Organization Study Essay

INTRODUCTION Organization study is â€Å"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†, organizational studies comprise different areas that deal with the different aspects of the organizations, many of the approaches are functionalist but critical research also provide alternative frame for understanding in the field. An organization is a group of persons formed to seek certain goals. Each and every organization has its own importance in the wealth of nation. Different organization meets different products and services. In this fast changing business scenario, it is the imperative for every aspirant of business to have a vivid understanding of the functional application of the new age business. The organization study undertaken as a part of the curriculum was done at â€Å"The Kerala Kerakarshaka Sahakarana Federation Ltd (KERAFED)†, Thiruvananthapuram. This study provides an opportunity to expose the students to an industry /organization and its operational conditions. This study also aims at having a better understanding of various departments and its functioning. This report consists of a detailed study of the history of the company, product profile, organizational hierarchy, various departments and their functioning etc. This study proved to be fruitful by familiarizing us to the organization and at the same time it also helped us to create practical awareness. KERAFED’s main product is ‘KERA’ coconut oil – the purest, healthiest and tastiest cooking oil. The federation started commercial production in 1993. KERAFED’s coconut oil production plant is in Karunagapally in Kollam district. The head office of KERAFED is in Thiruvananthapuram. Regional office in Ernakulum and mobile units are at Malappuram. KERAFED one of the largest coconut oil producers aims at an integrated development of coconut and coconut products. Production plant of KERAFED is having the facilities for processing of copra, extraction and packing. Processing is done through most sophisticated processing facilities. OBJECTIVES OF THE STUDY To study about the organization and how it functions. To learn the working of various departments. To understand how the theoretical aspects are put to practice in the organization. To assess the marketing efforts adopted by the company. To study about the organizational culture. To study various production levels and units. To study the financial activities of the company. To study the overall functioning of the company. It aims to understand the flow of authority inside the organization. To identify and evaluate the strength, weakness, opportunity and threats faced by organization. INDUSTRY PROFILE The coconut palm is one of the most valuable plants to man. In Sanskrit the coconut palm is called â€Å"kalpa vriksha†, which roughly translated means â€Å"Tree of Life†. In India, it provides livelihood to about 10 million people through various activities from its cultivation to processing of its products. All the parts of the coconut tree can be put to useful purposes- the roots, the trunk, the wood, leaves, the blossom and all the parts of the nut. Two major classes of coconut palm are typically recognized on the basis of structure: tall and dwarf. The ones most commonly planted for commercial purposes are the tall varieties, which are slow to mature and first flower six to ten years after planting. They produce medium-to-large size nuts and have a life span of sixty to seventy years. The dwarf varieties may have originated as a mutation of tall types. The dwarf variety may grow to a height of twenty five to thirty feet and begin flower after three years, when the y are only about three feet tall. Their life span is only about thirty years. INDIAN EDIBLE OIL INDUSTRY The climate conditions in India favors of a variety of oil seeds. On the demand side, a growing population and vastly varied directory habits have ensured a thriving market for Edible oil in the country. In India, the fasts of animal origin are seldom used as a cooking media; the term vegetable oil is used as a synonym for Edible oil. Thus, Edible oil is a major source of nutrition for the people and oil cakes, which are by-products of oil extraction process and are important sources of animal nutrition. Oil seeds in India account for around 5.0% of the Gross National Product (GNP) and 14.0% of the country’s area under cultivation of crops. Castor, Groundnut, Mustard, Sunflower etc. are some of the major oil seeds grown the rise in oil seeds production has been stimulated by increase in production of soya been and groundnut crops. India produces10% of the world’s oil seeds, but has a low productivity around 850-900 kg per hectare. The oil seeds take their place, next only to food grains, has the second largest agricultural crop. The cultivation of oil seeds in India is spread over various states. In Jan1989, the Government announced an integrated oil policy which emphasizes on the introduction of moved technology and incentive price to the Production Programmed through the technology mission on oil seeds. GLOBAL SCENARIO The oil and fat industry consists of processors of vegetable, animal and marine products that convert these products into edible oils and fats usually sold as food products in their own right or sold as ingredients for further processing into other food products. In India, the facts of animal origin are seldom used as cooking media. Edible oil is a major source of nutrition for the people and the oil cakes which are by-products of the extraction process are important sources of animal nutrition. Vegetable oils are extracted from the fruits, flowers and seeds of plant and essentially have the same constituent but its propositions may vary. The principle vegetable oils are palm, sunflower, corn, groundnut, cotton seed etc. Among these oil seeds copra or coconut production is only 1%. The crop plays a dominant role in the socio-economic and cultural life of the growers. Indonesia, Philippines and India are the top three leading producers of coconut oil. 3.5 million Tones of coconut oil are produced annually around the world. Coconut Industry in India Coconut palms are grown widely in the coastal tracts of the country. The coconut economy of India is in a convenient status. India accounts for 22.34 percent of the world’s coconut production and is one of the major players in the world’s coconut trade. Currently the crop is 1.91 million hectares with an annual production of nearly 13000 million nuts. Copra processing, coconut oil extraction and coir manufacturing are the traditional coconut based industries in the country. The price of the coconut in the country is dependent on the prevailing price of coconut oil which is characterized by recurring violent fluctuations. The behavior of coconut oil price is relatively dependent on overall supply of oils and fats in the country. The fluctuation in the price of the coconut oil simultaneously reflects on the price of coconut. The volatile price situation often ends in the negligence of the coconut gardens, leading to attack of pests and diseases and low productivity. Of the range of ways, promoting cost effective coconut based farming system, product diversification and value addition play a crucial role in the stabilization of the coconut oil driven domestic market and is essential for reorienting and engineering the Indian Coconut Industry cost effective and globally competitive. The Coconut Development Board has been playing pivotal role in promoting viable coconut based farming system, on-farm processing and products development. The production and marketing of value added products have started attracting commercial interest and the situation brought rejuvenation in the sector. The market promotional measures undertaken in pursuit of the popularization of health benefits of coconut oil and tender coconut water have attributed a stimulating effect on the less dependency of coconut oil driven coconut economy. There has been a well defined network in the country to undertake the R&D of coconut. The State Agricultural Universities, ICAR Institutes, Agriculture/Horticulture Departments of States/UTs, organizations like NAFED, KERAFED etc. and private institutions contribute to the pursuit of the research and development process of coconut in the country. STRENGTH OF INDIAN COCONUT INDUSTRY India is one of the leading producers of coconuts in the world, producing 13 billion nuts per annum. The coconut areas are distributed in 18 states and three Union Territories under different agro-climatic conditions. India has 3000 years tradition in coconut cultivation. It is the premier coir manufacturing country in the world. India is the producer of best grade milling copra in the world yielding high grade coconut oil known for its aroma and flavor. Large number of farmer’s co-operative societies in primary processing and marketing. Government agencies such as KERAFED, State Trading Corporation, Kerala State Marketing Federation and Karnataka State Marketing Federation in manufacturing and marketing of branded coconut oil in small packs. Hundreds of reputed and established private firms in manufacturing and marketing of various coconut products including branded coconut oil in small packs. ïÆ' ¼There are wide ranges of coconut products both edible and non-edible available for export. Technical know-how and trained manpower for the manufacture of various coconut based products. There is an availability of research support by reputed research organizations such as CSIR, ICAR and DRDO. Coconut Products in India A large number of coconut products are manufactured in the country which have both domestic and export market. Vinegar and soft drink are manufactured in the country from coconut water. Tender coconut water is another product which is manufactured and marketed successfully. Coconut Products Coconut Oil Coconut oil makes up about 20% of all vegetable oils used in the world. Copra, the dried kernel is the chief commercial product from coconut, which is mainly used for oil extraction. Coconut oil is made from fully dried copra having maximum moisture content of 6%. For the extraction of oil from copra the common method still prevailing in our country is by using rotary chucks. But the efficient system of extraction of oil is by the use of expellers. Coconut oil is an important cooking medium in Southern parts of the country especially in Kerala State. Besides, the oil has varied industrial applications. It is used in the manufacture of detergents, hair tonics, cosmetics and toilet soaps, laundry soaps, and surface active agents. It is used throughout the country as hair oil as it helps growth of the hair. As massage oil it has a cooling effect on the body. Owing to these qualities coconut oil has a potential market in the country. Since the price of a coconut oil in the international market is very much lower than the domestic price, the quality and attractiveness of consumer packs are important factors to compete in the world market. While the demand for coconut oil for cooking purpose is elastic, its demand as hair oil is inelastic. Coconut oil is marketed in bulk as well as in packs ranging from sachets containing 5 ml to 15 kg tins. The branded coconut oil in small packs is mainly marketed as hair oil and body oil. There are several brands known for their superior grade oil which have export market throughout the world. India has unbeatable quantity advantage in this sector. Refined coconut oil is also manufactured in the country for industrial uses. Refined coconut oil is mainly used in the manufacture of biscuits, chocolates and other confectionary items, ice cream, pharmaceutical products and costly paints. Generally, filtered coconut oil is used for cooking and toiletry purposes. Virgin Coconut Oil Virgin Coconut Oil is also made in the country from the milk extracted from raw kernel. This is done on a small scale by the traditional method which is now partially mechanized or on a large scale by adopting wet processing technology. Coconut milk is fermented and then by mechanical process, water is separated from oil. No heating or application of sunlight or dryer is done for the process. The virgin coconut oil is free from Trans fatty acid, high in medium chain fats known as lauric acid, which is identical to special groups of fats found human breast milk and also rich in vitamin-E. High quality of this oil makes it ideal massage oil for babies and also for skin and hair applications. APPLICATIONS Cooking Coconut oil is widely used in cooking, the refined oil is one most commonly used. Manufacturing Coconut oil is used in volume quantities for making soap and cosmetics. Hydrogenated coconut oil is often used in non-dairy creamers, and snack foods. ïÆ' ¼Fractionated coconut oil is used in the manufacture of essences, massage oils and cosmetics. Coconut oil is an important component of many industrial lubricants, for example in the cold rolling of steel strip. Cosmetics and skin treatments Coconut oil is excellent as a skin moisturizer and softener. Coconut oil is used for styling hair, and cooling or smoothing the head. As a fuel- Traditional use Coconut oil is used in oil lamps. In diesel engines Coconut oil has been tested for use as a feedstock for biodiesel to be used as a diesel engine fuel. In this manner it can be applied to power generators and transport using diesel engines. Raw coconut oil can be used as a fuel for generating electricity by remote communities that has an abundant supply of coconuts and milling capacity, provided diesel engines are adapted. Health effects Studies have found that coconut oil can help in weight loss and poison recovery. Nutritional/Medicinal Easy digestibility and absorbability. Ideal energy source in baby foods. Contains Vitamin-E. Composed mainly of short and medium chain fatty acids which have desirable qualities and functions. Does not contain cholesterol. Reduced fat accumulation in body. Easily oxidized and therefore a preferred energy source. Requires no transport system to absorb, digest and metabolize. Very low content of Omega 6 fatty acid. Studies undertaken by the Biochemistry Department, University of Kerala showed that coconut oil: Does not elevate blood total cholesterol Increases blood HDL cholesterol Consumed along with coconut kernel lowers blood cholesterol Copra Copra is the dried meat or kernel of the coconut. Copra making can be defined as the systematic process through which the fresh meat coconut containing 50 to 55% moisture is dried in sun or other sources of to bring down the moisture content 5% to 6% only. Eleven to twelve month old nuts are utilized for copra making to obtain the optimum output of better quality copra. The nuts are first husked to remove the fibrous outer layer of the husk. The husked nuts are then split into halves and the water is drained off. These halves are then kept for half an hour with the open side turned down to ensure that entire water is drained off, if this is not done, some moisture will be retained which will in turn lead to deterioration of copra. The halves or cups are now ready for drying, which should invariably start within 4 hours after breaking. Two types of copra namely milling and edible are made in India. Milling copra is used to extract oil while edible grade of copra is consumed as a dry fruit and used for religious purposes. Milling copra is generally manufactured by adopting sun drying and artificial means. Substantial quantity of milling copra is manufactured using modern hot air driers resulting in the availability of superior quality copra which is required for the manufacture of best grade coconut oil. A good number of farmers’ co-operative societies are also involved in the manufacture and marketing of milling copra. Milling copra is available in different grades. Edible copra is made in the form of balls and cups. Different grades of edible copra are available in the market according to the size, color etc. Quality of copra is determined based on moisture content and extend of inferior type of copra. Inferior types of copra are generally: Mould effect Immature or rubbery copra made from immature nuts. Insect attacked copra. Discolored copra. Good quality copra is one which contains not more than 6% moisture. Coconut oil is obtained by crushing copra and most efficient method of extraction is by using expeller. Methods of extraction of oil Various methodsYield of oil Chucks58% – 60% Rotary Mills 62% – 63% Expellers63% – 65% Source: Annual report Coconut Cake Coconut cake is the residue left after the extraction of oil from copra which is mainly used as a cattle feed. Coconut cake contains 4 – 5 percent oil which is extracted by solvent extraction process. This oil is generally used for industrial purpose and de-oiled cake is used to make mixed cattle feed. There are a few such units in the country especially in Kerala. NAFED National agricultural co-operative marketing federation, which was organized in 1958, represents the entire marketing structure at the national level. It was established with the object of coordinately and promoting the marketing and trading activities of the members in agricultural and other commodities. Their main objectives are:- ïÆ' ¼To make arrangements for the supply of agricultural requirements of its members. ïÆ' ¼To promote interstate and international trade in agricultural and other commodities. ïÆ' ¼To render advice and technical guidance to its members. The main aim of NAFED is to assist the marketing of cooperatives in the states to develop their marketing businesses. In order to achieve this NAFED adopts various strategies with a view to ensure better returns to the farmers. It undertakes price support operation, buffer stocking, export and import of commodities etc to balance production with consumption. When the government of India formulates policies for support price in respect of certain commodities, it appoints NAFED as its agency for procurement. Coconut Day (2nd September) September 2nd of every year has been designated as coconut day as per the decision of Asian and Pacific Coconut Community head quarters at Jakarta, Indonesia. Foundation day of APCC also falls on 2nd September. A major coconut growing countries including India are the members of the APCC. The celebration of the annual coconut day is aimed at creating more awareness on the importance of the coconut and focusing world attention to this crop to enhance its potential in alleviating poverty, encouraging investment in the sector and promote total development of coconut industry in the member countries. In India coconut development board is taking the lead in the annual celebration of the coconut day. COMPANY PROFILE â€Å"Kerala Kerakarshaka Sahakarana Federation Ltd†, (KERAFED) was registered under the co-operative societies Act in 1987, with assistance of European Economic Community, National Cooperative Development Corporation and the government of Kerala. KERAFED is the Apex Cooperative Federation of coconut farmers in Kerala and is the largest producer of coconut oil in India. The federation started commercial production in 1993. The head office of KERAFED is located in Thiruvananthapuram. KERAFED’s coconut oil complex at Karunagapally in Kollam district is one of the biggest such units in India, with a capacity of 200 tons per day. The primary objective of KERAFED is to organize coconut growers by bringing them under the cooperative umbrella and to provide them with all supplies and services to augment their income base by increased productivity and value additions through the integrated system of production achievement, storage, processing, diversification and marketing of coconut oil and all/any products of coconut palm at a price remunerative to growers and fair to consumers. As the coconut farmers in Kerala were reeling under the strange hold of powerful country trade cartels that consistently manipulate market conditions and dictate price trend to their advantage, KERAFED aimed at procurement of 50% to 60% of the total coconut/copra produced in the state which will be processed at its own processing unit and marketed. KERAFED is the single largest procurers of coconut/copra produced in Kerala from 900 societies all over the state. KERAFED has a good distribution network consisting of stockiest, dealers and suppliers. The Objectives of KERAFED are: To reduce edible oil imports. To provide an impulse effect on internal production of coconut. To develop the agricultural potential of Kerala State. To strengthen the co-operative movement To secure the marketing of coconut and its by-products, thereby assuring economic prices to the growers. ïÆ' ¼To establish and manage infrastructure facilities for production and supply of inputs and processing, manufacturing and marketing of products and by products of coconut palm. ïÆ' ¼To undertake research and development activities on production, processing and marketing. Thus to increase the income of 29 lakh farmers’ families and create employment opportunities in the industrial sector. For effectively and efficiently carrying out the administrative and operational practices on a day to day basis, the state is divided into three region, the southern region, the northern region and central region. The southern region consists of the revenue districts – Thiruvananthapuram, Kollam, Pathanamthitta and Alappuzha. The northern region consists of Malappuram, Kozhikode, Wayanad, Kannur and Kasargode districts. The central region consists of Kottayam, Idukki, Eranakulam, Thrissur, Palaghat districts. 300 primary agricultural credit cooperatives societies in each region are members of the federation to undertake production, procurement, marketing activities at the farmers’ level. For processing and product diversification, each region will have one processing plant with a capacity 200 tons of copra per day. MOTTO To give support to the coconut farmers. Distributing or providing healthy coconut oil to customers VISION To become the single largest Procurement agency of Copra and the biggest Coconut Products manufacturing Company in India. MISSION Being the number one producer of the best quality coconut oil, it aims at the following areas Business Customer relation Innovation