1 INDUSTRY PROFILE Chocolate was discovered in the 18th century and every child’s dream came true all over the world. The various brands of chocolate often spoken about in India are Amul, Cadbury and CAMPCO. In olden days, the ancient human almost led a nomadic life wandering from place to place in search of food. Food is the basic source of energy for living organisms including human beings. Hence all living being need food. But in modern period, man had started discovering new methods of producing food through Agriculture. The various activities involved in getting food crops through agriculture are known as agricultural practices like management of soil, sowing, transplantation and application of manure and fertilizers irrigation, weedcontrol, crop improvement techniques, crop harvesting and protection. India is a land of villages. Nearly 65- 70% of our country is agriculturists. About 75% of the land used for agriculture is cultivated for basic food grain hence it has become a basic industry in our country. Agriculture is one of the oldest occupations of human beings. Agriculture means ploughing of the land, sowing seeds, protecting plants and obtaining crops for the use of people and domestic animals. Commercial crops not only help to earn foreign exchange but also provide raw materials for industries. Cocoa is also one of the important commercial crops in India. Cocoa is grown on the slopes of Niligiri Hills. The discovery of cocoa was only a first step in the direction of chocolate. The Mayas were the first to cultivate the cocoa bean for the fruits is yielded. They used the beans as an ingredient in their favorite chocolate drink xocoatl. The Mexican Indian world chocolate comes from a combination of the terms chocolate consumed in beverage force. Before the Spanish explorer discovered the chocolate and other ‘exotic’ foods were totally unknown in Europe. In the 1600 European began to open fashionable chocolate houses to serve xocoatl as Hot Chocolate scattered with sugar. In the 1700’s the English began with adding milk to improve the flavor.
Transcript
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INDUSTRY PROFILE
Chocolate was discovered in the 18th century and every child’s dream came true all over the
world. The various brands of chocolate often spoken about in India are Amul, Cadbury and
CAMPCO.
In olden days, the ancient human almost led a nomadic life wandering from place to place in
search of food. Food is the basic source of energy for living organisms including human beings.
Hence all living being need food. But in modern period, man had started discovering new
methods of producing food through Agriculture. The various activities involved in getting food
crops through agriculture are known as agricultural practices like management of soil, sowing,
transplantation and application of manure and fertilizers irrigation, weedcontrol, crop
improvement techniques, crop harvesting and protection. India is a land of villages. Nearly 65-
70% of our country is agriculturists. About 75% of the land used for agriculture is cultivated for
basic food grain hence it has become a basic industry in our country.
Agriculture is one of the oldest occupations of human beings. Agriculture means ploughing of
the land, sowing seeds, protecting plants and obtaining crops for the use of people and domestic
animals. Commercial crops not only help to earn foreign exchange but also provide raw
materials for industries. Cocoa is also one of the important commercial crops in India. Cocoa is
grown on the slopes of Niligiri Hills.
The discovery of cocoa was only a first step in the direction of chocolate. The Mayas were the
first to cultivate the cocoa bean for the fruits is yielded. They used the beans as an ingredient in
their favorite chocolate drink xocoatl. The Mexican Indian world chocolate comes from a
combination of the terms chocolate consumed in beverage force.
Before the Spanish explorer discovered the chocolate and other ‘exotic’ foods were totally
unknown in Europe. In the 1600 European began to open fashionable chocolate houses to serve
xocoatl as Hot Chocolate scattered with sugar. In the 1700’s the English began with adding milk
to improve the flavor.
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The first factory for processing and manufacturing chocolates in India was started during the
world war-II at Bilimoria but due to tough competition from foreign products the company is
ceased and stopped its process and it made second attempt in 1936. But it faced failure as the
size of operation was economical. Finally it made third attempt to find its success to restart its
production.
Messrs Sathe Biscuit and chocolate co.ltd., Poona commenced production of cocoa powder on a
small scale and chocolate manufacture was taken up in 1941. Then the production gradually
increased. Later, Madhu Canning Factory Agra, East India Distilleries and Sugar Factories
Limited Madras started the production of chocolates.
With the machineries manufactured by five major companies of the cocoa processing and
chocolate manufacturing namely-
1) M/S Carle and Montanari Spa, Italy.
2) M/S 1-Aasted International APS, Denmark.
3) M/S Otto Hansel Gmbh, West Germany.
4) M/S Sollich Gmbh and Co. kg, West Germany.
5) M/S Sig Swiss Industrial Co, Switzerland.
Cadbury Ltd., which was so far importing cocoa and chocolates into the country, established
plant in Bombay for processing and packing of cocoa imported in bulk during the initial stage.
The new firms that have engaged into this field in India are Amul, which has completed 50 years
of service and the CAMPCO, which came up during the 80’s. CAMPCO is one of the largest
factories in South Asia.
Cocoa is used as beverage and chocolate is mainly used as confectionary and to a small extent
also used as beverage. The market share of CAMPCO is 5-8%, the Cadbury’s market share is
70% and the Nestlé’s market share is 15-20%. The penetration of chocolate in the country was
estimated at 5.5% in 1998. The penetration in urban India stood at while that in ruralIndia as a
mere 2.3%. Thus the consumption of chocolate is largely restricted to urban areas where too, the
penetration is relatively low.
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During the last five years growth in chocolate in India has covered between 10% and 20%, with
average growth being at the range of 14-15%. Restricted to urban areas played in the segment
have attempted to accelerate growth by adding new consumers to the chocolate market. Although
the country with a culture of consuming and exchanging sweets, prepacked branded sweets are
yet not popular. The consumption pattern and purchase habits trend to favor local, freshly made
products. The ability of chocolate companies to enter this market could provide unprecedented
with may be tempering of income pyramid and introduction of low price packs.
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COMPANY PROFILE
BACKGROUND AND INCEPTION OF THE COMPANY
ARECANUT is an important commercial crop in India and finds a place in all religious, social
and cultural functions in India. Cultivation of Arecanut is mostly confined to States of
Karnataka, Kerala and Assam, but the consumption is spread all over the country. India is
considered as the largest Arecanut producing country in the world.
The total acreage under cultivation is 264000 hectares and the annual production estimated at
313000 metric tones, with Karnataka and Kerala accounting for nearly 72 percent of total
production. Over six million people are engaged in arecanut cultivation, processing and trade.
More than 85 percent of the area under cultivation is made up of small and marginal holdings.
A sudden marketing crisis in the year 1970-71, when prices registered a marked fall which
caused considerable concern to the growers, was the genesis for the setting up of this Co-
operative Venture (what popularly is called The CAMPCO). Growers had been thrown into
panic with the prices coming down by half of what was prevailing till 1970-71 season.
Various measures were thought of for organized marketing management and leaders among
growers sat together to find a way out. State Government of Karnataka, on the advice of an
Expert Committee, recommended organizing a Central Agency in the Public or Co-operative
sector. With the blessings and active support extended by the State Governments of Karnataka
and Kerala, the CAMPCO was registered on 11th July 1973 under sec.7 of the Karnataka Co-
operative Societies Act read with sec.4(2)of the Multi State Co-operative Societies Act 1984.
Through perseverant efforts of far sighted, dedicated and resourceful leaders, with the
cooperation and assistance of equally dedicated growers under the guidance of the State
Governments of Karnataka and Kerala, this institution took giant strides forward and has turned
into a tower of strength to the areca growing community in the country.
The area of operation of this cooperative for procurement and processing of Arecanut and Cocoa
extends to the States of Karnataka and Kerala,but for the marketing activity, the area has been
extended to the whole country. Arecanut purchase operations were extended to Assam, Andaman
and Goa but in recent years purchase operations in Assam had to be closed due to disturbances.
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Starting with its Head office at Mangalore in coastal Karnataka, the CAMPCO began with a
handful of procurement centers in Karnataka and Kerala. The Campco adopted a safe policy for
purchasing and marketing the commodity and maintaining standards in quality assiduously with
the dedicated cooperation of a network of diligent officers and workers. The society achieved
success by leaps and bounds,stood the brunt of changing trends,market recessions and
upheavals,glut in the market and even national calamities in the marketing field for more than
two and half decades. Confidence has gained among the growers for areca cultivation as an
economically viable and comfortable proposition.
The co-operative encouraged growers to take-up Cocoa cultivation as an inter crop in the latter
half of the 70's as a supplemental crop. This grew up to become a large scale operation with good
results. A sudden withdrawal by the buyers of Cocoa from the procurement operations due to
crash in the international market came as a shock to cultivators. Karnataka and Kerala
governments enthused at this stage the CAMPCO to enter on the scene to rescue the farmers
from distress.CAMPCO willingly took up the responsibility to enter the cocoa market and
performed a savior's role.As a strategy for survival in the International scene the CAMPCO
played a major role in establishing a name for Indian Cocoa, which hitherto had not been
achieved. It procured Cocoa Pods from growers and adopting scientific processing methods to
market standards,released dry cocoa beans matching in quality in the world market to that of
Ghana,Brazil and other leading Cocoa cultivating nations. With a view to creating a permanent
demand and a steady market for the beans,Campco established a Chocolate Manufacturing
factory at Kemminje village in Puttur Taluk in Dakshina Kannada District adopting foreign
technical collaboration in chocolate making.The factory was set up in 1986 at an initial
investment of RS.116.7million and a licensing capacity to produce 8800 metric tons
CAMPCO has signed agreement between companies. They are:
AGREEMENT WITH M/S NESTLE INDIA LIMITED.
CAMPCO chocolate factory entered into an agreement with M/S Food Specialties Ltd known as
M/S Nestle India Ltd, on 7th February 1990, for manufacture and supply of bulk quantity of
chocolates and cocoa products ranging from 2500MT to 3750MT p.a .At first Nestle didn’t have
any plant and because of experienced people availability of all type of chocolate production with
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sophisticated machineries nestle made an agreement with CAMPCO. This agreement is also
made good result on CAMPCO to gain demand in competitive market.
AGREEMENT WITH AMUL LIMITED
CAMPCO factory had entered into an agreement with Amul India Ltd, on January 2001 for the
manufacture and supply of bulk quality of chocolates. The agreement was made only for 5 years.
The Amul Ltd supplies the raw materials to the CAMPCO Ltd; the CAMPCO makes chocolate
and supply to Amul Ltd. The chocolate products, which were produced to the Amul Ltd, are as
follows:
Milkair – 5.5gm – white centre chocolates.
Chocolate – 5.5gm – brown centre chocolates.
At present CAMPCO is having its own marketing team and the present set up as follows:-
Chocolate manufacturing cooperatives. Today CAMPCO has diverseproducts. It is now
affording product quality with a variety to cater wider section of the market.
CAMPCO manufactures and markets a different range of products under its own brand name.
The production and demand for chocolate have been rapidly increasing in India at the rate of
20% during the last 5 years. The average growth is at 20% internal chocolate market, which is
now about 5500 tonnes. CAMPCO chocolate unit sales performance in terms of value is
increasing year by year. The sale includes sales of semi finished products also. The major
purchases of semi finished products within India are as follows-
Britannia
Smith Kline Beechem
Parley
Small Confectionery Manufactures
British Biological
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CAMPCO at Glance
Full Name of the organization
The Central Arecanut and cocoa Marketing
Processing Co-opeativelimited
Status
A Co-operative Society registered under the multi-
state co-operative societies act 1984.
Area of Operation
Karnataka and kerala state for membership. No limit
for marketing
Main objective
Procurement/Processing/Marketing of arecanut and
since 1980 cocoa/cocoa products
Date of Registration 11-07-1973
Date of commencement of business 12-11-1973
Registered office Varanasi towers at Mangalore
Brand name CAMPCO
Type of ownership Semi-Government
Date of entry into Chocolate March/April 1987
Authorized share capital Rs.50 cores.
Number of Branches and Depots 171 (all over India)
Number of staff 1100
Number of departments 7
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Industries owned
1. The CAMPCO Chocolate unit.Puttur
2. The copper sulphate manufacture unit at sagar
Location Kemminje, Puttur.
Number of Employees 237 + 130 workers appointed on contract.
Production Capacity 8800 MT.
Number of Shifts
6 am – 2 pm
2 pm – 10 pm.
10 pm – 6 pm
Type of Organization Co-operative Society.
NATURE OF THE BUSINESS CARRIED BY CAMPCO.
The Central Arecanut and Cocoa Marketing and Processing Co-operative Limited(CAMPCO)
was registered on 11th july 1973under section 7 of the Karnataka Cooperative Societies Act
1959 read with section 4(2) of the multi unit Co-operative Societies Act 1942 and subsequently it
has amended its byelaws and the same are
registered under the Multi state Co-operative Societies Act 1984. Under certificate
No.L/11016/42/87/L and is dated: 8-12- 1988. The main activity of CAMPCO is procuring and
marketing of Areca nut and also manufactures chocolates.
Features of the CAMPCO Chocolate Factory Following are some features of CAMPCO
Chocolate factory:
The Chocolate factory is a Co-operatively owned organization and maintained by CAMPCO.
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The factory is the largest in south-east Asia.
The factory is one of the most modern in the world.
The factory is equipped with the latest technology and machineries, imported
from five firms of 4 European countries.
The factory is equipped with service installed by the best firms in India.
The factory is designed by well experienced and expert architects and
Consultants.
The factory is situated in an industrially backward rural area in the midst of Cocoa
Growers.
It generated employment for more than 200 personnel’s.
VISION, MISSION AND QUALITY POLICY
Vision of the Company
“CAMPCO is formed to help the farmers, procuring more and more areca nut and cocoa then
utilizing these materials in a better way which will help the farmers to get market for their
products.”
Mission of the Company CAMPCO’s mission statement is:
“Co-operation between people Harmony between faiths…May the fragrance of peace prevail
forever ”“From areca to chocolates, this policy has taken us a long way. And we are happy to
share this secret with you. At CAMPCO we, symbolize the triumph of th co-operative spirit. And
how co-operative can be a source of prosperity.” This mission statement maintains that the
company has a good relation between people and harmony between faiths and high set of values
and purposes behind its existence.
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PRODUCT PROFILE
The product of CAMPCO is chocolate. A product is anything that can be offered to a market for
attention, acquisition, use or consumption that might satisfy a need or want. The chocolate
products are classified into Moulded, Enrobed, Éclairs and Drinking Chocolate.
MOULDED CHOCOLATE
Moulding is the casting of liquid chocolate into moulds (metal or plastic) followed by cooling
and demoulding. It includes products such as CAMPCO Melto 37gms and 10gms, CAMPCO
Cream 37gms and 10gms.
ENROBED CHOCOLATE
It is a process of coating a center with chocolate is other confectionery based material so as allow
the coating to flow over the shape in a controlled manner. It includes products such as CAMPCO
Turbo, CAMPCO Treat, CAMPCO Megabite, CAMPCO Bar, 4ever(32gm), krust 20gm and 12
gm.
ECLAIRS
Éclair is a modified toffee containing an outer shell of caramel with a centre filling usually
chocolate, chocolate creams etc. it consists of products such as CAMPCO Eclairs, Melto Eclairs,
Brown Center Eclairs and Playtime.
DRINKING CHOCOLATE
Drinking chocolate can be prepared by following ingredients sugar, cocoa powder, glucose,
vitamin C, lecithin, salt. It includes product such as CAMPCO Winner (500gms and 100gms).
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THE VARIOUS CHOCOLATES FROM CAMPCO CHOCOLATE FACTORY
Types Net wt/unit(in gms) M.R.P (in Rupees)
Moulded Chocolate
Melto 37 10
Melto Cream 37 10
Campco Bar 45 10
Enrobed
Chocolates
Krust/Kraze 15 5
Megabite 17 5
Turbo 25 5
Treat 25 5
Drinking Chocolate
Winner 500 And 100 65 and 18
Eclairs
Playtime(small) 4.5 3
Campco Eclairs 4.5 0.50
Campco Toffee 4.5 0.50
Eclairs 2000 5.5 1
Supply to Nestle ltd
Milkybar Eclairs 5.5 1
Classic 37 10
Milkybar (White) 40 14
Supply to Amul Ltd
Milklair 5.5 1
Choclair 5.5 1
Semi-finished goods
Cocoa Mars 25
Cocoa Butter 25
Cocoa Powder 25
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Chocolate Mars 500gms*20=10kgs
Choco Paste 20kgs
AREAS OF OPERATION GLOBAL/ NATIONAL/REGIONAL
The area of operation of this cooperative for procurement and processing of areca nut and cocoa
extends to the states of Karnataka and Kerala, but for the marketing activities the area has been
extended to the whole country. Areca nut purchase operations were extended to Assam,
Andaman and Goa but in recent year’s purchase operations in Assam had to be closed due to
disturbances.
GLOBAL
CAMPCO produces wide range of cocoa based products of consistent quality, colour and flavor
to satisfy the wide spectrum of customers all around the globe. The company has built a strong
system base for the confectionery of chocolate industries in U.S, Australia and Malaysia. Export
on the other hand generated a total of about U.S $14 million over a 5 year period. Among the
leading buyers were Malaysia, Korea and USA.
NATIONAL
The company has various nationalized branch offices throughout India under them are the
distributors followed b the dealers who sell the goods to the ultimate consumers.
National Office throughout India are:
North: New Delhi
East: Kolkata
West: Navy Mumbai
South: Bangalore
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REGIONAL
The company has regional offices through out Karnataka. It has both dealers and distributors and
the distributors are followed by dealers and ultimately to the customers. Regional offices are as
follows –
Mangalore, Hyderabad and Delhi.
OWNERSHIP PATTERN
The type of ownership of CAMPCO is semi Government. So the workers get retired at the age of
58years. After the retirement the CAMPCO gives gratuity to their employees but no pension.
COMPETITORS INFORMATION
CAMPCO has competitors such as Cadbury, Nestle, Parrys, Nutrine and Amul. The CAMPCO
has been unable to achieve the volume growth targets because it haslosing market share.
Cadbury continues to dominate the chocolate market with about 70% market share and Nestle
has emerged as a significant competitor with about 24% share.
INFRASCTUCTURAL FACILITIES
The CAMPCO chocolate factory is located at Kemminje village of Puttur Taluk. And it was
inaugurated on 1st September 1986. There are 247 numbers of employees working in the factory.
CAMPCO is a two storied building. The first floor includes the office of the CAMPCO and
chocolate packing division. The second floor includes the deputy general manager chambers,
quality control department, personal department and different employee cabins. The company
also includes security office at the entrance, separate A/C units, and separate vehicle parking
place and quarters for employees including sitting facility, washing facility, toilet facility,
dressing rooms, medical benefits etc. CAMPCO has two wheelers, four wheelers and lorry as
transportation facilities. The surroundings of chocolate factory is filled with gardens and planted
trees like areca nut, coconut, cocoa, cashew etc.
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ACHIEVEMENTS/AWARDS
Best Export Award 2004-05 for processing of CAMPCO Chocolate and for processing Arecanut.
And it has also achieved success towards adopting fully automated machines for the production
process.
FUTURE GROWTH AND PROSPECTS
CAMPCO has a better scope for expansion of its activities in relation to different units like
arecanut, cocoa in order to safeguard and strengthening of CAMPCO function more effectively.
It has a target open at least one sales depot in each state.
It proposes to enter the retail market for areca nut and products like “supari”, “pan
masala” etc by established units.
CAMPCO is thinking of starting its own bank called CAMPCO bank, to provide banking
services to the company.
The future plan about production is to maximize output without sacrificing quality,
maximum quantity control, reducing the cost, improving the efficiency etc.
They also now introduced a new product like a small products to Amul Ltd, winner, bar,
coated bars with different flavors, chocolates.
CAMPCO also planned to increase its sales by advertisements.
Capture international market by latest technologies.
Conducting marketing research for knowing consumer tastes.
Enlargement of transportation and ware housing facilities with safety precautions.
Improved qualify of wrappers of CAMPCO chocolate which are not up to the mark.
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WORK FLOW MODEL (END TO END)
The production process of CAMPCO Chocolate factory is a continuous process which is divided
into
1. Cocoa Processing
2. Chocolate Processing
COCOA PROCESSING
The CAMPCO chocolate factory collects only the dry cocoa beans. The wet beans are fermented
and dried in the sales depots. There after processing begins:
1. Cleaning
2. Roasting
3. Winnowing
4. Alkalization
5. Nib ginning (milling)
6. Liquor Processing/Hydraulic Processing
CHOCOLATE PRODUCTION PROCESSING
1. Preparation of ingredients
2. Mixing
3. Refining the mixture
4. Conching
5. Tempering
6. Molding
7. CoolingCLASSIFICATION OF CAMPCO CHOCOLATES
CAMPCO produces larger amount of chocolate based on 3 classifications:
1. Molded Chocolate
2. Enrobed Chocolate
3.Éclair
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COMPANY PROFILE WITH REFERENCE TO THE 7-S McKINSEY’S
MODEL:
According to Tom Peter and Robert Waterman, organization change is not simply a matter of
structure, although structure is a significant variable in the management of change. The
successful execution of a strategy required the right alignment of seven vital inter-connected
activities and processes within an organization, namely-
1. Structure
2. Strategy
3. System
4. Style
5. Staff
6. Skills
7. Shared Values
1) STRUCTURE
The structure is the skeleton of the whole organization. It describes the formal relationship
among various positions and activities. It provides information about who reports to whom and
how tasks are both divided and integrated. And also CAMPCO follows functional organizational
structure.
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ORGANIZATION AND MANAGEMENT
The management of CAMPCO vests in the boards of directors consisting of 17 directors. These
directors are elected or nominated as per the provisions of Bye laws. The managing director is
appointed by the Government of Kerala. The day today activities are conducted by the managing
directors. The Executive committee and Business committee will devote more time to scrutinize
and decide about the financial and business transaction of the factory. There is one or two legal
advisors as well as one of the directors is the nominee of IDBI to facilitate and make the
management more effective. Two committees have been constituted. They are as follows;
The Executive Committee
a)President.
b)Vice President
c)Managing directors
d)Two directors from each state.
Business Committee
A) President
B) Vice President
C) Managing directors
D) Two directors from each state (Karnataka and Kerala)
E) Two senior most officer for ARECA marketing.
F) The Head of CAMPCO Chocolate factory, Puttur.
Membership of CAMPCO
There are five different types of shares; class A, B, C, D and E issued to different class of people.
‘A’ class is open to agricultural produce market. ‘B’ class is open to agriculture produce market
committee of Areca and Cocoa growing areas, co-operative marketing and consumer federation,
any other multi-state co-operative society or any corporation owned or controlled by the
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Government. ‘C’ class is open for individual growers of Areca nut and Cocoa in both the states.
‘D’ class is open for state Government and Central government and NDC. ‘E’ class is merchants
and agents who have business in connection with CAMPCO.
Functional Departments
There are several functional departments in CAMPCO chocolate factory, which are handling
various operations. They are
A) Production Department
B) Administrative Department
C) Quality control Department
D) Stores Department
E) Marketing Department
F) Maintenance Department
G) Accounts Department
H) Security Department
2) SKILLS
The Mckinsey’s 7-S framework considers skill as one of the important attributes or capabilities
of an organization. The term skill includes those characteristics which most people use to
describe a company CAMPCO chocolate factory includes skilled staff and workers in its
operations and productions who are expert in their own field. Administrative officer have code
knowledge and skill in their particular field, it is preferable to have master degree in their work.
Machine operators of different department have wide knowledge and skill about operations and
handling of machines, chocolate manufacturing process etc. if the selection of skilled worker is
done properly then it will result on effective operation of the manufacturing process,
administration etc. CAMPCO also follows technical skills, innovative skills, communication
skills. In CAMPCO all new recruits (both technical and managerial) are provided “on the job
training method”. Under this training method, the individual is placed on a regular job. It has the
advantage of giving first-hand knowledge and experience under the working condition.
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3) STYLE
Organizations differ from each other in their styles of working. The styles of an organization are
evident through the pattern of action taken by the top management over a period of time. But, the
Mckinsey’s framework considers styles as something more than the style of top management.
CAMPCO follows participative style of management. Participative style of CAMPCO helps in
the processing and marketing of chocolates also. Each and every departments take decisions
together which help the company to take the steps in their daily transaction or operations.
4) STRATEGY
Strategy is the set of decision and action plans aimed at gaining a sustainable competitive
advantage. Today most of the enterprises are engaged in strategic planning. The degree of the
sophistication and the formative vary considerably from organization to organization. In the case
of CAMPCO chocolate factory, the strategy is to produce and sell standard and good quality
chocolates with well guided procedure and good quality of raw materials from different
supplying company with a quality check to delivery the products to the customer. Strategy
includes objectives, goals, purpose and policies, action plans and tactics. The objectives are:
To procure areca nut and cocoa of the members and if necessary from other growers.
To undertake processing of areca nut and cocoa and to establish industries for the
manufacturing of finished and semi finished products from areca nut and cocoa.
To open branches and depots, godowns and factories.
To arrange for procurement, manufacture and distribution of pesticides, fertilizers etc.
To undertake pooling, packing and standardization of Areca nut and cocoa.
Pricing Policy
CAMPCO adopted the policy of full cost pricing. But sometimes they marketed the products at
price lower than that of cost price and its prices are normally lower than competitors. CAMPCO
has adopted on pricing policy where by the company specifies the prices to be charged to each
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dealer in the price list published by the company. There is no geographical change in prices.
Discount Policy
It has varying discount share, which includes trade discounts, cash discounts, special discounts
etc. In some cases discount rate varies from dealer to dealer depending on sales turnover and in
some cases the discount varies depending upon size of purchase.
Collection Procedure
The dealer provides security such as bank guarantee. The payment must be made within 15-40
days depending upon sales turnovers.
5) Systems
Systems in the 7-s framework refer to all the rules, regulations, methods and procedures (both
formal and informal) that complement the organizational structure. CAMPCO is fully
mechanized plant. The function of production control in products of the productions parts,
products of required quality and quantity at the required time and also provides feedback to the
production department and allocates or uses the resources available to achieve the objectives.
The production planning is valued on the factors of designing of products that determines the
equipment, capacity etc. In Campco chocolate factory various systems have been installed in
each functional areas so as to enhance the level of interaction and coordination thereby, in order
to improve the overall organizational effectiveness. Some of these systems include:-
Computer System
In Campco, each and every department is linked with intercom facility, which helps to share
each other opinion about company’s daily transactions. Office and each department is equipped
with computer system.
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Quality Control System
In Campco, production is carried quickly according to quality standards. The quality of product
manufactured is of international standards. The function is to check the quality of raw materials
and also the quality of products after production. Performance Appraisal System In Campco the
performance appraisal work is done in a special way. At the end of the year a report known as
‘Confidential report’ is prepared by each and every departmental head. This report contains each
And every information relating to a particular worker working in a particular department. This
report is then submitted to the higher authority for evaluation.
6) STAFF
Staffing is referred as human resource of an organization where they contribute to the fullest
extent to achieve the organizational goal within a stipulated period. Staffing represents the
development of employees in terms of selections, placement, training, promotion and
performance etc. it include processes to develop in them the abilities and skills that they need to
be effective and efficient.
In CAMPCO strength of the staff is 1100 permanent employees who are headed by Deputy
General Manager and under him there are 6 assistant managers for each department. Each and
every staff is well educated and trained in their particular area of work assigned to them. Staff is
classified in to 4 levels. they are strategic level, Management level, Operating level and
Technical level.
Welfare Measures in CAMPCO
The following are some of the welfare measures providing to the workers of CAMPCO. These
measures are classified as statutory measures and non-statutory measures.
Statutory Measures
Canteen facilities.
Cold water facilities.
Rent free accommodations.
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Medical benefits.
Non-Statutory Measures
Uniforms.
Safety shoes, rain coats are provided.
The employees state insurance facilities.
Duration of Work
In the CAMPCO chocolate factory, there are four shifts including the general shifts. The normal
hours of work are 8 hours. The timings of 4 shifts are as follows. Shift Timings
1. Shift - 6 am to 2 pm.
2. Shift - 2 pm to 10 pm
3. Shift - 10 pm to 6 am
General shift – 9 am to 5.30 pm
7) Shared Values
Shared values refer to set of beliefs, views, opinions value and aspiration of the employees that
goes beyond the formal statement of corporate objectives In CAMPCO all employees share the
same guiding values and responsibilities for particular task, provided to them. Chief Executive
gives responsibility for each department about the task. It also maintains quality consciousness.
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SWOT ANALYSIS
The diagnosis of the firm’s strength and weakness can be fruitful only if the environmental
factors and market conditions are considered keeping in mind the internal capabilities of the
company. This approach essentially involves matching the internal capabilities with the
environmental opportunities and threats.
1) STRENGTH
1. Large Product Mix
One of the strength of the CAMPCO limited is large product mix. The CAMPCO produces the
different type of chocolates that is Melto, Cream, Turbo, Treat, Megabite, Campco bar, 4 ever,
Krust, Éclair 2000 etc.
2. Largest chocolate Factory in South East Asia.
CAMPCO is the largest factory in south Asia. This statement can be used to attract more clients.
3. Highly Committed Employees
4. Better labor-superior relationship
5. Efficient and experienced management
2) WEAKNESS
1. Lack of Promotional Activities.
The CAMPCO chocolate factory is not promoting its products in an effective way through
media advertising. Poor marketing effort to push the product in the market.
2. Suffering from huge loss.
The CAMPCO chocolate factory has made huge loss for the past several years.
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3. Inefficient Utilization of the Capacity.
The actual capacity of the CAMPCO chocolate factory is 8800 metric tonnes. But the factory has
not been able to make use of the full capacity.
4. Inefficient Product Quality.
The chocolate products are to be placed in a required minimum temperature. If it is not preserved
in a required temperature the quality of the product will be effected.
3) OPPORTUNITIES
1. There is a large market for chocolate which is untapped in India.
2. Expanding the existing product mix can lead to increase in market share
3. Greater product awareness can be brought about within all age group showing chocolates as
the best gift to friends and relatives.
4. Popularity can be gained through the social service in the backward areas of south India.
4) THREATS
1. There is a severe competition from multinational companies such as Cadbury and Nestle.
2. Frequent changes in Government rules and regulations and tax policies.
