Final Ced Project

8/8/2019 Final Ced Project

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ANALYSIS OF C.E.D. CASE OF

XYZ COMPANY

UNITEDWORLD SCHOOL OF BUSINESS 1 SEPTEMBER 1 , 2010


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BACKGROUND

M/s XYZ is an MNC which has several

divisions, separately dealing with

Welding and welding consumables

Pipelines

Construction of flyovers, large buildings

etc.

Construction equipment division



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ORGANISATIONAL

STRUCTURE



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SYMPTOMS

There is a competition between the twointernal departments

The growth of theWorkshop Departmentwas much more than the Sales Department

Mr. BC (Manager Sales Department) has anegative notion about the workshopdepartment (handled my Mr. SG)

The tension between these two

departments has been on a riseUNITEDWORLD SCHOOL OF BUSINESS 4 SEPTEMBER 1 , 2010


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PROBLEM FORMULATION

Poor co-ordination amongst

departments

Low sales in Kolkata

No clarity of goals and objectives of the

firm. Very vague!



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PROBLEM IDENTIFICATION

Bad blood amongst team members

Losing customers to cheaper equipment

from workshop



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S.W.O.T. ANALYSISSTRENGTHS WEAKNESSES

Technically experienced

Turnover of 100 crores

Market leaders in the eastern region

Caters to both section

Customer satisfaction

Intra-departmental conflicts

Communication gap between two managers

Lack of synergy and team work



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S.W.O.T. ANALYSIS

OPPORTUNITIES THREATS

Excellent reputation, image and credibility

Sales and distribution channels can be re-explored

Availability of large no. of buyers

Competitors may benefit due to internal conflicts

Reducing price may result in quality deterioration

Internal conflicts can reduce the companys

turnover



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STP A Three Stage

Process

SEGMENTING Dividing of market into

different groups.

TARGETING Selecting a group after

the segmentation

POSITIONING Developing a

marketing strategy for Positioning the

product in relation to rivals.



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6 Ps of Marketing

Product (specifications)

Price (commercial terms)

Place (channel) Promotion

----------------------

Process (internal) People



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The Integrated Management

System Process

OrganizationalObjectives

CustomersExpectations

RelevantEnvironmental Issues



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FEASIBLE ALTERNATIVES

Cost Balance Management

Rental Basis

Implementation of a ERP Facilitation of loans



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Cost Benefit AnalysisSerial

No.

Few Probable

Alternatives

Costs (-) Benefit s(+)

Decision

To the Organi-sation To thecustomers To the Organi-sation To thecustomers

1 Cost Balance

Management

(Discount

-25% and + 50%

factor)

Overall cost

will increase by

25%.

Discounted

portion will beborne by the

company.

Purchase of

equipment

from the work

shop will not

be cheap like

before forcustomers

.

It is possible to

increase sales of

Kolkata division.

Better revenuesto be expected

for the firm with

the increase in

sales and

services

department of

Kolkata market.

Better sales to

be expected from

the Sales team in

Kolkata.

Can avail

discounts

from Kolkata,

which has

better

durability(20,000

working

hours)

Accepted



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No.

Few Probable

Alternatives

Costs (-) Benefit s(+)

DecisionTo the

Organi-sation

To the

customers

To the Organi-

sation

To the

customers

2 Rental Basis (15

days)

Revenue will

suffer

Sales targets

will go for a

toss

Wear & Tear

None Wide Customer

Base

Discounts

available

Product

availablecheaply

Will be very

beneficial for

short term

users.

Small scalecustomers

would be able

to enjoy the

benefits.

REJECTED



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Seri

al

No.

Few Probable

Alternatives

Costs to the firm (-) Benefit to the firm (+) Decisio

n

To the

Organization

To the

customers

To the Organization To the

customers

3

Implementation

of an

organization

based ERP

A little

expensive

initially

None Promotes Transparency.

Excellent equipment

management

Ensures streamlining of

processes

Better way to enhance

existing database of

customers & future

customers

Promotes customer

relations

Better follow

ups from the

firm on Sales.

Better after

sales support

to be expected

Accept

ed


Cost Benefit Analysis


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No.

Few Probable

Alternatives

Costs to the firm (-) Benefit to the firm (+) Decision

To the Organi-

sation

To the

customers

To the Organization To the customers

4 Finance

Scheme for

Kolkata

(Collaboration

with banks)

Time

consuming

Negotiation

Time

consuming

Paper work

More customers

likely to apply.

Increased

revenue

Higher sales

Loans will

facilitate

smooth flow of

capital

Will increasethe customers

purchasing

power

Free entry for

genuine

customers

Accept

ed



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THANK YOU..!


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