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ORGATIONAL STUDY AT ASHOKE LEYLAND
History of ashoke leyland
Ashok Leyland has been a major presence in India’s commercial vehicle industry since 1948, the year it was born. The origin of Ashok Leyland can be traced to the urge for self-reliance, felt by independent India. Pandit Jawaharlal Nehru, India's first Prime Minister persuaded Mr. Raghunandan Saran, an industrialist, to enter automotive manufacturing.
VISION
Achieving leadership in the medium/heavy duty segments of the domestic commercial vehicle market and a significant presence in the world market through transport solutions that best anticipate customer needs, with the highest value -to-cost ratio.
MISSION-Identifying with the customer.-Being the lowest cost manufacturer.-Global benchmarking our products,
processes and people, against the best in the industry.
QUALITY POLICY STATEMENT
Ashok Leyland is committed to achieve customer satisfaction by anticipating and delivering superior value to the customer in relation to their own business, through the products and services offered by the company and comply with statutory requirements.
ORGANISATIONAL STRUCTURE
AUTHORITY FLOW
MAJOUR DEPARTMENTS The major functional areas of the unit and the major departments which oversee those areas are catalogued as follows: HR DepartmentFinance DepartmentMarketing DepartmentProduction Department.
HUMAN RESORCE DEPARTMENT HUMAN RESOURCE MANAGEMENTHuman resource management is defined as the managing function of employees, developing and compensating HR resulting in creation and development of human relations with the view to contribute proportionately to the organizational, individual and social goal. VALUE STATEMENT“We consider our employees as our most valuable asset and are committed to provide full encouragement and support to them, to enhance their potential and contribution to the company’s business”.
FUNCTIONS OF HR DEPARTMENTHR ACQUISITONHR DEVELOPMENTPERFORMANCE AND COMPENSATIONMOTIVATION
FINANCE DEPARTMENTThe pricing department is responsible for the fixing of
prices for sales of the vehicles and for buying of raw materials and semi finished goods.
Treasury section is responsible for all kinds of funding managements such as investments.
Taxation section is responsible for remittance of tax, filing of returns, handling of litigations etc..,
Costing and Budgeting department is responsible for the unit costing of each product in particular, such as spare parts and a vehicle as whole.
The FSG (Finance account Service Group) deals with the payables and recievables at regional offices.
The Explore finance department deals with the FSG exporting of items
ROLE OF FINANCE DEPARTMENTRecorder (accounting) of all Financial
TransactionsReporting of Financial PerformanceArranging long and short term funds – Capital and
DebtWorking Capital ManagementCompliance of tax and other corporate lawsRisk Management Controllership functionAudit coordinationInvestor Relations
MARKETINGThe need for advertising was felt by Ashok Leyland in 2006-07 when they had to project the transformation that has occurred within Ashok Leyland, but as yet not communicated to the public
MARKETING STRATEGIESNEW PRODUCT LAUNCHES INCREASING GLOBAL FOOTPRINTPLANS TO MEET THE GROWING NEEDS
OF THE MARKET
MARKETING NETWORKRegional offices- 10Areas offices- 18Regional sales offices-19Parts warehouse-7Main dealers- 43Dealer outlets- 177Authorized service centres- 145Service bays- 2352
PREDUCTION DEPARTMENTLong range strategiesEffective management of technology.Innovation in product management and
process technology.Globalization in industry.Goodwill inside and outside the organization.An aggressive marketing strategy and risk
taking ability.
Short range strategiesLocation and layout.Product selection and technology.Capital selection and investment.Flexible strategy of production.Standardization of design.Economy of size and variety
CORPORATE SOCIAL RESPONSIBILITY
Ashok Leyland defines CSR as: "Our commitment to improving the quality of life of our employees, their families, the driver and the local communities around our units, and the society."
GREEN MISSIONIn 2002, all the vehicle manufacturing units
of Ashok Leyland were ISO 14001 certified with Environmental Management System
The Ennore unit was recently identified as one of the model energy- efficient units by a CII-TNEB organized Energy Conservation (ENCON) mission
SWOT ANALYSIS STRENGTHSGood Training System.Good Organizational Climate.High Market ShareSkilled EmployeesStandard Quality Product
WEAKNESSES High priceSales representatives are less
OPPORTUNITIES Demand for heavy vehicle have steeped up all over
the globe.Company provides better credit facility to dealers.
THREATS High competitionPromotional programmes of other brandsComplicated national marketNew players entering the market
COMMUNICATIONINTERNAL COMMUNICATIONCirculars.E-mailTelephone.Ashley NewsAL PORTAL INTRANET-MD’s PortalSoap box
EXTERNAL COMMUNICATIONWebsiteAnnual ReportCustomer Journal-Moving ForceOperator’s MeetVendors & Suppliers MeetDealer’s MeetExhibitionsMedia RelationsShareholder RelationsThe Annual General Body Meeting
CHIEF COMPETATORS
MahindraVolvoTata Motors
CLIENTSCLIENTS (Not exhaustive):Indian Army.US Army.Honduras Armed Forces (HAF). Tamilnadu State Transport Corporation (TNSTC).Metropolitan Transport Corporation (MTC), Chennai.State Express Transport Corporation (SETC), Tamilnadu.Kerala State Road Transport Corporation.Maharashtra State Road Transport Corporation (MSRTC).Andhra Pradesh State Road Transport Corporation
(APSRTC).Parveen Travels.Sharma Transport
MILESTONES ACHEIVED1966 – Full air brakes introduced1967 – Double Decker buses introduced.1968 – Power steering offered.1979 – Multi-axle trucks introduced.1980 – Integral bus with air suspension.1992 – Self-certification status for defence
supplies.1994 – ISO 9001 Certification1997 – India’s first CNG powered bus.1998 – QS 9000 Certification
1999 – CNG (Compressed Natural Gas) introduced.
2000 – Euro-I, Engines/vehicles introduced.2002 – ISO 14000 Environment Management
System Certification.2002 – Exclusive Machine line – 2 for Hino
cylinder.2003 – E-Comet launched.2004 – 50,000 mark vehicle produced.2006- ISO/TS 16949 Corporate Certification.