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Business Stimulation Workshop Company "Gujju 3-1 Mallu": Click To Edit Master Subtitle Style

The company "Gujju 3-1 Mallu" made various business decisions over four periods that ultimately led to bankruptcy. In period 1, income from sales reduced by 83% due to low investment in production and sales branches. In period 2, the company tried to recover by doubling raw material orders and investing in sales branches, increasing sales by 300-330%. However, losses increased again in period 3. By period 4, despite further investments, losses had increased so much that the company went bankrupt.

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Prerna Narayan
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137 views15 pages

Business Stimulation Workshop Company "Gujju 3-1 Mallu": Click To Edit Master Subtitle Style

The company "Gujju 3-1 Mallu" made various business decisions over four periods that ultimately led to bankruptcy. In period 1, income from sales reduced by 83% due to low investment in production and sales branches. In period 2, the company tried to recover by doubling raw material orders and investing in sales branches, increasing sales by 300-330%. However, losses increased again in period 3. By period 4, despite further investments, losses had increased so much that the company went bankrupt.

Uploaded by

Prerna Narayan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Business Stimulation Workshop Company Gujju 3-1 Mallu

Click to edit Master subtitle style Group: Nishith Suchak (43) Abdul Basith (49) Dishti Naik (56) Keval Ganatra (61)

4/15/12

DECISIONS AND RESULTS FOR PERIOD- 1

4/15/12

COMPANY DECISION L.M- 90,000 Alesa Product Policy Price Policy Communication Distribution Constant value Dec. 1.5% Inc. 0.5% Dec. 22.7% Payment of dividends- 2% SALES DECISION Bordo Constant value Inc.1.44% Inc. 2.25% Inc. 9.5% Carti Constant value Inc. 0.49% Inc. 1.37% Inc. 11.21%

Sales Branches:- Germany- Dec.66% U.S.-Dec by 67% China-Dec. 51% India- Dec 65% No investment done in training of salesDECISION PURCHASE person No Urgent orders of R.M R.M purchase was reduced by 65% & bough-in goods cost 1.2lc PRODUCTION DECISION Alesa Reduced production Factoring NO 4/15/12 Bordo Carti -96.5517 -56.2555 -65.081 FINANCE DECISION

Redemption of long term loans 100000

12 10 8 6 4 2 0

12 10 8 6 4 2

D/E ratio

12 10 8

Profit/Loss Market Share

6 4 2 0

4/15/12

Key Notes:Income from sales reduced by 83.4%. V.C reduce & F.C increase Extra cost for storage of R.M incurred Low investment in Sales branches

DECISIONS AND RESULTS FOR PERIOD- 2

4/15/12

COMPANY DECISION L.M- 90,000 Alesa Product Policy Price Policy Communication Distribution Inc. 2% Inc. 0.95% Inc. 0.37% Inc. 47.64% Payment of dividends- 2% SALES DECISION Bordo Inc. 4% Inc. 5.06% Inc. 1% Inc. 39.81% Carti Inc. 3% Inc. by 5.03% Inc. 3% Inc. 75.03%

Sales Branches:- Germany- Inc.300% U.S-Inc.330% China- Inc.185% IndiaInc.300% No investment in training ofPURCHASE DECISION sales person Urgent orders of R.M made for all material except Aurit R.M purchase was increased by double & bough-in goods cost orderd PRODUCTION DECISION Alesa Bordo Carti Quantity production in Dec. 52 Inc. Inc. 6000 FINANCE DECISION 500 % Factoring Yes except India Redemption of long term loans -No 4/15/12

12 10 8 6 4 2 0

12 10 8 6 4 2 0 12 10

D/E ratio

8 6 4 2

Market Share

Loss

4/15/12

DECISIONS AND RESULTS FOR PERIOD- 3

4/15/12

COMPANY DECISION L.M- 90,000 Alesa Product Policy Price Policy Communication Distribution Kept same as period 2 Inc. 0.88% No change Dec. 82% Inc. 1% Inc. 3% Dec. 49% Inc. 0.99% Inc. 5% Inc. 75% Payment of dividends- 2% SALES DECISION Bordo Carti

Sales Branches:- Germany- Dec 38% U.S.-Dec.40% China-Dec.35% IndiaDec.39% Training of sales person- Inc. investment by 5% PURCHASE DECISION No Urgent orders of R.M No change except Bought-in goods not ordered PRODUCTION DECISION Only Alesa was produced. Rest no change from previous period FINANCE DECISION Factoring Yes except India 4/15/12 Redemption of long term loans-No

12 10 8 6 4 2 0

12 10 8 6 4 2 0

D/E ratio

12 10 8 6

Market Share

Loss

4 2 0

4/15/12

DECISIONS AND RESULTS FOR PERIOD- 4

4/15/12

COMPANY DECISION L.M- 90,000 Alesa Product Policy Price Policy Communication Distribution Kept same as period 3 Inc. 2% Inc. 2% Inc.600% Inc.1.7% Inc. 2% Dec. 32% Inc.2.26% Inc. 3% Inc.170% Payment of dividends- 2% SALES DECISION Bordo Carti

Sales Branches:- Germany- Inc.17% U.S-Inc.18% China- Inc.9% IndiaInc.15% Investment in training of sales person increased by 97% PURCHASE DECISION No Urgent orders of R.M Normal order of R.M. was less then that of period 0 PRODUCTION DECISION All the 3 products were produced. Priority :- Carti- 1,Alesa- 2 and Bordo- 3 FINANCE DECISION Factoring NO 4/15/12 Redemption of long term loans 100000

12 10 8 6 4 2 0

12 10 8 6 4 2 0

D/E ratio

Loss

Market Share

4/15/12

D/E ratio
12 10 8 6 4 2 0

Got major loss in period 1 due to sales dropped by 83%. Investment made was very low in production & sales branches

Tried to recover loss in period 2 by investing the surplus money in ordering R.M & sales branches.

Profit/Loss
12 10

Loss again increased in period 3


Got bankrupted in period 4

4/15/12

THANK YOU

4/15/12

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