MINI CASE 01

Organizational Management (MGT212.31)

Submitted by
Name: Fahmida Zarin
ID: 1811806
Section: 31

Submitted to:
Dr. Ummaha Hazra
Assistant Professor
Department of Management
School of Business & Economics
North South University
Date of submission: 29 August, 2020
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 Answer to the Question No. 01

AkC primarily focuses on the stationery business. Usually, the business environment stays
stable and predictable as we do not see any significant or drastic changes. They do not need
to change their components as the products stays the same. The consumers do not buy the
product frequently but they need the same product over and over again. For this there is no
need for significance modification. Also they do not need to bring any innovation or any
ideas to penetrate the market as the components are similar to one another and most of the
stays the same. The main thing is the consistence in quality that AkC maintains puts them on
the top.

Low Degree of Change

High Stable Dynamic
Simple

Cell 1 Cell 2
Degree Of Complexity

(AkC)
Complex

Cell 3 Cell 4

Fig: Assesing Environmental Uncertainty.

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 Answer to the Question No. 02

SWOT Analysis for AkC is mentioned below:

Strength: The AkC has always been consistent in maintaining their quality. The close
communication among the suppliers will also play a massive role in maintaining the proper
streamline of the supply chain during the post-covid-19 situation. Their reputation in building
commitment will help their business to gain the trust of new customers. They also hired new
young and enthusiastic employees, and they will quickly adjust to the digitization system if it
is implemented.

Weakness: The main challenge for AkC will be shifting from school-based clients to parents
to supply their products. This customer base is new for them. It will take time to capture the
market. During this crucial time, they have to go through some trial and error processes since
they are also trying to introduce a new line of products. It is time-consuming and, at the same
time, costly. Also, they are thinking about shifting their traditional business model to an
online business model. They will face some resistance to change. Their employees will not be
able to cope up with the new system. They have to train their employees to adjust to the new
system, and it will incur more costs. Their old employees were very much flexible with
maintaining close relationships with the clients. With the new system implemented, the older
employees will face problem in coping up.

Opportunities: AkC is trying to launch its new line of product, which is a therapy tool. Less
competition in the market so they can easily penetrate the market. Since they hired new
employees and they are young and enthusiastic. This will help the company to digitalize their
operation. The new generation is prone to cope up with the digitization easily than older
people. So the company can quickly shift their operations from offline to online. They can
expand their business in the online sector. The pandemic situation will not last forever. When
the situation is under control, they will have their previous wholesale supplier at the same
time their new retailers. Schools and universities are going online. People are adjusting to the
new normal. So shifting from traditional to online business will increase their chances of
growing in the market.

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Threat: The specific response rate is unknown because they are thinking of introducing a
new line of products. How the market will react, and the main thing is that they are thinking
of selling it online. There is a higher possibility of emerging competition in the market who
will try to provide cheap products at a cheaper rate to destroy the market value. For this,
consumers will quickly lose their interest in purchasing the product. It will be hard for AkC
to cope up with the situation. However, AkC has always been consistent in maintaining its
quality, but the real question is how they will approach the new customer segment.

Answer to the Ques No. 03

Porter’s five forces analysis of AkC is discussed below:

The threat of New Entry (High): There is a tendency among the people of our country to
copy other’s business idea and start a business of their own. There is a higher possibility of
people starting the therapy tool business. They will not focus on maintaining quality instead,
they will provide a lower quality product at a cheaper price rate to penetrate the market. Later
on, which will destroy the market and hamper the trust of the customers.

Threat of Substitute (Low): Since it is a new product in our country. There is a slight
possibility of a substitute for the product. Since AkC has known and trusted suppliers from
China, they will not face any problem with bringing the product.

Bargaining Power of Buyer (High): Bargaining power with the buyer will be high if AkC is
focusing on the B2C strategy. They will be selling this product directly to the consumers.
Consumers tend to bargain with the product. It is a common phenomenon in our country.
AkC is thinking of shifting its consumer base from school college to individual base segment.
So they will have to deal with consumers without any medium. Also, the product is new in
the market. The consumers will hesitate to buy the product if it is costly. So the bargaining
power of buyers will be high. However, we are expecting to go for the B2B business model if
we see significant demand in the market. We will try to supply the product in bulk amount.
So there will be less bargaining between the parties.

Bargaining Power of Supplier (Low): AkC has always maintained close communication
with their supplier. They have around 150 suppliers around the world and 63 from China. So
they will not have any problem with sourcing their product as they have various suppliers in
their hands. Even if they face issues regarding sourcing, cost-cutting, yet they have options to
switch from one supplier to another. Also, the business head knows many suppliers who

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could supply the products at a reasonable rate. So there will be less bargaining power of
suppliers.

Rivalry among Existing Competitors (Moderate): The product is new in the market.
Hopefully, there are no existing competitors in the market. However, we are expecting there
will be competitors after bringing the product in the market. The rivalry will be moderate. As
AkC has always been consistent in maintaining its quality and commitment, this will give
them a competitive edge in the market. The product will be showcased in the online platform.
Moreover, there is a common tendency among companies in our country that they will show
a good quality picture on the website, but in reality, they will deliver a bad quality product.
By doing such, it hampers the trust of the consumers. Hopefully, AkC will not do the same.

Answer to the Ques No. 04

The whole world is adjusting to the new normal. Due to the pandemic situation, schools,
colleges, universities, businesses, offices are conducting their activities online. People are
afraid to go out. So AkC will also have to adjust to the new normal. They used to cooperate
with their business with schools colleges and maintained close face to face relationship with
their clients. Nevertheless, now it became impossible. Most businesses have shifted their
activities in online. And people are also adjusting to the online activities. It is just a matter of
time that everything we do will be online based as it saves our time and more convenient.

People are now ordering from online to save their time. It also saves us from the hassle of
going to the market and bargaining with the sellers. If AkC enters online they will be able
minimize their cost. But first they will have to invest in the IT sector which will incur cost
initially but later on it will save up not only cost but also time. Consumers can easily browse
into their website and order their desired item within a minute. Also later on the website can
be utilized for B2B business purpose. They can conduct their B2C and B2B in their website.
It will help them in minimizing their cost.

The launching of special needs therapy tools can bring a significant change in their business
growth. Because therapy tools help in maintaining their mental health. Due to the pandemic
situation we are stuck in the home. We have nothing else to do. It create anxiety, tension and
unnecessary stress. To cope up with the mental stress, the consumers will use the therapy
tools. It will create a demand in the market.

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So, it will be wise decision to enter the online retailing and selling new special needs therapy
tools.

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