Business strategy

1 Reducing Operating cost

last % gross net Total
price change block block CWIP assets

mrf 57,210.55 -0.87 7,935.61 6,075.31 1,078.84 10,614.08

Apollo Tyres 226.65 4.16 8,434.15 5,713.86 671.79 9,104.23

JK Tyre & Ind 96.25 3.83 5,507.75 3,571.88 89.35 4,086.07
Balkrishna Ind 934 2.77 3,691.55 2,797.97 169.35 4,074.44
Ceat 1,153.55 0.74 2,844.38 2,475.25 161.86 2,731.61
TVS Srichakra 2,282.05 -0.35 755.22 594.95 26.28 839.44
Goodyear 917.95 1.26 359.8 246.21 26.19 730.19
PTL Enterprises 39.85 2.05 596.73 594.78 0 459.17
Govind Rubber 4.25 4.94 79.14 73.3 0.98 104.78
Krypton 13.92 1.61 17.65 17.65 0 36.92
Tirupati Tyres 2.65 3.52 0.15 0.15 0 1.8

Selling assets:-MRF is selling its assets, it reduces the amount of the account balance by the
asset account in its accounting journal, thereby removing the asset from its records. The
balance of an account may be the original cost of the asset or the balance that reflects its
current market value, depending on the asset type.

Using or consuming assets: - MRF is reducing their asset accounts because they run out of
cash and consume assets in their operations. Assets exhausted by the company include cash,
supplies, accounts receivable and prepaid expenses.
  MRF should cut down their operating cost (human capital cost)
 MRF should adopt new technologies which can help in reducing cost
 MRF should redesign its working process in front and back end both
 Reduce Costs with Outsourcing
 Telecommute to Cut Down on Costs
 Pay Invoices Early or On Time

2. Reducing cost

Raw material
Companies cost
mrf 8500
Apollo Tyres 6850
JK Tyre & Ind 7220
Balkrishna Ind 5030
Ceat 5552
TVS Srichakra 4533
Goodyear 4442
PTL Enterprises 3045
Govind Rubber 2300
Krypton 3258
Tirupati Tyres 5328

Raw material cost

Tirupati Tyres 5328
Krypton 3258
Govind Rubber 2300
PTL Enterprises 3045
Companies

Goodyear 4442
TVS Srichakra 4533
Ceat 5552
Balkrishna Ind 5030
JK Tyre & Ind 7220
Apollo Tyres 6850
mrf 8500
0 2000 4000 6000 8000 10000
cost
MRF is using a high amount on procuring raw material by making it by themselves.

How to reduce Raw material cost?

 Substitute Lower Cost Materials Where Possible

 Reduce waste
 Leverage supplier
 Volume purchase

3 Targeting MBO
Majority of sales of MRF happens from EBO and OEM. MRF is missing its opportunity to
sell its product through local retailers. There is no point in spending money on promotions or
on brand ambassador if your product is not available at market.

Provide Regular Communication

How regularly do you speak with your merchant/wholesaler system? Do you give both
everyday operational data just as abnormal state, vital news? On the off chance that you don't
have committed correspondence channels to achieve your merchant organize, it's an ideal
opportunity to make a few. Distinguish the best channels, subjects and distributing timetable
to contact their groups of onlookers… And this works similarly also for merchants as it
accomplishes for end clients. They're individuals, as well!

We work with our customers to make a wide range of sorts of substance to speak with their
merchants and wholesalers, including week by week messages, online classes, articles and
recordings for intranet locales or committed merchant/wholesaler sites, private discussions and
endeavour informal communities, electronic and print pamphlets, yearly gatherings, local
occasions, digital recordings, and that's only the tip of the iceberg

Offering Training and education

Successful distributors need up-to-date product information and easy-to-use training
opportunities to educate themselves and their employees about your company. Active
manufacturers provide ongoing product, sales and service training; business management and
skills training; new technology education; and industry insights covering current topics. When
planning your training, find ways to make them interactive and fun. Many manufacturers
reward learner rewards and rewards.

Create valuable tool

MRF should provide tools to retailer, so that they can reduce their cost and simultaneously
promote your product. MRF should target IOT and start targeting on ecommerce site more
make their presence more on ecommerce portals. Website should be made more user friendly.