Case study Analysis of NEPTUNE MANUFACTURING

Case study Analysis of NEPTUNE MANUFACTURING By Suhas K N 1Introduction :Neptune is one of the most reputed auto component Manufacturing company from Delhi who supplies OEMs to companies like Maruti, Ford , Telco, Ashok Leyland in India.This company wants to buy 4 CNC turning machines & a committee was setup for this process. Committee consisted of :Managers:ProductionMaintenance PurchaseSenior Managers :Design & Finance

SWTStrengths1.Production capabilities are excellent of company for 5 years in a row.2.Excellent workmanship of company.3.Continuous production.4.Market leaders and technologically ahead of competitors.5.No bitter fights for awarding tenders.

OpportunitiesExcellent time for company to expand.

Threats1.Continious competetion from rivals Ajax and ganesh Engineering.2.Dollar and Yen Vs Rupee constant flucuation @ current market rates.

OWeaknesses1.Economy in recession.2.Auto industry is in downturn.3.Use of old machines causing slack in production.4.Less options with machines to buy .5. Tough thought of expression among peers .SWOT ANALYSISTaken as consideration from conversation of all the managers Machines considered for buying were: 1.Maraki.2.AGV.3.ScionOpinions of Machines form all the managers according to previous experience usage and current scenario:

SCION :1.Maintaince problems in the department of current models in the company.2.Latest Scion models are best in the market.3.It has the best specification among AGV and Maraki and difference is marginal.4.Production team had no issues with Scion @ Neptune .

AGV :Didnt respond to the tender notice.

Weighted avg of AGV is 51.5./59Weighted avg of Maraki is 51.5/59.57 Weighted avg of Scion is 51.2/ 58.71Roles played by different departments represented un the buying center:Design:Was the first who had taken the initiative for requirement of new machines.Incase of tie of scores will lead the Sr. Design manager decision to prevail.Gave insight of latest technology that scion was offering .Always insisted on fair discussion policy .A effective logical thinker of the company and takes decision rationally based on numbers.

Production :Supports design manager in terms of buying of new machines and understands the requirement based on first hand experience and understands current market demand.Also gives facts and figures of last 5 years of production.Stresses the fact of quality of production and customers coming back for quality that that this company is offering and demands on retaining the customer base.Purchase:Makes valid point on up gradation of machines from rivals and also gives info about vendor data base up gradation.Sheds light on getting attractive offers since they are major buyers. Also notifies AGV not responding on time for notice.

Finance : Warns about economy crysis & emphasis on slowdown of automobile industry. Was not really supportive in discussion since this department doesnt belong to technical areas of company.

Maintenance:Insists on newer machines and informs about slack of older machines and timely breakdowns repairs and complaints.Insists on buying new machines asap.Industrial buying Behavior (DMU) :1.The expectations of the individuals making up the decision making unit2.The characteristics of both the product and the organization. 3.The nature of the decision making process .4.The situation variables.

BUYING DECISION PROCESS :These stages were first introduced by Johnb Dewey (1910).The stages are:1.Problem/Need recognition2.Information search3.Evaluation of alternatives4.Purchase decision5.Post-purchase behavior

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