case study: - taking over dad's business

MBA (FT) 1 S T SEMESTERSUBJECT: - FUNDAMENTALS OF MANAGEMENT

SUBMITTED BY: - SHRUTI PENDHARKAR

CASE STUDY: -TAKING OVER DAD’S BUSINESS

CONTENTS

• Introduction

• SWOT Analysis

• Suggestions

• Conclusion

• Questions and Answer

INTRODUCTION

Indore Ice Company has been in operation for over 50 years manufacturing ice for all purposes, ranging from: - Crushed ice for convenience store Block ice for industrial use

Mr. AJIT managed the plant for the past 30 years. Used to work along with the worker, but used to spend very less

amount of time for office work. The only philosophy he was working on was that the old

fashioned business has to work in old-fashioned ways. Never used to trust the employees and provided no authority to

the supervisors. Two month ago MR. AJIT died ,and now his son BRIJ who was

pursuing his career in advertising in Bombay is considered to take over the business.

In October, Brij arrived at Indore Ice Company and was astonished to see the company’s downfall and irregular working procedures.

He heard from the employees that, there were no specific rule, polices or procedure in the company and they were having no specific job as in the morning Mr. Ajit used to give them the details of the work they have to perform.

Absenteeism and tardiness were also major problem.

While analyzing the records he found out that the company has lost considerable amount of money due to decrease in the sales for last two year.

The annual turnover rate average about 75% over the past five years. And this Ice company was the only large ice company in the major metropolitan area. He later learned that many vendors, dissatisfied cause of late deliveries.

Now he has the responsibility to manage the company, it’s employees and it’s customers while satisfying all the needs and increasing overall productivity of his company.

CHARACTERISTICSIt was the largest company in the city.Unskilled labor to sales and supervisory personnel.Conventional style of working.Autocratic system.No hierarchy system, organization was centralized.No proper planning was there. Nobody really knows

what job they have top perform.No rules, policies, procedure were there.Absenteeism and tardiness.No staffing.Poor customer service.No proper use of supervisors and subordinates.No proper compilation of record were there.

SWOT Analysis

STRENGTHS (S)

Company’s operation for over 50 years. In such huge operation time a trust and

reliability factor comes into existence.

Advertising Mr. Ajit’s son Brij, pursued career in

advertising. So he can use his advertising skills in promotion of his company.

WEAKNESSES (W)No Staffing. No effective utilization of manpowerConservative way of working.Autocratic system.Centralization, no hierarchy system.No policies, procedures, or rules to refer.No planningAbsenteeism and tardinessPoor customer service (delayed delivery)No sprit de corpsNo proper compilation of record (work done,

employees performance, turnout)Not open to new ideas

OPPORTUNITIES (O)

Only ice company in the city. Ice company is only large ice company in the

major metropolitan area with 12% of total business.

Expansion of business Can cover other market of other cities by established

franchise to increase there productivity and turnover.

THREATS (T)Competition

Downfall of the company can result in increase of the competition in the market as many new company taking over it’s place.

Good resources and technology Use of good resources and

technology will require skilled labor and smart worker to make and effective use of resources while increasing the productivity,

SUGGESTIONS

Management is a process of Planning, Organizing, Staffing, Directing, Coordinating, and Controlling for determination and achieving of organizational objective in dynamic environment.

Minimize the weakness and threats.

Maximize there strengths and opportunity.

According to the above definition of management here are some suggestions provided by us to Brij, which will be helpful for him to increase it’s profits

SUGGESTIONS Planning and Designing of the

Rules ( work timings, behavior, disciplines) policies, strategies, budget and objectives of the company.

He should identify the activities (problems, needs of company and employees, preparation of accounts)

Grouping of activities.

Planning

What to do?

How to do?

Who will do?

Should be open to new ideas and should review company’s polices and rules on yearly basis.

Should develop an positive environment having cooperating behavior and unity while working.

Proper staffing should be there (identifying manpower requirement, recruitment , selection, assigning jobs according to capabilities)

Design a proper management hierarchy system, and assigning the jobs according to the skills of employee and should provide the authority accordingly.

Provide a framework for measurement and evaluation and control.

Can use his advertising skills in promotion of his company. Customer satisfaction is of utmost priority. With the proper

planning and division of work customer should be satisfied with timely deliveries and proper behavior.

CONCLUSION

As by the suggestions provided, Brij can implement these ideas and can improve the production and efficiency of his company with a proper working environment, fulfilling the needs of employees on individual as well as organization level. And by also satisfying the needs the customers with timely deliveries and best response.

QUESTIONS & ANSWER

Analyze the situation existing in the company?

The situation of the company is highly disturbed. It was the largest company in the city but now there’s a

decrease in sales over past two years.Unskilled labor to sales and supervisory personnel.Conventional style of working.Autocratic system.No hierarchy system, organization was centralized.No proper planning was there. Nobody really knows what job

they have top perform.No rules, policies, procedure were there.Absenteeism and tardiness.No staffing.Poor customer service.No proper use of supervisors and subordinates.No proper compilation of record were there.

What can Brij do to straighten things out?

Time is the essence of the agreement ( Mutual understanding between two parties ) Mr. brij should focus on timely deliveries .

Control on the wastage in terms of material, man power, energy etc.

proper utilization of man power with its capability. Division of work – by dividing the work among the workers

and making supervisors so that the controlling is done. Everyday each supervisor must submit the report to Mr.

brij on the amount and work which is done Absenteeism must be eradicated by giving bonus points

and best worker of the month and incentives yearly. Making industrial contacts and industry visit and offering

handsome prices for ice purchases. Training workers, providing training classes. Setting rules, policies and goals for the organization .

What principles of organization have been violated?

Principles violated by the organisation are--

According to Henry Fayol’s DIVISION OF WORK – this principle is violated by the organisation .

There must be centralization of work at different levels. UNITY OF DIRECTION- the organisation is lacking unity of direction. No

particular motive ,no goals, no team spirit . DISCIPLINE– It is the most important factor for an organisation to work

cohesively and must be focused irrespective of personal life.

According to Max Weber— MANAGEMENT BY RULES AND REGULATIONS– there were no rules just

autocratic operating system. FORMAL WRITTEN RECORDS— the records were managed by one

C.A.’s old book. IMPERSONAL RELATIONSHIPS WITH EMPLOYEES—To know where are

they lacking and where they needing assistance and support.