A study on situation of Rapti Auto Engineering in Ghorahi

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Executive Summary 
This summer project is done on the topic of "A study on Situation of Rapti Auto Engineering (Bajaj Showroom) in Ghorahi ". The data collected for this project are primary as well as secondary. In this project, I have introduced the business named Rapti Auto Engineering and have divided this study into three chapters. The first phase is about the general background of study, objectives of the study, problem statement, hypothesis, importance, limitation, and research methodology.  In second phase, I have described about the Data Presentation and Analysis which includes the relevant qualitative and quantitative data and analysis is presented there. In third phase, I have presented the summary and conclusion. I have even attempted to drive meaningful findings and deliver useful suggestions and recommendations. 
I found some business is successful due to effective management and technology but some are failure because of ineffective management and technology. So, to run business smoothly the effective management and technology is required. I can see the competition among various businesses in the market. So, to analyze the situation of RAE the research has been conducted. 
Before there was monopoly market but now due to the establishment of Laissez faire economy there is perfect competition market. And the business person should give priority in service and quality rather than quantity. Among the various business of Dang Valley RAE is also one of the successful businesses in dang. After the establishment of this business there are many opportunities and challenges faced by the RAE. Though the RAE is single proprietorship, business but we can find the better relationship among the owner of the RAE. 
During the project of this business, I have found that the business has strong name in the market as it is providing services to people through its 4 branches. It provides different types of schemes, discount and special offer for their customer. There is increment in purchasing of bikes yearly which represent that the RAE is performing well. It is able to cope with the latest technology.  
Hence, in overall the RAEs performance is better in servicing. RAE should try to motivate to customer for purchasing the motorbikes. And lastly the RAE has to open the branches in remote and rural areas as well to provide their better services.
                                                     Chapter I   
 Introduction 
  1. Background Information 
  1. About Dang Valley 
Among the various valley of Nepal, Dang is one of the largest valley of Asia. It is located in Mid-Western development region & situated in the height of 215m to 2058m from the sea level. The total area of this valley is 2955sq km. 
Salyan and Rolpa districts are located in the northern side, India in the south, Kapilvastu, Pyuthan, Arghakhanchi in the east and Surkhet and Banke in the west. The main rivers of this valley are Rapti and Babai. This valley has the temperate climate. The length (east-west) of this valley is 90km and breadth (north-south) is 72km. There are 2 Municipalities (Ghorahi and Tulsipur), 39 VDCs and 5 election centers. 
The headquarter of this valley is Ghorahi. Most of the people of this city(Ghorahi) are engaged in Business. Among the different business Rapti Auto Engineering (Bajaj Showroom) is one of the successful business in Dang valley. 

  1. Motorcycles  
Motorcycles are the most common and popular mode of transportation in most Asian countries. For instance Malaysia has almost half of road users registered by motorcycles. Due to motorcyclists as vulnerable road users many road accidents are involved them. Motorcycle riding is much more likely to result in injury than car travel, and the resulting injuries are likely to be more severe for motorcyclists than for vehicle occupants. Fatality and serious injury rates have been found to be more than 20 times greater for motorcyclists than car drivers, with brain and orthopedic injuries prevalent. 
Because of science and technology the different branded of bike are invented day by day. Among the different brand Bajaj is one. Bajaj is an Indian bike. Bajaj has also different branded of bike like Bajaj Pulsar, Discover, Platina, Avenger etc. Among these Pulsar is most famous and popular bike. 
Bajaj Pulsar has achieved the status of a cult bike in India. The powerful and macho looking bike has been hugely popular in the Indian motorcycle market and is largely responsible for changing the 'scooter manufacturer' image of Bajaj Auto. Bajaj DTSi is available in four variants viz Pulsar 150 DTSi, Pulsar 180 DTSi, 200 DTSi and 220 DTSi. 

1.1.3 Rapti Auto Engineering 
Rapti Auto Engineering (Bajaj Showroom) was established in 2054 Jestha 22, and was registered under the registration act 2052 in Cottage and Small Scale Industry and Chamber of Commerce. It is the Single proprietorship of Business and the owners of this Showroom is Mr. Baldev Yogi. The starting capital of this Showroom was Rs 20,00,000 and now it is running with the capital of Rs 3,00,00,000. 
At the time of establishment 5 employees were able to get the job opportunities in this industry but in the current situation more than 12 people are employed. The main purpose of this Showroom is to accomplish the demand of customers. This Bajaj Showroom gives priority to the brand and service. The brands of this Bajaj Showroom are Pulsar, Discover, Platina, Kawasaki and Avenger. 
At the time of establishment this Bajaj Showroom was providing its service in the Dang district only but in the current situation due to the spontaneous growth of business it is providing its service in all the districts of Rapti Zone. The competitors of this Showroom are TVS, Honda, Yamaha, Suzuki, Hero Honda, and Annalifan. Rapti Auto Engineering is the main dealer of Bajaj bike in Rapti Zone and there are 4 branches of this Showroom in Rapti Zone. This Showroom provides different types of discount or special offer to its customer. The price rate of this Showroom is quite similar to the Showroom of Nepalgunj and Butwal. This Showroom pays 13% tax to the government annually. It has its own building so it does not pay any rent. This Showroom provides the bonus to its staffs according to the performance of staffs. 



1.2 Objective of the study 
The main objectives of this research are as fallows 
  1. To know the business opportunities of Bajaj Showroom. 
  1. To know the business challenges of Bajaj Showroom. 
  1. To know the service provided by Bajaj Showroom. 

1.3 Problem of Statement 
The Rapti Auto Engineerimg is one of the leading Bajaj two wheel outlet in Dang district. It was established in the year 2054, and its delivering to the customers in all over the Rapti Zone. For the past 14 years it’s been into the active in promoting two wheeler products but in the recent the sales is not so good only satisfactory because of the competition of market and dissatisfaction among large group of customers due to deteriorating in the quality of after sales service. Hence the management has felt the need to conduct through analysis about the existing effectiveness of after sales service and its impact on the organization overall sales performance.  Hence, the management had realized the need to conduct the result oriented analysis through the management trainees.  Therefore, this study is mainly focused to find out about the service given after the sales by RAE and the customer’s analysis towards the RAE.  The knowledge derive from this study will be privileged and useful to public as well as others showroom.  

1.4 Importance of study 
Due to the globalization process people are starting their business in different countries so that, the interaction happens among the people of world. Nowadays some business person is successful in business but some are failure due to lack of effective management, skilled manpower and technology. Among the various businesses Rapti Auto Engineering(Bajaj showroom) is also one successful business in Rapti zone. The main importance to conduct this research is to know the situation of this showroom. Today, we can see the competition in the market among various businesses. So to analyze the situation of this showroom this research is conducted. 
As a student of management, the main importance of conducting research is to develop the internal ability. Similarly the research helps to compare the business before 21st century and after 21st century. Today’s business is customer oriented not the market oriented. Before there was monopoly market but now there is perfect competition in the market and the business person should give first priority in brand and service. So to know the behavior of the business person this research is conducted. The great importance of conducting this research is to know the relationship between customer and producer. 
Finally, to fulfill the demand of management required by different organization and to be more practical in life this research is conducted. 

1.5 Limitation of the study 
  1. Primary and Secondary data used for information may have flaws. 
  1. The in - depth analysis was not feasible due to lack of availability of data. 
  1. The data available on the questionnaire are quite limited to this report because of which the report cannot be designed in desired form. 
  1. The study has been completed within shorter time frame so many variables related to the interest of study have been left out. 
  1. This study does not cover the comparative analysis of performance of Bajaj showroom. 

1.6 Hypothesis: 
The hypotheses on this research are as follows. 
  1. Present situation of Rapti Auto Engineering is quite good. 
  1. There will be spontaneous growth of Rapti Auto Engineering in future. 
  1. Customer satisfaction in current situation is good. 
  1. The service provided by this showroom is in Rapti Zone. 
  1. The sales of the RAE is increasing day by day. 
  1. The profit of this showroom is increasing day by day. 


1.7 Organization of the Study: 
The study has been organized into three chapters, which are as follows 
Chapter 1: Introduction 
      Background of the Study 
      Statement of the Problems. 
      Objectives of the Study. 
       Limitation of the Study. 
       Organization of the Study. 
       Research Methodology. 
       Research Design 
       Sources of Data 
       Review of Literature. 
Chapter 2: Data Analysis and Major Findings 
      Data Presentation and Analysis 
      Major Findings and Discussion 
Chapter 3: Summary, and Conclusions 
      Summary 
      Conclusions 
      Recommendation  










1.8 Review of Related studies 
Motorcycles are the most common and popular mode of transportation in the world. Due to motorcyclists as vulnerable road users many road accidents are involved them. Although the risk of being involved in a traffic accident is the same for motorcyclists as compared to other road users, the risk of a motorcyclist being injured in an accident is much higher. On basis of the high injury risk for motorcyclists, is seems most relevant to focus on countermeasures to prevent crashes. It is, however, unrealistic to assume that all motorcycle accidents can be avoided.  
As a consequence, countermeasures aimed at reducing injury severity are also needed. There is no evidence showing that voluntary training programs reduces the accident risk, but compulsory licensing programs seems to give a small reduction in accident risk. There is clear evidence for a reduction in injury severity when using protective clothing and a helmet. There is reason to believe that ABS-brakes on motorcycles both will prevent accidents and reduce injury severity. There is no evidence for a relationship between accident risk and motorcycle engine size/effect. However, being unfamiliar or inexperienced with the motorcycle in question seems to increase the risk of being involved in an accident. Studies demonstrate that increased motorcycle/motorcyclist conspicuity (e.g. daytime running lights) reduces the risk of collision with another vehicle. Impact with crash barriers can result in severe injuries for motorcyclists, and there are today several means for improving such barriers/fences. Although the risk of being involved in a traffic accident is the same for motorcyclists as compared to other road users, the risk of a motorcyclist being injured in an accident is much higher. On basis of the high injury risk for motorcyclists, is seems most relevant to focus on countermeasures to prevent crashes. It is, however, unrealistic to assume that all motorcycle accidents can be avoided. As a consequence, countermeasures aimed at reducing injury severity are also needed. Different countermeasures of these types are reviewed in the report. There is no evidence showing that voluntary training programs reduces the accident risk, but compulsory licensing programs seems to give a small reduction in accident risk. There is clear evidence for a reduction in injury severity when using protective clothing and a helmet. There is reason to belive that ABS-brakes on motorcycles both will prevent accidents and reduce injury severity. There is no evidence for a relationship between accident risk and motorcycle engine size/effect. However, being unfamiliar or inexperienced with the motorcycle in question seems to increase the risk of being involved in an accident.Studies demonstrate that increased motorcycle/motorcyclist conspicuity (e.g. daytime running lights) reduces the risk of collision with another vehicle. Impact with crash barriers can result in severe injuries for motorcyclists, and there are today several means for improving such barriers/fences.  


The motorbikes are made to fulfill the demand of customer so there is the satisfaction of customer. Customer satisfaction is the determination of the degree to which a company’s products or services meet the requirements of the end user. “Customer satisfaction is the customer’s evaluation of a product or a service in terms of whether that product or service has met their needs and expectations.” Customer’s expectations are continuously increasing. Brand loyalty is a thing of past.  Customers seek out products and producers that are best able to satisfy their requirement. It is not enough if the product meet customer expectations like the behavior or attitude of the person. Customer satisfaction is the combination both technical features and human behavioral aspects (H.R. Institute of Higher Education, Hassan 42). 
The ultimate measure of the effectiveness of any motorcycle training program is its impact on accident rates. In the last ten years, several states and provinces have attempted to assess the impact of motorcycle training using a matched sample approach. These includes Illinios (Satten, 1980, and Mortimer, 1984), Ontario (Jonah, et.al, 1982); Wisconsin (Leung and Rading, 1987), Pennsylvania (Mc Knight, 1987) and British Columbia (Rothe and Cooper, 1987 and Mc David, et.al 1989). 
Mc David (Mc David, et.al, 1989) found that “Trained riders tend to have fewer accidents of all kinds (all motor vehicle accident combined), fewer motorcycle accidents and less severe motorcycle accidents. Although these differences are not large in a statistical sense, they suggest that when case is taken to carefully match trained and untrained riders, training is associated with a reduction in accidents. 
A few of the earliest studies (Satten, 1980, Jonah, 1982 and Mortimer, 1984) found that a straight comparison of trained and untrained riding populations showed that the untrained riders had lower overall accidents rates. However, these differences vanished when results were adjusted to reflect differences in age, sex, riding history, exposure and education between the trained and untrained populations. 
Rothe and Cooper (1987) found some evidence to suggest that trained riders had fewer accidents during their first year of riding, but their sample sizes were so small for the period that the finding was not statistically significant. 
Past studies also give different results regarding the impact of training or recorded motorcycle violations. Although Mortimer (1984) found no differences in the violation rates experienced by trained and untrained riders, both Satten (1980) and Jonah (1982) found significantly fewer violations among course takers. 
Satten (1980), Mortimers (1984), and Rothe and Cooper (1987) all found that riders who had taken a motorcycle training course were more likely to use safety gear such as helmets and heavily reflective jackets. 
Although only one of the studies to date has concluded that motorcycle training reduces accidents, most have suffered from methodological difficulties which make it impossible to reach any firm conclusions regarding training effectiveness. 
Motorcycles play vital role in human life, while travelling from one place to another place we use motorcycles. Likewise, among the various motorcycles showroom Rapti Auto Engineering is also a successful business in Dang Valley. This RAE was established in 2054 and was registered in small scale and cottage industry and chamber of commerce. This is the first bike showroom to provide motorcycles related to Bajaj products and provide services to the people in Dang valley. 
Due to the lack of skilled manpower and technology this showroom is unable to produce its own bike and have to purchase bike from out which is the great challenge of this showroom but due to the increased population this showroom is expanding its business day by day which is the great opportunity of the showroom. 
Hence, RAE is one of the major bike showrooms in Dang. It has played vital role in the developing of Nepalese economy through its facilities as well as its intermediary role among public, business, and government. 

1.9 Research Methods 
A systematic methodology is required to pick out an actual result for any special study. Research means the search for knowledge and methodology refers to various sequential steps that are adopted in the study. A true research design is basically concerted with various steps to collect the data for analysis and draw a concrete conclusion. This fieldwork is undertaken to have a clear picture of situation of Bajaj bike in Dang through questionnaires and interviews. In the process of data collection one has to choose the method for procurement of data and information. 
For this purpose, different kinds of research methods have been used. 
1.9.1 Research Design 
A Research Design is purely and simply of the framework or plan of study that guides the collection and analysis of data. Research design is the plan structure and strategy of investigation conceived as to obtain answer to research question and to control variances. A true research design is basically concerted with various steps to collect the data for analysis and draw a concrete conclusion. The main objective of this study is to examine the situation of Bajaj bike in Ghorahi. To achieve this objective, both the descriptive research design and case study research design have been adopted. 

Descriptive research design includes simple description of Rapti Auto Engineering based on establishment, staffs, building, financial obligation, shareholders etc. 
Similarly case study research design includes total study of situation of Bajaj bike in Ghorahi. The depth study has been conducted. Each and every aspect has been studied. Variety of methods has been applied to collect datas.ie. participative method, observation method, interview method, questionnaire  method etc. This research design have been concentrated in qualitative study (which cannot be measured in statistical value) i.e. perception, feelings, attitude, image, economic status of the respondent. Although quantitative data’s have been also used but main focus have been given to quality. 

1.9.2 Sources of Data 
Mainly two sources of data’s have been used in this research: 
Primary Source 
In primary source of data collection method, researcher collects data by visiting the concerned sector or the person. Data’s are collected from the researcher himself through written questionnaire. Most of the primary data’s are based on the annual report of Rapti Auto Enginering. 
Secondary Sources 
In the secondary sources of data collection method, researcher collects data by the help of published and unpublished sources of different organization

Chapter II Data Analysis and Major Findings 
2.1 Data Presentation and Analysis 
2.1.1  Capital structure of Rapti Auto Enginering 
Year 
Capital (Rs) 
2054-2056 
5000000 
2057-2059 
11500000 
2060-2062 
19000000 
2063-2065 
26000000 
2066-2068 
30000000 

                    
(Source: RAE) 
Fig:- Diagram of capital structure 
In the given table X-axis measures the fiscal year where Y-axis measures capital structure of Rapti Auto Engineering. From the above data, we can conclude that capital structure of RAE is increasing in every fiscal year. In fiscal Year 2054-2056 the capital was 50 lakhs but in the last fiscal Year 2066-2068 the capital was 3 crore. By this data, we can conclude the capital structure of RAE is increasing day by day. 

2.1.2 Total sales of Rapti Auto Enginering 

Year 
Sales (in number) 
2054-2056 
205 
2057-2059 
470 
2060-2062 
850 
2063-2065 
1730 
2066-2068 
2000 
(Source: RAE) 

 
Fig:- Diagram of total sales 
In the given table X-axis measures the fiscal year where Y-axis measures total sales of Rapti Auto Engineering. From the above data, we can conclude that total sales of RAE are increasing in every fiscal year. In fiscal Year 2054-2056 the total sales was 205 but in the last fiscal Year 2066-2068 the total sales was 2000. By this data we can conclude the total sales of RAE are increasing day by day. 

2.1.3 Total profit of Rapti Auto Enginering 
Year  
Profit (Rs) 
2054-2056 
850000 
2057-2059 
1850000 
2060-2062 
2410000 
2063-2065 
3030000 
2066-2068 
3300000 
(Source: RAE) 

 

Fig: - Diagram of total profit 
According to the given table and pie-chart we can identify the profit of Rapti Auto Engineering. From the above data, we can conclude that total profit of RAE is increasing in every fiscal year. In fiscal Year 2054-2056 the total profit was 8 lakhs and 50 thousand i.e. 7% but in the last fiscal Year 2066-2068 the total profit was 33 lakhs i.e. 29%. By this data we can conclude the total profit of RAE is increasing day by day. 

Correlation between the Sales and Profit of Rapti Auto Engineering 
Year 
Sales (X) 
Profit (Y) (“0000”) 
 
Shape         
2054-2056 
205 
85 
121654.8 
715716              20678.44 
2057-2059 
470 
185 
25447.8 
337561              1918.44 
2060-2062 
850 
241 
-2452.2 
40401                148.84 
2063-2065 
1730 
303 
50381.8 
461041              5505.64 
2066-2068 
2000 
330 
96038.8 
900601              10241.44 
Total (n=5) 
∑X=5255 
∑Y=1144 
∑=291071 
∑=2455320    ∑=38492.8 

   Here, =    =  = 1051 
= = = 228.8 
Correlation(r) =  
=  
=  
=  
= 0.947 
    
From the above correlation, we can conclude that the profit increases as increase in number of sales.  Since the correlation is positive, the sales lead to increases in the profit of RAE.  Therefore, as the number of sales increases, the profit also increases. 
2.1.4 No. of staffs of Rapti Auto Enginering 
Year 
No. of staffs 
2054-2056 
6 
2057-2059 
8 
2060-2062 
10 
2063-2065 
11 
2066-2068 
12 
(Source: RAE) 


 
Fig: - Diagram of No. of Staffs 
In the given table X-axis measures the fiscal year where Y-axis measures no. of Staffs of Rapti Auto Engineering. From the above data, we can conclude that no. of Staffs of RAE is increasing in every fiscal year. In fiscal Year 2054-2056 the no. of Staffs were 6 but in the last fiscal Year 2066-2068 no. of Staffs were more than 12. By this data we can conclude the no. of Staffs of RAE was also increasing day by day. 



2.1.5 Aggregate sales of different brand from 2054 to 2068 Aswin 
Brand 
Total sales 
Pulsar 
2050 
Discover 
1400 
Platina 
1250 
Kawasaki 
325 
Avenger 
230 
(Source: RAE) 


 
Fig: - Aggregate sales 
In the given table, X-axis measures the brand where Y-axis measures aggregate sales of different brand of Rapti Auto Engineering (Bajaj).  From the above data, we can conclude that aggregate sales of brand Pulsar is high than other brand and sales of Avenger is less of RAE (Bajaj Showroom).  By this data we can conclude the market of Pulsar is good than other brand of RAE (Bajaj Showroom). 

2.1.6 Branches of different Bike Showroom in Rapti 
Company 
No. of  Branches 
Honda 
5 
Bajaj 
4 
Suzuki 
3 
Yamaha 
4 
Hero-Honda 
5 
Annalifan 
2 
Tvs 
3 
(Source: RAE) 

 

Fig:- Diagram of different branches of Showroom 
In the given table, X-axis measures the company where Y-axis measures the number of different branches of Showroom in Rapti.  From the above data, we can conclude that Honda and Hero Honda Company have highest branches and Annalifan has lowest branches in Rapti. 
2.1.7 Customer Satisfaction Analysis (Bajaj Showroom) 
In this purpose we have find some of the customer taken service from Bajaj Showroom and interview is taken with them to know about the response of customer and the view of the people. For this research we had taken 20 persons for the samples. Most of the customers said that the service provided by Rapti Auto Engineering is satisfactory. They also said that the service provided by Rapti Auto Engineering is not on time. And they also expect that the service should provide in time and the charge rate should be minimum. They are expecting that as the change in the technology is going rapidly the brand and model of motorbike should also change in near future. The price of the bikes provided by this showroom is high than the motorbikes of other companies.  
The mileages of the Bajaj bike are normally high but in the case of Bajaj Pulsar it is low.  In the starting time there is no any problem but after one year there is great problem in Pulsar bike and the maintenance cost of the parts also high. The location for the service centre is good because it is situated near the showroom and not far from the market.  They also share that the behavior shown by the owner to the customer is not so good but the behavior of local staffs is good and they also suggests that this showroom has not any corporate social responsibility so the showroom should focus in CSR also.  

2.1.8 SWOT ANALYSIS: 

SWOT Analysis is a strategic planning method used to evaluate the Strength, Weakness, Opportunity, and Threats involved in a project or in a business venture.  It identifies the internal and external factors that are favorable and unfavorable to achieving that objective. 
A SWOT analysis provides information that is helpful in matching the firm’s resources and capabilities to the competitive environment in which it operates. so, it is instrumental in strategy formulation and selection. 



Strengths: 
A firm’s strengths are its resources and capabilities that can be used as its power of being exist in the competitive environment.  Strengths of Rapti Auto Engineering include: 
  • Rapti Auto Engineering has strong brand name. 
  • Rapti Auto Engineering has good reputation among customers. 
Weakness: 
The absence of certain strengths may be viewed as a weakness. RAE’s weakness may be considered as 
  • RAE has high cost structure. 
  • Less promotion and advertisement activities. 
  • Heavy competition. 
Opportunities: 
The external environment analysis may revel certain new opportunities for profit and growth. Opportunities of this showroom include: 
  • Due to the population growth the demand increases. 
  • Many sub-branches have been opened so that, the business of RAE is  expanding  day by day 
  • In the coming season, this showroom has estimated to supply around 1500 pieces of bike per year. 
  • Because of fashion or to show the personality the number of people riding motorbike is increasing day by day. 
Threats: 
Changes in the external environmental also may present threats to the firm. Threats of RAE include: 

  • Difficult to have a competition on quality and price with other motorbike companies of Nepal. 
  • Lack of transportation to supply the product out of the valley. 
  • Difficult to satisfy the customers demand. 
  • Lack of technology and skilled manpower. 
  • Credit facility should be given. So that there is high chance of being bad debt. 
  • Because of political situation of our country there is difficult to sale the bike. 

2.1.9 Test of Hypothesis 
The study that proposed to test three different hypotheses, we will now test each of these hypotheses based on above table and diagram. 
Hypothesis 1: 
H0: The sales of Bajaj bikes are constant. 
H1: The sales of Bajaj bike is increasing day per day. 
According to table and figure, 2 we can conclude that the sales of Bajaj bike are increasing day by day.  Thus, alternative hypothesis is accepted. 
Hypothesis 2: 
HO: The profit of RAE is constant. 
H1: The profit of RAE is increasing day by day. 
According to table and figure, 3 we can conclude that the profit of RAE is increasing day by day.  Thus, alternative hypothesis is accepted. 
Hypothesis 3: 
H0: The capital of this showroom is constant. 
H1: The capital of this showroom is increasing day by day. 
According to table and figure 1 we can conclude that the capital of RAE is increasing day by day.  Thus, alternative hypothesis is accepted. 
2.2 Major Findings and Discussion 
Research is the scientific study of any phenomena or situation.  This research was conducted to find out the situation of Rapti Auto Engineering.  Some of the major findings are given below: 
  • The RAE was established in 2054 with the capital of Rs. 2000000 and registered under the registration act 2052 in small scale and cottage industry and chamber of commerce. 
  • The business is single proprietorship and the main purpose is to provide service to the customer. 
  • The position and performance of this showroom is satisfactory. 
  • The environment is not so polluted from this type of business because the motorcycle are not prepared and not recycled here.  
  • Continue.....



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