case study: - taking over dad's business Fundamentals of management

1. MBA (FT) 1ST SEMESTER
SUBJECT: - FUNDAMENTALS OF MANAGEMENT
SUBMITTED BY: - SHRUTI PENDHARKAR
CASE STUDY: -TAKING
OVER DAD’S BUSINESS

2. CONTENTS
•Introduction
•SWOT Analysis
•Suggestions
•Conclusion
•Questions and Answer

3. INTRODUCTION

4.  Indore Ice Company has been in operation for over 50 years
manufacturing ice for all purposes, ranging from: -
 Crushed ice for convenience store
 Block ice for industrial use
 Mr. AJIT managed the plant for the past 30 years.
 Used to work along with the worker, but used to spend very less amount of
time for office work.
 The only philosophy he was working on was that the old fashioned business
has to work in old-fashioned ways.
 Never used to trust the employees and provided no authority to the
supervisors.
 Two month ago MR. AJIT died ,and now his son BRIJ who was pursuing
his career in advertising in Bombay is considered to take over the business.

5.  In October, Brij arrived at Indore Ice Company and was astonished to see
the company’s downfall and irregular working procedures.
 He heard from the employees that, there were no specific rule, polices or
procedure in the company and they were having no specific job as in the
morning Mr. Ajit used to give them the details of the work they have to
perform.
 Absenteeism and tardiness were also major problem.
 While analyzing the records he found out that the company has lost
considerable amount of money due to decrease in the sales for last two
year.
 The annual turnover rate average about 75% over the past five
years. And this Ice company was the only large ice company in the major
metropolitan area. He later learned that many vendors, dissatisfied cause
of late deliveries.
 Now he has the responsibility to manage the company, it’s employees and
it’s customers while satisfying all the needs and increasing overall
productivity of his company.

6. CHARACTERISTICS
 It was the largest company in the city.
 Unskilled labor to sales and supervisory personnel.
 Conventional style of working.
 Autocratic system.
 No hierarchy system, organization was centralized.
 No proper planning was there. Nobody really knows what job
they have top perform.
 No rules, policies, procedure were there.
 Absenteeism and tardiness.
 No staffing.
 Poor customer service.
 No proper use of supervisors and subordinates.
 No proper compilation of record were there.

7. SWOT Analysis

8. STRENGTHS (S)
 Company’s operation for over 50 years.
 In such huge operation time a trust and
reliability factor comes into existence.
 Advertising
 Mr. Ajit’s son Brij, pursued career in
advertising. So he can use his advertising
skills in promotion of his company.

9. WEAKNESSES (W)
 No Staffing. No effective utilization of manpower
 Conservative way of working.
 Autocratic system.
 Centralization, no hierarchy system.
 No policies, procedures, or rules to refer.
 No planning
 Absenteeism and tardiness
 Poor customer service (delayed delivery)
 No sprit de corps
 No proper compilation of record (work done, employees
performance, turnout)
 Not open to new ideas

10. OPPORTUNITIES (O)
 Only ice company in the city.
 Ice company is only large ice company in the major metropolitan
area with 12% of total business.
 Expansion of business
 Can cover other market of other cities by established franchise to
increase there productivity and turnover.

11. THREATS (T)
 Competition
 Downfall of the company can result in
increase of the competition in the
market as many new company taking
over it’s place.
 Good resources and technology
 Use of good resources and technology
will require skilled labor and smart
worker to make and effective use of
resources while increasing the
productivity,

12. SUGGESTIONS

13.  Management is a process of
 Planning,
 Organizing,
 Staffing,
 Directing,
 Coordinating, and
 Controlling
for determination and achieving of organizational objective in
dynamic environment.
 Minimize the weakness and threats.
 Maximize there strengths and opportunity.
 According to the above definition of management here are
some suggestions provided by us to Brij, which will be helpful
for him to increase it’s profits

14. SUGGESTIONS
 Planning and Designing of the
 Rules ( work timings, behavior, disciplines)
 policies,
 strategies,
 budget and
 objectives of the company.
 He should identify the activities (problems, needs of company and
employees, preparation of accounts)
 Grouping of activities.
Planning
What to
do?
How to
do?
Who will
do?

15.  Should be open to new ideas and should
review company’s polices and rules on yearly
basis.
 Should develop an positive environment
having cooperating behavior and unity while
working.
 Proper staffing should be there (identifying
manpower requirement, recruitment ,
selection, assigning jobs according to
capabilities)

16.  Design a proper management hierarchy system, and assigning the jobs
according to the skills of employee and should provide the authority
accordingly.
 Provide a framework for measurement and evaluation and control.
 Can use his advertising skills in promotion of his company.
 Customer satisfaction is of utmost priority. With the proper planning and
division of work customer should be satisfied with timely deliveries and
proper behavior.

17. CONCLUSION
 As by the suggestions provided, Brij can implement
these ideas and can improve the production and
efficiency of his company with a proper working
environment, fulfilling the needs of employees on
individual as well as organization level. And by also
satisfying the needs the customers with timely
deliveries and best response.

18. QUESTIONS & ANSWER

19. Analyze the situation existing in the company?
The situation of the company is highly disturbed.
 It was the largest company in the city but now there’s a decrease in sales
over past two years.
 Unskilled labor to sales and supervisory personnel.
 Conventional style of working.
 Autocratic system.
 No hierarchy system, organization was centralized.
 No proper planning was there. Nobody really knows what job they have
top perform.
 No rules, policies, procedure were there.
 Absenteeism and tardiness.
 No staffing.
 Poor customer service.
 No proper use of supervisors and subordinates.
 No proper compilation of record were there.

20. What can Brij do to straighten things out?
 Time is the essence of the agreement ( Mutual understanding
between two parties ) Mr. brij should focus on timely
deliveries .
 Control on the wastage in terms of material, man power,
energy etc.
 proper utilization of man power with its capability.
 Division of work – by dividing the work among the workers
and making supervisors so that the controlling is done.
 Everyday each supervisor must submit the report to Mr. brij
on the amount and work which is done
 Absenteeism must be eradicated by giving bonus points and
best worker of the month and incentives yearly.
 Making industrial contacts and industry visit and offering
handsome prices for ice purchases.
 Training workers, providing training classes.
 Setting rules, policies and goals for the organization .

21. What principles of organization have been
violated?
 Principles violated by the organisation are--
 According to Henry Fayol’s
 DIVISION OF WORK – this principle is violated by the organisation .
There must be centralization of work at different levels.
 UNITY OF DIRECTION- the organisation is lacking unity of direction.
No particular motive ,no goals, no team spirit .
 DISCIPLINE– It is the most important factor for an organisation to work
cohesively and must be focused irrespective of personal life.
 According to Max Weber—
 MANAGEMENT BY RULES AND REGULATIONS– there were no rules
just autocratic operating system.
 FORMAL WRITTEN RECORDS— the records were managed by one
C.A.’s old book.
 IMPERSONAL RELATIONSHIPS WITH EMPLOYEES—To know where
are they lacking and where they needing assistance and support.