Professional Documents
Culture Documents
Ankit Jain Nahar (MS12A010) Archana Sinha (MS12A015) Jalaj Thakor (MS12A038) Kinjan Shah (MS12A040)
High Cost Impact of recession Decreasing number of orders Negative cumulative cash flow for PPD Heavy investment in Fixed asset and working capital
Assessment Levels
Product
Market Geography
1. 2. 3. 4.
1. 2. 3. 4.
Oil
Rubber
FAS
Market Size
Growth Price sensitivity Diversity of market
$1.17 bn
8% Very Sensitive Less
$0.5 bn
10% Sensitive Moderate
$0.66 bn
16% Sensitive High
Competition
Oil
Type Concentration Heavy Less
Rubber
Moderate Less Less Less
FAS
Financial / Economical
High Less
High Moderate
High High
Technological
Oil
Technology requirements Maturity Moderate Less
Rubber
Moderate Less High Less
FAS
Environmental
Recession Trends
High Neutral
Moderate Positive
Score Market size Growth Competition Financial Technology Environment and trends 1 0 0.5 0.5 0.5 0.5
Weight 10 15 20 30 5 20
Ranking 10 0 10 0 2.5 10
32.5
Score Market size Growth Competition Financial Technology and innovation Environment and trends 0 0.5 0.5 0.5 0.5 0.5
Weight 10 15 20 30 5 20
45
Score Market size Growth Competition Financial Technology and innovation Environment and trends 0.5 1 1 0.5 0.5 0.5
Weight 10 15 20 30 5 20
Ranking 5 15 20 15 2.5 10
67.5
Business Position: Oil Score Product quality Product specialization Manufacturing scale and cycle 1 0 1 10 10 15 Weight 10 0 15 Ranking
R&D
Marketing expertise Sales
0.5
1 0.5
20
15 20
10
15 10
Service
0.5
10
5
65
Business Position: Rubber Score Product quality Product specialization Manufacturing scale and cycle 1 1 0.5 10 10 15 Weight 10 10 7.5 Ranking
R&D
Marketing expertise Sales
0.5
0.5 0.5
20
15 20
10
7.5 0
Service
0.5
10
5
50
Business Position: FAS Score Product quality Product specialization Manufacturing scale and cycle 1 1 0.5 10 10 15 Weight 10 10 7.5 Ranking
R&D
Marketing expertise Sales
0.5
1 1
20
15 20
10
15 20
Service
0.5
10
5
77.5
Rubber
Oil
0 100
0 100
Oil
0 100
Strategy to adopt Oil: Harvest for short time period Rubber: Defend in the short run, Strive for growth in the long run through wide applications of the products, Target international market with increased sales force as its mostly B2B, it can be managed FAS: Strive for growth, Target third world countries market with innovative products and applications, Cost reduction and innovation through R&D investment Similarly an assessment can be done on market geography level, which would give a clear understanding of how much investment to be done in third world countries in the long run
Immediate stratgey to cope up with Cash Constraint Discount offers on Cash payment While approaching to previous customers who have large balance outstanding, discount can be offered on cash payment This plan can be offered to bulk buyers Focused sales force and distribution channel Reduce sale incentive for short time period Focus more on fast delivery to distributers so not to lose a customer Change in capacity utilization Leverage economy of scale with minimum price increase It will keep cash book ringing Look for other sources of raw materials Different sources and substitutes can be explored