Marketing Procurement Processing Tie-Ups

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  • Topic: Marketing, Beekeeping, Honey
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  • Published : December 24, 2012
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MANAGEMENT CASE
describes a real-life situation faced, a decision or action taken by an individual manager or by an organization at the strategic, functional or operational levels

Sarvodaya Samiti
Debasis Pradhan

KEY WORDS

Marketing Procurement Processing Tie-ups

Prior to an important meeting of the partner organizations of Khadi and Village Industries Commission (KVIC) scheduled the next morning, Pradip Mohanty, Coordinator of Sarvodaya Samiti, wondered what would be the best course of action for his organization as he was concerned about the large number of honey bee-keepers associated with the Samiti. He knew that his action will have implications for the local honey industry in general and the beekeepers in specific. He had to decide on the linkages of his organization with KVIC and its presence in different core activities like production, processing, and marketing and therefore suggest suitable ways to allocate the efforts and resources of the organization among these activities depending on the varied strengths of his organization. He was in a dilemma whether the Samiti should be a part of the proposed consortium. According to him, “Though, at present, we are in a comfortable situation, we are looking at various options which can make the future more attractive.”

BACKGROUND
Sarvodaya Samiti, Koraput, is a state-level, non-governmental, non-political organization. Registered in 1970-71 under the Societies Registration Act XXI of 1860, it is committed to the all-round and sustainable development of tribal and other under-privileged communities of the society. Started in 1959 as Narayanapatna Kshetra Samiti, it was renamed as Sarvodaya Samiti after its area of operation got extended to the other parts of the state. Its present activities are sustainable agriculture, development of khadi and village industries, child and women welfare, building of an educational complex for scheduled tribe girls, consumer welfare, watershed programmes, and rural marketing. As a founder member, Akshaya Mohanty said, “We are one of the few organizations trying to promote rural marketing as one of the viable activities and bring in a change in the living standards of the poor.” According to him, “Though Sarvodaya Samiti is a not-for-profit organization, it has started realizing the greater interest and benefits in keeping the enterprise alive by making it a profitable entity.” The Samiti had some good marketing experience which encouraged the organization to do marketing of the rural produce. It was one of the few institutions that had been certified by KVIC, Mumbai and the Government of India under the broad category, ‘Development of Khadi and Village Industries.’ It encompassed a range of activities like production of khadi, promotion of bee-keeping, and marketing of honey, turmeric powder, and arrowroot.

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Staffing Pattern of the Organization Akshaya Mohanty, one of the founding members of the Samiti, was leading the organization in the capacity of its Secretary. Under him, Pradip Mohanty functioned as the sole organization Coordinator. He looked after all the programmes of the Samiti in general and marketing activities in specific. Out of a total of 22 employees, six were in charge of the central office and eight were in marketing operations. Three out of these eight members were engaged in the honey processing plant at Bhubaneswar. A technician, whose primary job was to take care of the processing of honey, was heading the processing centre. In addition, he also did the marketing in bulk by negotiating and collecting money from the buyers in time. Honey Production in Local Economy The role of honey production in the local economy is negligible with just around 5 per cent of the farmers of the district being engaged in bee-keeping. Pradip Mohanty estimated the income out of honey production and marketing to be approximately 2 per cent of the total income of the district though there was no official estimate. He...
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