Swot Analysis Of Parle Products Commerce

Table of Content

The purpose of the assignment is to analyze the operation procedure of fabrication or service administration, booming to accomplish the efficiency and productiveness in the operations procedure, through assorted organizational and operational schemes carried out on a short term or a long term footing. The analysis of the study is based on the assorted key happening which determines the success of administration and how company manages between the quality, cost, velocity, dependableness and flexibleness of its merchandises utilizing the cardinal competitory factors such as order victor and order qualifiers to prolong in the market. The procedure design used by the administration is to better competency and effectual stock list direction manner with aid of providers and distributers ; analyzing the jobs faced by the administration and solution for the same.

Parle is one of India ‘s largest biscuit, confectionery and bites maker it has been set-upped in despicable Parle Mumbai in 1929. As a organized section of the FMCG ( Fast traveling consumer goods ) industry, FMCG merchandises are by and large replaced within a twelvemonth and include a scope of merchandise provided to the consumer that may be Durable e.g. Food, soap, cosmetics, tooth cleansing merchandises, shaving merchandises and detergents and non-durable merchandises such as glasswork, bulbs, batteries, paper merchandises, and fictile goods. Babaria, M. and Dharod, M. ( 2009 ) Parle Operation Management is to pull off of resources and bringing system and the responsibilities entitled to the operation director control of the cost, supervising the efficiency of the production and plus direction,

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The point of view of Parle Company is to pull as much of young person and grown-ups through its merchandise with the mission to supply felicity among kids and grownups non merely in the tube metropoliss but besides tier 2 and tier 3 metropoliss in the state. On a short- term footing the company aim is to make consciousness about the merchandises among the young person and on long-run continuance is to be the market leader.

Major rivals of Parle are the ITC sun-feast ltd, Britannia, Nestle & A ; HUL ( Hindustan unilever ltd ) . Parle provides a scope of biscuits such as Parle-G, krackjack, Hide and seek, Milano etc. confectionery like tune, mango-bite, orangish confect etc. and bites like Jeff ‘s, cheese ling etc. Parle are market leader and in their class and ain 40 % portion of the biscuit market portion and 15 % portion of the entire confectionary market in India, Parle has transformed into a multimillion company over the old ages. Based on the merchandise fluctuation provided by Parle the client are non bound by age they can be consumed by people of all age group even the grownups or senior citizens. E.g. Parle G is widely excepted merchandise, the clients of Parle are non restricted to the local or regional tier1, 2 & A ; 3 markets but besides on a planetary graduated table by implementing top down attack scheme in the organisation. ( parleproducts. , 2012 )

Transformation procedure is activities affecting no. Of input, this adds value and transforms into end product for client. ( Openlearn.open 2003 ) Through the transmutation procedure assorted natural stuff used at input at Parle, which goes through the transmutation procedure and made into biscuits, bites & A ; confectioneries for the consumers.

The above analysis reflects strength of the company lies in its low monetary value technique, broad scope of merchandises and distribution system of Parle, chances predominating are the export potency, untapped rural market, due to increase in the buying power of the consumer keeping of loyal clients, Threats faced by Parle are from the rivals, substitutes available in the market and the bakeshop merchandises whereas the failing posses are the irregular supply, dependence on the trade name Parle-G and weak bringing system to perforate in rural countries. Babaria, M. and Dharod, M. ( 2009 )

Scheme adopted by any organisation is develop the capablenesss required to reflects the demands of the clients and market, direct how to pass cardinal resources like clip and money and to get by up with the greater degree of complexness different concern units are maintained in the organisations.

Different types of scheme used at different degrees in the organisation.

  1. Corporate degree scheme is decided by the company where to put the financess of the organisation in order to run into the concern demand of today ‘s and the future.eg. E.g. addition in the volume of gross revenues through gross revenues staffing, addition in gross revenues by increasing the figure of factory floor.
  2. Business unit scheme is implemented by different portion of organisation to accomplish the desire aim in a specific market based on the present and the hereafter market. E.g. – selling, finance, gross revenues and selling and operations sections.
  3. Functional scheme is to keep the cardinal resources utilizing the strategic and the daily undertaking. E.g. Market demand and map of operation trough in supervising the line of production. Hill, A. and Hill, T. ( 2011 )

The word scheme signifies way and how one should implement it. Schemes adopted by Parle are the concern unit scheme where scope of merchandise is sold to place group of clients in competitory market and functional scheme where determination of cardinal resources such as the natural stuff required for the production is done on twenty-four hours to twenty-four hours footing by a operation director to vie in the market, to spread out in the market, to hold an penetration of the rivals. Hill, A. and Hill, T. ( 2011 ) .


Performance Aims are cardinal steps to aline the demands of the client with the coveted effectivity of the overall concern. Performance aims are Quality, Speed, Dependability, Flexibility and Cost. Each of these dimensions adds its turn to the value proposition. Each dimension hypothetically entreaties to different clients. Delivery each aim at the same time at their highest degrees of all these merchandise attributes, operations troughs need to form aims based on precedence, besides place which are an order victors and qualifiers of the targeted critical clients, Operation direction ( 2012 ) .


Quality is fitness for ingestion in footings of meeting clients ‘ demands and desires. Quality can either be an order victor or order qualifier for client based on the quality maintained. Quality conformity, which means to consistent presenting services based on design specification which, in bend, needs to reflect client demands. Operation direction ( 2012 ) . To keep good quality companies like Parle need to keep and pull off quality spreads. Hygiene is the precursor of every procedure in Parle. Every batch and confectionery is exhaustively checked by an adept staff by following Quality conformity degree after every phase maintain similar quality throughout all states pretermiting quality control system.


Cost is one of the major parts in concern public assistance since merchandises that cost less but have good quality attract clients. Operation directors try to cut down costs and besides maintain quality so the company net incomes. Operation direction ( 2012 ) . Parle as a company tends to keep quality and maintain a low purchase cost. Parle follows a policy of Kaizen, which means to bring forth more and more value with less wastage achieving better environment and developing stable procedure by standardisation.

Dependability is a grade of handiness of the merchandise when the client needs or requires merchandise. Operation direction ( 2012 ) . Parle is a multination company it deals with multiple states it has a changeless direction of merchandises sing demand and supply. To get by with demand Parle produces 13 billion biscuits in a month.


Operationss ability is to react expeditiously to alterations in merchandises, procedures ( including supply concatenation relationships ) , and competitory environments. Operation direction ( 2012 ) . Flexibility differs in companies but companies like Parle have a standardised attack and there is less alteration in the operations of the company.


It means by making things faster to minimise the clip between the order and the handiness of the merchandise to give a velocity advantage to the jobber, retail merchant which ultimate the benefits to the clients. Slack, N. et Al. ( 2004 ) Parle maintains their velocity through their jobbers who deliver their merchandises to the retail merchants, which are eventually received by the consumers. Parle maintain the velocity by maintaining a systematic attack to the system.


The polar radio detection and ranging chart depicts the precedence of the public presentation objectives Slack, N. et Al. ( 2004 ) in Parle. Parle as a company strives to bring forth the best stuff with minimal wastage. After quality Parle looks at client benefit and cost direction. By bring forthing in bulk Parle maintain handiness of merchandises increasing dependableness. Parle maintains standard process to increase operation velocity.

Product design & A ; quality is initiated by Parle merchandise by doing usage of machine-controlled packaging installations and all the Parle merchandise are manufactured under hygienic status and keeping choice criterion at each phase of biscuits and confectioneries are exhaustively checked by adept staff utilizing modern equipment at Parle they follow the seven HACCP rules for entire quality direction. Great attention is exercised in the choice and quality control of natural stuffs ; packaging stuffs and stiff quality criterions are ensured at every phase of the fabrication procedure ( parleproducts, 2012 )


Certain features indicates that certain qualifiers are same for the full market Hill, A. and Hill, T. ( 2011 ) , which was seen besides seen in Parle rivals where bringing velocity plays a important function in supplying the merchandise to its terminal consumers and packaging of the merchandise is done to pull the clients.


There are certain factors at Parle, which does non impact the production of the merchandise irrespective of the located conditions it is in tier1, tier2 and tier3. Hill, A. and Hill, T. ( 2011 ) , Parle mill situated in teir1 and Promotion activates of Parle is non considered the alone merchandising point since to make ballyhoo in the market its mandatary to utilize assorted promotional activities to make consciousness among consumers.


Order Winner is quality that helps companies win markets. In instance of Parle policy is to endeavor to supply systematically alimentary and quality nutrient merchandises to run into client ‘s satisfaction by utilizing choice stuff and by following appropriate procedures. Therefore Quality is an order victor for Parle. While, besides bring forthing the finest quality for clients like to sell it at convenient or inexpensive monetary values that are low-cost by all people. This makes Purchase Price an order victor for Parle besides. Whereas the bringing system and packaging is similar as their rival therefore it is an order qualifier. Hill, A. and Hill, T. ( 2011 ) .


Most fabrication administrations provides standard merchandise in high volumes. The repetition, mass production and standardisation of the merchandise bespeak a demand of procedure design that would profit these features. Batch procedure seems to be executable pick as it simplifies, automate and reduces fabricating cost. Hill, A. and Hill, T. ( 2011 ) .

The designing of batch procedure can be such that it can be used and reused for fabrication of scope of merchandises, hence enabling companies to cut down cost by puting in equipment ‘s. The downside to this procedure is that for fabricating each merchandise the procedure line has to be reset, it is dearly-won and skilled functionaries can merely do alterations. Hill, A. and Hill, T. ( 2011 ) . At Parle fabrication is based on batch procedure to fabricate their merchandises ; as mass production is possible without haltering the quality criterions of the merchandise. Bing cost effectual is one of the major standards at Parle as it uses the same line to fabricate more 33 assortments of merchandises. Parle do non do specialised merchandise, as their chief mark are the multitudes. Standard merchandises are expensive and non in mass production by Parle. Mass merchandises are inexpensive and manufactured in big measures.

The fabrication procedure flow chart illustrates how the production procedure is carried at Parle, In the initial phase, Testing of natural stuffs is carried out, which is sent for modeling through the conveyer belt the unfinished merchandise goes through oven for baking and so to chilling of the merchandise and subsequently for boxing through machines like box tapping and sealing machine and forward to despatch subdivision for the whole Sellerss to steer to the retail merchant for the clients to purchase.

The physical resource used for Packaging of the finished goods at Parle is done through the aid of box tapping and sealing machines while easing packaged goods and finished merchandise. The activities required during the procedure is done in front office i.e. disposal room organizing with the back office i.e. the storage room, despatch subdivision and production country in add-on to the procedure Parle besides provides flow of stuff, information to the clients with the aid of inexplicit service where visitants are allow to see the mill by set uping a visit at the production subdivision at the front office. Kaul, D. ( 2012 )

The layout used at Parle is a procedure or functional layout reflecting that the layout is made in such a mode that similar operations are used in one countries where big batched of goods are produced. Hill, A. and Hill, T. ( 2011 ) . This type of layout is suited for Parle where big batches of production is done with aid of assorted maps where layout reflects the phases involved in the devising of the Parle merchandises that is the merchandise devising is started with the testing of the natural stuff so modeling and blending machine goes to oven and so for chilling earlier traveling to the packaging and so eventually as a finished merchandise.

Functional layout advantages

  1. Wide scope of merchandises – Parle as trade name itself produces about 33 different assortments of merchandises for ingestion at its Parle mill at vile-Parle.
  2. Lower capital cost -The substructure at Parle used for the production i.e. the independent machine helps in cut down the capital cost incurred in doing of the merchandise.
  3. Use of procedures – since all the resource used in the devising of the Parle merchandise are group in the mill itself helps in proper use of all resources e.g. Equipment ‘s and skilled staff. Hill, A. and Hill, T. ( 2011 )

Functional layout disadvantages

  1.  In-process stock lists at Parle are the cost of the direct stuff, direct labor, and mill operating expense placed into the merchandises on the mill floor.
  2.  Material handling can be dearly-won and inefficient – handling of stock lists at Parle are costlier since storage room are made to suit these stock lists in proper conditions, which add to the cost and are inefficient when the gross revenues gross is non up to projected grade. Hill, A. and Hill, T. ( 2011 )

The production procedure followed at Parle is Repeat ( criterion ) Merchandise where the devising of merchandise is done a insistent footing designed for functional layout where high volume of production is done utilizing batch and mass production.


Inventory comprises of the input which is portion of the unfinished goods goes through assorted operational procedure phases know as work in advancement for a coveted end product in the signifier of finished merchandises to sold to the clients. Hill, A. and Hill, T. ( 2011 )

The stock list type adopted by Parle is the procedure stock list where the natural stuff for 3 yearss is shop in the warehouse from where they are sends for proving the natural stuff conditions it is run intoing needed criterions for the production. After proving natural stuffs are sent for production. Where the natural stuff goes through assorted phases of baking and chilling and shifted to the dispatched room where they are stored and delivered to their distributers and the terminal clients. The natural stuff used in the merchandise can be stored approximately for 3 yearss because the works is designed in such a manner that the natural stuff can non be stored more than 3 yearss.

The stock list flow chart depicts the signifier of stock list nowadays throughout the three-process phases i.e. input, operation procedure and end product at Parle. The stock list such as natural stuff like wheat flour, sugar, hydrogenate vegetable oil, salt, milk and added spirits are stored in the shop room from where they used in the procedure phases for the fabrication of biscuits, sent to the dispatched subdivision where the packaging takes topographic point and distributed to the jobber and so to retail merchants for the terminal consumers. Due to limited continuance of the storage capacity there are certain issues that have to be dealt such as to run into the planetary demand and the diminishing demand for the merchandises from local markets.

Supply CHAIN

Before keeping the supply concatenation has to make up one’s mind whether to do the natural stuff or purchase the stuff. Every fabrication unit has different benefits if they make in-house / outsource. Advantages for doing in house are that company has more control over the stuff it is more flexible and last minute accommodations are possible. The advantages of outsourcing are that cost is easier to pull off and increases focal point on concluding merchandise. In instance of Parle, natural stuff is outsourced and the concluding merchandise is made in house. This is depicted through their supply concatenation.

Supply Chain comprises all the stairss required to provide a service or merchandise to a client. Hill, A. and Hill, T. ( 2011 ) . Parle has many merchandises, which have multiple natural stuff demands. Multiple providers of provide these stuffs as their grade 1 provider.


The study covers Distinctive characteristics of Parle operation procedure through operation analysis of the administration by taking an overview on the authority of distribution system and lower monetary value advantage of Parle over it rivals, enormous step are taken to keep quality and at the same clip be cost effectual, which can be reflected from their quality control methods and the manner mill is designed to transport out operations and buffer their stock list through assorted phases of the operations and keeping integrated supply concatenation direction with the coordination of their providers parle develop a merchandises design, client direction and concluding bringing of the merchandise to be consumed, with the aid of analysis carried out on parle we were able to place the operational jobs and provided with appropriate recommendation, which has assisted our group to cognize the operation of an operation direction and how the operational surrounding play a critical function in fabrication of a merchandise or service delivered to a clients, which was the motivation of our assignment. Hill, A. and Hill, T. ( 2011 ).

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