Organizational study can be used in order to learn the best ways to run an
organization or identify organizations that are managed in such a way that they
are likely to be successful. It is an examination of how individuals construct
organizational structures, processes, and practices and how these, in turn,
shape social relations and create institutions that ultimately influence people,
organizational studies comprise different areas that deal with the different
aspects of the organizations, many of the approaches are functionalist but
critical research also provide alternative frame for understanding the field.
3. Company Profile
Madras Rubber Factory, popularly known as MRF, is a major tyre
manufacturing company located in Chennai, Tamil Nadu India. MRF is
mainly involved in making vehicle tyres. . The company was established in
the year 1946. .MRF Ltd was started by a young pioneer called K.M
Built up area :6 lakh sq. Feet
Management staff :252
Regular +probation workers :1276+37
Temporary/casual workers :185
4. Objectives of the Study
To know about the tyre industry and its history
To know about the inter dependency of various departments in an
To familiarize with internal and external environment and competition
facing the company.
To identify the organizational culture and structure of MRF Ltd., Kottayam
To make a SWOT analysis of this organization to understand and suggest
measures to overcome the weakness and threats within the scope of this
To learn about the different departments of the company, their specific
functions and activities.
To know the product profile of the company.
To get awareness about the roles and responsibilities carried out by
companies by key personnel.
5. Research Methodology
Sources of Primary data
The primary data’s are collected from discussions with the managerial head
of the various departments. The primary sources of data are direct observation
and interview method.
The information obtained in this method relates what is currently happening.
This method requires a person generally in face to face contact
Sources of secondary data
Secondary data were obtained from the annual report, from the company
website, technical and state journal, books magazines and newspaper, report
and publications connected with business and industry etc.
7. I) Production Department
Production is a process of procedure develops to transfer a set of element like
men, material, capital, information and energy into a finished products and
II )Human Resource Department
MRF having an efficient and a well-structured HR department plays a major
role in the excellent performance of the company and the overall successful
administration of the organization. The HR department in MRF is very keen
in selection, training and motivation. The management maintain better
relationship with their employees. The HR manager and HR executive are
managing the department function.
8. III) Accounting Department
This department controls the inflow and outflow of cash. It maintains all
statutory book, ledger, bills etc. Accounting work are mainly done through
computer’s using software’s like integrated info System and Tally.
IV) Quality Assurance Department
The expectation can be performance, price, dependability, consistency etc.
Hence we can define quality of a product as its ability to fulfil the customer’s
expectation. In other words it is defined as fitness to use.
V) Safety and Security Department
MRF –Kottayam strictly follows all safety norms and no fatal accidents were
reported in last many years due to the continuous efforts taken by Plant safety
committee. Periodic awareness programmes, Safety day observation and safety
week celebration keep employees vigilant round the year to comply with
safety standards. SHE (Safety Health and Environment) pillar taking care of all
activities as guided by TPM steering committee.
9. VI) Technical Department
Raw Material Testing
In Process Material Testing
Finished Good Testing
Issue of specification
Finished Good Re classification
Design change process
Control of non-confirming product
10. VII) Industrial Engineering Department
Industrial Engineers integrate people, technology, and information to enhance
a globally competing enterprise. Integration refers to the ability to understand
the need for looking at broader system and scope and not focus on individual
problems. Most engineering disciplines fail to do this. Focus is on improving
VIII) Engineering Department
Engineering department functions are divided as follows:
11. SWOT analysis of MRF tyres:
Brand recognition and Brand Recall
When it comes to top of mind brand recall, MRF beats rest of the competition
hands down. MRF has for long concentrated on aggressive brand promotion.
Exports account for around 12% of the gross sales in MRF. The company exports
to over 65 countries worldwide. It is the largest tyre exporter in South Africa.
Aggressive Marketing Policy
MRF has aggressively pursued a pull marketing strategy to sell its tyres. In a pull
strategy the manufacturer uses advertising, promotion and other forms of
communication to induce the consumers to demand the product .Its leadership
position coupled with its strong brand recall and high quality, MRF commands the
Price Maker Status.
Strong Financial Support
The financial position of MRF is stable with an excellent margin of profit which is
increasingly by every year.
12. Efficient Distribution Network
MRF has over 3000 strong dealer network with 180 offices. The company
boasts of the largest range of tyres – from heavy truck tyres to two wheeler
Locally Availably Raw Materials
Rubber being the single largest raw material is locally available in South India.
Kerala is the largest producer of rubber in India. It produces 90% of the rubber
in India. MRF has set up a manufacturing unit in Kottayam which is the major
source of rubber in India.
MRF offers quality products to the consumers. MRF has ISO 9001 certificate
for it quality in production.
Highly Motivated union Problem
As a result of disagreement between these trade unions, frequent lockouts are
common in the manufacturing units.
High Rate of absenteeism
There has been an increasing rate of absenteeism among the works. It has
reduced the productivity.
Marketing Department is Only at Corporate Office
MRF has 8 manufacturing units all over India. But it has only one marketing
department in the corporate office in Chennai.
Lack of Individual Initiative
Lack of Commitment
Many workers are working on daily wage basis who are not committed to the
organization as the permanent employees.
Lack of Transportation facility of Employees
Availability of Latest Technology
R&D efforts are being taken to develop products with stringent performance
requirements such as higher mileage, rolling resistance, traction, higher speed
capabilities as demanded by the new multinational automotive manufacturers.
Joint Ventures and Tie up With foreign Automobile Companies:
Maruti Suzuki, Mahindra and Mahindra, Tata Motors, General Motors
As new automobile companies are coming to India, MRF has the opportunity
to have tie-up with these companies.
Improvement in Market Shares Both in India and Outside
The sale of conveyor belting has shown excellent growth with sales to most of
the major markets in Australia, Europe and South America.
Modernisation of Tubeless Tyres
Tubeless tyres are pneumatic tyres that do not require a separate inner tube.
Now a day, many cars are sold with tubeless tyres as standard fitment.
Increased Cost of Raw materials
The increasing cost of raw materials, mainly natural rubber, which constitutes
approximately 70% of the input costs, put pressure on the finances of most tyre
The Indian Automotive Industry is expanding to become one of the fastest
growing markets in the world. Many of the global and local tyre manufacturers
are expanding their manufacturing facilities to cater to this growing demand.
Cheaper Import from China
With low automotive demand in most countries, the lucrative Indian market
was made a dumping ground for cheap and low quality tyres, especially from
China. With domestic production costs high, it is difficult for Indian tyre
manufacturers to compete with such tyres.
16. Imbalance in Tax Structure
The import of raw material at 20% duty, and the 8-10% duty on tyre imports is
an imbalance that is bound to affect the Indian tyre manufacturers in terms of
efficiency and competition.
Entrance of New Players
New companies especially from foreign countries are now entering the Indian
market. They have advanced technologies when compared to Indian tyre
Increasing Transportation Cost
There has been an increase in the transportation cost due to increase in the fuel
When a particular technology is out-dated, it should be immediately replaced
with new technology. It incurs a lot of cost to the company.
MRF is the largest tyre manufacturer in the India and the 12th largest in the
MRF exports its products to more than 75 countries in the world
Good working environment:
Training and development programmes conducted according to needs:
Good Performance appraisal system:
Updated technologies and methods:
Environmental and quality standards with awards of recognition:
Good management and skilled workers are the strength:
Both monetary and non-monetary benefits are given to staffs and workers:
Regular meetings on each activity for evaluating performance and solve
Steps may be taken by the company to start a Marketing Department:
Company can give more advertisement on mass media for outside Kerala
For reducing the cost company can install new automated machineries:
Attract foreign investment for further development:
Company can maintain proper day by day market research programs to
know the movements in the markets:
Company can take direct feedback from customers for development of new
Open a showroom at factory itself:
Participation of the workers in the management of the company
In spite of cut throat competition in the tyre market segment, MRF has
emerged as a market leader. The outstanding performance of MRF is a
combination of high growth in sales along with enhanced operations
management and significant cost saving measures. MRF tries to provide
high quality and technology superior products to its customers.
It has an ideal location due to the easy availability of natural rubber the
main raw material of the tyre industry. MRF has achieved these enviable
heights mainly due to the hard work of all employees from top to bottom
and commitment of quality besides bringing a good product at right prices
to the consumers.