Management Theory and Practice

December 2021 Examination

Question No 1. Can you do a SWOT Analysis of any 1 Indian company of your choice
dealing in FMCG? (10 Marks)

Ans 1.

Introduction
There are several business units in Patanjali Ayurveda Limited. These include offices in
Haridwar or Delhi, and registered workplaces in Haridwar and Delhi, respectively. A new
company shape shifted into the company in 2006 and the company has grown in a number of
ways to reach Rs 330 crore. In the financial year 2017-18, the company generated sales of about
twelve thousand crores. Without the efficient and successful methods utilized by Patanjali,
Patanjali's accomplishments would not have been attainable. As a result, it may be important to
look at several different types of strategic analysis techniques, such as the SWOT analysis and
other types of analysis.

Concept and analysis

A SWOT Analytical procedure is a type of strategic decision-making method that evaluates an

agency's competitive position and makes specific, fruitful choices for achieving competitive
advantage. This is something that refers to the strengths, weaknesses, opportunities and threats
that exist within an organization.

The company has a number of strengths

1. The Ramdev association founded by Baba Ramdev

Millions of followers have followed Baba Ramdev in India; making up a sizable patron base for
Patanjali Ayurveda confined's products. Baba Ramdev's connection has additionally aided
Patanjali in becoming a national name in India.

2. We are engaged in the production of Ayurvedic and herbal products

The prescriptions, goods, and remedies associated with ayurvedic medicine are not known to
have any harmful effects. It is Patanjali's pursuit that hires only those raw materials, which can
be free of any type of chemicals and contaminants.

4. Pricing for penetration based on penetration rates

Patanjali's products are frequently priced 20-30% inexpensive than similar merchandise from
other companies on the market. Different well-known businesses cannot compete with Patanjali,
which has made Patanjali famous amongst India's poor-center classes.

4. It is possible to access online facilities through the internet

Although Patanjali is based on old thoughts, it's miles speedy to comprise new technology.
Patanjali does have its e-commerce site and gives its goods on Amazon, huge Basket, and
different significant shops' websites.

This company has several weaknesses that need to be addressed:

1. Several production plants are lacking in the area.

Patanjali only has a few manufacturing vegetation in Haridwar and Nepal. To fulfill the rising
call, the company has to increase its manufacturing capabilities by investing in additional
production units.

2. Long-term sustainability cannot be achieved using the penetration approach

Patanjali's penetration price strategy allows it to grow its core target audience and market
dominance. But, it dangers limiting the brand's improvement ability as it can't spend its earnings
on different manufacturing devices and different boom-related expenditures.

3. There is a low margin between suppliers and buyers

Patanjali's profit margins are poor, and accordingly, they're not able to present competitive
income to its suppliers. As a result, many entrepreneurs favor promoting and distribute
Patanjali's competitors' products, which affords them better earnings margins.

4. There has been an excessive dependence on Baba Ramdev for a long time.

Baba Ramdev's reputation has been related to the Patanjali brand, and Baba Ramdev has political
ties. Any authorities company's political vengeance in opposition to him may additionally
directly affect the Patanjali business.

The company has a variety of opportunities available to it:

1. A growing number of consumers are seeking organic products.

This may be related to the fact that Patanjali Ayurveda has been constrained to a limited amount
of development and success as a result of its stance as a producer of natural products. In response
to the growing awareness of the health benefits that organic products provide, the market for
genuine goods is on the rise. It is also possible that the company may be able to benefit from the
growing demand for natural products on the market as well.

2. Expansion into remote areas of the country with a brand

Patanjali's penetrative charge approach and Baba Ramdev's reputation in rural India can enable
Patanjali's goods to gain acceptability in rural areas.

3. In the future, we plan on expanding our global operations across a variety of markets

Different areas of the world, especially affluent western countries, are seeing an enhancement in
demand for natural, ecological, and genuine merchandise. Patanjali's recognition as a sincere and
Ayurvedic firm can be beneficial. Patanjali will be able to amplify internationally and build its
brand due to this.

4. Range of Product

In addition to Khadi, textiles and clothing, natural cosmetics, and other wholesome and natural
products, Patanjali has the potential to transform into more natural and organic products. In this
manner, the organization will be able to sell its new products through its existing distribution
channels and important partnerships.

Threats of the company:

1. The ramifications of a potentially dangerous harvest

Patanjali's items were made with herbal herbs and agricultural materials. Although India's
economy is mainly built on agriculture, maximum farmers still rely on rainfall to irrigate their
crops due to a loss of irrigation. A weak rainy year would possibly bring about low agricultural
output, negatively influencing the company's raw fabric sourcing.

2. Several competitors in the marketplace

HUL, Marico, Parle Agro, ITC, Nestle, P&G, Britannia Industries constrained, and others are
among India's most prominent FMCG organizations. Patanjali Ayurveda confined competes in a
relatively competitive market due to this.

3. A currency war could take place at some point in the future

It is also important to note that even though pricing wars can benefit customers, they can also be
detrimental to home-based businesses. It is also unlikely that domestic players such as Patanjali,
which are usually engaged in the production of FMCG products, will have the ability to compete
with fast-moving consumer goods multinational companies, who have vast resources.

Conclusion

Clearly, Patanjali FMCG ad agency is the most popular FMCG agency in India and its brand
quality and services are unmatched. As a result of several internal and external factors, diverse
impacts have been experienced by the corporation in the medium and long run. There are many
strengths and weaknesses within the organization and numerous opportunities and threats
coming from the outside, as defined above. To make extra money in the destiny, it is necessary
to analyze it properly in order to arrive at the right decision.
Question No 2. MG Motors have been having a tough time from the time of their launch in
India. They feel that there have been a lot of pilferages and wastage in their production and
they need to sort it out as soon as possible. Also, the time taken to manufacturer one unit of
their cars is extremely high as compared to global benchmarks. They have hired you as a
consultant for the same? Can you explain the concepts of JIT and Lean Production to them
and help them apply the same in order to reduce their troubles? (10 Marks)

Ans 2.

Introduction
In relation to JIT, the term simply means 'just in time'. A stage of stock management that
involves close collaboration with suppliers to ensure raw materials arrive as the manufacturing
process is set to start. We make sure production begins no earlier than the time set for the arrival
of raw materials. It is our objective to keep the number of stocks as low as possible to satisfy
demand in the market. In addition, lean manufacturing is an operation style that is based on the
idea that it is possible to reduce the time that is spent within the production system and the
response time that is required of carriers and consumers. Toyota's "the Toyota way" operational
idea, which dates back to 1930, is the core of the company's miles.

Concept and analysis

Just–in–time manufacturing process

I have seven ideas for you to consider. The things that stand out are waste removal, kanban/pull
devices, unbroken workflows, a complete commitment to customer service, a complete
commitment to quality control, team participation, supplier family members, and constant
development.

Long-time period recognition on enlargement and delivery needs and coordinating adjustments
in raw cloth standards with providers provide numerous lengthy-time period benefits to the
organization. Long-term implications of the JIT approach include economic, financial savings,
decreased manufacturing prices, and accelerated purchaser satisfaction.

The just-in-time (JIT) delivery chain facilitates companies to keep cash by lowering inventory
and growing productivity. JIT manufacturing reduces inventory fees by permitting manufacturers
to buy substances and components when needed in place of storing them. Producers are not left
with unsold items if a transaction is canceled or now not completed.

As an example, an example could be used to evaluate the system. In the case of a car
manufacturer with a low car stock percentage, a JIT stock control device may be employed. To
be able to construct the vehicles frequently, relying on the company's supply chain is the most
sensible choice. Therefore, the manufacturer usually purchases the factors required to make the
cars after an order has been placed.

Process based on lean manufacturing

This method is based on removing biases and notions relating to product quality from the
workplace so that value can be handed over to customers. The organization observes and
destroys the waste and notices that performance has improved, fines have expanded, delivery is
more prompt, and production is higher. As a result, waste is described as any fee spent on a
gadget that isn't beneficial to the client. The purpose of lean production is to get rid of waste
from manufacturing operations. There have exclusive varieties of waste like transportation,
inventory, movement, time for waiting, excessive exposition, excessive processing, and so forth.

Any material transportation that doesn't at once helps current production is described as shipping
waste. Shipping waste may be generated with the aid of beside-the-point facility structure, awful
manufacturing planning, and inefficient planning. Any supply and system that need to be
required to create products or services in a just-in-Time way are called stock waste. Inaccurate
forecasting techniques, inefficient strategies or providers, prolonged switching instances,
imbalanced production techniques, or poor stock control and monitoring are all reasons for
inventory waste. Useless plant design, lack of visible controls, preliminary technique mapping,
and ugly working business enterprise are commonplace reasons for movement waste. Conflicting
work techniques, a lack of appropriate equipment or elements, sizeable setup periods, low
guy/system effectiveness, insufficient protection of gadgets, or skills monopolies can all
contribute to waiting. Overproduction is defined as generating extra than is required, at a faster
price than is needed, or before the requirement is met. Overproduction waste may be caused by
mechanization within the incorrect regions, a breakdown in verbal exchange, local performance,
low uptimes, inadequate planning, and a simply-in-case incentive shape. Any unnecessary effort
in manufacturing or transmission that doesn't upload cost to products or services is over-
processing. Continuous product or system development, redundant information, manner
bottlenecks, repetitive critiques and permissions, and obscure patron needs are examples of over-
processing waste. The loss of value due to the scrap, repairing, or redecorating of a product that
detracts from necessities is called defective waste. Underutilizing or attractive human beings in a
method are called a "waste of unutilized skills." personnel completing useless hard work when
their capabilities might be put to higher use in activities that convey greater fee or not leveraging
employees' critical thinking capacity and remarks in methods are examples of this. A second
example of underutilized skills is allowing people to operate in silos without letting them express
their views, each of which can lead to underutilization. In a similar vein to the tilt production
method, there are a few things that one could do such as:

 Dispose of the trash in a proper manner.

 Make excellence a priority in everything that you do

 Gain a better understanding of the subject

 Avoid committing yourself to anything

 We are committed to delivering your order as soon as possible

 The human being must be reputable in the eyes of others

Conclusion

I as a consultant for "MG vehicles" would like to suggest, after reviewing the above evaluation,
that the company can drastically reduce its wastages and pilferages by making a better product,
skilling their employees, and providing a truly satisfying experience for their customers. A JIT
stock management system works with minimum inventory tiers and relies entirely on its supply
chain for frequently producing different elements it wishes to manufacture vehicles.
Consequently, the producer also buys those additives required for building vehicles when the
order is located. While waste is determined and eliminated, the enterprise must gain excellent,
timely delivery and output. In this way, waste is defined as the value incurred in a machine that
does not benefit the purchaser.
The situational method, regularly referred to as the contingency approach, is based on the
concept that all control is situational. The variables of a selected scenario will affect (if no longer
dominate) all managerial movements. There may be a nobody-size-fits-all technique to any
decision. The eight scenarios can be divided into three classes: favorable conditions, moderate
conditions, and dire conditions. According to the hypothesis, either high or low LPC supervisors
manipulate each scenario better.

Question No 3. 3. Lemon Tree, a premium chain of hotels across the country has suffered
tremendous losses during this pandemic and have hired you as a consultant in order to
analyze the same

a. Can you explain Political, Economic and Social forces which have had an impact on the
business? (5 Marks)

b. Can you also help them apply the contingency approach of Modern approach in order to
face the pandemic effectively? (5 Marks)

Ans 3.

Introduction

A prime motel chain, Lemon Tree, which provides a wide range of accommodations all across
the country, has suffered substantial losses as a result of the pandemic. Although this corporation
has experienced a number of troubles as a result of this lockdown, many corporations have also
faced a number of problems during this lockdown period. If you want to prevent significant
losses, you will have to close a few organizations' nosiness. You might be able to perform a
comprehensive analysis of the effects of different factors as a representative of the Lemon Tree
Corporation.

Concept and analysis

Ans 3A.

Political impact
In some cases, the response of local, state, and federal governments to the pandemic may affect
who participates in politics, what kind of voter eligibility options exist, and what manner of
voting is appropriate. In emergency moments, residents want politicians to undertake bold steps,
together with a few generally completed inside the personal zone. Similarly, in the course of this
pandemic, authorities' regulations and rules have changed frequently. Subsequently, it has a
significant impact on the enterprise.

Economic impact

Jobs had been being lost at a price not visible since the economic disaster. Furthermore, reduced-
wage provider employees are much more likely to completely lose their jobs or be known as
returned to work extra slowly than people in different industries who earn more fabulous. The
economic effects are predicted to last nicely into the healing, particularly for those in decreased-
wage jobs, simply coming into the labor, and people nearing retirement. Similarly, for the
duration of this pandemic, motels are closed to keep social distancing.

It is important to note that the work from home facility does not apply to this business. People
cannot travel throughout this pandemic; staff cannot come to provide providers because of
lockdown. These are the principle purpose for suffering significant losses through the employer.

Social impact

In the wake of the pandemic, the basic mechanisms of social interaction that had fueled
socioeconomic activity for the past few decades were destroyed. Most people have experienced
interruptions in their standard daily workouts due to critical social distance, with the possibility
of additional disruptions in employment, faculty, social, or family ties. As a result, the facilities
of schooling, well being, welfare care, and faith firms, as well as government, crook justice, and
the regulation, and lots of different industries that rely upon interpersonal interplay, had been
forced to remodel their practices rapidly, with a few moving online, others postponing or
delaying each other. A few are completely closing down. Because of this social distancing,
humans have not traveled sufficiently. Consequently, a number of hotel corporations have
sustained huge losses as a result of the collapse.
Ans 3B.

Concept and analysis

Contingency hypotheses are influenced by numerous factors. Following are a few of the options
that are available:

 The scale of the business

 How the organization adjusts to its surroundings

 Resources and logistics sports have distinct characteristics.

 Managerial assumptions regarding workers

 Techniques

 Applied technologies

Strong settings recommend mechanical systems that pressure centralization, formalization,

standardization, and specialization to sell accuracy and effectiveness, consistent with the
contingency attitude. Regulations, norms, and techniques may guide selection-making for
ordinary tasks and issues due to their truth and predictability. Alternatively, risky settings need
natural architectures that emphasize decentralization on the way to gain flexibility and edition.
For no routine sports and problems, unpredictability and instability necessitate vast problem
fixing processes.

Size of the inn is one of the main factors like large agencies tend to emerge as more based, while
smaller firms might perform informally. Most things can be controlled directly with the aid of
the proprietor of a small business. However, big groups require more state-of-the-art and indirect
manipulate methods. Large companies can afford to rent more specialized personnel, units, and
roles. As a result, a divisional shape can be appropriate for a massive agency, however not for a
small one.

In addition, any other thing is fee and availability of sources. Any other is technology
development. Modifications in technology may also have a massive effect on a company. The
degree and varieties of skills required of employees are tormented by using robotics. Changes in
interplay and engagement patterns inside and among corporations are accredited and needed for
the modern-day information era. Adjustments in a generation may also have a significant impact
on a company. The usage of robotics torments the diploma and varieties of skills required of
personnel. Trends in communication and engagement patterns inside and between businesses are
permitted and required by new information technologies.

The above mentioned are distinctive situations to help Lemon Tree organization recover losses
during this pandemic. In many states, lockdown isn't always strict as preceding. Therefore, the
company should begin its commercial enterprise using constrained works. Besides animals,
human beings are also able to travel around the world. Therefore, it will be in the best interests of
the organization in such a situation.

Conclusion

As a result, if Lemon Tree utilizes the contingency technique for recovering their loss then they
might be able to make up for their loss. This technique will help to identify favorable, slight, and
terrible situations. As per the analysis, the enterprise has suffered significant losses at some stage
in an epidemic. Accordingly, the company is experiencing a very serious situation as of the
moment. The situation can however be transformed from detrimental to favorable by using the
different methods as mentioned above.