Kanpur Confectioneries Pvt. Ltd

problemIt is described as a situation which needs an action to be taken and keeping this in viewthe situations are:

Short term situation:

Offer of A One Confectioneries Pvt. Ltd.(APL)Medium term situation:

Emerge as a strong competitor and reduce the cost of productionLong term situation:

Become a leader in the market of glucose biscuits and extend the market segmentto premier customers.Mohan Kumar Gupta had very good business foresight and skil ls but his sons who handled the business were not so efficient as him.SYMPTOMS:M o h a n   G u p t a   c a p t u r e d   t h e   2nd

l a r g e s t   m a r k e t   s h a r e   w i t h   p r o d u c t i o n   o f  1 1 0 tonnes/month within 3yrs of commencement of KCPL but his sons were not able toincrease production beyond 120 tonnes/month even after expansion of prod. capacity to240 tonnes/month.The HR Manager Vivek Gupta failed to reduce the rate of absenteeism.Help of technicians was sought but improvement in production or other areas was notevident. Net profits of the company were declining even after increase in turnover.

CRITERIA:In deciding criteria SWOT Analysis is used to evaluate various aspects of business: {Internal factors} {External factors}Strengths:Decision making is participativeEthical values Non-interference in managementProduction capacity = 240tonnes/monthWeakness:Under utilization of prod. capacityHigh percentage of absenteeismWastage in moreOpportunities:Explore new marketsIncrease current share in marketBecome CMU(Contract Man. Unit)Threats:Government taxesUnorganized sector Organized sector Low cost ovens