Business profile of Videocon:
The Videocon group set up business in 1979 and it is setting trends in every area of its actions. It emerges as a United States Dollars 2.5 Billion global multinational company.
The main operations of the Videocon group are in 4 main sectors:
Consumer Electronics, Compressor manufacturing & home appliances in India
In India the largest sales and service network is Videocon with Color televisions, many other home appliances, Consumer products like Microwave ovens, refrigerators and Washing Machines, it enjoys most excellent position in the terms of sales and customer fulfillment. Videocon enjoy a most excellent position in terms of customer fulfillment and sales. Their is house compressor development technology in Bangalore has manufactured more refrigerators.
Display industry and its components
Through new innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 formats CPT, Videocon has emerged as one of the largest Colour Picture Tube manufacturers in the world, It operates in Italy. And it is with Thomson.
Colour Picture Tube Glass
Videocon contributing as biggest manufacturers of CPT Glass in the world with technical experts in service spread in India and Poland and above the ground level of experience. For lowering the costs and source CPT manufacturing growing efficiencies, the influence on this synergy of Videocon after the achievement of Thomson internally.
Oil and Gas
Producing 50000 barrels oil per day with one of the lowest service costs in the world the key asset for the group is its Ravva. For expansion of this sector globally, the plans has to determine by group.
Apart from this Videocon is launching Mobile services in most of the states in India. This project is made on the basis of launching mobile services in Andhra Pradesh (State of India) and it has been launched in the month of November 2009.
Here as follows:
To launch a company it has to take permission from the government of India and certification from awarding bodies. ISO 9002 is an awarding body all over the world. For launching a new product, a company has to take approval from ISO 9002 (International Standard Organization).
Videocon group already have certification from ISO 9002, foreign license CE approval for exporting to Europe from Europe. It has taken approval of VDE testing and certification institute from Germany for the products manufactured in Germany and Poland. It also corresponds with British Standards.
Sales and Marketing Research:
- The state was formed in 1953 with merger of Hyderabad state and Andhra State. The principle languages spoken are Telugu and Urdu.
- The state enjoys rich architectural heritage in Golconda fort, Charminar, Tirupathi Tirumala Temple, 400 years old Husain Sagar lake amongst others attracting large number of tourists to the state.
- Involvement of the farmers in the irrigation sources management is first in Andhra Pradesh, They formed 163 distributor committees, boasts 9922 association of water users.
- The major port of Andhra Pradesh is Vishakhapatnam. Andhra Pradesh is one of the busiest ports in India. Some of the minor ports are located in different areas.
- Agriculture is main occupation of the state.
COST AND EXPENSES: Videocon is launching the mobile handsets. Below is the range of mobiles. All the infrastructure and models of mobile handsets are taken from China and they are dual sim based at a very lower cost comparing to other brands.
Balance Sheet: Every year the companies are expected to produce balance sheets. The Company reports should show these financial statements. It can be produced once in a six months or if it is required. The two main financial statements of a company are:
- The P & L account, and
- Balance sheet.
The P&L account.
The profit and loss account indicates the profit or loss of a business in accurate count regularly through simplification. We can measure the value of assets and the liabilities of the firm. Profit and loss shows in below example:
- Buying and selling products such as apparels and wood made products in a High Street Shop in case of trading.
- Cadbury produces eatable sweet products and other food stuffs, buys sugar and raw materials that are processed in making of eatable sweet products such as cocoa in case manufacturing.
The summary of the overall financial position of a business and the value of business shows the balance sheet. It gives brief report of profit and loss account. In order to produce wealth business need to utilize its assets. Assets are the company's own things or sums that are owed to the business at any moment of time.
CASH FLOW STATEMENT:
A financial statement screening outgoings, incomings and cash balances. The cash flow statement refers to flows that take place in a preceding period of time e.g. the last year. Do not confuse this with a cash flow predict which is a future predict of outgoings and incomings of cash into a Videocon business.
Finance/Loans: Banks are a major source of finance for all businesses, providing finance for starting up, running the business and for expansion:
- Videocon can take loans of short-term, medium-term or long-term.
- Videocon can also take mortgages that are long-term loans for the use of buying fixed assets such as buildings and apparatus.
- Videocon can also use over drafts that are short-term loans with limited period which can help the day to day successive driving of the Videocon mobile trading.
Videocon needs to check all of the finance conditions, for extra charges and easy repayment. Interest has been found an easy example for the bank takes for acquiring loans in Videocon Mobile Services. As per the risks which bank feels there is, there will be a variation in the rate of interest.
Interior aspects of SWOT analysis are Strength and weakness. This means the control of the business is within them. The manufacturing, organization, marketing or finance's aspects are passing on to strength and weakness. The external factors are opportunities and pressure. It means the control of the business is from outside. The economic state, the environment, social changes or technological advances, such as internet may be comprised by strength or weakness. Strengths and weaknesses are interior aspects. It means that they are within the control of the business.
Opportunities and counter pressure can be made by creating the strength and its weakness and by business. For example, key strength is planned and aimed in use no more material than required in the making of each item. It is the key strength of Videocon. In addition, the waste and recycled materials are used in development of product plans enlargement later.
Business strategy is goaled of sustainability and ecological design in central to its business strategy, The new sustainability plan has been launched to take the company through to 2019. Environmental, social and economic issues will be united by this.
To achieve the objectives of business Videocon uses SWOT analysis and takes its help. This is a strategic planning instrument. Key issues are centered and helped by SWOT analysis. The first stage of planning is SWOT and it looks at the Strengths, Weaknesses, Opportunities and Threats which involved in an industry venture or project.
Sources of Finance: The major source of finance for establishing any company is through bank. A bank can owe as much finance as needed to start a business at a lower interest rate. It is easy to get finance from bank if the company is stabled and want to start a new business. So we recommend having a look at the sources that is banks.
UTI, the 1st bank UTI, The new private bank and it is the 1st one to start operations as a private banking in 1994 as permitted by Government of India and it is recognized. The Unit Trust of India, Life Insurance Corporation of India and General Insurance Corporation Ltd and their administrators has been promoted together the UTI bank. And also associated with NIC Ltd, NIAC, OIC and UICL.
In India today this Bank is capitalized with Dollar 232.86 Billions with 57.50% external investment other promoters. UTI bank have 200 branches and with over 1250 extension counters in the country. The Country's one of the biggest ATM networks is UTI Bank. The capital of UTI Bank of Rs. 232.86 with the investment of public and other promoters' investment is 47.50%. To achieve distinction UTI Bank has to accept its commitments and to have best industry practices internationally. Corporate banking as well as retail banking is the strengths of UTI Bank.
In India UTI Bank has 2.7 million debit cards by end of December 2004, ATPAR cheque facility had been offered first in India by UTI Bank, to all its savings bank account holders it offers the ATPAR cheque facility without any charges in all the branches available in the country. ATPAR cheque facility is free of cost to UTI bank customers and it is the first one to start this facility.
International travel currency card has been introduced by UTI bank which gives variants the dollar deviation, euro and pound sterling variants deviations are contributed by UTI Bank and it is the latest one. The cash card enables you to travel throughout the world, it is a signature based prepaid card which can be used in any of the ATM's. It is very safe mode of cash withdrawal globally.
Location: There are 29 states in India and Videocon has to launch their mobile handsets in all the states. In all the states Videocon has to launch in a similar way.
- One of the states of India is AP; AP had been formed on 1st November, 1956 under the States' reorganization scheme.
- The state with an area of 276754 sq. km. which is the fifth largest state of India, in calculating for 8.4 % of India's territory.
- Among all states in India Andhra Pradesh have the longest coast line of 972 km.
- The endowment with a variety of physiographic features ranging from high hills, plains to a coastal deltaic environment is in Andhra Pradesh.
Extreme stock, or overindulgence inventory, results in poor management of material flow in process management or stock stipulate. Extra inventory has linked in the loss of generating capital owing to supplementary bound of capital and procure or store room space taken. Extreme stock may result in over delivery from supplier or from poor management or bad ordering of stock by purchaser of stock.
Earlier damages incurred because of extreme inventory in prior drain of cash flow.
Extreme inventory could result loss in billions of money as product newness may get worse to such extent that cannot be sold with raw materials supplies.
Videocon Industries Limited in 2008 has appointed Mr. R Kim as Vice Chairman and CEO, After appointment Mr. K R Kim has led the Videocon group to get bigger its operations throughout the country in home and as well as worldwide operations of the consumer durables and infotainment division.
Mr. K R Kim is the former Managing Director of LG electronics he has good experience in the consumer goods industries. He is a law graduate from Seoul National University and has been worked with LG Electronics for over 30 years before joining Videocon. During his working he worked at respected positions of President and Managing Director.
The proficient leadership skills, task obsessed approach and without equal degree of excellence and discipline of Mr. Kim has conspicuously carved his identity worldwide. He has been proud recipient of Super Achiever award from CETMA (Consumer Electronics and TV Manufacturers) moreover, for his role in advancing prime of life of India's Electronics and Durable goods market. He has been awarded by India's Honorable Prime Minister Mr. Manmohan Singh for Excellence in Corporate leadership and Entrepreneurial Spirit established by CNBC – TV 18.
Mr. KIM is a leader Videocon group has more than 6000 employees in different sectors like consumer electronics, home appliances, Oil and gas, Investor relations and Mobile services. It has well experienced and qualified staff in all the sectors.