Mohammad Hussain Fiat Project

CONTENTS
Sl.
No.
01
02
03
04
05
06
TITLES
CHAPTER 1
General Introduction
Introduction
1.2 Objective of the study
1.3 Industrial Background of the Study
(a) Origin of the Industry
(b) Growth and Development
(c) competitors of the Industry
(d) Future of the Industry
CHAPTER 2
Profile of the Organization.
2.1 Origin of the Organization
2.2 Growth and Development of the
Organization
2.3 Vision, Mission and values of the
Organization
2.4 Present Status and Future of the
Organization
2.5 Organizational Structure
2.6 SWOT Analysis of the Organization
CHAPTER 3
Detailed study of the Department
3.1
Sales Department
3.2
Human resource Department
3.3
FINANCE Department
3.4
service Department
3.5
Marketing Department
CHAPTER 4
Study of specific Management Problem
CHAPTER 5
Students learning experience
CHAPTER 6
DSCASC/MBA III SEM/2014
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Page
no.
1- 13
14-23
24-35
36
37
1 suggestion
2 Conclusion
3 Bibliography
38-40.
GENERAL INTRODUCTION:
The automobile as we know it was not invented in a single day by a single inventor. The
history of the automobile reflects an evolution that took place worldwide. It is estimated that
over 100000 patents created the modern automobile. However, we can point to the firsts that
occurred along the way. Starting with the first theoretical plans for a motor vehicle that had
been drawn up by both Leonardo Da Vinci and Isaac Newton.
In 1769, the very first self-propelled road vehicle was a military tractor invented by
the French engineer and mechanic, Nicolas Joseph Cugnot. Cugnot used a steam engine to
power this vehicle, built under his instructions at the Paris arsenal by mechanic Brezin for the
French army, to haul artillery at a whopping speed of 2.5 mph on three wheels. The vehicle
had to stop every ten to fifteen minutes to build up steam and boiler was separated from the
rest of the vehicle and placed in front. The following year 1770, Cugnot built a steampowered tricycle that carried four passengers.
In 1771, Cugnot drove one of his road vehicles into stonewall, making Cugnot the first
person to get involved in a vehicle accident. This was the beginning of bad luck for the
inventor. After Cugnot died road vehicle experiments ended.
Steam engines added so much weight to a vehicle that they proved a poor design for road
vehicles; however, steam engines were very successfully used in locomotives. Historians,
who accept that early steam powered road vehicles were automobiles, feel that Nicolas
Cugnot was the inventor of the first automobile.
On March 8, 1886; Daimler took a stagecoach and adopted it to hold his engine, there by
designing the worlds first four-wheeled automobile. Daimler is considered as the first
inventor to have invented a practical internal combustion engine.
Page 2
Daimler founded the Daimler Motoren-Gesellschaft to manufacture his designs. Eleven years
later, Wilhelm Maybach designed the Mercedes automobile.
By the early 1900s, gasoline cars started to out sell all other types of vehicles. The market
was growing for economical automobiles and the need for industrial production was pressing.
The first car manufacturers in the world were French, Panhard & Levassor and Peugeot. By
car manufacturer, we mean builders of entire motor vehicles for sales not just engine
inventors who experimented with car design to test their engines, Daimler and Benz before
becoming full car manufacturers made their early money by licensing their patents and
selling their engines to car manufacturers.
Later the use of tyres and efficient brake system were also invented and society started
accepting the vehicle more as convenience and economical for their use, automobile
manufacturing started allover.
American car manufacturer, Henry Ford invented an improved assembly line and installed
conveyor belt based assembly line in his car factory in Fords Highland park, Michigan plant,
around assembly line reduced production costs for cars by reducing assembly time. Ford
made his first car, called the QUADRICYCLE in June 1896. However he formed the Ford
Motor Company in 1903. This was the third car manufacturing company to produce and
design. After the installer assembly lines in his factory in 1913, Ford became the biggest car
manufacturer. Then the popularity of cars grew with terrific speed all over the world and
several other car manufacturers started their production. Initially, the cost was high per car
but as the line of production proceeded, the costs came down by at least 50%.
The present day car manufacturers are in search of models that will be economical, as fuel
shortages are affecting the running cost. Alternative energy sources are under research. More
widely accepted alternative source is the electrical energy with series of batteries or solar
energy. The present models are constantly improving by continuous research on all aspects of
the car efficiency.
In India, the first manufacturing unit of cars was in early 40s. Hindustan Motors were the
pioneers to start the manufacturing of cars in India, which was later followed by Premier
Automobiles that set up a manufacturing unit in the suburbs of Mumbai. The two Indian
Page 3
companies had to face a tough time in Indian market due to the free availability of foreign
models in India.
Indian passenger car industry is over 4 decades old. There was no serious attempt at
upgrading the technology until recent years. Even when petrol prices shot up, there was no
attempt by Indian manufacturers to go in for fuel efficiency technology. It was in the early
80s, which paved the way for the introduction of a fuel-efficient car in the Indian market.
Automobile industry in India is still in its infant stage but rapidly growing. The opportunities
in the automobile industry in India are attracting big names with big purses and they are
investing vigorously in infrastructure, design and development, and marketing. Automobile
industry in India is today poised for the big leap.
India is the second largest two-wheeler manufacturer in the world.
Second largest tractor manufacturer in the world.
Fifth largest commercial vehicle manufacturer in the world.
Third largest car market in Asia, surpassing China.
Page 4
INTRODUCTION:
FIAT was founded in Italy in 1899. FIAT is an acronym for Fabrica Italian Automobiles
Torino. In 1902, the company was appointed a director, namely, Giovanni Agnelli. In 1908,
the company branched out overseas to the United States where production increased. Fiat
then ventured into other industries such as steel, electricity and public transport. During the
First World War, all production was aimed at munitions. During the reign of Mussolini, Fiat
had to concentrate on the domestic market. Technological developments were vast for
commercial vehicles, aviation and railway sectors. With the arrival of the second world war,
the production of cars almost ceased as commercial vehicles had more of an impetus. 1958
marked the beginning of the economic boom in Italy.
Domestic production and that from FDI increased as the automobile was the driving force of
the Italian economy. From 1965 to 1977 production continued to increase along with exports
but there was also a rise in trade union conflicts resulting in 15 million hours of strikes in
1969 collectively. 1978 brought the dawn of robotic assembly equipment.
In 1979, the auto sector was established as an independent company called Fiat Auto S.p.A
which incorporated Fiat, Lancia, Autobianchi, Abarth and Ferrari. Alfa Romeo was acquired
in 1984 and Maserati 1993. Also in this era, other companies were set up. In addition to Fiat
Auto, Fiat Ferroviaria, Fiat Avio, Fiat Trattori, Fiat Engineering, Comau, Teksid and Magneti
Marelli were established, all under the Fiat brand. In the early 1990s, Fiat expanded it
product range to international markets which resulted in 60% of its turnover coming from
outside of Italy.
Innovation continued in the turn of the millennium with the introduction of Multijet engines
which increased fuel economy. More recently, in 2009, Fiat saved GM from collapse in a
swift equity acquisition. GM was hit hard with the credit crisis and now chief executive,
Sergio Marchionne, has the task of developing a strategy in order to help rehabilitate the
damaged company (Betts, 2009).
Page 5
President Obama has faith that the Fiat chief will be able to instil stability back to the
depleted firm (Betts, 2009). Fiat also had its eyes set on the acquisition of German giant
Opel. It was bidding along with RHJ International and Magna. Eventually, General Motors
decided to pull out of the sale of its subsidiary, Opel (Robinson, 2009).
If this acquisition had been achieved it would have meant a massive market share in Europe
for Fiat and market dominance (Weismann, 2009).Due to the size of the Fiat group, this
report will only focus on Fiat cars and the car market.
FIAT Group Automobiles India Private Limited (FGAIPL) is a fully owned subsidiary of FIAT Group
Automobiles S.p.A, Italy. The company was incorporated in Mumbai, India, in March 2012 and will
distribute FIAT and Jeep vehicles in the country through an independent dealer network. The
company is currently selling the FIAT Linea and Punto models, which are manufactured by the
Tata-FIAT joint venture plant at Ranjangaon. The company in India will have around 100
employees and plans to have 120 dealers by the end of 2013.
FIAT is an international auto group that designs, produces and sells vehicles for the mass market
under the FIAT, Lancia, Alfa Romeo, FIAT Professional and Abarth brands, as well as luxury and
performance cars under the Ferrari and Maserati brands. The Group has increased its global reach
through the integration with Chrysler Group and recently expanded its product portfolio with Jeep and
Chrysler brand models that are produced in North America and now also distributed in Europe
through the new Lancia-Chrysler and Jeep sales networks. FIAT also operates in the components
sector, through Magneti Marelli and Teksid, and in the production systems sector, through Comau.
FIAT Group Automobiles designs, produces and sells automobiles under the FIAT, Alfa Romeo,
Lancia and Abarth brands, and light commercial vehicles under the FIAT Professional brand. In
Europe, it also distributes Jeep brand vehicles. From January 2012, the activities of FIAT Powertrain
which researches, develops and produces engines (power output from 65 to 235 hp) and
transmissions for passenger cars and light commercial vehicles (torque up to 400 Nm) were
transferred to FIAT Group Automobiles.
Page 6
INDIAN CAR HISTORY

A behind- the- scenes look into the making of one of India's most vibrant industries. The
landmarks along the way.
1928- The first imported car was seen on Indian roads
1942- Hindustan Motors incorporated
1944- Premier automobiles started
1948- First car manufactured in India
1953- The Government of India decreed that only those firms which have a manufacturing program
should be allowed to operate
1955- Only seven firms, namely, HM, API, ALL, SMPIL, PAL, M& M and TELCO received
approval.
1960 - 1970 - The two, three wheeler industry established a foothold in the Indian scenario.
1970 - 1980 - Not much change was witnessed during this period. The major factors affecting the
industry were the implementation of the MRTP Act (Monopolies and Trade Restrictive Practices Act),
FERA (Foreign Exchange Regulation Act) and the Oil Shock of 1973 and 1979.
1980 - 1990 - The first phase of liberalization was announced by the Govt. -With the liberalization of
the Government's protectionist policies, the advantages hitherto enjoyed by the Indian car
manufacturers like monopoly, oligopoly, slowly began to disappear.
This period is also marked by the entry of a large number of firms in the market. 4 Japanese
manufacturers entered the Commercial Vehicle and Two- Wheeler market.
The Government agreed to the demand for allowing foreign collaboration in the automobile
sector.
The industry witnessed resurgence due to major policy changes like relaxation in MRTP and
FERA, delicensing of some ancillary products, broad banding of the products and modification in the
Page 7
licensing policy. Also, the concessions it gave to the private sector and the new foreign collaboration
policy, all resulted in higher growth and better performance of the industry than in the earlier decades.
The Government of India tied up with Suzuki Inc. of Japan which produced India's most
successful car- the Maruti.
1991 - Under the Govt.'s new National Industrial Policy, the license raj was dispensed with, and the
automobile industries were allowed to expand freely.
1993 - With the winds of liberalization sweeping the Indian car market, many multinationals like
Daewoo, Peugeot, general Motors, Mercedes-Benz and Fiat came into the Indian car market.
1997 - The National Highway Policy was announced which will hopefully have a positive impact on
the automobile industry. The Government also laid down the emission standards to be met by car
manufacturers in India in the coming millennium. There were two successively stringent emission
levels to be met by April 2000 and April 2005, respectively. These norms were benchmarked on the
basis of those already adopted in Europe, hence the names Euro I (equivalent to India 2000) and the
Indian equivalent of Euro II.
1999 - The Honble Supreme Court passed an order directing all car manufacturers to comply with
Euro I emission norms (India 2000 norms) by the 1st of May, 1999 in National Capital Region (NCR)
of Delhi. The deadline was later extended to 1st June, 1999.
Page 8
1.2 :Objectives of the study:

The main objective of undergoing this training is to get practical experience of the functional
department of the organization and to know how the theoretical knowledge is applied
practically in the organization.
To study the organization structure of the car industry in Bijapur..
To know the work flow of the industry.
To study the organization structure of the Industries Management.
To study the working of various departments of industry.
To conduct the swot analysis of organisation.
To study the management problems come in running an industry.
Page 9
1.3Industrial Background of the Study.

Origin of the Industry.
FIAT was founded in Italy in 1899. FIAT is an acronym for Fabrica Italian Automobiles
Torino. In 1902, the company was appointed a director, namely, Giovanni Agnelli. In 1908,
the company branched out overseas to the United States where production increased. Fiat
then ventured into other industries such as steel, electricity and public transport. During the
First World War, all production was aimed at munitions. During the reign of Mussolini, Fiat
had to concentrate on the domestic market. Technological developments were vast for
commercial vehicles, aviation and railway sectors. With the arrival of the second world war,
the production of cars almost ceased as commercial vehicles had more of an impetus. 1958
marked the beginning of the economic boom in Italy.
Growth and Development of the Industry.
In 1979, the auto sector was established as an independent company called Fiat Auto S.p.A
which incorporated Fiat, Lancia, Autobianchi, Abarth and Ferrari. Alfa Romeo was acquired
in 1984 and Maserati 1993. Also in this era, other companies were set up. In addition to Fiat
Auto, Fiat Ferroviaria, Fiat Avio, Fiat Tractor, Fiat Engineering, Comau, Teksid and Magneti
Marelli were established, all under the Fiat brand. In the early 1990s, Fiat expanded it
product range to international markets which resulted in 60% of its turnover coming from
outside of Italy.
Innovation continued in the turn of the millennium with the introduction of Multijet engines
which increased fuel economy. More recently, in 2009, Fiat saved GM from collapse in a
DSCASC/MBA III SEM/2014 Page 10
swift equity acquisition. GM was hit hard with the credit crisis and now chief executive,
Sergio Marchionne, has the task of developing a strategy in order to help rehabilitate the
damaged company (Betts, 2009).
Competitors of Fiat company.
Source
Rohan fiat
COMPANY
FORD INDIA LTD
PRODUCTS
FUSION, FIGO.
manual:2014
Rohan fiat
GENERAL MOTORS
OPEL VECTRA, CHEVROLET
manual:2014
INDIA LTD
OPTRA.
Rohan fiat
HYUNDAI MOTOR
, GETZ, SANTRO XING,
manual:2014
INDIA LTD
ELANTRA, i20, i10, VERNA

FLUIDIC.
Rohan fiat
MARUTI UDYOG LTD
manual:2014
Rohan fiat
800, OMNI, ALTO, ZEN,

WAGNOR, SWIFT.
TATA MOTORS
INDICA VISTA, INDIGO.
Rohan fiat
HONDA SIEL CARS
CITY, XCENT.
manual:2014
INDIA LTD
manual:2014
Future of the Industry:

A big question on every American's mind is, "With the billions in restructuring money we
spent on the automobile industry, what will we get from our investment?"
The major automakers are wagering that their line-up for the coming year and beyond will
perfectly mesh with the needs of the car-buying market, thereby setting a course toward
sustainability. Karl Brauer, editor in chief at Edmunds.com sees the market leaning toward
mid-size hybrids: consumers want fuel efficiency and a practical size. Other analysts
conclude that baby boomers are now looking for more practical mid-size sedans and
crossover vehicles.
The Power of Politics Putting the future of the automotive industry into sharper focus came
with President Barack Obama's challenge to see 1 million electric cars on the road by 2015
and to bring fuel efficiency requirements up to 39 mpg for cars and 30 mpg for trucks by
2016. By restraining domestic oil production, President Obama is also going to allow gas
prices to rise, further stimulating the fuel-conserving, alternative fuel vehicle market.
The new GM While we are going to miss a few long-running badges such as Pontiac, GM is
also in the final due diligence audits before selling its Hummer and Saturn brands. Its
trimmed down physique will be composed of the Chevrolet, Buick, Cadillac and GMC
brands. By introducing the series hybrid Chevrolet Volt, which is scheduled to start
production this month, vice chairman Bob Lutz is working towards changing GM's focus. In
an interview by the Washington Post, Lutz states that the goal he sees for GM is for a "pure
electric future."
Exporting U.S. Jobs:
When Chrysler filed for bankruptcy, it reneged on a promise to its workers to keep them
employed, and announced that their production facility in Kenosha, Wisconsin would be
closed and those 800 production jobs would go to Mexico. American taxpayers, confident or
not in the likely success of the federal bailout of the auto industry, watched billions of their
dollars being spent on: the largest bankruptcy proceedings in nationalhistory, the closure of
thousands of dealerships and numerous production facilities, and the export of thousands of
jobs out of the country. At least one aspect of the automotive industry seems to remain
unchanged: the well-off getting wealthier and those at the bottom being left out in the cold.
Marketing:
Competing with dealers selling the same car across town has dried up much of dealer profit
and has caused dealers to resort to the unpleasant persuasive style for which they are
notorious. The consumer approaches the purchase process with distrust. Internet services
have quickly arrived on the scene in which new car buyers can evaluate and compare
vehicles, leaving them with a more positive experience. Successful marketing now assesses
the customer life-cycle value chain by identifying sources of value for the customer base.
Knowing that about 85 percent of customer loyalty comes from the sales and service
experience while only 15 percent is derived from the perceived value and quality of the
vehicle, gives innovative retailers more opportunities to capture sales.
Conclusion:
More alternative-fuel vehicles will be introduced in the next two years, especially plug-in
electrics and hybrids. We will find ourselves doing double-takes at the variety and sizes of
mini-cars soon to be darting through traffic. Those unconcerned by the cost of gas will still
choose from a slightly smaller selection of SUV's and performance vehicles. Your car-buying
experience may range from traditional dealers, Internet sales through a factory-direct channel,
or a discount outlet with multiple brands. The classic multi-faceted new car dealership, with
used car, loans, service, parts, and insurance departments will be "parted-out" as separate
entities.
The net benefits of the restructuring of the auto industry will be improved service and
selection with better pricing through alternative channels. The outmoded sales model has
been resistant to change its practices which run coontrary to garnering customer loyalty. It
will either evolve or be replaced by other, more efficient distribution channels, with the new
car buyer being the winner.
2 Organization profile :
2.1: Origin of the Organization.
ROHAN FIAT is an car dealership company in Bijapur district .it is a company selling and
giving the services for Bijapur,Gulbarga,bagalkot district.
Type:
Private Ltd company
Founded:
13th November 2013.
Location:
Bijapur. Karnataka
Key person: Rohan P Bagali (MANAGING DIRECTOR & OWNER)
Products:
Fiat linea , punto, punto evo , linea classic.
E-mail
rohanfiat.bijapur@gmail.com
ROHAN FIAT is an car dealership company in Bijapur district .it is a company selling and
giving the services for Bijapur,Gulbarga,bagalkot district. In 2013 Mr. Rohan bagali started
growing their dealership they first targeted the local city Bijapur and then they started to
target the Gulbarga, Bagalkot, where there is huge market for fiat products . so they kept the
new promotional activity like they giving good and quality services and forcing them to sell
their product as much as they can as they are new to the market they wanted to cover the
market or grab the market. Presently they have 450 vehicle running in the three district
across the karnataka .
Fiat company is unique for their engine ,a lot of other competitors companies like
maruti,Hyundai company using their engines so theirs demand for the fiat cars in the market
they are giving the best services in these cities .
.2.2: Growth and Development of the Organization:
The ROHAN FIAT cars enjoy 20% of the market share.
Since its inception, it has grown too many folds, which is the result of the hard
working and dedicated employees and associates of the company.
More importantly is the consumer and customers satisfaction and confidence in our
products.
This attributes to the fact that the unit has registered more the 35% growth
consistently.
Each and everyone in the organization are responsible for quality the services , growth
and development.
Current Strategy
In light of the research brought forward, it appears that Fiats currently employs a global
business strategy. This occurs in an international business environment where the pressures
for cost reductions are high and the pressures for local responsiveness are low. This is true
due to the squeezed profit margins experienced by all incumbents of the automotive industry
and also the fact that most cars are replicated globally. Some may change due to legal
requirements but these are minor issues. In evaluation, this strategy is no longer suitable for
the changing environment of the automobile industry. Consumers are gaining more
bargaining power, which means that the need to be more locally responsive is higher than it
has been. Pressures to keep costs low are also higher than ever, which is highlighted through
the number of mergers and acquisitions that have been made with other incumbents.
Recently, in the case of Fiat, these have been Chrysler and Opel. The abundance of mergers
and strategic partnerships has increased significantly in the last few years with the global
economic downturn meaning the reduction in consumer demand and reduction of profits. A
global alliance could mean sharing resources in order to reduce costs in both parties.
Although the global strategy keeps cost low, which is essential for any car manufacturer, it
does not sufficiently address the needs of consumers in different markets. The increasing
need for local responsiveness to achieve customer satisfaction means that Fiat will need a
different method of keeping costs low or even increasing sales to counterweight the balance
on the profit and loss account. Responding to local markets may be especially difficult for
Fiat to implement due to its style and design being part of it's uniqueness as a brand. It has a
well developed R&D department that uses its expertise to produce the cars looking like they
do. To change that Italian flair to be more conducive to the market of sale would dilute the
unique selling point of the cars. The adaptation could, instead, take the form of marketing and
sales, not just in the actual product.
Current Strategic Implementation

The current operations are formulated predominantly around Italy and the head office in
Turin. All the plants are located in Europe except for the plant which operates in Brazil. This
could be a reason for the firm not performing very well outside of its domestic market or at
most, Europe. A majority of its production still emanates from Italy. This means that
production can be closely monitored but it also means that export costs will be higher and the
ability to be locally responsive is low. This is in keeping with the Italian design being a key
theme through the brand image and keeping production Italian helps towards that but it
doesn't have to. As long as the research and development centre is based in Italy and has the
same Italian designers, the style can be implemented into the vehicles around the world.
Since the appointment of the new CEO, Sergio Marchionne, the company seems to be a lot
more structured in the way that it is run. It seems as though the decisions come from the top
in a clear cut way. The profitability has increased dramatically from the appointment and Fiat
has looked like expanding once again incorporating a stake in Chrysler in 2009 and a bid to
buy Opel from general motors in order to secure a large market share in Europe. At present
the car industry is in tough times with demand slowing and costs rising. Fiat have realised
this and tried to increase their size in order to achieve better and more efficient economies of
scale. Although this is good, Fiat has not been able to secure another global strategic alliance
in recent times as other manufacturers have. It would benefit Fiat to attain an alliance with a
Japanese car company such a Honda or Nissan in order to gain knowledge of local tastes and
consumer preferences so as to expand operations there. Also, the Chrysler alliance needs to
be used to its full potential. The American market has been notoriously hard for Fiat to crack,
seeing their exit from the marketplace in 1984 (LA Times, 2009). Apparently, Fiat is to relaunch itself into the US market using the 500 as its weapon. The New York Times (2009) is
quoted as claiming that Fiat plans to take the model into Chrysler dealerships as soon as
2010. This shows the reasoning behind Fiat forming the alliance with the struggling Chrysler.
If these plans go ahead and the 500 is a success like it has been in Europe, it will be a
breakthrough in Fiat history and the dawning of a new age. The vast U.S market will be
opened up and with help from its alliance with Chrysler, can start producing cars for
American consumption.
2.3:Vision, Mission and values of the Organization:

Mission
We exist to enrich the lifestyle of India society through customer friendly and quality
financial services.
Our Products and Services That reflect innovation, become quality benchmarks and
provide real value-for-money.
Our Policies and Practices That are fair, transparent and constantly improved to
maximize shareholder satisfaction achieve Market Leadership
Vision
We aspire to be the most preferred financier of customers and dealers of FIAT four
wheelers across India setting a benchmark in the industry.
Values
Customer First: We understand the changing needs of our customers and consistently
exceeds their expectations in a speedy, courteous and effective manner.
Trust and transparency: We cultivate and reflect trust and Transparency in all our
dealing.
Open Corporate Culture: We provide our employees with an open corporate culture
and platform for self-development and professional excellence.
Fair Corporate Governance: We ensure that we practice corporate governance in its

true spirit.
2.4 Present Status and Future of the Organization:

Fiat Auto, the Italian brand is the worst performing car manufacturer in India. Their sales for
Feb 2013 stood at 203 units while their market share in the Indian auto industry during
current financial year, stood at 0.3%.
But, everybody knows that the brand and their cars, does not deserve that kind of sales
figures. Their sales have plummeted due to their own mistakes and Enrico Atanasio, MD, Fiat
India has himself admitted that they have scratched the bottom of the barrel.
Fiat Group Automobiles India is keen to enhance their market share in the Indian auto sector
during the coming year. They aim to end 2013 with a market share of 1%. To achieve this
aim, the company is augmenting their independent dealerships in the
country, separating from Tata Motors. On 1st April 2013, Fiat India will have new, fullyowned 57-dealer network. By this time next year, the company will have a total of 112
independent dealers across the country.
During the past year, Fiat sold a total of 4.7 million units globally out of a total of 76 million
units sold. This is around 5%. The company is aiming for this target in Indian markets too,
but attaining a 5% share in India will need time. Augmentation of dealer base is vital for their
success, but not the only point, they also need to increase their product portfolio.
Fiat India will be introducing Jeep and Abarth cars to India and announce their entry in the
luxury segment. They will also launch the Punto and Linea facelift later this year. A Punto
based crossover is also on the cards, and should arrive by mid 2014. Fiat has also revealed
that they will not be launching a small entry level hatchback to compete with Alto 800, i10,
Eon, etc in India. Fiat will concentrate on the premiumness of their brand and try and send
the same message across to their customers in India.
2.5 Organizational Structure.
2.6 SWOT Analysis of the Organization.

Strengths:
Fiat has had a long experience of the auto industry and aided the development of the
industry .
Its strength in design Italian style which differentiates itself from competitors.
Strong management team including owner itself.
According to the Reliability Index (2009), Fiat cars are more reliable than the industry
average
Weakness :
Although Fiat finished 2008 with its best trading profit ever, the group made a loss of
410m Euros in the first quarter of 2009 .
Tough competetion from other companies.
Opportunities
Form alliances with companies such as PSA Peugeot Citroen, who produce cars of
similar price and size and quality.

Potential to expand operations in emerging markets such as hubli raichur bidar .
Threats:
Strength of Korean and Japanese car makers is increasing and becoming more
prominent in the automotive market.
Any sudden change in Government Policy may have adverse effect on sales.
Changing market trends.
Too many players will dilute the market & the profit margin.
3 .DETAILED STUDY OF THE DEPARTMENT:

Rohan fiat dealership company constitutes of a number of functional departments.
They are:
3.1 SALES DEPARTMENT.

3.2 HUMAN RESOURCE DEPARTMENT.
3.3 FINANCE DEPARTMENT.
3.4 SERVICE DEPARTMENT .
3.5 MARKETING DEPARTMENT .
3.1 SALES DEPARTMENT:

In the sales department the vehicle with different model are separated. That
they have categorized and separated the vehicle the high performance, the vehicles with the
liter weight, vehicles with more mileage, vehicle with style. They have subdivided in
different department with different vehicles. Each department gives service of their respective
vehicle. Here in sales department the service is given to the customer at presales and at the
time of the post sales. This department work is to provide the information, knowledge and
provide financial facility to the customer at the time of presales. At sale they keep good
relationship and even the sale person keep in touch with the customer.
Placing customer satisfaction first, the sales department contributes to speedy and
efficient presales and post sales support allowing customers to experience the convenience
and pleasure of buying a fiat .
The sales department is structured geographically that is sales coordinators for two districts each and a
sales team for each district. Administration and service department is structured on the basis of
different functions.
Meeting the Customers

Meeting the customers means the first face to face interaction between customer and
sales officers of ROHAN FIAT. There will be two chance meeting. One is customer is
contacting the sales officer through telephone and fixing the meeting. The telephone number
of each sales officer will give in the advertisement. Another chance is the sales officer is
meeting the customer personally in his house or office and then motivating him to purchasing
cars.
Offering a Test Drive
After meeting the customer the sales officer is offering a test drive to customer. There
are many cars in each district for giving test drive.
Visiting the Showroom
If the customer is satisfied with the test drive, then customer will fix a date and visit
the showroom with the sales person. Here the sales person will explain the features and
advantages of the vehicle and also sales person provide price list and leaflets. Then the sales
person handles the questions about the product by the customer.
Paper work, Documentation and Payments
Here the sales person will do the paper work and documentation. It includes cost
related to purchase, insurance and registration documents. If the customer want financial
scheme that also provide by the firm.
Delivery
It is the time when the car is transferring from showroom to customer. Two types of
delivery are there. One is the car is delivering in the show room with some ceremony.
Another one is the car is delivering to customers home by the sales person.
Outbound Logistics
Outbound logistic includes activities, costs and assets dealing with physical
distributing the product to buyers. It also involves the timeliness and efficiency of delivery of
finished goods and services. It also involves the efficiency of finished goods warehousing
activities.
The vehicles are delivering to the customers with in 10 15 days after ordering. The
firm has the facility of home delivery of cars. Firm putting 10 litter fuel as free at the time of
delivery of cars. In service, the vehicles are delivering with in 5 8 days.
The firm has a huge parking place for parking of cars those waiting delivery. The
vehicles were well cleaned and completely fitment of accessories at the time of delivery. Firm
is delivering the cars with some ceremony that is cutting of ribbon, taking photos, and
distributing sweets etc. The sales person will also explain about owners manuals, warranty
policy, and maintenance schedule for the vehicle.
Vehicles of rohan fiat :

1.New punto evo :
2.linea classic:
3.punto :
4.linea
3.2 HUMAN RESOURCE DEPARTMENT:

ORGANISATION CHART OF HUMAN RESOURCE DEPARTMENT
HR MANAGER
WORKERS
EXECUTIVES
WORKERS
(Finance)
(Finance)
(Finance)
The heart of the organization is people, most of the problem in an organization arises due to
people, and industry cannot function smoothly if these problems are not solved tactfully. The
effectiveness of an organization depends on the behavior and performance of people
constituting them.
HRM means employing people developing their resources, utilizing, maintaining and
compensating their service in tune with the job and organizational requirements.
The HRM department is functioning in showroom itself. They are analyzing and
suggesting the vacancies in the firm to top management. This department is evaluating the
performance of employees and fixing their motivational benefit. Mainly it is promotion and
transfer. They also calculating and fixing the bonus in each festival.
Recruitment, Selection and Training & Development
ROHAN FIAT requires highly specialized sales personnels with good communication
skill and looks handsome. They recruited and selected by the HR departments. The
employees selected are giving coaching and lecturing as training. The more technical and
mechanical background employees are also recruiting and selecting by the HR department as
Service and EDP staffs. For them on-the-job method of training is using in the showroom
. RECRUITMENT:DSCASC/MBA III SEM/2014 Page 30
1. The department concern will get the requisition format in the prescribed form
approved by the responsible person. The requisition after approval is been forwarded
to HUMAN RESOURCE department. The requisition format clearly indicates the
type of vacancy type of employee required and the proposed date of requirement.
2. On receipt of approval requisition form the concerned department or section. The

HUMAN RESOURCE department will notify the vacancy and advertisement in the
news paper or to the employment exchange.
3. Screening of Application:-Application received will be jointly screened by the

HUMAN RESOURCE department for further action.
B] SELECTION:For selection of applicants the HUMAN RESOURCE department will

prepare short list of few deserved candidates. After initial interview by the HUMAN
RESOURCE Manager,
Short listed candidates will be put up for final interview, where by the HUMAN
RESOURCE manager and General Manager both will sort of candidates for the final
interview.
Training:Selected candidates will undergo 15 days Training. There the candidates

are trained under the supervision and at the same time candidates are induced within that
training period.Here in the department there are 5 members who take care of all
recruitment, selection and as well as training.
3.3 FINANCE DEPARTMENT:

Financial statements report both on companies positions at a point of time and on its operation
over some past period. Financial statements contain a wealth of information, which is properly
analyzed and inspected can provide valuable insights into a firms performance and position.
ORGANISATION CHART OF FINANCE DEPARTMENT
FINANCE MANAGER
Accountan
t
Accountant
Accountant
(Finance)
(Finance)
Whoever controls the volume of the money in any country is absolute of all industry and
commerce
ROHAN FIAT has finance department in which finance manager who looks after all the
financial aspects of the industry and has to report to the MD and the owner. The finance
department has the power to take any financial decisions like allocation of budgets, approval
of budgets etc.
The finance department also has the following functions
Controlling the AR/COL.

Follow up of the collections.
Preparation of the negative financing reports (distributors AR-closing stock)
Claims handling and distributors Reconciliation.
Collections of the cheques and DD from the C&Fs.
Getting the report from the S&D on the sale proceeds.
During the monthly closing the finance department has to ensure the AR reconciliation and
COL reconciliation. The scope of financial analysis however depends on its purpose from an
investor point of view, predicting the future is what financial statement analysis is useful both
as a way to anticipate future conditions.
ACCOUNTING POLICIES AT ROHAN FIAT
. Accounting Methods
The financial statements are prepared according to the schedule 6 companies act. The
company is giving the accounting software to its dealers..
. Auditing System
Both internal and external auditing systems are using in the firm. Internal auditing is doing
monthly.
Depreciation
Written down value method of depreciation is followed in final accounts and calculation of
income tax.
Inventory valuation
Inventory valuation is done on cost or market value which ever is less. If the market value or
cost is not available the realizable value is considered.
3.4 SERVICE DEPARTMENT;

ORGANISATION CHART OF SERVICE DEPARTMENT

SERVICE MANAGER
WORKERS
MECHANICS
CLEANERS
(Finance)
(Finance)
(Finance)
Customer satisfaction is the main goal of every organization. This can be achieved through
providing better service.
The Rohan fiat has initiated customer relationship management (CRM) exercise to
tackle the problem of cars. They continuously contact with customers and inform the
problems and explain the way to solve the problem.
After sale service provided by the firm involve free service. For this firm is using
PMS technique, that is Periodic Maintenance Service. The firm gives free service after
running of first 5000 km. Then the service will continue with periodically means every
5000km running of vehicles. Rohan fiat is also conducting service camps in different cities
in North karanataka .
In service department they have several labors that are skilled machines in the
works. They prefer the works in efficient manner and very loyal to their work. This
department provide the competition and it form with a set of instructions were in service
person writes down the remedies for those problems. Here in all the completes of the raw
material (spare parts) received and solved with the finished best quality product.
In the service department manager is the responsible for all the work and he
supervise the work according to the instruction received.
Some of important steps followed at Service and Repairs

Repair ordering creation
Vehicle information
Customer name
Work instruction
Parts required
Spares department is the place where all types of spares are available Spare parts of fiat car
provide customer to attach with the company because any dimage in car of the customer or
any mislead in the car of the customer can take him to the show room for reinstallation so
spare department is very much essential for the company.
3.5 MARKETING DEPARTMENT.

ORGANISATION CHART OF MARKETING DEPARTMENT

MARKETING MANAGER
WORKERS
(Finance)
EXECUTIVES
(Finance)
WORKERS
(Finance)
The main operation of the marketing department is to.
Retaining the market share.

Improving sales.
Supporting the sales team.
The marketing department mainly focuses on the implementation of the brand building.
It mainly concentrates on the regional marketing, which includes,
Glow signs boards

Hoardings
Direct interactions .
4 STUDY OF SPECIFIC MANGEMENT PROBLEM:
1) Lack of skilled workers: due to small district the population is less so the
workers are not skilled in these areas.
2) Scarce market schemes: due to the small territory allotted by the company there
are not much market scheme available for the company.
3) Sales promotional activities are limited: due to the small territory allotted by the
company the promotional activities are also limited.
4) Huge targets during the off seasons: in the off seasons the company tries and
gives the huge targets for dealer to maintain their market share which leads to
management problem.
5) Inappropriate payment of bills from the customers: customers after taking the
service they delay the payment of bills which cause a problem to the management.
6) Variety in the products are limited : fiat company products are limited due to
this the selling of product get difficult .
7) Competition from the foreign products :due to globalization in the country the
competition from foreign product is huge due to this profit margin also decrease .
8) Limited market coverage: due to small district the population is less so the
market also in limited space.
9) Shrinkage of the spares: in big organization there always a problem of shrinkage
due to this loss occurs and he profit gets decreased.
10) Labours problems: there is always a problem of labours occurs in every
organization due to this management of organization gets difficult.
5 STUDENTS LEARNING EXPERIENCE:
By visiting the company named
ROHAN FIAT . BIJAPUR , I tried to gather all
information about various departments like H R department, marketing department, finance

department, Service department and sales department.I learnt a lot of practical things like
how to takes works from workers and how to react with the superiors.I tried to relate my M
B A theory with the company activities, it was a great experience.
From the study it is clear that the approach to the dealership was convenient and their will be
a comfortable parking place also. The staffs are attended very quickly to the new customers
and they behaved very politely and courteously. The effort and performance of the
salesperson is also good but the management should take care in restricting the salespersons
from making false promises to make a sales transaction, which may affect customer
satisfaction. Test drive should be encouraged to more prospects. This can convince the
purchase decision.
It is also known as firm is offering a good finance schemes to customers and the finance
personals are doing their job good for meeting the customers requirements. They also
explained all the cost related to purchase including insurance and registration. There will be a
fast documentation of all papers and payments. The firm is delivered the vehicles at promised
time at maximum. Otherwise they informed the delay. But the deliver process is little slow in
the delivery day. The vehicle is also cleaned and complete in all respect including fitment of
accessories. The vehicle had sufficient fuel at the time of delivery but the longest customers
means whose house are far from the showroom are not satisfied with that amount of fuel.
The owners manual and warranty policy and maintenance schedule are clearly explained at
the time of delivery. The salesperson contacted the customers after delivery for checking
everything is clear and the costume relation department sent a thanks letter to all the
customers. Totally majority of the customers are satisfied with overall performance of the
dealer that is rohan fiat .
6.1 Suggestions:
The majority customers suggested that there will be a separate parking place is more
comfortable than present. Now it is both, mean the customers vehicle and the vehicles
which is waiting for delivery is parking in one place.
Try to give better finance scheme because majority customers have their on bank
account with huge balances. Because fiat customers are high income peoples. So
their bank is giving better finance schemes.
Extra fitment of accessories should also be offered from dealership. All other
competing dealers (other automobile companys) giving some extra accessories free
of cost.
Dont waste customers precious time in delivery day. Complete the delivery process
very fast in that day. Otherwise inform the customers the exact time of delivery in the
delivery day.
Put the fuel which is capable to reach the customers native place. It can understand
from the address given by the customers at the time of order.
Facilities should be increased such that customers get felicitated.
Man power should be increased to meet customer requisites.
Workers should be punctual and dedicative
6.2 CONCLUSION:
Everything that begins must have an ending. So this study will enlighten all aspects of
business management. As final, rohan fiat keeps a separate parking place for customers
vehicle and gives more attractable finance schemes. Some customers are of the view that the
salespersons are giving false statement for making a sale. This should be control by General
Manager of Sales. Now the firm is little far from the city. The availability of human resource
is also good there, because there are many dealership and these places are the commercial
part of the city. Major nationalized banks are situated these areas of the city. The study and
results and suggestions will be immense use for rohan fiat
on their performance and
weakness. It should be a tool in helping the firm to know about details which otherwise
would have been left in dark. Thus it helps to bridging the gap between the dealer and their
customers.
Just as various organs of human body perform various function, various department of this
organization are performing their own function with the commitment and are responsible for
desired success of the organization.
More alternative-fuel vehicles will be introduced in the next two years, especially plug-in
electrics and hybrids. We will find ourselves doing double-takes at the variety and sizes of
mini-cars soon to be darting through traffic. Those unconcerned by the cost of gas will still
choose from a slightly smaller selection of SUV's and performance vehicles. Your car-buying
experience may range from traditional dealers, Internet sales through a factory-direct channel,
or a discount outlet with multiple brands. The classic multi-faceted new car dealership, with
used car, loans, service, parts, and insurance departments will be "parted-out" as separate
entities.
The net benefits of the restructuring of the auto industry will be improved service and
selection with better pricing through alternative channels. The outmoded sales model has
been resistant to change its practices which run contrary to garnering customer loyalty. It will
either evolve or be replaced by other, more efficient distribution channels, with the new car
buyer being the winner.
6.3 BIBLIOGRAPHY:
Anonymous, (2003), Back to the Future With Fiat, Journal of Strategic Direction Vol.19
Number 5 Page 13-15.
Autocar, (2008), Fiat 500 Production Increases, Online,
http://www.autocar.co.uk/News/NewsArticle/Fiat-500/234501/, Last visited 26/11/2009.
BBC, (2008), Hedge funds make 18bn loss on VW, Online,

http://news.bbc.co.uk/1/hi/business/7697082.stm, Last visited 02/11/2009.
BBC, (2009), The Global Car Industry In Crisis, Online,
http://news.bbc.co.uk/1/hi/business/8068787.stm, Last visited 04/12/2009.
BBC, (2009), Fiat And Chrysler Create Alliance, Online,
http://news.bbc.co.uk/1/hi/7839542.stm, Last visited 06/12/2009.
Becker, H., (2006), High Noon in the Automotive Industry, Springer, Berlin.
Betts, P., (2009), Financial Times: The burden of expectation on Italys car superhero,
Online, http://search.ft.com/search?queryText=fiat&aje=true&dse=&dsz=, Last visited
20/10/2009.
Bonser, G., Daniel, W., Grice, R., Hogarth, T., Saunders, D., Wilson, R., (2006), Multi-Sector
Skills: Automotive Retail Industry, Online, http://www.berr.gov.uk/files/file28947.pdf, Last
visited 02/11/2009.
CEVA, (2009), Fiat Powertrain Confirms Its trust in CEVA Logistics, Online,
http://www.cevanewsfast.co.uk/Press-office/Press-releases/Archive/Fiat-Powertrainconfirms-its-...-in-CEVA-Logistics, Last visited 26/11/2009.

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CONTENTS

DSCASC/MBA III SEM/2014

DSCASC/MBA III SEM/2014

DSCASC/MBA III SEM/2014

DSCASC/MBA III SEM/2014

DSCASC/MBA III SEM/2014

INDIAN CAR HISTORY

DSCASC/MBA III SEM/2014

DSCASC/MBA III SEM/2014

1.2 :Objectives of the study:

To study the organization structure of the car industry in Bijapur..

To know the work flow of the industry.

To study the organization structure of the Industries Management.

To study the working of various departments of industry.

To conduct the swot analysis of organisation.

To study the management problems come in running an industry.

DSCASC/MBA III SEM/2014

1.3Industrial Background of the Study.

DSCASC/MBA III SEM/2014 Page 10

Competitors of Fiat company.

OPEL VECTRA, CHEVROLET

, GETZ, SANTRO XING,

ELANTRA, i20, i10, VERNA

MARUTI UDYOG LTD

800, OMNI, ALTO, ZEN,

INDICA VISTA, INDIGO.

HONDA SIEL CARS

DSCASC/MBA III SEM/2014 Page 11

Future of the Industry:

DSCASC/MBA III SEM/2014 Page 12

DSCASC/MBA III SEM/2014 Page 13

DSCASC/MBA III SEM/2014 Page 14

DSCASC/MBA III SEM/2014 Page 15

.2.2: Growth and Development of the Organization:

The ROHAN FIAT cars enjoy 20% of the market share.

DSCASC/MBA III SEM/2014 Page 17

DSCASC/MBA III SEM/2014 Page 18

Current Strategic Implementation

2.3:Vision, Mission and values of the Organization:

DSCASC/MBA III SEM/2014 Page 20

Fair Corporate Governance: We ensure that we practice corporate governance in its

2.4 Present Status and Future of the Organization:

2.5 Organizational Structure.

DSCASC/MBA III SEM/2014 Page 22

2.6 SWOT Analysis of the Organization.

DSCASC/MBA III SEM/2014 Page 23

similar price and size and quality.

3 .DETAILED STUDY OF THE DEPARTMENT:

DSCASC/MBA III SEM/2014 Page 24

3.1 SALES DEPARTMENT.

3.1 SALES DEPARTMENT:

DSCASC/MBA III SEM/2014 Page 25

Meeting the Customers

Visiting the Showroom

DSCASC/MBA III SEM/2014 Page 26

Vehicles of rohan fiat :

DSCASC/MBA III SEM/2014 Page 27

DSCASC/MBA III SEM/2014 Page 28

3.2 HUMAN RESOURCE DEPARTMENT:

ORGANISATION CHART OF HUMAN RESOURCE DEPARTMENT

. RECRUITMENT:DSCASC/MBA III SEM/2014 Page 30

2. On receipt of approval requisition form the concerned department or section. The