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Organization Study at Saldana Coffee

When we think about refreshment, the first thing that comes to our mind is coffee or tea. Most people prefer coffee and most prefer tea and these two drinks have become a part of a human being’s life.

Here we (I) have concentrated on coffee which is considered as a traditional drinks especially in south India. People here start their everyday life with a cup of coffee. Not only in south India but in all parts of the world people are so dependent and addicted to coffee that it acts as a daily schedule to every body every where. But this coffee is not grown in all parts of the world but is grown in very few places with right kind or weather, atmosphere and most important of all, the soil of that region.
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Organization Study at Saldana Coffee

  1. 1. SALDANA AND SONS COMPANY Visit for more information Table of contents SL. PAGE NO. CONTENTS NO. I. Part-A 1. Industry Profile 2. Company Profile II. Part-B McKinsey’s 7s Frame Work 1.STRUCTURE 2.SKILL 3.STYLE 4.STRATEGY 5.SYSTEM 6.STAFF 7.SHARED VALUE III. Part-C SWOT Analysis IV Part-D Summary of latest Annual Report V Part-E Learning Experience VI Bibliography 1 Uploaded for
  2. 2. SALDANA AND SONS COMPANY PART-A Company Profiles 2 Uploaded for
  3. 3. SALDANA AND SONS COMPANY INTRODUCTION When we think about refreshment, the first thing that comes to our mind is coffee or tea. Most people prefer coffee and most prefer tea and these two drinks have become a part of a human being’s life. Here we (I) have concentrated on coffee which is considered as a traditional drinks especially in south India. People here start their everyday life with a cup of coffee. Not only in south India but in all parts of the world people are so dependent and addicted to coffeethat it acts as a daily schedule to every body every where. But this coffeeis not grown in all parts of the world but is grown in very few places with right kind or weather, atmosphere and most important of all, the soil of that region. It is usually grown in hill stations with adequate amount of rainfall and such places which are high above sea level. Therefore in India, Karnataka is such a place, especially South Karnataka which produces the highest amount of coffee in whole India. Most parts of Karnataka such as Chikmagalur district and many parts in Hassan District, and also Coorg. So people here feel proud to be citizen of such place where coffee takes its birth. So that being the main reason, I have concentrated on a organization which has its roots spread very vast in coffee industry and is a major player in worlds import/export of coffee and deals in coffee beans curing activities present in near Belur 3 Uploaded for
  4. 4. SALDANA AND SONS COMPANY “SALDANA AND SONS COFFEE CURING COMPANY” Before 1995, produce of coffee estate has to be compulsorily pooled to the Indian coffee board which was controlling on it as per the coffee act consequent on removing the control over coffee by Government of India and implementing free sale quota the growers have the right in selling their produce anywhere. Accordingly Shree B.A.Saldana,a leading coffee grower from Mudigere decided to start a coffee curing of his own so as to encourage employment to the people of area, procure raw coffee from coffee growers, process it and to sell both in internal market as well as exporting to foreign countries with good quality. During 1995 the Belur Coffee Curing and Trading company (BCCTC) and Trading company come into existence as a partnership firm with founder Mr.B.A.Saldana along with his son as other partner. . 4 Uploaded for
  5. 5. SALDANA AND SONS COMPANY Nature of the Business Carried Purchase of raw coffee of both Arabica and Robusta from coffee growers of Chickmaglur district, Hassan district and Coorg district. Vision, Mission and Quality policy Cured (processed) coffee will be kept in good quality bags with proper care to avoid quality deterioration as per the Indian Coffee Board Standards till it is a disposed. For quality maintaining and exporting coffee to the foreign buyers, the firm as bagged certificate of merit from VITC (Visveshwarya Industrial Trading Corporation – Promoter of export excellence) a unit of Government of Karnataka for the year 1996-2000 and the Sister Concern of the Firm has bagged “Silver and Gold awards” from1996-2006. BCCT is right now a 500 + crore company and has a very big share in export market of Indian coffee. However their vision is to be a 1000 crore worth company until 2010, and also to conquer the whole export market of India. Its mission is to avoid the new entrants in café coffeeday market, so it is very fastly conquering the whole Indian café outlet market by very fastly developing the outlets and today it has nearly 600 café coffee day outlets all over India and 200 are present in Bangalore. 5 Uploaded for
  6. 6. SALDANA AND SONS COMPANY GOALS Indian coffee is exported to all parts of the world. But except in India it is no where called as Indian coffee and doesn’t have a name and popularity. So the goal of BCCT is to make the world recognize Indian coffee as Indian coffee and not anything else. So café coffee day outlets are being planned to open in all parts of the world such as one present in VIENNA, Austria and make the Indian coffee popular 6 Uploaded for
  7. 7. SALDANA AND SONS COMPANY PRODUCT PROFILE Obviously the product is coffee beans and coffee can be mainly divided into 2 types  Robusta   Arabica  In both at coffee at estate level it will be prepared as parchment and cherry. Arabica named for the Arabs, is the better and more expensive of the two. These trees grow in semitropical climates near the equator, both in the western and eastern hemispheres, at high altitudes. Because ripe Arabica cherries (unroasted beans) fall to the ground and spoil, they must be carefully monitored and picked at intervals, which increases production costs. Robusta trees which are grown exclusively in the eastern hemisphere also thrive in equatorial climates, but at low altitudes. Their cherries require less care since they remain on the tree after they ripen. Robusta beans have twice the caffeine of Arabica, but less flavor. Some supermarkets carry Arabica, but most of their brands are Robusta. Coffee shops generally use Arabica beans, but because their brews are so strong, To describe the taste of Arabica is difficult without using trite words like smooth and mellow. It has a round taste that is both rich and delicate, with good acidity. This does not refer to an actual degree of acidity, but to the sharp and pleasing taste that is neither sour nor sweet. 7 Uploaded for
  8. 8. SALDANA AND SONS COMPANY In fairness, although most Robusta coffee is of a lower grade and inferior to Arabica, there is a premium crop that is the top of the line for Robusta beans. Premium Robusta is primarily used in specialty espresso blends, and is never found in canned coffee. Though it only constitutes 5-15% of the blend, it is used because these beans add body to the taste and make a nice creamer in the shot of espresso. This additional body distinguishes the blend in a cappuccino or latte. Premium Robusta should only be used for espresso and not other brewing methods. If the coffee is Colombian, it will probably be Arabica on the side or back of the package, since this country produces nothing else. Guatemala, El Salvador, Tanzania and Kenya also produce all Arabica beans. Only these 2 varieties are grown in India because of the soil. But there are various subdivisions in these two types of coffeebeans depending on its size color and shape Again these two types that is Arabica and Robusta are brought in to BCCTC by two ways  Parchment   Cherry 8 Uploaded for
  9. 9. SALDANA AND SONS COMPANY PARCHMENT It means bringing the cleaned beans or already separated and dried coffee beans in to BCCTC Usually this parchment is done by the estate owners through pulper machines which separate the beans from the cherry which are ripen and the beans are cleanly separated from cherry and all the remains are eliminated as waste and then these beans are dried and then transported to BCCTC where the further Processingof the beans are under taken. 9 Uploaded for
  10. 10. SALDANA AND SONS COMPANY CHERRY As the name indicates, it is the raw cherry which is grown in these 2 types of plants. They are directly purchased and brought to BCCTC in a ripe cherry form and even removing the bean from the cherry is done by BCCTC, head office at Sanysihalli near Belur after bringing to BCCTC. Here the work will be more to this curing works as it is brought in raw form Arabica is grown from December to March and these four months are considered the best season for growing Arabic and plucking. Most of Arabica beans are exported to European countries Robusta season is from Feb/Mar to May every year and considered best for these beans (coffee). Most of Robusta coffee is exported to U.K (London) Arabica parchment is plucked in 3 rounds I Round :- Plucking of coffee from plants when they are fully ripe and ready to pack. II Round :- Plucking of half ripe coffee beans III Round :- Plucking of cherry Arabica coffee is strong and doesn’t fall down form the plant even due to heavy rains. It has to be plucked. 10 Uploaded for
  11. 11. SALDANA AND SONS COMPANY Arabica coffee is more costlythan Robusta because of its strong flavors and taste. Robusta coffee is lighter in nature and will easily fall off from the plant due to rains. So more care has to be taken with this breed. 11 Uploaded for
  12. 12. SALDANA AND SONS COMPANY Table showing different types & sub divisions of coffee beans. Types Arabica Arabica Robusta Robusta parchm ent Cherry Parchment Cherry S AAA AA AA AA U AA A A A B A AB AB AB D B C C C I C PB PB PB V PB BB BB BB I BB Bits Bits Bits S Bits I EB O N S AAA = Triple A AA = Double A PB = P Berry BB = Black Berry EB = Elephant Berry 12 Uploaded for
  13. 13. SALDANA AND SONS COMPANY After all the above various types of coffee beans, there is also one more type of coffee known as specialty coffee. These coffees are produced by grinding two or more types of coffee beans together. As in the chart consisting types of beans Arabica AAA may be grinded with Arabica AB or PB, also with the varieties of Robusta parchment & cherry. Like wise by combining all types of coffee beans with each other using probabilistic methods results in birth of specialty coffee. There is also a type known as MONSOONED COFFEE. Known across the world, as unique coffees processed as per centuries old traditions, "Monsooned coffee" was first produced quite by accident. In the earlier days, coffee shipped from India to Europe took almost six months to reach its destination. During that shipping process, the humidity at sea changed the beans allowing it to acquire a distinct rich, mellow taste and a unique golden look. With the coffee beans 'swelling' due to the moisture in the air, a new kind of coffee was born - Monsooned Coffee. Today, this entire flavor and experience is recaptured by the special process of "monsooning". The Monsooning process reforms the color and the physical characteristics of cherry coffee. The color is changed to a golden yellow. The beans swell in size and the bulk density is reduced. The cherry/fruity taste disappears and the liquor is soft, rich, velvety smooth and mellow with light acidity and a pleasant earthy flavor. 13 Uploaded for
  14. 14. SALDANA AND SONS COMPANY 14 Uploaded for
  15. 15. SALDANA AND SONS COMPANY In this case the coffee beans are dried in a humid atmosphere which results in a unique golden look on the coffee beans and a mellow taste which is rich in flavor. It also results in a slight swelling of the coffee beans. This is usually done in costal areas where the temperature is very humid. Even Monsooned coffee has different types such as  Monsooned Arabica AA   Monsooned Arabica Basically   Monsooned Arabica Triage   Monsooned Robusta AA   Monsooned Robusta Triage 15 Uploaded for
  16. 16. SALDANA AND SONS COMPANY Area of operation Anywhere in India for domestic sales and export sales it depends on the buyers interest presently thee Belur Coffee Curing and Trading Company is exporting the European countries, African countries and Gulf countries etc. Ownership Pattern The company is partnership firm having family members as their partners Mr.B.N.Saldana is the managing partner. 16 Uploaded for
  17. 17. SALDANA AND SONS COMPANY COMPETITORS There is no other curing works is functioning surrounding Belur. Only traders nearby Belur are available .They are also selling raw coffee and buying clean coffee needed by them based on the prevailing market place. ACHIVEMENT. . For quality maintaining and exporting coffee to the foreign buyers, the firm has bagged certificate of merit from VITC (Visveshwarya Industrial Trading Corporation-Promoterof export excellence) a unit of Govt. of Karnataka for the year 1996-2000 and sister concern of the firm has bagged Silver and Gold Awards from 1996 to 2006. 17 Uploaded for
  18. 18. SALDANA AND SONS COMPANY 18 Uploaded for
  19. 19. SALDANA AND SONS COMPANY Work Flow Model Hulling, Grading and Garbling The machinery installed at the curing factory for the various curing operation are as follows:- 1. Dust/Twig/Stone separator 2. Huller 3. Pillar cum polisher 4. Winnower 5. Unpeeled coffee separator 6. Grader 7. Catador 8. Specific gravity separator 9. Pneumatic separator 10.P B Band separator 11.Bucket elevators 12.Electronic colour sorting machine Steps involved in the Hulling and Grading of coffee The raw coffeeis first passed through a Stone/Stick Eliminator where foreign raw material like stone, sticks, twigs etc are removed. The coffee is then passed in to Huller/Peeler cum Polisher and from there on to the horizontal or vertical winnower. The coffee is next allowed in to pre-grader, where the bits are separated. It then passes through the sizes (grades) , where the grades of coffees such as P B, A,B&C are separated .Increase a pre grader is not installed , the coffee may be directly passed on to the seizers where bits could be separated. There after the coffee is subjected to Garbling/Sorting , outturning, building etc 19 Uploaded for
  20. 20. SALDANA AND SONS COMPANY Hulling and Peeling:- The cherry coffee are hulled using “Hullers” and the parchment coffee are peeled by “Peelers”, and the subjected to polishing. Grading:- Primary grading is carried out based on the rise of beans. This is carried out on a rotary grader. Secondary grading is done based on Dens metric classification of individual graders. Catadars and Gravity separator are used for Dens metric classification of coffee. 20 Uploaded for
  21. 21. SALDANA AND SONS COMPANY Garbling/Sorting:- The sorting of defective beans and discloser beans is carried out manually by women garblers. In many of curing factories, Electronic color sorting machine are also used for the sorting of discolored beans viz, Blacks, Browns. The electronic color sorting machines are complimentary to manual garbling process. 21 Uploaded for
  22. 22. SALDANA AND SONS COMPANY Outturning:- After the garbling process, the coffee lot is outturned and quantity of each of the grades weighted and recorded 22 Uploaded for
  23. 23. SALDANA AND SONS COMPANY Packing:- Double gunny bags used for the packing of cured coffee. The type of gunny bag used is of the “B-TWIIF” of “DW” quality. The coffee is packed in quantity of 75kg/bag Storage of coffee:- Drying capacity, Machine capacity and Storage capacity are important requisites, whichdetermine the curingcapacity of a curingfactory. The storage capacity of a curing factory is calculated based on certain norms fixed by Board which are as follows: 23 Uploaded for
  24. 24. SALDANA AND SONS COMPANY The flour area requires for storing raw coffee (uncured) equivalent to one tonne of clean coffee is 13.5sqft . When height of a godown is 15ft in terms of volume the space required for storing raw coffee equivalent to 1 ton of clean coffee is 202.5cubicft. The flour area require for storing 1 ton of clean coffee is 7.5sqft for wall height of 14ft. In terms of volume the space required for storing 1 ton of clean coffee is 105cubicft. 24 Uploaded for
  25. 25. SALDANA AND SONS COMPANY Method of Calculation of Basic Storage Capacity Godown space require for storing uncured coffee equivalent tone ton of clean coffee Space required for storing one ton of cured coffee 202.2 cubicf 105.0 cubic feet For curing works in Karnataka Ratio between the quantity of raw coffee and the quantity of clean 75:25 coffee in storage Ratio between the godown space occupied by the raw coffee and clean 85:15 coffee Example:- Total volume of godown available of 100000 cubic feet storing of coffee 25 Uploaded for
  26. 26. SALDANA AND SONS COMPANY PART- B: McKinsey’s 7S frame work 26 Uploaded for
  27. 27. SALDANA AND SONS COMPANY McKinsey’s 7S frame work with specialreference to OrganizationStudy. The 7-S Framework of McKinsey’s is a Value Based Management (VBM) model that describes how one can holistically and effectively organize a company. Together these factors determine the way in which a corporate operates. The 7S framework first appeared in the “ The Art of Japanese Management” by Richard Pascal and Anthony Athos in 1981.They had been looking at how Japanese industry had been so successful, at around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The 7 S models were born at a meeting of four authors in 1978. It went on to appear in “In Search Of Excellence” by Peters and Waterman and was taken up as a basic tool by the Global Management Consultancy firm McKinsey. To be effective, the organization must have a high degree of fit, internal alignment amongst all the 7S’s. All S’s are inter-related and a change in one has a ripple effect on all the others. It’s impossible to make progress on one without making progress on all. Thus, to improve any organization, one has to pay attention to all of the seven elements at the same time. There is no starting point or implied hierarchy. Those seven elements are distinguished in so called Hard S’s and Soft S’s. The hard elements are feasible and easy to identify. They can be found in strategy statements, corporate plans and organizational charts and other documentations. The four soft S’s however, are difficult to describe since capabilities, values and elements of corporate culture are continuously developing and changing. They are highly determined by the people at work in the organization. Therefore it is much more difficult to plan or to influence the characteristics of the soft elements. Although the soft factors 27 Uploaded for
  28. 28. SALDANA AND SONS COMPANY are below the surface, they can have a great impact on the hard structure, strategies and systems of the organization. Description: The Hard S’s Strategy: Actions a company plans in response to or anticipation of changes in its external environment. Structure: Basis for specialization and co-ordination influenced primarily by strategy and by organization size and diversity. Systems: Formal and informal procedures that support the strategy and structure. The Soft S’s Style: The culture of the organization, consisting of two components; Organizationalculture: The dominant values and beliefs, norms which develop over time and become relatively enduring features of organizational life. Management style: More a matter of what managers do than what they say, how does a company’s manager spend their time? What are they focusing attention on? Symbolism - the creation and maintenance (or sometimes deconstruction) of meaning is a fundamental responsibility of managers. Staff: The people / Human Resource Management- processes used to develop managers, socialization processes, ways of shaping basic values of management cadre, ways of introducing young recruits to the company, ways of helping to manage the careers of employees. 28 Uploaded for
  29. 29. SALDANA AND SONS COMPANY Skills:The distinctive competences-what the company does best, ways of expanding or shifting competences. Shared values: Guiding concepts, fundamental ideas around which a business is built must be simple, usually stated at abstract level, have great meaning inside the organization even though outsiders may not see or understand them. Effective organization achieves a fit between these seven elements. This criterion is the origin of the other name of the model: diagnostic model for organizational effectiveness. 7’s model 29 Uploaded for
  30. 30. SALDANA AND SONS COMPANY STRUCTURE (Belur Coffee Curing And Trading Company) Organization Chart Chairman/ M.D. Managing Director C.E.O / GM. General Manager Manager H.R Manager Process Manager Accounts Manager Store Senior In charge Manager Electrical Quality Control Manager Mechanical Senior Manager Uploaded for 30
  31. 31. SALDANA AND SONS COMPANY Commercial Officer Administrative QUALITY CONTROL Manager quality control Shift chemist Samplers Uploaded for Helpers 31
  32. 32. SALDANA AND SONS COMPANY 32 Uploaded for
  33. 33. SALDANA AND SONS COMPANY FINANCE DEPARTMENT Assistant manager Assistant accountant CLERKS /typie computerAccountant Sweepers HUMAN RESOURCE DEPARTMENT 33 Uploaded for
  34. 34. SALDANA AND SONS COMPANY Manager H R Time keeping(o) Wage & salary(o) Assistant Assistant Assistant HR Manager Assistant PURCHASE DEPARTMENT 34 Uploaded for
  35. 35. SALDANA AND SONS COMPANY Senior manager Assistant Manager Assistant Store-in-charge Attender PRODUCTION DEPARTMENT 35 Uploaded for
  36. 36. SALDANA AND SONS COMPANY Manager process Shift-in-charge Assistant-in-charge Operators SKILL 36 Uploaded for
  37. 37. SALDANA AND SONS COMPANY A skill is the ability, knowledge, understanding and judgment to accomplish a task. Skills may be defined as what the company does best; the distinctive capabilities and competencies that reside in their organization. The organization selects and assigns personnel performing work affecting product quality based on appropriate education skills and experience. The organization has also a system to assess the competence of its personnel on periodic basis to identify gap in the performance, if any as well as assessing their training needs to bridge the gap. Identification of Training Needs: Training needs may be new training or re-training these are identified once in a year by department heads of their employees through appraisal system. New employees or an employee who has assigned new jobs are identified and given needed training. Training needs of their employee through appraisal system. New training needs of their employees through appraisal system new employees or an employee who has assigned new jobs are identified for training. Training needs are consideredat 3 levels:- * Individual level * Department level * Organization level On the job training. These are types of training given to the employees at the working hours. * Training regarding grading. * Hygiene training. 37 Uploaded for
  38. 38. SALDANA AND SONS COMPANY * Assistance by senior employees. Off the job training. These are types of training given to the employees in the leisure hours. * Speeches * Lectures * Visuals training STYLE In BCCTC most of the decisions are taken by M.D of the firm, they follow Top Down Style. In the absence M.D, Directors in charge of respective department takes decision. M.D Director’s in charge of departments. Plant Manager Product in charge Supervisors Workers 38 Uploaded for
  39. 39. SALDANA AND SONS COMPANY In BCCTCthey follow Authoritarian style in decision making. The major decision regarding operation of the firm are taken by M.D. Other decisions involving higher cash flows are participative taken involving partners and other officials. STRATEGY Strategy is a plan an organization formulates to gain a substantial advantage over the competition. Strategy is the art of dividing and employing a system of activity that mobilizes all resources towards a valuable goal. It is the determination of basic long term goal and objective of an enterprise, and the adoption of course of action and the allocation of resources available for carrying out these goals. Pricing strategy Price is an important element as it is revenue generating element of the organization. All the decisions related to pricing plays an important role because demand is inversely proportional to price. Price is a competitive weapon, price also determining to profitability of the company. As a result pricing has become an important managerial function of marketing. Pricing strategyof BCCTC  The pricing depends on market fluctuations.   The market price is generally 10 % more than the cost of production, which includes total expenditure.  There is no credit facility formally.   Payment is done on mutual understanding though 30 days are allowed for payment or through advance payment.  There are no direct customers. 39 Uploaded for
  40. 40. SALDANA AND SONS COMPANY SYSTEM Systems are the processes and information flow that link the organization together. They include formal and informal procedures that govern day-to-day activity covering everything from management information systems at the point of contact with the customer. The formal and informal procedures, including innovation systems, compensation systems, management information systems, capital allocation systems that govern everyday activity. INVENTORY CONTROL SYSTEM Inventories are valued providing for obsolescence, as under : * Raw materials, production consumables, construction material and store and spares are valued at low cost (computed on weighted average basis.) and net realizable value. * Finished goods, semi finished goods and work in progress is valued lower than cost and net realizable value. Cost for this purpose includes direct material, direct labour, excise duty and appropriate overheads for bringing the inventory to its present location and condition. STAFF BCCTC Staff are classified as follow: * Technical staff. * Clerical staff. * Production staff. * Labourers. 40 Uploaded for
  41. 41. SALDANA AND SONS COMPANY Duties and Responsibilities Technical staff Clerical staff. * Machineries check * Accounting. * Quality maintenance. * Maintaining records. . Production staff. Labourers. * Supervisory duties * Manufacturing. * Raw material handling * Loading. * Material handling. * Processing 1. Every employee shall at all times diligently and faithfully serve the company and shall devote his whole time and attention exclusively to the business and interest of the company and to the best of his skill carry out his duties and shall attend work punctually at the place where he is posted. Every employee shall hold himself in readiness to perform any duties required of him by his superiors to the best of his ability. 2. An employee shall not directly or indirectly engage in any other profession or enter the services for any part of his time . 3. Employees must not enter or pass through departments other has those in which they are employed unless it is necessary in the course of their duties to do so. 4. Each employee shake keep his machine or work place clean and tidy. 5. Any breach by the employee shall be constrained as act of misconduct and the employee shall be liable to punishment in accordance to company rules. 41 Uploaded for
  42. 42. SALDANA AND SONS COMPANY SHARED VALUE Shared values guide employees towards desired behavior originally called super ordinate goals; the guiding concepts and principles of the organization – values and aspirations, often unwritten – that go beyond the conventional statements of corporate objectives. The fundamental ideas around which a business is built; the things that influence a group to work together for a common aim. Shared values are what engender trust and link an organization together. Shared values are also the identity by which an organization is known throughout its business areas. These values must be stated as both corporate objectives and individual values. The others branches of the firm are involved in many social activities. PART C 42 Uploaded for
  44. 44. SALDANA AND SONS COMPANY SWOT ANALYSIS Here is the analysis about the Strengths, Weaknesses, Opportunities and Threats of BCCW. STRENGTHS:  The biggest strength of BCCW is that it is the only company in coffee industry with a complete chain of coffee operations. BCCW carries its operations right from the growing of coffee to the consumption of coffee by the final consumer. It grows coffee in its own land, procures it, carries productions, exports it, produces ready coffee products and has also conquered the domestic market. All its competitors are indulged only in few activities but BCCW manages a complete chain of its operation.  Among BCCW's biggest strengths are the two curing works, strategically located in Chikmagalur and Hassan with a combined installed capacity of 1 million bags.   Having our own curing works aids in enabling complete control over grading standards and flexibility. Thus ensuring quality and efficiency. 44 Uploaded for
  45. 45. SALDANA AND SONS COMPANY  A highly disciplined and dedicated network of over 42 agents who operate throughout the major coffee growing areas of India form the back bone for our coffee procurement chain.   Our verticallyintegratedinfrastructure ensures that the coffees never need to leave the able hands of BCCW until final dispatch/shipment. Strength may be its size. As it is one of the biggest coffee curing company, it has even advantage in price stabilization (volatility). WEAKNESS There are no major weaknesses but one of its weakness is the higher quality coffees in the world market such as Brazilian coffee, Kenyan coffee etc.. which are of the best quality and rate in the world market of coffee. OPPORTUNITIES The overseas market demand for coffee is one of the biggest opportunities for BCCW The demand by European countries and many other countries of the world for Indian coffee has created and also creates huge market in future. Globalization and liberalization has played a very important role in these overseas dealings of BCCW THREATS New entrants in Indian market for coffee are one of the biggest threat for BCCWC for example: - STAR BUCKS, a company from USA is trying very hard to enter the Indian market and trying to take over the café coffee day out BCCW. It is a very big company and has high quality standards. 45 Uploaded for
  46. 46. SALDANA AND SONS COMPANY However it has not yet been a possibility because of its high costs. Other than that here is a threat of changing quality of coffee and its rates due to natural reasons. Change in money value in foreign exchange is also a threat to BCCW . 46 Uploaded for
  47. 47. SALDANA AND SONS COMPANY Part E Learning Experience 47 Uploaded for
  48. 48. SALDANA AND SONS COMPANY OBJECTIVES The following are some of the objectives of BCCW Þ Foreign dealings improvements and maximization Þ Revenue maximization Þ Creating a monopolistic market in India Þ Adopt new methods for profit maximization Þ Promote Indian coffee market. Þ To provide the consumer a superior coffee-chicoryblend that he or she has been drinking till date Þ To provide a superior product than what others have been offering Þ To be available in every possible retail outlet which ensures convenience and ease in availability Þ To provide the best quality of coffee- chicory blend at value for money prices. So here in this chapter we come to know about the vision, mission, goals and objectives ofBCCW and along with it the SWOT analysis has been done by personal interaction with the SGM of the BCCW, head office, Hassan. 48 Uploaded for
  49. 49. SALDANA AND SONS COMPANY FINDINGS The following are some of the findings as per me by working in BCCW.  It is highly successful in the world coffee market and has grabbed huge share of export market of coffee in India.   It has the biggest plantations of its owns which is more than 5,000 Acres in Chikmagalur District, which no other coffee exporting company in India has.   It is the aim of BCCW to make Indian coffee popular all over the world.   A highly disciplined coffee procurement network which has been established, natured over the liberated years following 1993.   All the market restructuring & disturbances are handled by high flexibility of production in its curing stations having over 1 million bags capacity   It has its complete control over grading standards and market needs.   It is managed by highly skilled and professional people in all its departments which has resulted in success of BCCW. Further about the company can be known in conclusion part of this report. 49 Uploaded for
  50. 50. SALDANA AND SONS COMPANY CONCLUSION As mentioned earlier and also by going through the whole company profile and other data, it is clear that BCCW as a very big name and share in the whole coffee market of the world and is one of the fully integrated coffee companies of Asia. Its exports make BCCW as a second largest origin exporter in the world. Their client list includes some of the world’s biggest and most discerning roasters, MNCs, trading company and retail chains. By working in such a successful organization, I have come to know lot about this organization’s functioning and its markets. This is not surprisingly because of the rich, unique blend of elements, vast, fine estates, exacting quality control over processing, absolute commitment and integrity and most significantly, a sense of dynamism of striving for the extraordinary and lots more to offer, BCCW is one of the most professional in its nature. They continuously strive to identify customer needs & constantly work on ways to present Indian coffee to the world market and we can say that the competition for BCCW comes not from within India but from other coffee nations such as Brazil, Columbia and Kenya. Even though there is competition from so many courtiers, this company tries very hard & is also successful to grab a huge share in the world market. 50 Uploaded for
  51. 51. SALDANA AND SONS COMPANY The successof this organization in its exports is known by the various awards received by BCCW such as:- YEAR AWARD 1998-2006 SISTER CONCERN 2000 Top exporter of coffee to the region: U.S.A Rather than its success in exports, it is also successful in all its divisions management such as café coffee day division, beverages division, fresh & rounds etc.. Its success in domestic market can be seen in our daily life with hundreds of café outlets and coffee vending machines, resulting in millions of Indian consumers consuming coffee products of BCCW everyday. This company has so for captured a major parts of Indian market and yet is trying very hard to conquer the whole market within few years from now. 51 Uploaded for
  52. 52. SALDANA AND SONS COMPANY And by personally experiencing the functioning of BCCW and also by seeing its business strategies, I can say no wonders it will definitely achieve its goals in the mere future. Even the procurement and production process of coffee takes place very accurately in the Hassan organization of BCCW and standards for each and every step is maintained and followed. 52 Uploaded for
  53. 53. SALDANA AND SONS COMPANY DRAWBACKS: But there is no business without drawbacks. Even BCCW has few drawbacks as any other business and this is noticed by me personally. The procurement process goes very accurately as mentioned above but only to a certain extinct. It means, until the beans are processed in machines, technology is used to highest extinct. But after the beans come out of machines completing all the processes usage of technology becomes nil. The rest of the work is totally done by manual labours (GARBLERS) which I feel is a waste of time and money to a certain extinct. Processes such as separations of different varieties of beans, grading, filling them into bags and also loading into trucks is done by human labour for which technology can be used. 53 Uploaded for
  54. 54. SALDANA AND SONS COMPANY RECOMMENDATION: Further new improved machines can be installed to carry on the process of bagging, separations etc.. For loading the bags into trucks, tread mill kind of machines can be used which reduces the effort and number of manual labour and speed can be picked up. A good office automation process may be carried out by replacement of outdated computers and a improved internet network within the organization. So rather than the above few drawbacks of BCCW head office, everything else is not blamable and rest is taken care in a efficient way by the people and the authorities of this organization who have the ability to manage the problems effectively and manage the day to day functioning of BCCW Trading Co. Ltd. 54 Uploaded for
  55. 55. SALDANA AND SONS COMPANY BIBLIOGRAPHY SOURCES OF INFORMATION A guide to good quality of a coffee works Websites : 55 Uploaded for