service stations in India across its various regions to provide complete customer satisfaction.
Some of the Maruti's automobile service centres in India have been listed below :
Maruti Service Centres are in Karnataka., West Bengal, Tamil Nadu, Uttar Pradesh., Andhra Pradesh, Maharashtra, Delhi.
HYUNDAI MOTOR SERVICE CENTRES IN INDIA
Hyundai Motor India Ltd stands on the second position in the list of biggest car manufactures in India in terms of sales record. The car manufacturing company has posted a growth of 46.1% in the market against previous year. To keep the momentum of its growth and to ensure highest customer satisfaction, the company has opened various automobile service centres in India.