CASE STUDYBest Foods Pvt. Ltd.(BFPL) is a pioneer among instant mixes food companies. Based in a city of population of 50 million and is also close to one of the metro cities. The company is in instant mixes business for the last 50 years and is well known instant mixes brand. At present second generation of entrepreneurs are in charge.

Due to the entrant of new bigger players in this category of products presently BFPL is not able to sustain its sales growth for the last two years in the domestic market. In the export market it is doing OK. However there was one consignment to US got rejected due to quality problems .

This year Mihir, son of one of the promoters has been appointed as MD of the company. He is an IIM graduate and was in the company as manager trainee for the last two years.

The company has one own plant near the head office and one franchise manufacturing unit in a small town. The own unit produces nearly 75% of its requirement. The labour is well trained. However the productivity is below the industry standards. But since there is no pressure on production the management is not worried. The unit has ISO 9001 certification. But the workers get reminded of only when there is some audit scheduled.

The purchase department has got some fixed vendors and buys one month inventory in advance. Since there is not many stock out situations there is not much attention given to this function.

Marketing has not much work. As the brand is well established there is not many promotional activities planned. And the management is averse to any advertisement campaigns.

The sales team caters to the strong distribution network. The company has a very good network of distributors all over the country. However recently the distributors are worried about the slackening of sales and there income. So some have taken up distribution of some other products also.

The financially company has got good cash flows and has good relations with the bankers.

One of the multinationals has approached them a complete takeover. The promoters are in a dilemma whether to sell or not to sell. Mihir is of the opinion that they have got a good brand and if they do on their own it would be better.

The other promoters need Mihir to give out his strategy how he will ensure that the company does well in coming years.