Business Organization and Management

An entity founded for the purpose of carrying on a commercial operation is referred to as a business organisation. The foundations of such an organisation include legal systems that control contract and exchange, property rights, and incorporation.

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Annexure:1
LOVELY PROFESSIONAL UNIVERSITY
School of MITTAL SCHOOL OF BUSINESS , Faculty of LOVELY FACULTY OF BUSINESS AND ARTS
Name of the faculty member :- Poonam ma’am
Course Code: MGN101 Course Title: BUSINESS ORGANIZATION AND
MANAGEMENT
Academic Task No: 1 Academic Task Title: ONLINE ASSIGNMENT 1
Date of Allotment: 17.09.2021 Date of Submission: 04.10.2021
Student Roll No: RQ2102A29 Student Reg. No: 12100901
Term: 121221 Section: Q2102
Max. Marks Marks. Obtained:
Evaluation Parameters
Learning Outcomes: (Student to write briefly about learnings obtained from the academic ta
In this assignment I will show my analytical skills to recognize the MSME
Strategies for startup and recognize the innovation and emerging trends in
Business.
Declaration:-
I declare that this Assignment is my individual work. I have not copied it from any other students’
work or from any other source except where due acknowledgement is made explicitly in the text,
nor has any part been written for me by any other person.
Evaluation Criterion : Rubrics on different parameters
Student’ Signature: MISHAN KUMAR
Evaluator’s Comments (For Instructor’s use only)
General Observations Suggestions for Improvement Best part of assignment
Evaluator’s Signature and Date:

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PART:- A
DETAILS OF THE START-UP
❖ INTRODUCTION:- My start-up is about creating a cold chain
industry that is temperature controlled supply chain that will work
for preservation and infrastructure facilities, without any break from
the farm gate to the consumer. It cover creation of infrastructure
facility along with the entire supply chain via. Pre cooling, weighting,
sorting, grading, waxing facilities at farm level to multi-products/
multi-temperature cold storage, packing facility and distribution hub
through reefer trucks and vans for distribution of perishable
products like horticulture, organic produce, marine, dairy products,
meat and poultry etc. This cold chain in which agricultural produce
are preserved afresh and their shelf life is expanded to long period of
time. Cold chain is not only required for agricultural produce but
also for horticulture, floriculture, dairy, pharmaceutical, poultry,
and meat processing.
India has seen a significant growth in production of perishable
products like fruits, vegetables, meat and poultry products but this
growth was not accompanied by the growth in cold supply chain
infrastructure. This disproportional growth has led to price
fluctuations and inflation. The existing supply system that is farm to
market logistics has contributed to huge losses in perishable
products.

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The cold chain market was valued at USD 233.8 billion in 2020 and is
projected to reach a value of USD 340.3 billion by 2025, growing at
CAGR 17.8% in term of value during the forecast period. Increasing
need for temperature control to prevent food losses, growth in
international trade owing to trade liberalization along with the rising
demand for perishable good among the consumer across the globe is
driving the growth of cold chain market.
The Government of India has also noticed this gap and is starting to support the
cold chain industry by starting several scheme and initiatives. One such initiative
was started by Ministry of Agriculture which introduced Mission for integrated
development of Horticulture in 2014, this initiative gave the significant
importance to cold chain industry development.
❖ FORM OF ORGANIZATION:-
Private company:- Section 2(68)of company amendment Act 2013
defines a private company as follow, private company means a
company having a minimum paid-up share capital of 1,00,000 or such₹
higher paid up share capital as may be prescribed and which by its
articles-
i. Restrict the right to transfer its shares
ii. Except in case of one person company limits the number of its
remember to 200
Provided that where two or more person hold one or more
shares in a company jointly they shall, for the purpose of clause,
be treated as single member.
Provided further that:
a) Person who are in the employment of company and
b) Person who living been formerly in the employment of the
company were members of the company while in the
employment and have continued to the member after the
employment ceased, shall not be included in the number
members and
c) Prohibited any invitation to the public to subscribe for any
securities of the company
Benefits of a private company:
A private company offers the following benefits.
i) stability:-Being a separate legal entity the existence of private

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company is independent of the existence of it’s member.
ii) Limited liability:- the liability of members is limited only to the
extent of the unpaid capital on the shares held by them.
iii) Comparative flexibility of operations:- a private company enjoy
lesser compliance and more privileges as compared with a
public company, making it a suitable choice for entrepreneur.
iv) Improved credibility:- due to incorporation, a private company
enjoys an improved credibility in doing transaction with various
stakeholders.
v) Team building:- private company offers stock ownership and
ESOP schemes to attract talented pool of workforce for
the company.
vi) Expansion:- In private companies scope of expansion is large as
fund raising can easily be done by receiving funds from it’s
members, directors. Bank also give high value to private
companies and sanction loans accordingly.
Limitation of private company:-
i)Process and formalities:- As the registration of the company
require many formalities one need assistance from professional
like C.As or C.S, w.r.t registration and other compliance with
the relevant laws.
ii) Limited Availability of funds:- due to restrictions on seeking
Public funding the prospect of growth and expansion are limited
to the personal financing capacities of a member of a private firm.
iii) Exit strategy:- through it is easy for a shareholder to exit from a
Company, the procedure to wind up a private limited company
is complicated procedures and substantial liquidation cost

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❖ PURPOSE:- My start-up cold chain industry will solve the problem of
wastage of perishable products and the main aim is to prolong the life
of fresh products such as fruits, vegetables, poultry, meat,
pharmaceutical, frozen food and seafood. These products are
perishable and have to moved to their end destination while being kept
at a constant temperature.
Cold chain can often used in food and pharmaceutical industries and
the average temperature range from 2-8°c but the same temperature
and tolerance will obviously depends on the exact item being shipped
and stored properly.
It is really important for perishable products items to be kept cold, as
unrefrigerated products likely to spoil, decay or become unsafe and
can very quickly turned into toxins and cause illness when we consume
it. Perishable products can make people ill even when it doesn’t look,
smell or taste off. The pathogenic organisms are found in perishable
products such as raw meat, seafood, milk and poultry and keeping
these perishable products refrigerated will slow the growth of such
bacteria.
❖ NOVELTY:- We will connect producers to retailers through
temperature controlled cold storage and refrigerated transportation.
We are unique from existing farm to market logistics that has
contributed to huge losses in perishable products, we make cold chain
system of cold storage and cold distribution hubs and mobile
infrastructure like reefer trucks and reefer containers that help in
unbroken cold chain is an uninterrupted series of refrigerated
production, storage and distribution activities, along with associated
equipment and logistics, which maintain quality of perishable
products by providing desired low- temperature so that perishable
products are safe and of high quality at the point of consumption,
failing to keep perishable products at the correct temperature can
results in spoil, decay and become unsafe to consume it.

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❖ NEED OF THE START-UP :-India falls in the second place globally in terms
of fruit and vegetable production. India produce about 85 million tons of vegetable
produce annually. Out of which 40 percent gets wasted. With an annual produce
of 100 million tonnes of milk, India is the second largest producer of milk which
account to 17 percent of the global production, however 10 percent of this annual
produce is lost due to not having proper storage facilities.
Food and Agriculture Organization of UN had stated, every year about 1.3 billion
tonnes of food is lost which amounts to 1/3 rd of total food produced. This clearly
indicates a significant gap in the Indian cold chain industry. This gap can be
translated into a golden opportunity to provide service as well as it beneficial for
farmers. The demand in cold supply chain infrastructure is also due
pharmaceutical industry, vaccine market in India is growing at rate 25% to 30%
, vaccine require temperature controlled transportation and the storage.
India has about 31.82 million tons of cold storage space out of which only 26.8
million tonnes was in operation. India has about 6,300 cold storage facilities, was
no uniform distribution of these facilities. Most of these cold storage facilities were
used for storing potatoes. But these cold storage are not used properly due to lack
of infrastructure which includes modern packing house with pre-coolers, bulk
warehouse and cold distribution hubs, Mobile infrastructure like reefer trucks,
reefer containers and there is also need of skilled human resources to manage these
operation.
The food processing industry is one of the largest sector in India in terms of
production, growth, consumption, and export. The cold chain industry is the
backbone for sustaining this scale of food production and processing so it is
necessary to have smooth functioning cold chain industry include temperature
controlled storage space, efficient and trained service staff, and transportation.
In India, cold chain industry has a huge scope to grow. GST acted like a boon, by
eliminating the time consuming check post. Before the GST companies preferred
to establish warehouse in tax friendly zones. Implementation of GST has reduced
transportation delays like e-way bill, multiple check post.

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CONCLUSION:- Due to changing lifestyle and demand in processed foods, cold
chain industry is the need of the time. It is the time to save the huge losses of
perishable products and initiate cold storage and cold transport facilities. It’s high
time to integrate cold storage and cold transport and take the benefits of the
initiative and support being given by the Government of India.
PART- B
IDENTIFY ANY TWO SCHEME UNDER MSME THAT WILL
BENEFIT YOU IN YOUR START-UP
❖ The Government of India has noticed the gap in cold chain industry and is
striving to support the cold chain industry by starting several initiative and
scheme. One such initiative was started by Ministry of Agriculture which
launched “Mission for Integrated Development for Horticulture” in 2014, this
initiative gave significant importance to cold chain industry development.
Ministry of food processing Industries (MoFPI) had started program exclusively
for cold chain “scheme on cold chain, value addition & preservation
infrastructure”. CAGR of 19 percent growth is expected from 2017-2022 in the
cold chain industry. Another study conducted by YES bank in 2014 mentioned
that market share in cold chain industry was divided into 88-90% with cold
storage and only 10-12% with refrigerated transport. One of the biggest
advantages of cold chain is the fact that food industry is able to take advantage
of seasonal variations. Government of India has opened up 100 percent FDI for
cold chain. Since 2011-2012 cold chain industry has given infrastructure status.
National Centre for cold chain Development has been established to aid the aid
the growth of the same. Cold chain industry manages and safeguard the
perishable products till it reaches it’s destination, however there is no value add
to the products as such, this was recognized by the Finance ministry and hence
they did not impose VAT and service tax on activities for handling,
transporting, storage and marketing of agricultural produces.

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Given the challenges macro- small- medium enterprises has huge scope to grow
in cold chain industry. GST acted like a boon by eliminating the continuously
time consuming check post. Before the GST companies preferred to establish
cold storage warehouse in tax friendly zones. Implementation of GST has
reduced transportation delays like e-ways bill, multiple check posts.
❖ NATIONAL HORTICULTURE BOARD (NHB)
Setting Up off cold storage (of capacity above 5000 MT and up to 10,000 MT) and
their modernization and long term storage and distribution hubs for Horticulture
products are eligible for assistance under the NHB scheme. The assistance is
extended as subsidies to credit linked project @ 35% of capital cost of project in
general area and 50% in case of hilly and Scheduled area.
1.Related Scheme:- i) Cold chain
Description:- Technology induction and modernization
of cold chain for 5,000 MT capacity.
Cost norms:- Maximum Rs.5crores.
Nature of assistance:- Credit linked back- ended subsidy @35% of
. project cost with maximum of Rs. 5crores.
Who can apply:- Societies and oganisations
How to apply:- Mission Director and joint Secretary (NHM)
Department of Agriculture & Cooperation, New Delhi
2.Related scheme:- ii) Refrigerated transport vechicles
Description :- Provide financial assistance for refrigerated
Transport vechicles.
Nature of assistance:- Credit linked back -ended subsidy @ 35%
Of the total cost.
Who can apply:- Societies and organisation which are provided
Grants-in-aid
How to apply:- Mission Director and joint Secretary (NHM)
Department of Agriculture & Cooperation, New Delhi

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3.Related scheme:-iii) Specialised packaging facility
Description:- Provide financial assistance for Automated packaging
lines for fruits & vegetables with farm code labeling,
with packaging material.
Nature of assistance:- 100% of cost per invoice, maximum Rs. 15 lakh
Per project.
Who can apply:- Societies and organisation etc.
How to apply:- Mission Director and joint Secretary (NHM)
Department of Agriculture & Cooperation, New Delhi
CONCLUSION:- These three scheme help in creation of cold chain industry,
Which includes preservation and transportation infrastructure facilities,
Without any break, from farm gate to the consumer. This will achieve
through the entire supply chain which includes cooling, weighing, sorting,
grading, waxing facilities and this will achieve by creating cold storage and
reefer Trucks and vans and more facilities.

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PART-C
WHAT ARE EMERGING TRENDS IN BUSINESS/INNOVATION THAT
CAN BE APPLY TO MY START-UP
In cold chain industry there are new emerging trends and innovation are:-
1.New packaging trends :- Packaging remains one of the most crucial aspects of the cold
chain process. The main reason for this being that the packaging decides how safe and
fresh the perishable content inside the packaging remain same till it reaches the end
users. In the case of players in the pharma industry, the primary challenge is to balance
the packaging and transportation cost, in this case the more insulated the packaging the
higher is the cost incurred.
Manufacturer in the food industry are slowly shifting towards disposable and reusable
packaging owing to the focus on “going green”.

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2.Company are shifting to “power saving” mode:- Several players in the cold chain
logistics buisness are looking for innovative ways to strike balance between the energy
intensive requirement of products that are easily perishable and need to reduce
resource consumption. Therefore, these companies are investing heavily in researching
and developing new ways to arrive at an optimum solution many players are
experimenting with improvement in insulation which are likely to give more saving and
at the same time ensure energy efficiency.
3.Product quality and sensitivity are in the spotlight:- A famous quote “ Survival of the
fittest” customers today are more conscious about the quality of the product they are
buying. What does this mean for players in cold chain logistics? This mean that they
have to ensure that the product should be prevented from any damage in the packaging
or the quality until it reaches the final consumers. Therefore manufacturers are relying
on various cold storage techniques such as controlled temperatures to suit various
products and the logistics cycle they have to go through cold chain supply industry.

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3.Real time data is driving ultra Responsive operation:- Intelligent assets are helping
retailers and suppliers ensure the quality of fresh foods in transit by making it easier to
maintain unbroken temperature control. For instance, a growing number of
refrigerated cargo containers can be remotely monitored and controlled using IoT
(internet of things) device and cloud- based software applications. Beyond standard
refrigeration equipment, smart reefer containers can use ozone generating units,
venting valves and other measures to create optimal conditions for perishable products.
These acclimatizing systems are linked to sensors and transmitters on the reefer that
connect with the online management application, sharing data such as temperature and
CO2 reading, or if light is entering the container.
Instantly knowing a containers current state can avoid problems such as shipment of
lettuce left to wilt in the sun. As the temperature rises, an alert is triggered in the
system. The reefer owner can then resolve the matter with a call to the loading dock
rather than arguing about reimbursement after the fact. Additionally, the container
may use automated means to maintain temperature and atmosphere to strict
parameters, sending it’s location and status to the cloud every few minutes. For those
tasked with managing supply and minimizing loss, it’s just one way that greater
visibility into the cold chain is driving few efficiencies.
4.Blockchain Meets Cold Chain:- Blockchain is poised to transform the food industry,
says food logistics, but what is it exactly? Essentially, a blockchain is a permanent,
ordered, digital history of transactions that cannot be modified or deleted without the
consensus of others on the network (authorized parties able to tap the blockchain). This
is unchangeable record keeping solution is the same public ledger technology used to
verify cryptocurrency exchanges namely Bitcoin.
Food logistics paints the picture of a company that manages the ripening process for
produce and connect to cold storage, transporters and buyers with the goal of providing

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optimally fresh food. How this process is validated can be answered on the blockchain
as a single activity of record. Blockchain provides the ability to validate that certain
actions or events are occurring as intended from the fulfillment process through
transportation tracking all the way to final purchase.
In benchmark survey, chain business insights reveales that supply chain professional
view improved supply chain visibility/ transparency (45.9%) as primary advantage of
blockchain, followed by reduced transaction costs (24.3%) and enhanced trust between
partners (13.5%). It’s good evidence that while food retailers won’t be paying their
suppliers in cryptocurrency anytime soon, blockchain is here to stay.
Effective cold chain management is constant challenge for all who must ensure an
uninterrupted series of temperature controlled event but, advances in transport
technology, cloud computing and transaction processing are making it simpler for
retailers to bring shoppers a wide variety of fresh food choices that look, smell and taste
their very best the moment they hit store shelves. Many companies will also discover
major savings stemming from greater visibility into the cold chain and this has the
industry warming up to a world of opportunity.
5.Cloud platforms are powering new possibilities:- Meeting the demand for real time
data requires an IT infrastructure that can collect, analyze and share the data where
and when it's needed. And only by harnessing loT (internet of things) technologies can
organization utilize the data that exists within their physical environments to unlock
businesses value across the cold chain in the form of reduced waste, brand equity and
rapid ROI. of course effectively managing this process can be costly as it relates to
logistics, maintenance and other factors. Unforeseen changes in temperature, machinery
failures or truck breakdown all have the potential to increase the risk of unhappy
customer damaged brand reputation and wasted food.
The welcome news is that sophisticated IoT (internet of things) software solution can
now provide access to new streams of data from both legacy and modern devices,
without the need for replacement infrastructure and all through one single view of cold

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chain. These web based platforms leverage real time information from the production,
manufacturing, storage and distribution stages to help companies effectively monitor
and manage temperature, asset health, vehicle location work flow and environmental
data, where only the most actionable data is pushed up through the system for use,
storage, process automation and resolution.
In the years ahead, there is little doubt such edge-to-cloud Strategies will become
imperative to reducing waste, reassigning resources, improving maintenance regimes,
and assuring the highest-quality meats and produce.
6.Artitficial and Augmented Intelligence:- Over the past several years, the logistics
industry has started to integrate Artificial intelligence solution including intelligent
transportation, route planning, and demand planning in their operation, but this is only
just the beginning from the last mile delivery robots and sustainability solution to
warehouse automated picking systems and predictive optimization software, AI is
already making a huge difference in logistics. Shippers, carriers, suppliers and
consumers can all expect to benefit from these logistics technology trends continuing in
2021.
Along with AI, Augmented Intelligence is also expected to spike in use. Augmented
intelligence combines human intelligence with AI automated processes. For example in
logistic planning, using Augmented Intelligence can even be superior to using AI alone
since it can be combine inputs from human planners (experience, responsibility,
customer service, flexibility, common sense, etc.) together with AI technology which is
left doing the repetitive and tedious work. According to Gartner, Augmented

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intelligence is on path to create $2.9 trillion of business value and lead to an increase of
6.2 billion hours of worker productivity globally by the end of this year.
Logistics companies can be expected to implement more Augmented Intelligence
solution, which ultimately allow logistics professionals to do their job more quickly
while reducing mistake and creating cost savings.
7.Increasing Investment into Logistics Startups from VCs and Enterprises:- As we see
growing VC funding in logistics startup major logistics company are beginning to follow
this path. Many of them are invested millions of dollars in new technologies developed
by innovative startup or even acquired them altogether. This way logistics companies
can get the best of both worlds leverage their capacities while driving R&D through
their new partners. Giant like UPS see great benefits in ceiling partnerships, the
company made a man minority investment in TuSimple, an autonomous driving
company to test self driving tractor trailers in Arizona, to see how this addition could
potentially enrich the existing UPS networks. Maersk also recently announced its
joining fellow shipping giant CMA CGM and MSC in investing capital in Traxens, sn
IoT (internet of things), high value data and service platform for the supply chain
industry. The e-commerce players are aiming to participate in this race as well with
Shopify a multi channel commerce platform, acquiring, a Massachusetts based 6 River
system a provider of collaborative warehouse robotic solutions.
The race for innovation has also encouraged Singapore sovereign wealth fund Temasek
to partner with transport giant Kuehne+ Nagel to launch a $50 million venture fund for
logistic in supply chain startups. According to the director of the fund, Marc Dragon,
there is a high level of expectation from vendors that because of technology, there would
be new powerful method to approach supply chains.
There are also companies looking to expand their technological portfolio in house. For
example, CH Robinson Worldwide, they biggest freight broker in North America,

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announced it could double its technology expanding to $1 billion in order to expand and
develop its services to counter the competition from digital startups. Additionally in
what appears to be an effort to adapt quickly to digital innovations, Deutsche Post DHL
Group announced in October 2019 that it plans to invest $2.2 billion in digital initiatives
through 2025. With so many partnership created over the past year, it will be
interesting to see what kind of solution result from these investments.
8. Outsourcing to a third-party logistics company:- Another demand in the cold chain
has been for efficiency and visibility throughout the supply chain. Companies don’t like
to be felt in the dark when it comes to the transportation of their products. That is why
3PL provides a wide range of technology service to promote transparency within the
supply chain.
Consumers today are becoming more conscious about their need. No one wants to settle
for spoiled milk or ineffective pharmaceuticals. It is imperative that manufacturers stay

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up to the date on these current trends in the cold chain in order to satisfy their
customers. Doing research and staying in the know are both imperative ways for your
business to be successful. Being proactive and listening to what consumers want is the
best way to stay on the top in the cold chain industry.
9. The global cold chain market is booming:- A recent report by Grand view Research
shows that the global cold chain market sizes expected to grow 14.8 percent from 2021
to 2028. Many nations have recognized a rising need to avoid food waste and loss of
healthcare products due to spoilage. Moreover, the demands for fresher products is on
the rise. Nations such as China and India are boosting their global cold chain effort to
meet the demand for their exports. International trade liberalization has also boosted
the use of cold chain globally. Because it is the global cold chain is rising manufacturer
need to become more specialized in their products so they can ship their goods to a
wider variety of customers across the globe.
10. An increased demand on quality products:- Big trends in cold chain, specifically the
food industry has been the demand for fresher and higher quality products. Consumers
want their peaches to be juicier and their avocados to be riper. To satisfy the customers
want, you need to make sure the carrier that is shipping your product is well versed in
cold chain management. They need to know how to avoid changes in the texture and
taste of the produce when a shipment fluctuates beyond the required temperature. The
focus on quality products mean that refrigerated warehouses will need to maintain
temperature zones.
Quality product don’t stop at fresh food. With COVID-19 vaccine being administered
people want to make sure that what they're getting injected into the body is safe. In
addition, the amount of biological drugs and gene therapies is growing. Because of this

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the logistic companies are also widening their capacity of temperature controlled
transportation to meet the demand.
Cold chain logistics play significant role in the pharmaceutical supply chain.
Manufacturer of these vaccines and medications need the cold chain to run smoothly to
prevent any damage to the expensive drugs. Pharmaceuticals also need to arrive as good
as new because medicine that has sat incorrect temperature for extended period can be
ineffective or detrimental to a person’s health.
11.Access to additional labor, transportation capacity planning and redundancy will be
a priority for the cold chain to be reliable:- Until the vaccine is widely distributed and
available the cold chain transportation network will continue to be disrupted. Labor
shortages, quarantine impact and delivery conveyance will continue to be challenged
with inconsistent performance and reliability as a result of the virus. These pandemic
related impacts will create the need for companies to re-visit their planning strategy,
incorporating redundancy and contingency options. This will also create demand for
incremental outsourcing with service being necessary to accommodate for virus
prevention cold chain related activities.
With the COVID-19 pandemic outbreak occurring just a year ago, we need to take
away as much as we can from the last 12 months as we plan for the future learning from
the our missteps and building on our successes. Efficient and effective cold chain
management will be an ongoing challenge for all cold chain stakeholders who bear the
responsibility for ensuring uninterrupted delivery of perishable product to key market
throughout the world. Fortunately it has already been proven that the cold chain
industry can quickly adapt and innovative to serve the increasingly more complex
supply chain. Recent trends, emerging innovation and nascent cold chain technology
will continue to shape the ever changing requirement for the refrigerated and cold
chain markets.

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CONCLUSION:- These emerging trend and innovation help me to stablish my start-up
more effective and successfully. These trends and innovation useful in saving time and
capital and most important it will save the perishable products from spoiling and
decaying.