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    HBO Case Study

    Uploaded by

    K Ramesh
    This document outlines a consultancy assignment to help Agrawal Industries address several issues affecting its performance. The company operates four factories but has experienced declining sales and profits since the death of Sundarlal, who previously oversaw factory operations. Problems include ego clashes between factory managers, lack of cooperation between managers and salespeople, high operating costs, resignations of sales executives, and demands from a newly formed trade union. The consultancy is asked to recommend solutions such as hiring a more experienced executive to oversee factory managers, investing in new machines, linking salaries to profits, and negotiating with the trade union to avoid strikes.

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    HBO Case Study

    Uploaded by

    K Ramesh
    75 views5 pages
    This document outlines a consultancy assignment to help Agrawal Industries address several issues affecting its performance. The company operates four factories but has experienced declining sales and profits since the death of Sundarlal, who previously oversaw factory operations. Problems include ego clashes between factory managers, lack of cooperation between managers and salespeople, high operating costs, resignations of sales executives, and demands from a newly formed trade union. The consultancy is asked to recommend solutions such as hiring a more experienced executive to oversee factory managers, investing in new machines, linking salaries to profits, and negotiating with the trade union to avoid strikes.

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    pandoras box

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    This document outlines a consultancy assignment to help Agrawal Industries address several issues affecting its performance. The company operates four factories but has experienced declining sales and profits since the death of Sundarlal, who previously oversaw factory operations. Problems include ego clashes between factory managers, lack of cooperation between managers and salespeople, high operating costs, resignations of sales executives, and demands from a newly formed trade union. The consultancy is asked to recommend solutions such as hiring a more experienced executive to oversee factory managers, investing in new machines, linking salaries to profits, and negotiating with the trade union to avoid strikes.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    75 views5 pages

    HBO Case Study

    Uploaded by

    K Ramesh
    This document outlines a consultancy assignment to help Agrawal Industries address several issues affecting its performance. The company operates four factories but has experienced declining sales and profits since the death of Sundarlal, who previously oversaw factory operations. Problems include ego clashes between factory managers, lack of cooperation between managers and salespeople, high operating costs, resignations of sales executives, and demands from a newly formed trade union. The consultancy is asked to recommend solutions such as hiring a more experienced executive to oversee factory managers, investing in new machines, linking salaries to profits, and negotiating with the trade union to avoid strikes.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 5

    Opening Up the Pandora’s Box –

    A Consultancy Assignment

    1
    Case summary
    ● Mr. Manoharlal Agrawal started Agrawal Industries Pvt. Ltd. for lock and key business
    ● After a few years,he and his brother decided to set up three more factories for
    ➢ Small tools such as chisel, hammers, fitters
    ➢ Bolts nuts and machine parts
    ➢ Cylinder for industrial gases
    ● Manoharlal took care of the finances and the sales while Sundarlal handled all the factory
    affairs
    ● The factories were performing well but after Sundarlal’s death, the performance declined
    ● Manoharlal was unable to handle the internal factory affairs that Sundarlal handled previously
    and hence he wanted help of IIM Rohtak to come up with solutions for his company

    2
    Problems
    ● Ego tussle between the three factory managers
    ● No cooperation between factory managers and salesmen
    ● Factory managers felt threatened by Mr. Chatterjee’s appointment
    ● Decline in sales; Operating cost going out of control; declining profit margins
    ● Resignation of high performing sales executives and sales team members
    ● Formation of trade union by workers in the three factories demanding wage revision
    ● Increasing staffing as well as salary which burdened the cash flow of the company
    ● Hierarchy & order of management wasn't being followed

    3
    Decisions
     Manoharlal’s idea of hiring Mr. Chatterjee to oversee the three factory
    managers failed because Mr. Chatterjee was similar in age and
    experience to the factory managers. Hence we recommend to hire a
    person with more experience than the factory managers in the position
    of Mr. Chatterjee
     In consultation with the newly hired executive, decide if investment in
    new machine would be a good option to reduce the operating cost
     Link the salary structure of the senior employees with the profitability of
    the company for better accountability
     Negotiate with the trade union and make sure they don’t go on a strike
    4
    Thank You

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