Internship Report on

“SIDDARAMESHWARA MOTORS, RAICHUR”

BY
S.SIDRAMRADDY
3SL22BA023
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI
In partial fulfilment of the requirement for the award of degree of
ER OF BUSINESS ADMINISTRATION
Under The Guidance Of

Internal Guide External Guide

Prof. Bhagyalakshmi.G Mahesh(Manager)
Asst.Prof. (MBA)

H.K.E.SOCIETY’S
SMV COLLEGE OF ENGINEERING DEPARTMENT OF MBA
YERAMARUS CAMP
RAICHUR – 584135
2023-24
 H.K.E.SOCIETY’S
SMV COLLEGE OF ENGINEERING
YERAMARUS CAMP, RAICHUR - 584135
DEPARTMENT OF MBA

CERTIFICATE
This is to certify that Mr. S.SIDRAMRADDY bearing MBA at HKE’S SMV COLLEGE
OF ENGINEERING USN No. 3SL22BA023 is a bonafide student of MASTER OF
BUSINESS ADMINISTRATION course of the institute 2023-24, affiliated to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, Belagavi. She prepared internship
report on “SIDDARAMESHWARA MOTORS” under the guidance of. Prof
Bhagyalakshmi.G in partial fulfillment of the requirement for the degree of
MASTER OF BUSINESS ADMINISTRATION of Visvesvaraya Technological University,
Belgaum Karnataka.

Prof. Bhagyalakshmi.G Prof. B.S.Chickmath Dr.R.Basawaraja

Internal Guide HOD Principal

Viva -voce Examination Date:

Signature of Internal Examiner Signature of External Examiner

Name & affiliation Name & affiliation

 DECLARATION

I S.SIDRAMRADDY hereby declare that the internship report entitled

“Organization Study” with reference to “Siddarameshwara Motors”
prepared by me under the guidance of Prof. Bhagyalakshmi.G faculty of
MBA Department, SMV College of Engineering, Raichur and external
assistance by mahesh

I also declare that this Internship work in towards the partial fulfilment
of the university regulation for the award of degree of Master of
Business Administration by VISVESVARAYA TECHNOLOGICAL
UNIVERSITY, BELGAUM.

I have undergone a project for a period of four weeks. I further declare

that this project is based on the original study undertaken from any
other University/Institution.

Place: RAICHUR Signature of the student

Date: 23-11-2023 USN: 3SL22BA023
 ACKNOWLEDGEMENT
At the outset, I would like to place on record my sincere thanks to the
management of SIDDARAMESHWARA MOTORS at Raichur for their kind
permission to undertake corporate exposure learning in their organization.
I am very grateful to the HR Manager my company guide who constantly guided
me and inspired me in completion of this work for his/her kind co-operation,
assistant encouragement and for providing me with all facilities in carrying out my
project work.
I owe my deep gratitude to our Prof. B.S.Chickmath HOD of MBA department,
who took keen interest on our internship work and guided us all along, till the
completion of our Internship work by providing all the necessary information for
developing a good system.
I am also thankful to all the members of the staff from different departments who
at various instances have been very helpful in furnishing information and making
this project possible.
I am very grateful to Prof. Bhagyalakshmi.G, my college guide for supporting and
helping me with my project.
I wish to express my heartful thanks to all the faculty members of MBA
department for their kind cooperation.
My special thanks to my family, my friends who have assisted me with moral
support in completing this report.
I hope reader friends of this report, will find it useful.

THANK YOU S.SIDRAMRADDT

3SL22BA023
MBA 3RD SEM
 TABLE OF CONTENT
SL.NO CONTENTS PAGE.
NO

1 Executive Summary 7
2 CHAPTER – 1 8
. Introduction about industry
. Industry Profile

3 CHAPTER – 2 9-20
. Organization Profile
. Background of the company
. Nature of the company
. Mission, vision and quality policy
. Workflow model
. Products/services profile
. Ownership pattern
. Achievements and awards
. Future growth and prospects

4 CHAPTER – 3 21-26
. Mckinsey’s 7S Frame Work
. Porter’s Five Force Model
5 CHAPTER – 4 27-29
. SWOT Analysis
6 CHAPTER – 5 30-34
. Analysis of Financial Statements
7 CHAPTER - 6 35
. Learning Experience
 EXECUTIVE SUMMARY

TAFE has grown to become the world's largest motorcycle manufacturer and one of the leading
automakers. TAFE develops, manufactures and markets a wide variety of products ranging from
small general-purpose engines and scooters to specialty sports cars, to earn the TAFE Motor
Company an outstanding reputation from customers worldwide. (TAFE Company Overview,
2021)

The Company's business is carried out through four segments. The Two-Wheel segment
manufactures two-wheel vehicles, all-terrain vehicles (ATVs), personal watercrafts and other
related products. The Two-Wheel segment offers Two-wheel vehicles and other related products.
Honda's major car models include its best selling Accord, Civic, CRV, Hybrid motorcycle Insight
and its luxury range of motorcycle under the "Acura" brand. This report covers the following
topics: The introduction about automobile industry with reference to the motorcycle industry and
history. The report also covers current motorcycle manufacture companies in Japan, company
profile and competitors of same industry. The nature of business of company, vision, mission and
quality policy of company. The report includes Porter’s five force model of Honda Motor
Company. The work flow model/manufacturing process of the company. It also covers product

profile of the company, which they are selling in market. The company’s ownership pattern. The
achievements and awards received by the company. The report covers future growth and prospects
of the company in Motorcycle industry. Mckensy’s seven S’s framework and porter’s five force
model about company. This report includes SWOT analysis of TAFE Motorcycle in the field of
motorcycle industry. It also covers the financial statement of the
 CHAPTER – 1

INTRODUCTION ABOUT ORGANISATION AND INDUSTRY

The Automobiles provide vehicle for quick transport of good services and passengers. The
Automotive Industry of India is one of the largest in the world and one of the fastest growing
globally. Majority of Indian especially youngsters prefer bike rather than car. Capturing a large
segment in two wheeler Industry bike and scooter cover a major segment.

The Indian Automobile Industry is manufacturing over 11 million vehicles and exporting about
1.5 million every year. The dominant products of the industry are Two wheelers with a market
share of over 75%, Cars with a market share of about 16% and commercial vehicles ( trucks,
buses, etc) and three wheelers share about 9% of the market.

The Automobile Industry is a wide range of companies and organizations involved in the
design, development, manufacturing, marketing, and selling of motor vehicles. It is one of the
world’s most important economic sectors by revenue.

Sales

Two Wheelers Cars Commerical Vehicles

Consumers are very important of the survival of the Motor Vehicle manufacturing industry. In
2008-09, customer sentiment dropped, which burned on the augmentation in demand of cars.
Steel is the major input used by manufacturers and the rise in price of steel is putting a cost
pressure on manufacturers and cost is getting transferred to the end consumer. The price of oil
and petrol affect the driving habits of consumers and the type of car they buy.

The key to success in the industry is to improve labour productivity, labour flexibility, and
capital efficiency. Having quality manpower, infrastructure improvements, and raw material
availability also play a major role. Access to latest and most efficient technology and
techniques will bring competitive advantage to the major players. Utilising manufacturing
plants to optimum level and understanding implications from the government policies are the
essentials in the Automotive Industry of India.

Both, Industry and Indian Government are obligated to intervene the Indian Automotive
industry. The Indian government should facilitate infrastructure creation, create favourable
and predictable business environment, attract investment and promote research and
development. The role of Industry will primarily be in designing and manufacturing products
of world-class quality establishing cost competitiveness and improving productivity in labour
and in capital. With a combined effort, the Indian Automotive industry will emerge as the
destination of choice in the world for design and manufacturing of automobiles.

India is the second largest producer of two-wheelers in the world. In the last few years, the
Indian two-wheeler industry has seen spectacular growth. The country stands next to China
and Japan in terms of production and sales respectively.

The automobiles sector is divided into Three segments – two-wheelers (mopeds, scooters,
motorcycles, electric two-wheelers), passenger vehicles (passenger cars, utility vehicles,
multi- purpose vehicles), commercial vehicles (passengers carriers, goods carries, light and
mediumheavy vehicles). It’s evident from the pie chart that two wheelers have the maximum
market share in the domestic Automobile sector.

• Largest two-wheeler market

• Second largest passenger car market
• Third largest commercial vehicle market
 TAFE – Tractors and Farm Equipment Limited, is an Indian tractor major incorporated in
1960 at Chennai, with an annual turnover of INR 10,000 Crores. The third-largest tractor
manufacturer in the world and the second largest in India by volumes, TAFE wields about
23% market share of the Indian tractor industry with a sale of over 180,000 tractors
(domestic and international) annually.

TAFE's partnership with AGCO Corporation and the Massey Ferguson brand for over 59
years is a stellar example of its commitment to building long-term relationships with its
stakeholders, through fair and ethical business practices. TAFE is also a significant
shareholder in AGCO Corporation, USA – a US $11.1 billion tractor and agricultural
equipment manufacturer.

TAFE has earned the trust of customers through its range of products that are widely acclaimed
for quality and low cost of operation. A strong distribution network of over 1600 dealers
effectively backs TAFE’s four iconic tractor brands – Massey Ferguson, TAFE, Eicher and the
recently acquired Serbian tractor and agricultural equipment brand IMT – Industrija Mašina i
Traktora. TAFE exports tractors, both in partnership with AGCO and independently, powering
farms in over 100 countries which include developed countries in Europe and the Americas
 CHAPTER – 2

ORGANISATION PROFILE

Background:TAFE (Tractors and Farm Equipment Limited), is an Indian tractor major

incorporated in 1960 at Chennai, with an annual turnover of INR 93 billion 2014-15).

 The third-largest tractor manufacturer in the world and the second largest in India by
volumes, TAFE wields about 25 market share of the Indian tractor industry with a sale of
over 150,000 tractors (domestic and international) annually.

 TAFE's partnership with AGCO Corporation and the Massey Ferguson brand for over 58
years is a stellar example of its commitment to building long-term relationships with its
stakeholders, through fair and ethical business practices.

 TAFE is also a significant shareholder in AGCO Corporation, USA a US 8.3 billion tractor
and agricultural equipment manufacturer.

 TAFE has earned the trust of customers through its range of products that are widely
acclaimed for quality and low cost of operation.

 TAFE exports tractors, both in partnership with AGCO and independently, powering farms
in over 100 countries which include developed countries in Europe and the Americas.

TAFE group has achieved revenue of Rs 11464 crore and PAT of Rs 1218 crore in the
financial year 2022
 Native Name ヤマハ発動機株式会社
Name TAFE Motor Co. Ltd.
Type Public
Industry Agricultural Machinery
Founded 1 May 1960
Founder S. Anantharamakrishnan
Headquarter Chennai, Tamil Nadu, India
Area served Worldwide
Key peoples Mallika Srinivasan (Chairman)
Sandeep Sinha (CEO)
Products Tractors, Combine harvesters, Diesel
Engines

• HISTORY;

Tractors and Farm Equipment Limited, is an Indian tractor major incorporated in 1960 at
Chennai, with an annual turnover of INR 10,000 crores. The third-largest tractor manufacturer in
the world and the second largest in India by volumes, TAFE sells over 180,000 tractors
(domestic and international) annually.

NATURE OF BUSINESS

TAFE has earned the trust of customers through its range of products that are widely acclaimed
for quality and low cost of operation. A strong distribution network of over 1600 dealers
effectively backs TAFE’s four iconic tractor brands – Massey Ferguson, TAFE, Eicher and the
recently acquired Serbian tractor and agricultural equipment brand IMT – Industrija
 MašinaTraktora. TAFE exports tractors, both in partnership with AGCO independentlypowering
farms in over 100 countries which include developed countries in Europe and the Americas.

Vision, Mission, Quality policy:

• VISION
To achieve the distinction of being the first choice among the farming community of India and
ensure a growing presence in international markets through setting leadership standards of
performance and customer care in the agricultural machinery business

• MISSION
Be the Exclusive & Trusted Brand renowned for marketing and manufacturing of TAFE
products, focusing on serving our customer where we can build long term relationship by
raising their design & innovative technology. Our innovative solutions will always exceed the
changing needs of our customers and provide value added vehicles.

 Quality policy
TAFE tractors plants are certified under ISO 9001 for efficient quality management
systems under ISO 14001 for environment – friendly operations
Tafe focus on total quality management , upgrading vendor quality and productivity .
 • WORK FLOW MODEL
IYM's manufacturing facilities comprises of 2 state-of-the-art Plants at - Faridabad (Haryana)
and Surajpur (Uttar Pradesh). Currently 10 models roll out of the two TAFE Plants.

The infrastructure at both the plants supports production of motorcycles and it's parts for the
domestic as well as oversees market. At the core are the 5-S and TPM activities that fuel our
agile Manufacturing Processes. We have In-house facility for Machining, Welding processes
as well as finishing processes of Electroplating and Painting till the assembly line.

The stringent Quality Assurance norms ensure that our motorcycles meet the reputed
International standards of excellence in every sphere.

As an Environmentally sensitive organization we have the concept of "Environment-friendly

technology" ingrained in our Corporate Philosophy. The Company boasts of effluent
Treatment plant, Rain water - Harvesting mechanism, a motivated forestation drive. The IS0-
14001 certification is on the anvil - early next year. All our endeavors give us reason to believe
that sustainable development for TAFE will not remain merely an idea in pipeline.

We believe in taking care of not only Your Motoring Needs but also the needs of Future
Generations to come.
 PRODUCT PROFILE:

1) MASSEY FERGUSON TRACTORS

Massey Ferguson - a world-renowned premium brand offering a wide variety of tractors and farm
machinery is an icon in itself and has been reshaping the agricultural landscape of the world since
over a century now.
Recognized for its experience, innovation and superior build quality, this eminent global tractor
brand offers one of the most comprehensive and versatile range of agricultural and utility tractors in
the industry.

Our range of premium and technologically advanced Massey Ferguson brand of tractors serve every
farmer and every new mechanization need. Crafted with the finesse of TAFE, the Massey Ferguson
tractors are built to last.

2) EICHER

The EICHER brand of tractors are one of the oldest names in the industry, and with the all new and
refreshing EICHER ‘E’ symbol, are a household name in India, and a respected mark of trust in
various parts of the world. A reputed brand in the agricultural vista, EICHER tractors are renowned
for their high value for money proposition, providing cost-effective and proficient products packed
with some of the finest global technology. Synonymous with ruggedness and reliability, EICHER
tractors are efficient, economical and offer an Ummeed Se Zyada, (translated means “it exceeds
expectations”) experience.
Blended with precision technology and the promise of TAFE, there is an EICHER tractor for
everything and a tractor for all.

3) TAFE TRACTORS

Labelled under our signature brand, the TAFE range of tractors is tough, durable and efficient. With an
established presence in Africa, Sri Lanka, Bangladesh and parts of Europe, the robust utility tractors from
TAFE are known for their dependability and relevantly optimized technology.

The TAFE tractors have proven their mettle in working with vivid soil conditions and for a wide range of
applications to cultivate various geographies around the world.

Built to the taste of the la nd, a TAFE tractor is synonymous to toughness and stands for high standards of
precision build quality, housing the expertise of TAFE acquired over decades of its being.

4) IMT TRACTORS
With a history stretching back to over 70 years, IMT - Industrija mašina i traktorais a Serbian tractor and
agriculture equipment manufacturing company and is one of the most popular tractor brands in Eastern
Europe,Northern Africa and the Balkans.

The first factory was founded in 1947 as the central foundry. In 1949, the central foundry and a few local
companies were consolidated to form a new company, the Metal Institute which later became to be known as
Industrija mašina i traktora (Serbian for ‘Industry of Machinery and Tractors’). TAFE, which had a long
association with IMT, acquired IMT in the year 2018. TAFE’s association with IMT spans many decades
through business cooperation that involved the supply of components, aggregates and technical support.

IMT is a pioneer in farm mechanization and tractor technology. Our tractors, which range between 35 hp to
220 hp, are suitable for cultivating agricultural land, vineyards & orchards and for infrastructure applications.
Our products draw strength from the indigenous R&D and the robust technology that we have built over the
past decades.

5) HARVESTERS

Harvesters are one of the most valuable pieces of machinery used by farmers globally. Performing
a combination of functions, harvesters are impressive, not only because of the amount of time and
physical effort they save, but also because of the minimal residue they leave behind.

With great emphasis on quality, TAFE’s combine harvesters are field-tested to ensure high efficiency,
a greater range of visibility and operator comfort.
6) AGRI STAR IMPLEMENTS

While tractorization is restricted to primary and secondary tillage and substantial use of haulage, and
with the cost benefit equation changing with increase in labour, it is important to provide models of
mechanization that are relevant to small and marginal farms.

With a foresight that moving from tractorization to spearheading mechanization is the key to improve
farm productivity and rein in labour costs, TAFE has been collaborating with world technology
leaders to establish its Applications Business Unit (ABU) to efficiently answer the emerging needs of
the global farming community.

7) TMTL & EICHER GENSETS

TMTL Engines Division is a unit of TAFE TRACTOR and Tractors Limited (TMTL) with Alwar,
Rajasthan, India, as its manufacturing base. TMTL is a wholly owned subsidiary of Tractors and
Farm Equipment Limited (TAFE), part of Chennai based Amalgamations Group, which is one of
India's largest light engineering conglomerates. The Amalgamations Group has a long and
distinguished history of serving Indian and global markets with a pan India presence of over 41
companies and is renowned for its highest standards of integrity, ethics and values, backed by a
highly skilled and competent workforce of over 15,000.
8) TAFE POWER

TAFE’s 60-year rich legacy combined with its expertise in manufacturing diesel engines for the
Indian subcontinent, will drive this newly launched TAFE POWER brand of Diesel Generators and
Engines to countries in Asia, Africa, Europe and the Americas. TAFE, through its subsidiary TAFE
TRACTOR and Tractors Limited (TMTL), has been one of the pioneers in manufacturing diesel
engines in India, spanning over 60 years. TAFE POWER Diesel Generators have low operational
expenses, high fuel efficiency and higher value offering at an affordable price. TAFE POWER
generators are safe, highly customizable and can be built based on the application and customer
requirements.

9) EICHER AGRO ENGINES

Marketed under the Eicher Engines brand, Agro Engines manufactures superior quality diesel engines
in the range 12 – 46 hp. These engines are robust, low maintenance, fuel efficient and serve as an
additional source of revenue to farmers and our rural customers. In a short span of time, the brand has
earned the trust of most customers and is one of the most preferred brand names in the range.
 OWNERSHIP PATTERN

Description Number of Number of Share Ownership (%)

Shareholders held (Thousand)

Individual investors and others 94563 56,351 16.1

Financial institutions 99 132,052 37.7

Other domestic companies 655 40,798 11.7

Foreigners 1,018 95,697 27.3

Securities companies 50 25,316 7.2

Total 96,385 350,217 100.0

AWARDS AND ACHIEVEMENTS

 TAFE has been presented the Star Performer Award by The Engineering Export Promotion Council

(EEPC) of India for 21 consecutive years.

 The TPM Excellence Award by the Japan Institute of Plant Management (JIPM) several times, the
Frost

& Sullivan - IMEA Award for significant progress towards reliable processes.

 The Regional Contributor Award for quality supplies from Toyota Motor Company, Japan, the

Manufacturing Supply Chain Operational Excellence - Automobile Award at the second Asia

Manufacturing Supply Chain Summit.

 The Agriculture Leadership Award by Agriculture Today magazine, the Corporate Citizen of the

Year Award by Public Relations Council of India The Commendation for Significant Achievement on

the journey towards Business Excellence by the CII-EXIM Bank - Business Excellence Award jury.

 Enterprise Integration and Technology Leadership Award for 'TAFE Digital Quality Management

System Supply Chain Leadership Award for 'TAFE Supplier Risk Management Model.

 Supply Chain Leadership Award for 'TAFE Differential Engagement Model.

FUTURE GROWTH AND PROSPECTS

Speaking on the exports, Srinivasan said almost 12-15 per cent of its production is exported.

 In India, the new Term emission regulations, expected to be implemented in 2020 would have an
impact on the tractors above 50 horsepower strength as it is expected to increase the price of these
products, affecting the demand for a short while.

 Out of the total, tractors above 50 hp were around 53,486 units, but it is growing at 16 per cent
this year, compared to the 10.6 per cent growth for the overall tractor industry this year.

 The tractor industry is expected to see seven per cent CAGR for the next five years, while some
cyclicality may be there. By the time 2022 arrives and the Prime Minister's promise on doubling the
farm income happens, the industry is expected to cross one million tractors.
 Chapter -3

MCKINSEY’S 7S FRAME WORK PORTER’S FIVE FORCE MODEL

THE MCKINSEY’S 7-S FRAMEWORK

The McKinsey 7-S Model is a change framework based on a company's organizational design. It
aims to depict how change leaders can effectively manage organizational change by strategizing
around the interactions of seven key elements: structure, strategy, system, shared values, skill,
style, and staff

The 7-S model can be used in a wide variety of situation where an alignment perspective is useful,
for example. To help you: project report, docx

 Improve the performance of a company.

 Examine the likely effects of future changes within a company.
 Align departments and processes during a merger or acquisition
 Determine how best to implement a proposed strategy.
How you can align them to improve performance in your organization.

The Seven Elements:

The MCKinsey 7-s model involves seven interdependent factors which are categorized as

Hard Elements SOFT ELEMENTS

STRATEGY SHARED VALUE
STRUCTURE SKILLS
SYSTEM STYLE
STAFF
"Hard" elements are easier to define or identify and management can directly influence them:
These are strategy statements; organization charts and reporting lines; and formal processes and
IT system

THE MCKINSEY’S 7-S FRAMEWORK

The way the model is presented in the diagram depicts the interdependency of the elements and
indicates how a change in one affects all the others.
 Strategy: the plan devised to maintain and build competitive advantage over the
competition.
 Structure: the way the organization is structured and who reports to whom.
 System: the daily activities and procedures that staff members engage in to get the job
done.
 Shared value: called" super ordinate goals" when the model was first developed, these
are the core value of the company that are evidenced in the corporate culture and the
general work ethic.
 Staff: the employees and their general capabilities.
 Skills: the actual skills and competencies of the employees working for the company.
Placing shared values in the middle of the model emphasizes that these values are central
to the development of all the other critical elements. The company's structure, strategy,
system, style, staff and skills all stern from why the organization was originally created, and
what it stands for. The original vision of the company was formed from the values of the
creators. As the values change, so do all the other elements. Also, the first version of this
model published in 1982, classified “system” as "soft” Since 1982, very many processes in
organization have been meticulously documented or automated, making them relatively
easy to analyze and change. They are therefore shown above as "hard''.

MCKINSEY’S 7S FRAME WORK WITH SPECIAL REFERENCE TO "TAFE

TRACTOR COMPANY”

• STRATEGY
TAFE Motor Co Ltd needs to build a balance between short run cost savings
and protecting its core competitive advantage. Customers perceive TAFE TRACTOR Co
Ltd products and services to deliver ‘value for money’ proposition plus a bit extra. In its
zest to gain more market share through competing on prices, TAFE TRACTOR Co Ltd
should avoid cutting costs that can result in inferior product and service delivery.

• STRUCTURE
The pandemic has questioned the current structure and supply chain management
of the company. To be more resilient organisation and people itself for future disruption
of similar magnitudes TAFE TRACTOR Co Ltd should focus on – diversifying suppliers
geographically so that climate related, geopolitical, and other disruptions don’t impact the
long term survival of the company.
• SYSTEMS
TAFE TRACTOR Co Ltd needs to focus on the following areas – Improve
internal processes, such as risk management, Customer Relationship Management (CRM),
web app optimization, and data visualization across the organization.

• STAFF
Some of the steps TAFE TRACTOR Co Ltd can take in to improve the human
resources are –Recruitment and remote onboarding – Because of the pandemic, a lot of
employees are working from remote locations. To make the environment more inclusive
for the new employees, TAFE TRACTOR Co Ltd should build system for remote
onboarding such as – catalog of short videos, small groups interaction, technical
demonstrations.

• SKILLS
TAFE TRACTOR Co Ltd can build a structured training and development
program for people working from remote locations. TAFE TRACTOR Co Ltd can hire
fresh talent as more and more people are leaving their existing jobs because they are not
challenging them enough.

• STYLE
The leadership styles required in the physical location and in remote scenario
are completely different. In a physical environment manager can stop by a chat, provide
inputs and go through the work. But in the remote locations employees have to work in
far more isolated environment. To improve the workflow – leaders should pursue
collaborative and inclusive form of leadership. Leaders should build smaller teams as
part of larger teams.

• SHARED VALUES
The organization has built a successful business model based on its core
values, vision and mission. It doesn’t have to change much in the shared values segment.
One area where it can focus more is – sustainability. Investors are putting a lot of stress on
 Environmental, Societal, and Governance issues, so it can bring more transparency by
using the Triple Bottom Line concept in its ESG and financial reporting.

PORTER'S FIVE FORCE MODEL:

Porters five force model is an analysis tool that uses five industry forces to determine the
intensity of competition in an industry and its profitability level. Five forces model was
created by M. Porter in 1979 to understand how five key competitive forces are affecting an
industry. These forces determine an industry structure and the level of competition in that
industry. The stronger competitive forces in the industry are the less profitable it is. An
industry with low barriers to enter, having few buyers and suppliers but many substitute
products and competitors will be seen as very competitive and thus, not so attractive due to
its low profitability. The five forces identified are:

 COMPETITIVE RIVALRY:
This force examines how intense the competition currently is in the market place, which
is determined by the number of existing competitors and what each can do. Rivalry
competition is high when there are just a few businesses equally selling a product or
services, when the industry is growing and when consumers can easily switch to a
competitors offering for little cost.

 Bargaining power of suppliers: this force analyzes how much power a business
supplier has and how much control it has over the potential to raise its prices, which in
tum would lower business profitability.

 Bargaining power of buyers: This force examines the power of the consumer and
their effect on pricing and quality. Consumer have power when there aren't many of
them but there are plentiful sellers, as well as when it is easy for buyers to switch from
one business products or services to another.
Threat of new entrants: This force considers how easy or difficult it is for competitors to
join the marketplace in the industry being examined .The easier it is for competitors to join,
the greater the risk of a business market share being depleted. Barriers to entry include
absolute cost advantage, access to inputs, economies of scale and well recognized brands.

 Threat of substitute: this force studies how easy it is for consumers to switch from a
business product or services to that of a competitors. It looks at the number of
competitors, how their prices and quality compare to the business being examined and
how of a profit those competitors are earning, which would determine if they can lower
their costs even more.
 PORTER FIVE FORCE MODEL WITH REFERENCE TO TAFE
TRACTOR COMPANY

• THREAT OF NEW ENTRANTS :-

If there is strong threat of new entrants in the Products industry then current players will be
willing to earn lower profits to reduce the threats from new players.

• BARGAINING POWER OF SUPPLIERS :-

If suppliers have strong bargaining power then they will extract higher price from the TAFE
TRACTOR Co Ltd. It will impact the potential of TAFE TRACTOR Co Ltd to maintain above
average profits in industry.

• BARGAINING POWER OF SUPPLIERS :-

If suppliers have strong bargaining power then they will extract higher price from the TAFE
TRACTOR Co Ltd. It will impact the potential of TAFE TRACTOR Co Ltd to maintain above
average profits in industry.

• THREAT OF SUBSTITUTE PRODUCTS AND SERVICES :-

If the threat of substitute is high then TAFE TRACTOR Co Ltd has to either continuously
invest into R&D or it risks losing out to disruptors in the industry.

• RIVALRY AMONG EXISTING PLAYERS :-

If competition is intense then it becomes difficult for existing players such as TAFE
TRACTOR Co Ltd to earn sustainable profits.

Decision Makers can use Porter Five Forces model to analyse the competitiveness faced by TAFE
TRACTOR Co Ltd in Recreational Products industry. Porter five forces analysis of TAFE TRACTOR
Co Ltd will help in understanding and providing solution to – nature & level of competition, and how
TAFE TRACTOR Co Ltd can cope with competition.
 CHAPTER – 4
SWOT ANALYSIS

SWOT Analysis of TAFE TRACTOR Co Ltd by includes the four key elements - Strengths,
Weaknesses, Opportunities, & Threats. The strengths and weaknesses address the internal
factors of the company, opportunities and threats are the macro challenges that TAFE
TRACTOR Co Ltd is facing in Japan and other international markets that it operates in.

SWOT Analysis is a strategic methodology to analyse the - Strengths & Weaknesses that
TAFE TRACTOR Co Ltd possess, and Opportunities & Threats that the organization faces
because of competitive and macro-economic factors prevalent in Japan.

SWOT analysis provides key insights into both internal and external factors that can impact
the performance of an organization. It can help the leadership of the organization to optimize
performance, look for new opportunities, manage competition, maximize return on resources
employed, and minimization of various business and policy making risks.
STRENGTH OF TAFE

• Wide Product range - TAFE TRACTOR product range includes motorcycles,

scooters, motorized bicycles,boats, sall boats, personal water craft, swimming pools,
utility boats, fishing boats, outboard TRACTOR, 4- wheel ATVs, recreational off-road
vehicles, go-kart engines, golf carts, multi-purpose engines, electrical generators, water
pumps, snowmobiles, small snow throwers, automobile engines, surface mounters,
intelligent machinery, industrial-use unmanned helicopters, electrical power units for
wheel chairs and helmets.

• Excellent reputation - As per Forbes, TAFE TRACTOR is the 69 highest regarded

companies in the world because of its excellent performance over time. It is ranked
658 with regards to its overall sales across the world which touches #14 billion.

• The sound - TAFE TRACTOR are absolutely loved for the engine ripping sound they
make when someone revs up the accelerator of a bike. In fact, It is a go to bike for
motorcycle lovers.

• Rigid build - All products from TAFE TRACTOR are expected to have a rigid build
and have a high quality. TAFE TRACTOR has an excellent quality control team and
R&D team to ensure that the products sold out in the market match the performance
levels expected of these products.

• Participation in sports - TAFE TRACTOR has branded itself very well by having
regular participation in TRACTORports especially in motorcycle racing and car racing.

• Star in the BCG Matrix - TAFE TRACTOR may not have a high market share of the
worldwide automobile market but it is growing in a segment which has many
competitors and yet the potential of the segment is huge too. Thus, TAFE TRACTOR
is clearly a star in the BCG matrix when considering the motorcycle industry.
WEAKNESSES OF TAFE

• Marketing & Advertising - Because TAFE TRACTOR is a star in the BCG Matrix,
it needs to have huge expenditure where Marketing and Advertising is concerned.
However, compared to other brands like Hyundai or Hero or others, TAFE TRACTOR
does not use television as effectively though it is present in Top magazines and
regularly found in the newspaper. A lot more is expected from a brand like TAFE in
terms of Advertising.
• Distribution - Another problem which is faced especially in developing countries
where TAFE is present is that the distribution is not up to mark. Even in India, the
distribution is quite low and does not match with other prominent motorcycle brands
like Honda, Bajaj, Hero or others.
• Service - Because the distribution points are less, the service points are less as well.
Hence a customer thinks of the service convenience before buying this product and
might not purchase the bike itself. Therefore along with sales distribution, service
points distribution is also needed. This is probably the weakest point in the SWOT
analysis of TAFE.
OPPORTUNITIES OF TAFE

• Electric Bikes - TAFE is already into Electric bikes and this is a product for the
future. As more and more people move onto electric cars, bikes will not be left far
behind and already the adoption has started in many regions. Regions which are
environmentally conscious have made electric bikes mandatory because of the low
carbon footprint.
• Low tier segment motorcycles - Most of TAFE's products are positioned as
premium whereas TAFE should be looking at the low tier as well as mid-tier
segments. Brands like Volkswagen in cars have proved that a single company can
cater to all segments even if it does the same with different brands. With the same
concept, TAFE can concentrate on the low tier and mid-tier segment to have a huge
boost to its dropping sales.
• Distribution - Having more distribution point and service points are required by
the brand. It is a weakness which TAFE has and covering that weakness can mean
an opportunity for the brand.
• Expansion - Expansion in International territories and developing markets can help
the brand in boosting sales. This expansion will not be limited to motorcycles but
it can be applied to its engines and all the other products in the arsenal of TAFE.
• Brand driver products - Like Pulsar in Bajaj or Splendor and Passion in Honda,
TAFE needs products which are the drivers for its brand. A single product or 2
products which are the main products advertised by the brand and which can
penetrate the market yet build brand equity, such products need to be marketed by
TAFE.
• Rising Disposable income & Emerging markets - TAFE needs to especially
target nations where the GDP is rising and there is more and more disposable
income. Such markets will always first prefer bikes and then will move on to cars.
TAFE needs to cover these regions to increase overall sales.
THREATS 0F TAFE

• Lack of Advertising - As we can see that TAFE sales are dropping which is due
to a lack of advertising and the proper positioning for the brand, TAFE's brand
recall is quite lesser than its other competitors and this has affected the brand
equity, the recall and the overall sales of the brand.
• Competition - The competition in this segment is huge. There are national players
in most countries which have captured a large market share and to counter the
competition, TAFE needs either price penetration or excellent marketing. But at all
times, the competition effects both - the topline and the bottom line of the company.
• Indirect compaction - Although all families have one motorcycle, it is observed
that scooters and slowly yet steadily replacing motorcycles. At the same time, many
families have directly purchased cars instead of purchasing a single motorcycle.
This indirect competition rising in demand is also a reason for the dropping sales
of TAFE and it is a threat to the brand.
 CHAPTER– 5
ANALYSIS OF THE FINANCIAL STATEMENTS
Meaning :
Financial statements are reports prepared by a company’s management to present the financial
performance and position at a point in time.
Financial statements are the main source of financial information for most decision makers. That
is why financial accounting and reporting places such a high emphasis on the accuracy, reliability,
and relevance of the information on these financial statements.
Example
The Balance sheet is a summary of the company position on one day at a certain point in time.
The balance sheet lists the assets, liabilities, and owners equity on one specific date. In a sense
,the balance sheet is a picture of the company on that date. Investors and creditors can use the
balance sheet to analyse how companies are funding capital assets and operatins as well as current
investors information
The income statement shows the revenue and expenses of the company over a period of time.

FINANCIAL STATEMENT ANALYSIS

It is the process of reviewing and analysis a company’s financial statements to make better
economic decision. These statements include the income statement ,balance sheet ,statement of
cash flows, and a statement of change in equity

What is the purpose of analyzing a financial statement ?

The purpose of financial statement analysis is to examine past and current financial data so that
a company’s performance and financial position can be evaluated and future risk and potential
can be estimated.
Organization has enough resource to meets its short term obligation .if the ratio is below 1 it
means company doesn’t have enough liquid assets to cover its short term liabilities .
 1) Consolidated Balance Sheets
Dec. 31, 2021 Sept. 30, 2022

ASSETS

Current assets:

Cash and deposits 276,412 345,838

Notes and accounts receivable – trade 161,626 －

Notes and accounts receivable – trade, and contract assets － 197,280

Short-term sales finance receivables 154,599 222,188

Merchandise and finished goods 211,920 260,093

Work in process 92,070 125,719

Raw materials and supplies 101,369 129,988

Other 61,499 99,136

Allowance for doubtful accounts (14,799) (19,015)

Total current assets 1,044,698 1,361,230

Non-current assets:

Property, plant and equipment 354,127 390,902

Intangible assets 28,419 37,890

Investments and other assets:

Long-term sales finance receivables 208,209 272,076

Other 200,396 187,870

Allowance for doubtful accounts (2,934) (4,610)

Total investments and other assets 405,671 455,336

Total non-current assets 788,218 884,129

Total assets 1,832,917 2,245,360

Dec. 31, 2021 Sept. 30, 2022

LIABILITIES

Current liabilities:

Notes and accounts payable – trade 140,524 171,411

Electronically recorded obligations – operating 24,653 29,554

Short-term loans payable 62,954 123,575

Current portion of bonds payable 2,240 8,561

Current portion of long-term loans payable 77,132 204,906

Provision for bonuses 15,334 27,921

Provision for product warranties 17,267 19,204

Other provision 2,153 3,333

Other 171,005 201,251

Total current liabilities 513,265 789,719

Non-current liabilities:

Bonds payable 7,552 22,519

Long-term loans payable 308,634 252,359

Net defined benefit liability 51,840 55,273

Other provision 307 709

Other 50,645 56,377

 Total non-current liabilities 418,980 387,240

Total liabilities 932,246 1,176,959

NET ASSETS

Shareholders’ equity:

Capital stock 86,100 86,100

Capital surplus 68,101 68,050

Retained earnings 761,483 852,682

Treasury shares (11,722) (31,725)

Total shareholders’ equity 903,962 975,108

Accumulated other comprehensive income:

Valuation difference on available-for-sale securities 41,522 30,378

Revaluation reserve for land 10,427 10,427

Foreign currency translation adjustment (103,471) (8,215)

Remeasurements of defined benefit plans 6,785 8,182

Total accumulated other comprehensive income (44,736) 40,772

Non-controlling interests 41,444 52,519

Total net assets 900,670 1,068,400

Total liabilities and net assets 1,832,917 2,245,360

2) Consolidated Statement of Income

Sept. 30, 2021 Sept.30,2022
Net sales 1,362,618 1,677,127

Cost of sales 976,436 1,213,712

Gross profit 386,181 463,415

Selling, general and administrative expenses 231,551 289,229

Operating income 154,629 174,185

Non-operating income:

Share of profit of entities accounted for using equity method 3,521 4,151

Foreign exchange gains 1,705 6,934

Other 7,773 12,385

Total non-operating income 13,000 23,470

Non-operating expenses:

Interest expenses 1,876 2,731

Other 5,158 4,972

Total non-operating expenses 7,035 7,703

Ordinary income 160,595 189,953

Extraordinary income:

Gain on sales of non-current assets 203 707

Gain on sales of investment securities 12,819 4,882

Total extraordinary income 13,022 5,590

Extraordinary losses:
 Loss on sales of non-current assets 94 39

Loss on disposal of non-current assets 596 743

Impairment loss 368 －

Loss on sales of investment securities 301 128

Loss on disaster 697 －

Total extraordinary losses 2,058 911

Income before income taxes 171,559 194,632

Income taxes – current 36,803 46,794

Income taxes – deferred (9,263) 2,687

Total income taxes 27,540 49,481

Net income 144,019 145,150

Net income attributable to non-controlling interests 7,005 12,076

Net income attributable to owners of parent 137,014 133,073

Net income 144,019 145,150

Other comprehensive income:

Valuation difference on available-for-sale securities 2 (11,139)

Foreign currency translation adjustment 25,538 98,076

Remeasurements of defined benefit plans, net of tax 827 1,508

Share of other comprehensive income of entities 1,373 3,178

accounted for using equity method
Total other comprehensive income 27,741 91,623
Comprehensive income: 171,761 236,773

Comprehensive income attributable to

Comprehensive income attributable to owners of parent 162,722 218,582

Comprehensive income attributable to non-controlling 9,039 18,191

interests
 CHAPTER-6

LEARNING EXPERIENCE

I’m S SIDRAMREDDY Studying in 3rd semester MBA.

During the period of my internship program. I learned that internship is one of the most
important activity towards my career development and planning. How to make a work in
systematic way that describe about my ability and talent towards an organization structure.
The work experiences I encountered during the internship allowed me to develop
[communication skill, leadership skill, management skill,]. I think I still need to work
on my [collaboration skill]. However, the overall experience was positive, and
everything I learned will be useful in my future career in this field.

From my internship at TAFE TRACTOR. I was able to get a better understanding of

how the automobile industry works and how effective it is. I enjoyed working with the
automobile organization team to devise and implement different marketing strategies.
However, I still have a long way to go in understanding the automobile industry aspects
in organization structure, and I build up my public speaking skills as well.

Overall, I found the organization structure through this internship experience to be positive,
and I'm sure I will be able to use the skills I learned in my career later.
 FINDINGS :

Product Range: TAFE manufactures a diverse range of tractors catering to various agricultural
needs. The company produces tractors for both domestic and international markets, with
different horsepower options.

Market Presence: TAFE has a strong presence in the Indian market and has expanded its reach
to several countries globally. The company exports tractors to various regions, contributing to
its international standing.

Brands: TAFE owns and operates multiple tractor brands, including Massey Ferguson and
TAFE. The acquisition of iconic brands like Massey Ferguson has further strengthened its
product portfolio.

Innovation and Technology: TAFE has been active in adopting and integrating innovative
technologies into its tractor designs. This includes features such as precision farming, advanced
transmissions, and improved fuel efficiency.

Global Partnerships: The company has established partnerships and collaborations with
international agricultural and machinery organizations to enhance its global presence and
technological capabilities.

Corporate Social Responsibility (CSR): TAFE is known for its CSR initiatives, including
programs focused on rural development, education, and healthcare. The company has been
involved in initiatives that benefit the communities in which it operates.

Top of Form
SUGGESTIONS :

Research and Development:

Invest in ongoing research and development to stay at the forefront of tractor technology.

Explore sustainable and eco-friendly solutions for tractors, aligning with the growing demand
for environmentally conscious products.

Product Diversification:

Expand the product line to include a diverse range of tractors catering to different agricultural
needs, from small-scale farmers to large-scale agricultural enterprises.

Consider developing specialized tractors for specific crops or farming practices.

Technological Integration:

Incorporate cutting-edge technology, such as precision farming, IoT, and AI, into tractor
designs to improve efficiency and productivity.

Develop smart tractor features that enable remote monitoring and control for farmers.

Global Expansion:

Explore opportunities for international expansion, targeting markets with growing agricultural
sectors.

Adapt products to meet the specific needs and conditions of different regions.

Dealer Network Enhancement:

Strengthen and expand the dealer network to improve accessibility for customers.

Provide training and support programs for dealers to ensure they can effectively showcase and
sell TAFE tractors.

Customer Engagement:

Establish strong customer engagement programs, including feedback mechanisms and customer
support services.
Organize events and demonstrations to showcase the capabilities of TAFE tractors and educate
customers on their features.

After-Sales Service:

Focus on enhancing after-sales service and support to build long-term customer relationships.

Offer extended warranties, maintenance packages, and easy-to-access spare parts.

Brand Building:

Invest in marketing and branding strategies to increase awareness of the TAFE brand.

Sponsor agricultural events, participate in trade shows, and leverage digital marketing channels.

Collaborations and Partnerships:

Explore collaborations with agricultural research institutions and universities for continuous
innovation.

Partner with technology companies for joint ventures in developing advanced tractor features.

Sustainability Initiatives:

Emphasize sustainability in manufacturing processes, using eco-friendly materials and energy-

efficient practices.

Communicate TAFE's commitment to sustainability, appealing to environmentally conscious

consumers.
CONCLUSION:

TAFE Tractor Company, with its strong market presence, diverse product range, and commitment
to innovation, is positioned as a key player in the agricultural machinery industry. As the
agricultural sector evolves, TAFE's continued focus on technology, sustainability, and global
expansion will likely be crucial for maintaining and enhancing its market position. For the latest
and most accurate information, it's recommended to refer to the company's official
communications and recent industry reports.

Top of Form
BIBLIOGRAPHY:
Books Referred:

 Philip Kotler, Kevin Lane Keller “MARKETING MANAGEMENT”

 J. Paul Peter, “CONSUMER BEHAVIOR & MARKETING STRATEGY”
 Strategic Management and Corporate Governance - Prof. D. Singh MC
 Management and Organisational Behaviour - Mrs. Tripti Singh Chowdhury

WEBSITES

https:// www.tafe.com