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A

Project Report

On

ONGC

And

Relinace Industires

Submitted By:

Shah Jaimil (56)

Shah Yash (57)(In the partial fulfillment of M.B.A. Semester I)

Submitted To:

Prof. Rachita Jayswal

Lecturer

A.M. Patel Institute of Computer Studies (M.B.A.)

Ganpat University

Kherva.

(November 2010)

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CERTIFICATE BY THE GUIDE

This is to certify that the content of this report entitled Jaimil Shah-56 & Yash Shah-57 by

submitted to A.M. Patel Institute of Computer Studies (M.B.A.) for the award of Business

Administration (MBA Sem-I) is original research work carried out by them under my

supervision.

This report has not been submitted either partly or fully to any other University or Institute for

award of any degree or diploma.

Prof. Rachita Jayswal,

A.M. Patel Institute of Computer Studies (M.B.A.)Ganpat University.

Kherva.

Date:23/11/2010

Place:Kherva

ii

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CANDIDATES STATEMENT

We hereby declare that the work incorporated in this report entitled Marketing Strategies of

Pepsico and Coca-colain partial fulfillment of the requirements for the award of Master of

Bsiness Administration(Sem-I) is the original study undertaken by us and it has not been

submitted earlier to any other University of Institute for the award of any Degree or Doploma.

(name and signature of student)

Jaimil Shah (56)

Yash Shah (57)

Date :23/11/2010

Place : Kherva

iii

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Preface

As a part of the MBA curriculum and in order to gain practical knowledge in the field of

management, we are required to make a report on any business related topic.

The basic objective behind doing this project is to gain the knowledge about the motivation and

to interpret its various implications. We have selected the topic, motivation strategies adopted by

Accenture.

In this project we have included various laws of motivation, effects of it and the various

strategies adopted by Accenture.

Doing this project helped us to enhance our knowledge regarding the various motivation laws

and its various strategies. Through this report we came to know about the importance of

motivation in an organization. Its very useful for making a successful organization.

iv

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Acknowledgement

We would sincerely like to thank Prof. Rachita Jayswal for giving us such opportunity for

preparing the business report and also for guiding us thoroughly during preparing this report.We

would also like to thank Prof.(Dr.)Mahendra Sharma for giving us such an healthy environment

to study and providing us such experienced faculty who gave us such wonderful opportunity. We

would also like to mention that the content used by us is the hard work from us. The content

taken is a study done by us and has not been copied or presented by anyone.

With sincere Regards,

Jaimil Shah (56)

Yash Shah (57)

V

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Executive Summary

The soft drink industry in India has two major players, Pepsi and Coke. Besides these there are

some local players at different market, operating with different market share. But they are not a

big threat to the market share of either Pepsi or Coke. However as of now the two big names in

cola industry are only two top U.S. players Pepsi and Coke and the fight for acquiring the market

is always going between these two players and the Cola industry has along seen a COLD WAR

between these two players to acquire the market share. That means one company gains at the

cost of the other.

One of the main characteristics of the Cola industry is the absence of loyalty and it is consumedmainly on impulse. The CSD (Carbonated Soft Drinks) industry mainly Pepsi has four channels

through which it reaches the end consumer.

They are Groceries, Convenience Stores, Eateries and Households.

The share of Pepsi as compared to its competitor Coca cola is high in the Convenience channel,

but other channels have yet to develop to their full potential.

The expected benefit of the project is to expand the number of customers through direct sales,find new customers and build customer relationship.

vi

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Contents

Certificate by the guide.ii

Candidates Statement..iii

Preface.. iv

Acknowledgment..v

Executive Summaryvi

1 Introduction

1.1 Mission and vision

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CORPORATION PROFILE

ONGC :

Oil & Natural Gas Corporation Limited properly known as ONGC , republic Indias

number one company with significant company in industrial and economic growth of the country

is a leading National Oil and Natural Gas producing company of India engaged mainly in

exploration ,development and production of crude oil, Naturals gas and some value added

products. It has gone through its life cycle and now reached to its maturity stage after

overcoming birth & growth stage .The organization was born over about five decades ago on 14 th

August 1956 ND today ONGC is a fortune 500 company having more than 35000 employees as

on date working in different in India and abroad. The modest corporate house within serene

Himalayan setting at Dehradun and Registered office at Delhi.

ONGC has grown into a full fledge horizontally integrated upstream petroleum company

with adequate in house capabilities and infrastructure in the entire range of oil and gas

exploration and production activities and related oil fields engineering services .From a small

directorate to a monolith today ONGC is circumpassing the entire public gamut of public sector

organization. ONGC today is endeavoring to become a world class oil and gas producing

company in pursuit of exploration and production business in the domestic and international area

and related opportunity specific energy business.

ONGC today is repositioning itself to fasten the principle of relational enterprise through

partnership\strategic alliances \joint ventures with preferred partners and adopt a business

strategy which relies on company skills and positional assets with focus on core business areas

and opportunity specific diversification.

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ril :

1991, Reliance industries set up a new subsidiary, Reliance Refineries Private Ltd. Thesubsidiary

later changed its name to Reliance Petroleum Limited, and in 1993 launcheda public offering,which at that time was India's largest ever IPO.

Reliance continued to pioneer financing channels in India. In 1993, for example, thecompany became the first Indian company to raise capital on the foreign market,through a Global Depositary Receipt (GDR) issue in Luxembourg. The companycompleted a second successful GDR issue in 1994. The company used the new capitalin part to expand its petrochemicals wing, building the world's largest multi-feedcracker at the Hazira site. The company also added production plants for monoethyleneglycol, polyethylene, and purified terephthalic acid. The new units launched production

in 1998.Reliance's opportunity for entry into petroleum refining came in 1997, when the Indianoil industry reached a state of near collapse. Unable to fund further explorationoperations, and lacking the capital to expand its existing production, the governmentwas forced to liberalize the sector. In that year, Reliance announced a plan to build oneof the world's largest and most modern petroleum refining complexes in Jamnagar,Gujarat, at a cost of some $6 billion. The government agreed to the plan, and grantedthe company the right to import petroleum directly, rather than going through IndianOil, which helped Reliance greatly drive down operating costs.

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Mission And Vision:

ril :

VISION:-

Reliance Industries Limited (RIL) was set up by the farsighted businessman Dhirubhai Ambani(1932-2002) more than three decades ago. RIL has emerged as India's largest private-sectorenterprise and carved out a distinct place for itself in global Fortune 500 companies. Reliance'sbusiness success and competitive position reflect the leadership provided by its founder, whosaid, "Growth has no limit at Reliance. I keep revising my vision. Only when you dream it doyou get it."

The leadership system defined by Ambani is based on value creation, particularly for thecustomers and shareholders. Now, Shri Mukesh Ambani, chairman and managing director, issteering the company, building on the founder's vision.

The Hazira manufacturing unit's management team, headed by Shri H. S. Kohli, executivedirector, is focused on fulfilling the needs of its various stakeholders through excellence in

systems, processes, technology, and people and toward fulfillment of the corporate vision: "Tobecome a globally competitive enterprise, driven by the market, creating and maintaining a leadover competition through quality products and establishing itself to be the preferred supplier ofits customers."

With vertical integration of its chain from refinery to textiles, Reliance has a unique fullyintegrated structure, producing fabrics from crude oil. Its existing and emerging businesses inexploration and production, refining and marketing, petrochemicals, textiles, and retailing havegiven Reliance a unique leadership position in India and the world.

Reliance has the distinction of being among the top 10 global producers in all of its majorpetrochemical product lines. The company's vision is "to grow on a sustainable basis and be the

largest and most innovative, profitable, and admired polyester producer in the world."

MISSION:-

To attain global best practices and become a world-class ,Starting in 1991, hedirectedReliance Industries in its efforts to raise ..... PARC is today a state of the art technologycenter in the Indian petrochemical industry. ..

ongc :

VISION:To be a world-class Oil and Gas Company integrated in energy business with dominant Indianleadership and global presence.

MISSION:World Class Dedicated to excellence by leveraging competitive advantages in R&D and technology with

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involved people. Imbibe high standards of business ethics and organizational values. Abiding commitment to safety, health and environment to enrich quality of community life. Foster a culture of trust, openness and mutual concern to make working a stimulating andchallenging experience for our people.

Strive for customer delight through quality products and services.Intergrated In Energy Business Focus on domestic and international oil and gas exploration and production businessopportunities. Provide value linkages in other sectors of energy business. Create growth opportunities and maximize shareholder value.Dominant Indian Leadership Retain dominant position in Indian petroleum sector and enhance India's energy availability.

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Social Responsibility

RIL

Social welfare and community development is at the core of Reliances Corporate Social Responsibility

(CSR) philosophy and continues to be a top priority for the Company. It revolves around the Companys

deeply-held belief in the principle of symbiotic relationship with the local communities, recognizing that

business ultimately has a purpose - to serve human needs. Close and continuous interaction with the

people and communities in and around the manufacturing divisions has been the key focus while striving

to bring around qualitative changes and supporting the underprivileged.

Reliances contributions to the community are in the area of health, education, infrastructuredevelopment (drinking water, improving village infrastructure, construction of schools etc.),environment (effluent treatment, tree plantation, treatment of hazardous waste), relief andassistance in the event of a natural disaster, and miscellaneous activities such as contribution toother social development organizations etc. The Companys CSR teams at all manufacturingdivisions interact with the neighbouring community on regular basis. The Company takes pride

in the fact that its CSR representatives are known by their first names in the regions that itoperates.

Education

Teach them young is the very motto of Reliance as the Company believes that the quality ofinputs received by an individual at an early age contributes to his or her growth as a capablehuman being. To ensure high quality of teaching, Reliance has made significant efforts towardsvalue enhancement of teachers through professional and institutionalized training. DahejManufacturing Division conducted educational and excursion tours of students and teachers fromthe primary schools of neighbouring villages, and also organized Balmela and Science and

Mathematics Fair.

To provide training in the field of effective techniques and modern methods of teaching to highschool teachers in the Hazira area, the Company organized training of teachers in varioussubjects.

Reliance has launched the Sky is the limit programme at Hazira, to address the problem ofschool drop-outs in the local community.

The Company also provides opportunities to engineering and management institute students toundergo in-plant training/projects as part of their academic curriculum, thus enabling them to

appreciate application of theoretical knowledge and get an exposure to the industrial practices.

Efforts were made to enhance employability/skill development of local youths. This was done bygiving opportunities to them to work in the Companys operating plants, which in turn improvetheir job prospects.

Executive Development Programs for officers of neighbouring industries were organized incoordination with PRIA (Patalganga Rasayani Industries Association).

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The Companys major manufacturing locations provide good quality education to the children ofall employees and also cater to the needs of surrounding villages. Jamnaben Hirachand AmbaniSchool, Kokilaben Dhirubhai Ambani Vidya Mandir, and Jamnaben Hirachand AmbaniSaraswati Vidya Mandir are schools near the Companys manufacturing locations at Patalganga,Hazira and Jamanagar respectively. A modern educational infrastructure coupled with extra-

curricular activities and recreational facilities distinguish all these schools.To encourage school children from neighbouring villages, Nagothane Manufacturing Divisionbased CSR cell MGCC Area Development Research Foundation (MADER) Trust tookfollowing initiatives:

y Felicitated meritorious students from neighbouring villages and tribal hamlets. Each student received a set of notebooks, stationary items and a school bag.

y There are several Zilla Parishad schools located on the hilltop near Nagothane Manufacturing Division where allthe children who are attending school are tribal. With an objective to encourage the tribal students, Reliance also

provided school uniforms.

Barabanki Manufacturing Division renovated a primary school in an adjoining village.Hoshiarpur Manufacturing Division provided free uniform (winter and summer), books, bags,shoes and stationery to the school-going children of neighbouring village.

Health

Health Awareness Programs, covering diverse topics such as noise pollution, hazards substanceabuse, prevention of HIV/AIDS and First Aid were conducted for students of schools at theneighbouring towns and villages of Patalganga. Barabanki Manufacturing Division providesmedical service and awareness programs on health, hygiene, cleanliness and sanitation in

neighboring villages.Hoshiarpur Manufacturing Division too conducts monthly checkup camps at neighbouringvillages. Free medicines and spectacles were also provided. Round the clock free ambulanceservice has been provided to roadside accident victims. Hazira Rehabilitation Centre for thePhysically Challenged has been set up in partnership with DisabledWelfare Trust of India forcapacity building of physically challenged children from the weaker sections of society.

ONGC:

Social Audit is the evaluation of social performances of a company by a knowledgeable personwith suitable background and experience. It is a systematic study of an organizations socialperformance. It provides a portfolio of the co. for understanding & improving cos. 'socialperformance.Internal auditors conduct social audit as per the directions of the management in the company.Their main purpose is to evaluate the social performance of the company.

ONCG has adopted two interconnected instruments in order to study the manner in which

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companies discharge their social responsibilities/performances. These two instruments are:1. Local Meetings: It is yearly conducted and is a public meeting and is open to representativesof different social groups- shareholders, employees, customers, and the society. At the meeting,the director reports on the progress and performance of the company in regards to socialresponsibilities. Representatives of different social groups raise questions and discuss this subject

in depth.2. Social Audit: it has reference to factual assessment of companys social performance bytrained and professional observers. It acts as a tool for measuring the socialresponsibility/performance of the company.

The company follows 2 main methods or approaches for conducting their social audit.

1. The Cost Approach: the company calculates the expenditure incurred by them on differentsocial overheads activities like pollution control, rural development,. R&D activities. Education,community services etc. for a specific period decided for the audit purpose. Then the benefitsavailable to concerned people from such expenditures are estimated. The expenditure/cost

incurred and returns available are used as base for social audit.2. The Programme Management Approach: in this approach, every social performance activitylike education, employees welfare, etc is evaluated separately with reference to its objectivesand actual achievements. If actual performance is low as compared to objectives decided, thesocial performance will be treated as poor according to the audit.

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SWOT ANALYSIS

RIL:

1. Promoter's (RIL) superior project execution skills in constructing a complete refinery.

2. Large and complex refinery capable of using heavier and sourer, low cost crude to producehigh quality premium

petroleum products. RPL's refinery is designed to process a wide range of crude, giving it betterflexibility

compared to other Indian refineries, including RIL's existing refinery. This will enable RPL toearn highest

operating margins in India and perhaps in Asia.

3. Strategic location with proximity to crude oil sources and target export market.

4. Fiscal incentives i.e. excise, custom duty, income-tax etc. by virtue of being located in a SEZ.

5. Capitalise on forecast demand-supply imbalances in global petroleum products, since, most ofthe new refining

capacities, mainly in Middle East, are expected to come into existence beyond 2010

Strengths:

Consolidation: The Indian petrochemicals industry has witnessed consolidation over thelast few years and nearly 85% of the polymer capacity in the domestic market is with thetop three participants (Reliance, IPCL and Haldia Petrochemicals (HPL)). Of the threecompanies mentioned, IPCL forms a part of the Reliance stable while GAIL is set to pickup stake in HPL.

Such high concentration is likely to benefit these players, as this would help reduceduplication of production.

Synergies: Most of the petrochemical players have integrated facilities, thereby reducingexternal dependence to a large extent. To put things in perspective, Reliance Industriesuses naphtha from its own Jamnagar refinery as a feedstock for the petrochemicalsproduction. IPCL uses Reliance's vast and widespread marketing network to reach out toglobal consumers. On the other hand, GAIL utilizes natural gas for its petrochemicalscapacity.

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Rich natural gas is evacuated into the pipelines and after separation of the hydrocarbonssuch as ethane, propane and butane, the lean gas is transmitted to consumers such aspower and fertilizer industry. Further, petrochemicals business being a high value add,would add further to the profitability of these integrated companies.

Weaknesses:

Low bargaining power vis--vis the suppliers: Input costs form nearly 50% to 60% of the rawmaterial costs. Further, gas prices are regulated but in short supply, while naphtha is anexpensive source of feedstock. Refineries realize the import parity prices on naphtha producedand in case of high feedstock prices, petrochemical players have little bargaining power againstthe suppliers. These players are therefore vulnerable to raw material prices.

Low Bargaining power vis--vis customers: In case of increase in input costs, the companiesmight not be able to pass on the rise to the consumers as the prices of products is highlyinfluenced by factors such as international prices and supply

Opportunities:

Low per capita consumption: Currently, domestic per capita polymer consumption is

nearly 4 kgs while the global average is nearly 20 kgs. This underlines the fact that there

is immense scope of capacity expansion in the country as the market to be tapped is huge.

Further, spending on R&D activities is around 2% of sales as compared to an

international average of 18%. This leaves enough room for product development. Also,

currently, India has a chemicals trade deficit of about US$ 1.5 bn a year, which leaves

enough investment opportunities in the industry.

Increased economic activity:The government has set aside nearly Rs 400 bn for

infrastructure projects such as roadways, airports and convention centers and also

towards rural housing augur well for the petrochemicals industry as this is likely toincrease demand for various products (high density polyethylene, low density

polyethylene among others) for the purpose of road development, packaging, cables and

wiring. Also sustained growth in the auto sector is likely to keep the demand for

petrochemical products high. As per our estimates, the auto sector is likely to grow at

nearly 12% over the next few years.

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Threats:

Customs duties: Historically, the domestic industry has been protected from overseas

competition by high import duties imposed by the government. However, of late, Import

duty on polymers has been steadily reduced and is currently at 20%.

As part of its commitment to various multilateral and bilateral trade agreements, the

government is likely to reduce duties going forward and this is likely to reduce the

cushion enjoyed by the domestic players as against the landed cost of imported products.

Growing competition: The domestic industry is likely to witness immense competition

going forward with IOCFurther,

ONGC :

STRENGTHS

A) O.N.G.C LTD is perceived to be the leader in oil production industry.

B) O.N.G.C has a very efficient and professional management team.

C) O.N.G.C being an international company has sufficient resources

and capital to invest.

D) O.N.G.C has ISO-9001 & ISO 14001 registration.

WEAKNESSES

A) O.N.G.C facing difficulties to produce oil from aging reservoirs.

OPPURTUNITY

A) Energy utilization of buried coal resource (700 -1700M), estimated

63BT Equivalent to 15000 BCM.

B) O.N.G.C facing difficulties to produce oil from aging reservoirs.

THREAT

A) Security of personnel & property especially crude oil continues to be

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a cause of concern in certain area.

B) In some exploration Campaign Company involves high technology,

high technology, High investment and high risk.

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HR Objectives

RIL

y To develop and sustain core values.

y To develop business leaders for tomorrow.

y To provide job contentment through empowerment, accountability and

responsibility.

y To build and upgrade competencies through virtual learning, opportunities for

growth and providing challenges in the job.

ONGC

y To foster a climate of creativity, innovation and enthusiasm.

y To enhance the quality of life of employees and their family.

y To inculcate higher understanding of Service to a greater cause.

HR Strategy

RIL

y To meet challenging demands of the business environment ,focus of the HR strategy is on

change of the employees mind set.

y Building quality culture and resources.

y Re-engineering and redeployment for maximizing utilization of HR potential .

y To build and upgrade competencies through virtual learning, opportunities for growth

and providing challenges in the job.

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ONGC

y Re-strengthening mutual faith, trust and respect.

y Inculcating a spirit of learning & enjoying challenges.

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Recommendation/Suggestions:

RIL

TO increase the investments in polymer production

the fact is that domestic per capita polymer consumption is nearly 4 kgs while the globalaverage is nearly 20 kgs. This underlines the fact that there is immense scope of capacityexpansion in the country as the market to be tapped is huge.

TO increase the production of high density polyethylene, low density polyethyleneamong others)

The government has set aside nearly Rs 400 bn for infrastructure projects such as roadways,airports and convention centers and also towards rural housing augur well for the petrochemicalsindustry as this is likely to increase demand for various products for the purpose of roaddevelopment, packaging, cables and wiring.

TO increase the quality of the product to sustain with the counterpart ONGC

As IOC and ONGC are entering into this value add business in a huge way and this is likely to

change the entire business dynamics of the companies, not only in India but Asia as Asia is fastbecoming the largest petrochemicals manufacturing hub.

ONGC

Although the project was carried out with the motive of ensuring most exhaustive and

comprehensive coverage of the facts but still it suffers through certain limitations, these are the

followings:

y The training was carried out in the prescribed time frame of 8 weeks, which is a short

time span to carry out a full training in a large organization.

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y Though the sample size was small it was ensured that almost all the departments were

covered and equitable representation was taken from each departments by covering

various grade. Also, the research was limited to Refineries Jodhpur head office of ONGC.

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BIBLIOGRAPHY

Books

y Personnel Management by C.B.Memoria.

y Human Resource Management by L.M.Prasad.

y Personnel Management by S.P.Subba Rao.

Published Reports:

y Annual Reports of ONGC Ltd.

y Financial report of ONGC Ltd.

y Various News letters of ONGC

ONGC POLICY MANUAL:

News Papers:

y Economic Times of India

y Financial Express

Websites:

y www.ongcindia.com

y www.ongc.com

y www.rajasthanforwardbase.com

y www.ONGCNet..in

y http://10.205.55.5/