1. ACAD GROUP NUMBER 30
ARCHANA KUMARI (PGP-10-105)
ASHWINI R (PGP-10-111)
JAIKISHAN GIANANI (PGP-10-123)
KRISHNA CHAITANYA S (PGP-10-129)
MANU VOHRA (PGP-10-131)
RICHA VINAY THRIPATI (PGP-10-153)
PEOPLE AND PERFORMANCE II
2. GP has been in the business of The industry has been
manufacturing and marketing of dominated by four players
cigarettes and tobacco products who supply about ninety
over the last 5 decades percent of the sales volume
It has 2 plants – one at Mumbai
The Industry follows a
with 65% volume and 1100
strict hierarchical
staff, other at Ghaziabad with 300 The Industry has
structure
staff. become “a
Corporate
Management
milking cow “ for
at Delhi Government
Revenue.
Factory
manager
Production & Quality Research & Human
Distribution
Materials Control Development Resources
3. Shrinking profits due to:
• Decreasing sales due to increasing health awareness among consumers
• Heavy excise taxes by the government
• Decreasing FDI
• High concentration of power with the union, which impedes strategic
decision making
• Possibility of further disruption due to union rivalry
The severity of these issues is high, and is threatening to lead the unit to
closure
4. • Encouraging the consumption of non cigarette tobacco which includes
rolled cigarettes.
• Setting up a Guiding Team to address the challenges faced by the industry
like product innovation, technology upgradation etc.
• Creating an internal union of workers and staff which is free from the
influence of external members
• Reducing the influence of external members like those from ruling
Government party and from the competitors’ company so that the
internal members of the union have a greater say in the Union’s decisions.
• Sending a team of experts to their foreign counterparts to counter the
effect of reduced FDI and bring latest technology and put them to practice
so as to bring down the cost of production and increase profit margins.
5. • We suggest a 2 phase solution to the problems faced by GP.
• Phase 1
Creating the guiding team, which will work on product innovations, and explore the existing
markets for the products in the non-cigarette tobacco segment, like rolled cigarettes. This
team will brainstorm and decide the product mix to be made available in the market, which
can be brought into production using the unused capacity at the factory units.
• Phase 2
Creating a core team of existing experienced workers and internal workers from the existing
union, and involving them in the decision making process and creating a sense of shared
responsibility to help reduce the influence of the external factors in the union.
6. • We intend to achieve the following goals from our solutions:
1. Increasing the productivity of the unit by using the unused capacity to
produce a diversified market offering.
2. Increase the profit by capturing new markets, like the non-cigarette
tobacco market.
3. Bringing stability to the organization structure by reducing external
influence.
4. Increasing the competitiveness of the company, by staying a step ahead
of competition in innovation and exploring new markets using the
expertise of the guiding team.
