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                             IBSAP- Group 7
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                           Company- 2-3 (Hoelderlinstrasse)
                                       Group – 7
Midhu Ragunathan, Jaikishan Gianani, Dexter Socorro Vaz, Himanshu Sharma, Shreesh Soni
 1                                   Copyright Universum 2010
                                                                                         1
                                      Copyright Universum 2010
Content                   1




 1   Company’s Strategy

 2   Marketing Strategy

 3   Production

 4   Purchase

 5   Finance

 6   Going Concern

 7   Key Takeways




                              2
1

          In the long run become an innovation driven company and get 40%
                    of our profits from Carti (an innovative product).




         Market leaders in the Innovation category. Alesa will be phased out
         and Carti and Bordo will be continued. Bordo will soon become the
                cash cow while Carti will continue to remain the star.
Goals




          There is a shift of power from the West to East and hence focus will gradually
          be shifted from West to the East over the four quarters. Growth will happen
          mainly in India and China.




        Our goals are three fold: 1) Profitability, 2) Market Share and 3) Sustainability.




                                                                                                 3
1

                               Period                             Milestone/Goal

                              1st Period   Increase penetration of Carti into all the markets by increasing
                                                        Communication and Product Policy.
Milestones-Period by Period




                              2nd Period    Phasing out of Alesa starts. Production to be transferred to
                                           Bordo. The positioning of Borto to change from Innovation to
                                                                    functional.




                              3rd Period      Focus shift from West to East. More promotions, greater
                                               selling and increasing market share in China and India



                              4th Period   40% profits from innovation products achieved across all four
                                                                    countries




                                                                                                                  4
1

                •Strong presence in growing
                markets like India and China.         •Economies of two major markets:-
                •Sizeable base for existing product   Germany and US in decline.
                called Bordo.
                                                      •Profitability affected by high
                •Successful introduction of new       exchange rates.
                innovative product called Carti.
                                                      •High fixed costs.
SWOT Analysis




                •Demand for two major products
                of the company:- Bordo and Carti        •Stiff competition from other
                to increase in all four countries.      players in the emerging markets.

                •Economy of China and India is          •Further economic slowdown
                up beat. The growth in these            possible in US and Germany,
                regions will drive the growth of        which could further reduce the
                the company.                            demand.




                                                                                               5
1


                     Star           Question Mark




                            Carti
BCG Matrix




                     Cow                Dog




                                                    Alesa
             Bordo

                                                            6
Marketing & Sales Strategy
                                                           2
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7                               Copyright Universum 2010
                                                               7
                                Copyright Universum 2010
2
Our Strategy

                   Alesa             Bordo                         Carti
 Product Policy    - Reduce          - Maintain expenses           - Increase expenses to
                   expenses to                                     increase demand
                   reduce demand
 Communication     - Reduce          - Increase expenses           - Increase expenses
 Policy            expenses
 Pricing Policy    - Reduce price    - Maintain price              - Maintain price
 Economic          - Negative impact - Negative impact in          - Negative impact in
 Condition         in Germany, US    Germany, US but positive in   Germany, US but positive in
                   but positive in   China and India               China and India
                   China and India

 Product lifecycle - Degeneration.   - Product in growth phase,    - Product in growth phase,
                   So demand will    hence demand will increase    hence demand will increase
                   reduce




                                                                                                     8
2
  Selling Expenses for each product
                                                    Product Policy
                   Communication Policy for Alesa                                                            Communication Policy for Bordo
                                              Alesa            Bordo              Carti
                  Germany               U.S.A.         China           India                                    Germany         U.S.A.         China      India
              900,000
300,000                                                                                       700,000
              800,000
250,000       700,000                                                                         600,000
              600,000                                                                         500,000
200,000
              500,000
                                                                                              400,000
150,000       400,000
              300,000                                                                         300,000
100,000
              200,000                                                                         200,000
 50,000       100,000
                                                                                              100,000
                    0
     0
                             Period 0         Period 1         Period 2          Period 3   Period 4 0
              Period 0       Period 1         Period 2         Period 3          Period 4                Period 0    Period 1       Period 2       Period 3       Period 4



                         Communication Policy for Carti
                           Germany           U.S.A.            China           India
   250,000
                                                                                                          Expenses for product policy
                                                                                                          and communication policy as
   200,000
                                                                                                          per the strategy
   150,000

   100,000

     50,000

          0
                Period 0    Period 1     Period 2     Period 3    Period 4

                                                                                                                                                                             9
2
Demand Forecasting and Actual Sales
                           Forecasted       New Orders       Actual Sales
 180,000


 160,000


 140,000


 120,000


 100,000


  80,000


  60,000


  40,000


  20,000


      0
           0   1    2      3    4       0    1     2     3      4     0     1    2      3   4

                   Alesa                         Bordo                          Carti




High Demand forecasting error due to adoption of incorrect model &
Low order fulfillment for Period 3
                                                                                                    10
2
Sales Branch Expenses

                           Sales Branch Expense
                       Germany    U.S.A.          China   India
 800,000


 700,000


 600,000


 500,000


 400,000


 300,000


 200,000


 100,000


      0
           Period 0   Period 1         Period 2             Period 3   Period 4



 Typo in putting values for decision for period 3 for India


                                                                                      11
2
Pricing Policy for Products
                         Prices of Alesa                                                                      Price of Bordo
               Germany           U.S.A.         China            India                              Germany         U.S.A.         China      India
155                                                                                    220
                                                                                       218
150                                                                                    216
                                                                                       214
145                                                                                    212
                                                                                       210
140                                                                                    208
                                                                                       206
135                                                                                    204
                                                                                       202
130                                                                                    200
        Period 0      Period 1       Period 2           Period 3         Period 4            Period 0    Period 1       Period 2       Period 3       Period 4



                             Prices of Carti
                   Germany          U.S.A.           China          India
                                                                                       Decrease the price in period 4 for all the
  280
                                                                                       products due to error
  275

  270                                                                                  Competitors focused on Bordo and
                                                                                       Carti, so we shifted our focus to Alesa
  265

  260

  255
           Period 0      Period 1         Period 2           Period 3       Period 4


                                                                                                                                                                 12
2
  Country wise market share
                       Market Share of Alesa                                                          Market Share of Bordo
                   Germany        U.S.A.         China      India                                 Germany        U.S.A.         China      India
45.00                                                                          40.00
40.00                                                                          35.00
35.00                                                                          30.00
30.00
                                                                               25.00
25.00
                                                                               20.00
20.00
15.00                                                                          15.00
10.00                                                                          10.00
 5.00                                                                           5.00
 0.00                                                                           0.00
        Period 0       Period 1       Period 2       Period 3       Period 4           Period 0       Period 1       Period 2       Period 3       Period 4



                       Market Share of Carti
                   Germany        U.S.A.         China      India                       Expenses on
70.00
60.00
                                                                                        communication and
50.00                                                                                   product policy increased
40.00                                                                                   by almost 75% for India
30.00
20.00
10.00
 0.00
        Period 0       Period 1       Period 2       Period 3       Period 4


                                                                                                                                                              13
2
  Market Leader in 9 out of 12 segments in period 4
        Company wise Market Share for Alesa                                Company Wise Market Share for Bordo
       Blue Chip   BRUSS       Hoelderlinstrasse   SuperNova               Blue Chip   BRUSS       Hoelderlinstrasse   SuperNova
45%                                                               30%
40%
                                                                  25%
35%
30%                                                               20%
25%
                                                                  15%
20%
15%                                                               10%
10%
                                                                  5%
 5%
 0%                                                               0%
      Germany         U.S.A.               China          India           Germany         U.S.A.               China          India




        Company wise market share for Carti
                                                                        Market leader in all segments for Alesa
       Blue Chip   BRUSS       Hoelderlinstrasse   SuperNova
                                                                        Market leader in three segments for
35%
                                                                        Bordo
30%
25%
20%
                                                                        Market leader in two segemetnts for
15%
                                                                        Carti
10%
5%
0%
      Germany         U.S.A.               China          India

                                                                                                                                          14
Production
     University Report                                   3




15
                                                             15
                            Copyright Universum 2011
                              Copyright Universum 2008
Production Decisions                                             3
Period 1                             Period 2
Alesa - 53863                        Alesa - 0
Bordo - 126857                       Bordo – 94,393
Carti – 4723                         Carti – 72,837
TQM – 200,000 Euros                  TQM – 220,000 Euros
Production tech – 500,000            Production tech – 550,000
Training – 115,000                   Training – 115,000



Period 3                              Period 4
Alesa - 52000                         Alesa - 50000
Bordo - 142000                        Bordo - 50000
Carti – 0                             Carti – 0
TQM – 200,000 Euros                   TQM – 160,000 Euros
Production tech – 400,000             Production tech – 400,000
Training – 95,000                     Training – 115,000
Notices served to 120 employees in quarter 3
Will be recalled in Year 2, quarter 1
                                                                      16
Purchase
     University Report                                4




17
                                                          17
                           Copyright Universum 2010
                           Copyright Universum 2011
4
  Purchase Decisions : Period 1

As per strategy
•No production of Alesa; enough stock
•Exhaust raw material required for Alesa during period 2
and outsource Alesa for the coming periods
Orders to be made

                       Aurit            Bekat     Calot   Dimut
    Order of Raw
    Materials(Unit
         s)                 0           328071   374742   36380


                                Alesa            Bordo      Carti
       Order of Bought in
         Goods(Units)           17000             0           0
4
      Purchase Decisions : Period 1

• Things were revised in the morning by the production team.
• It planned to exhaust the raw materials for Alesa in Period 1 itself in
  order to utilize the idle capacity.
• Decisions for Period 2 were changed keeping in mind that there was
  vacation coming up during Period 3
• Hence Actual decisions taken


                                     Aurit   Bekat    Calot    Dimut
    Order of Raw Materials(Units)     0      267670   350867   67847
                                     Alesa   Bordo     Carti
   Order of Bought in Goods(units)    0        0        0
4
     Purchase Decisions : Period 2

Decision Making Criterion:
Completely outsource Alesa, no ordering of Aurit to be done
Demand of Alesa in Period 2 is met by the inventory of Alesa
40,000 units of Alesa outsourced to meet demand in Period 3


Decisions taken


                                       Aurit     Bekat    Calot    Dimut

      Order of Raw Materials(Units)      0      480,663   512513   67847

                                       Alesa     Bordo     Carti

     Order of Bought in Goods(units)   40,000      0        0
4
        Purchase Decisions : Period 3

Situation
The competitors were entering into Bordo and Carti. So we decided to enter into Alesa
   market once again to gain market share and hence thought of producing Alesa

Blunder Done in Period 3 order
Order of 512513 for Calot was a mistake. Half the order was actually required for
   production in Period 3

Hence Decisions taken

                                                Aurit     Bekat       Calot     Dimut


 Urgent orders of raw materials              141,039          0     39,080          0
                                                Aurit     Bekat       Calot     Dimut


 Orders of raw materials                      90,000          0          0          0
4
      Purchase Decisions : Period 4

No raw materials ordered, as sufficient inventory was there to meet the
   production demand of Period 4.
Since business is a going concern, we ordered the finished goods
   through outsourcing, as their payment is done of delivery only,
   thereby reducing the cash burden on Period 4.

Hence Decisions taken

                                      Aurit   Bekat     Calot   Dimut

   Orders of raw materials               0        0        0       0
                                     Alesa    Bordo     Carti


   Orders of bought-in goods        25,000    20,000   20,000
Finance
     University Report                               5




23
                                                         23
                          Copyright Universum 2011
                          Copyright Universum 2010
5
        Total Revenues


                               Revenues                                          Revenue Share of each product
40.00                                                    37.99
                                                                                         Alesa   Bordo      Carti
                                   34.39
35.00     31.75      31.45                                         100%
30.00
                                              24.30                80%
25.00
20.00                                                              60%
15.00
                                                                   40%
10.00
                                                                   20%
 5.00
 0.00                                                               0%
         Period 0   Period 1      Period 2   Period 3   Period 4          Period 0   Period 1    Period 2           Period 3   Period 4




               •Revenues are growing year on year (except period 3)

               •Followed our strategy till period 3 and then focus on Alesa
               instead of Carti due to high competition


                                                                                                                                          24
5
        Total Profits and D / E Ratio

                       Total Profit / Loss                                                D / E Ratio
2.00                                                               160%                                     147%
          1.22
                                                                   140%                                                128%
1.00                 0.55                                                                        119%
                                                                   120%    107%       107%
0.00
                                                                   100%
         Period 0   Period 1    Period 2
                                 -0.25       Period 3   Period 4
-1.00                                                              80%

-2.00                                                              60%
                                                         -2.14     40%
-3.00
                                                                   20%
-4.00                                                               0%
                                              -4.17                       Period 0   Period 1   Period 2   Period 3   Period 4
-5.00



                 •In Period 3, profits are low because of the revenue sales lost
                 and excess inventory of raw material

                 •In period 4, factoring done to retire loans of 9 mn
                 euros, incurring extra cost of 0.7 mn euros and high inventory
                 of Carti


                                                                                                                                 25
Going Concern
     University Report                                   6




26
                                                             26
                              Copyright Universum 2011
                              Copyright Universum 2010
6
Going Concern

•Market leader position restored in period 4 in 9 segments

•Cash Reserve of 9 mn.

•Short term debt to be taken as factoring has been done in this
period.

•Outsource the products if enough capacity is not there

•Hold the market leader position in the Alesa

•Improve the market position for Carti.




                                                                      27
Key Learnings
     University Report                                  6




28
                                                            28
                             Copyright Universum 2011
                             Copyright Universum 2010
7
Key Takeaways

•Small mistake make big difference

•Integrating the various functions of the business

•Product costing helps in taking pricing policy decision

•Demand forecast accuracy should be measured

•Trade off

    •Raw Material v/s Finished Good
    •Make v/s Buy finished goods

•Effect of communication policy, product policy, economic variables
on demand

•Maintain D / E ratio below threshold limit



                                                                          29

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IBSAP Presentation

  • 1. SPJIMR Klicka här för att ändra format på bakgrundstexten IBSAP- Group 7 Nivå två • Nivå tre • Nivå fyra • Nivå fem Company- 2-3 (Hoelderlinstrasse) Group – 7 Midhu Ragunathan, Jaikishan Gianani, Dexter Socorro Vaz, Himanshu Sharma, Shreesh Soni 1 Copyright Universum 2010 1 Copyright Universum 2010
  • 2. Content 1 1 Company’s Strategy 2 Marketing Strategy 3 Production 4 Purchase 5 Finance 6 Going Concern 7 Key Takeways 2
  • 3. 1 In the long run become an innovation driven company and get 40% of our profits from Carti (an innovative product). Market leaders in the Innovation category. Alesa will be phased out and Carti and Bordo will be continued. Bordo will soon become the cash cow while Carti will continue to remain the star. Goals There is a shift of power from the West to East and hence focus will gradually be shifted from West to the East over the four quarters. Growth will happen mainly in India and China. Our goals are three fold: 1) Profitability, 2) Market Share and 3) Sustainability. 3
  • 4. 1 Period Milestone/Goal 1st Period Increase penetration of Carti into all the markets by increasing Communication and Product Policy. Milestones-Period by Period 2nd Period Phasing out of Alesa starts. Production to be transferred to Bordo. The positioning of Borto to change from Innovation to functional. 3rd Period Focus shift from West to East. More promotions, greater selling and increasing market share in China and India 4th Period 40% profits from innovation products achieved across all four countries 4
  • 5. 1 •Strong presence in growing markets like India and China. •Economies of two major markets:- •Sizeable base for existing product Germany and US in decline. called Bordo. •Profitability affected by high •Successful introduction of new exchange rates. innovative product called Carti. •High fixed costs. SWOT Analysis •Demand for two major products of the company:- Bordo and Carti •Stiff competition from other to increase in all four countries. players in the emerging markets. •Economy of China and India is •Further economic slowdown up beat. The growth in these possible in US and Germany, regions will drive the growth of which could further reduce the the company. demand. 5
  • 6. 1 Star Question Mark Carti BCG Matrix Cow Dog Alesa Bordo 6
  • 7. Marketing & Sales Strategy 2 Klicka här för att ändra format på bakgrundstexten Nivå två • Nivå tre • Nivå fyra • Nivå fem 7 Copyright Universum 2010 7 Copyright Universum 2010
  • 8. 2 Our Strategy Alesa Bordo Carti Product Policy - Reduce - Maintain expenses - Increase expenses to expenses to increase demand reduce demand Communication - Reduce - Increase expenses - Increase expenses Policy expenses Pricing Policy - Reduce price - Maintain price - Maintain price Economic - Negative impact - Negative impact in - Negative impact in Condition in Germany, US Germany, US but positive in Germany, US but positive in but positive in China and India China and India China and India Product lifecycle - Degeneration. - Product in growth phase, - Product in growth phase, So demand will hence demand will increase hence demand will increase reduce 8
  • 9. 2 Selling Expenses for each product Product Policy Communication Policy for Alesa Communication Policy for Bordo Alesa Bordo Carti Germany U.S.A. China India Germany U.S.A. China India 900,000 300,000 700,000 800,000 250,000 700,000 600,000 600,000 500,000 200,000 500,000 400,000 150,000 400,000 300,000 300,000 100,000 200,000 200,000 50,000 100,000 100,000 0 0 Period 0 Period 1 Period 2 Period 3 Period 4 0 Period 0 Period 1 Period 2 Period 3 Period 4 Period 0 Period 1 Period 2 Period 3 Period 4 Communication Policy for Carti Germany U.S.A. China India 250,000 Expenses for product policy and communication policy as 200,000 per the strategy 150,000 100,000 50,000 0 Period 0 Period 1 Period 2 Period 3 Period 4 9
  • 10. 2 Demand Forecasting and Actual Sales Forecasted New Orders Actual Sales 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 0 1 2 3 4 0 1 2 3 4 0 1 2 3 4 Alesa Bordo Carti High Demand forecasting error due to adoption of incorrect model & Low order fulfillment for Period 3 10
  • 11. 2 Sales Branch Expenses Sales Branch Expense Germany U.S.A. China India 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 Period 0 Period 1 Period 2 Period 3 Period 4 Typo in putting values for decision for period 3 for India 11
  • 12. 2 Pricing Policy for Products Prices of Alesa Price of Bordo Germany U.S.A. China India Germany U.S.A. China India 155 220 218 150 216 214 145 212 210 140 208 206 135 204 202 130 200 Period 0 Period 1 Period 2 Period 3 Period 4 Period 0 Period 1 Period 2 Period 3 Period 4 Prices of Carti Germany U.S.A. China India Decrease the price in period 4 for all the 280 products due to error 275 270 Competitors focused on Bordo and Carti, so we shifted our focus to Alesa 265 260 255 Period 0 Period 1 Period 2 Period 3 Period 4 12
  • 13. 2 Country wise market share Market Share of Alesa Market Share of Bordo Germany U.S.A. China India Germany U.S.A. China India 45.00 40.00 40.00 35.00 35.00 30.00 30.00 25.00 25.00 20.00 20.00 15.00 15.00 10.00 10.00 5.00 5.00 0.00 0.00 Period 0 Period 1 Period 2 Period 3 Period 4 Period 0 Period 1 Period 2 Period 3 Period 4 Market Share of Carti Germany U.S.A. China India Expenses on 70.00 60.00 communication and 50.00 product policy increased 40.00 by almost 75% for India 30.00 20.00 10.00 0.00 Period 0 Period 1 Period 2 Period 3 Period 4 13
  • 14. 2 Market Leader in 9 out of 12 segments in period 4 Company wise Market Share for Alesa Company Wise Market Share for Bordo Blue Chip BRUSS Hoelderlinstrasse SuperNova Blue Chip BRUSS Hoelderlinstrasse SuperNova 45% 30% 40% 25% 35% 30% 20% 25% 15% 20% 15% 10% 10% 5% 5% 0% 0% Germany U.S.A. China India Germany U.S.A. China India Company wise market share for Carti Market leader in all segments for Alesa Blue Chip BRUSS Hoelderlinstrasse SuperNova Market leader in three segments for 35% Bordo 30% 25% 20% Market leader in two segemetnts for 15% Carti 10% 5% 0% Germany U.S.A. China India 14
  • 15. Production University Report 3 15 15 Copyright Universum 2011 Copyright Universum 2008
  • 16. Production Decisions 3 Period 1 Period 2 Alesa - 53863 Alesa - 0 Bordo - 126857 Bordo – 94,393 Carti – 4723 Carti – 72,837 TQM – 200,000 Euros TQM – 220,000 Euros Production tech – 500,000 Production tech – 550,000 Training – 115,000 Training – 115,000 Period 3 Period 4 Alesa - 52000 Alesa - 50000 Bordo - 142000 Bordo - 50000 Carti – 0 Carti – 0 TQM – 200,000 Euros TQM – 160,000 Euros Production tech – 400,000 Production tech – 400,000 Training – 95,000 Training – 115,000 Notices served to 120 employees in quarter 3 Will be recalled in Year 2, quarter 1 16
  • 17. Purchase University Report 4 17 17 Copyright Universum 2010 Copyright Universum 2011
  • 18. 4 Purchase Decisions : Period 1 As per strategy •No production of Alesa; enough stock •Exhaust raw material required for Alesa during period 2 and outsource Alesa for the coming periods Orders to be made Aurit Bekat Calot Dimut Order of Raw Materials(Unit s) 0 328071 374742 36380 Alesa Bordo Carti Order of Bought in Goods(Units) 17000 0 0
  • 19. 4 Purchase Decisions : Period 1 • Things were revised in the morning by the production team. • It planned to exhaust the raw materials for Alesa in Period 1 itself in order to utilize the idle capacity. • Decisions for Period 2 were changed keeping in mind that there was vacation coming up during Period 3 • Hence Actual decisions taken Aurit Bekat Calot Dimut Order of Raw Materials(Units) 0 267670 350867 67847 Alesa Bordo Carti Order of Bought in Goods(units) 0 0 0
  • 20. 4 Purchase Decisions : Period 2 Decision Making Criterion: Completely outsource Alesa, no ordering of Aurit to be done Demand of Alesa in Period 2 is met by the inventory of Alesa 40,000 units of Alesa outsourced to meet demand in Period 3 Decisions taken Aurit Bekat Calot Dimut Order of Raw Materials(Units) 0 480,663 512513 67847 Alesa Bordo Carti Order of Bought in Goods(units) 40,000 0 0
  • 21. 4 Purchase Decisions : Period 3 Situation The competitors were entering into Bordo and Carti. So we decided to enter into Alesa market once again to gain market share and hence thought of producing Alesa Blunder Done in Period 3 order Order of 512513 for Calot was a mistake. Half the order was actually required for production in Period 3 Hence Decisions taken Aurit Bekat Calot Dimut Urgent orders of raw materials 141,039 0 39,080 0 Aurit Bekat Calot Dimut Orders of raw materials 90,000 0 0 0
  • 22. 4 Purchase Decisions : Period 4 No raw materials ordered, as sufficient inventory was there to meet the production demand of Period 4. Since business is a going concern, we ordered the finished goods through outsourcing, as their payment is done of delivery only, thereby reducing the cash burden on Period 4. Hence Decisions taken Aurit Bekat Calot Dimut Orders of raw materials 0 0 0 0 Alesa Bordo Carti Orders of bought-in goods 25,000 20,000 20,000
  • 23. Finance University Report 5 23 23 Copyright Universum 2011 Copyright Universum 2010
  • 24. 5 Total Revenues Revenues Revenue Share of each product 40.00 37.99 Alesa Bordo Carti 34.39 35.00 31.75 31.45 100% 30.00 24.30 80% 25.00 20.00 60% 15.00 40% 10.00 20% 5.00 0.00 0% Period 0 Period 1 Period 2 Period 3 Period 4 Period 0 Period 1 Period 2 Period 3 Period 4 •Revenues are growing year on year (except period 3) •Followed our strategy till period 3 and then focus on Alesa instead of Carti due to high competition 24
  • 25. 5 Total Profits and D / E Ratio Total Profit / Loss D / E Ratio 2.00 160% 147% 1.22 140% 128% 1.00 0.55 119% 120% 107% 107% 0.00 100% Period 0 Period 1 Period 2 -0.25 Period 3 Period 4 -1.00 80% -2.00 60% -2.14 40% -3.00 20% -4.00 0% -4.17 Period 0 Period 1 Period 2 Period 3 Period 4 -5.00 •In Period 3, profits are low because of the revenue sales lost and excess inventory of raw material •In period 4, factoring done to retire loans of 9 mn euros, incurring extra cost of 0.7 mn euros and high inventory of Carti 25
  • 26. Going Concern University Report 6 26 26 Copyright Universum 2011 Copyright Universum 2010
  • 27. 6 Going Concern •Market leader position restored in period 4 in 9 segments •Cash Reserve of 9 mn. •Short term debt to be taken as factoring has been done in this period. •Outsource the products if enough capacity is not there •Hold the market leader position in the Alesa •Improve the market position for Carti. 27
  • 28. Key Learnings University Report 6 28 28 Copyright Universum 2011 Copyright Universum 2010
  • 29. 7 Key Takeaways •Small mistake make big difference •Integrating the various functions of the business •Product costing helps in taking pricing policy decision •Demand forecast accuracy should be measured •Trade off •Raw Material v/s Finished Good •Make v/s Buy finished goods •Effect of communication policy, product policy, economic variables on demand •Maintain D / E ratio below threshold limit 29