Situation Analysis:
Kanpur Confectioneries Private Limited (KCPL) is a family business started in 1945 by Mohan Kumar Gupta and then passing on the legacy to his eldest son Alok Kumar, the current Chairman and Managing Director of KCPL. Being a family business lot of emotions are attached to the business and the vision of the founder. MKG brand was established and promoted by KCPL.KCPL is currently in the biscuit manufacturing business.
If we talk about biscuit industry, then it was very easy for anyone to enter into this line of business as the investment was very low, no skilled labour required and easy availability of raw material. Apart from these the process of production was very simple and the equipments needed for the production were …show more content…
As KCPL would have offer of 70 tonnes of biscuit per month, they would minimize their losses.
KCPL has to react on this offer as early as possible because other biscuit manufacturers re also in the line of getting the business from APL.
2. Accept the APL offer and keep the Pearson offer as well.
Due to this reputation of KCPL will remain intact as they would be producing and selling MKG brand in the market as well.
As KCPL would have offer from both APL and Pearson, they would be utilizing their full capacity. This would minimize their losses and raising the sales.
KCPL has to react on this offer as early as possible because other biscuit manufacturers re also in the line of getting the business from APL.
This offer again will turn KCPL into a contract manufacturer in turn, forgetting the dream of founder of becoming a leading national brand.
3. Accept the APL offer, but limit the order size from APL.
Due to this reputation of KCPL will remain intact as they would be producing and selling MKG brand in the market as well.
Losses will be minimized in this case, but not to the extent as they are minimized in the above …show more content…
5. Delay APL offer for some time and wait for Pearson to increase its order.
The reputation and brand of MKG would remain unchanged even if Pearson increases their order. People perceive Pearson as good health biscuit , hence increasing its order would not have an effect on MKG reputation.
If orders are increased from Pearson side, then the losses could be minimized.
There is time constraint in this situation as there are many other companies who are waiting for APL offer.
The dream and vision of founder will remain intact.
Recommendation :
Accept the APL offer, but limit the order size from APL. This will ensure that KCPL is minimizing their losses, but still keeping the reputation and brand MKG intact.
Action Plan:
Before accepting the offer KCPL should inform both Pearson and APL about each other and making sure that their data remains confidential.
KCPL should accept the offer of 70 tonnes per month from APL, this will help in minimizing their losses and utilizing their capacity. If at all APL increases their order KCPL should limit it 100 tonnes per month, this will make sure the capacity is fully utilized and KCPL would be still working on their
Kanpur Confectioneries Private Limited (KCPL) is a family business started in 1945 by Mohan Kumar Gupta and then passing on the legacy to his eldest son Alok Kumar, the current Chairman and Managing Director of KCPL. Being a family business lot of emotions are attached to the business and the vision of the founder. MKG brand was established and promoted by KCPL.KCPL is currently in the biscuit manufacturing business.
If we talk about biscuit industry, then it was very easy for anyone to enter into this line of business as the investment was very low, no skilled labour required and easy availability of raw material. Apart from these the process of production was very simple and the equipments needed for the production were …show more content…
As KCPL would have offer of 70 tonnes of biscuit per month, they would minimize their losses.
KCPL has to react on this offer as early as possible because other biscuit manufacturers re also in the line of getting the business from APL.
2. Accept the APL offer and keep the Pearson offer as well.
Due to this reputation of KCPL will remain intact as they would be producing and selling MKG brand in the market as well.
As KCPL would have offer from both APL and Pearson, they would be utilizing their full capacity. This would minimize their losses and raising the sales.
KCPL has to react on this offer as early as possible because other biscuit manufacturers re also in the line of getting the business from APL.
This offer again will turn KCPL into a contract manufacturer in turn, forgetting the dream of founder of becoming a leading national brand.
3. Accept the APL offer, but limit the order size from APL.
Due to this reputation of KCPL will remain intact as they would be producing and selling MKG brand in the market as well.
Losses will be minimized in this case, but not to the extent as they are minimized in the above …show more content…
5. Delay APL offer for some time and wait for Pearson to increase its order.
The reputation and brand of MKG would remain unchanged even if Pearson increases their order. People perceive Pearson as good health biscuit , hence increasing its order would not have an effect on MKG reputation.
If orders are increased from Pearson side, then the losses could be minimized.
There is time constraint in this situation as there are many other companies who are waiting for APL offer.
The dream and vision of founder will remain intact.
Recommendation :
Accept the APL offer, but limit the order size from APL. This will ensure that KCPL is minimizing their losses, but still keeping the reputation and brand MKG intact.
Action Plan:
Before accepting the offer KCPL should inform both Pearson and APL about each other and making sure that their data remains confidential.
KCPL should accept the offer of 70 tonnes per month from APL, this will help in minimizing their losses and utilizing their capacity. If at all APL increases their order KCPL should limit it 100 tonnes per month, this will make sure the capacity is fully utilized and KCPL would be still working on their