Overview

Vishala printers is currently facing a strategical decision making dillema. Since, the environment changed
where their business operates in.

Current situation

 Environment

Political and legal:

1. Pressure is mounting from their client CIMC for biding the lowest price in order to get the
contract.
2. Political and legal situation is not in favor reason being It can be tampered easily.

Economic

1. The economical situation is stable since Vishala printers are able to make steady profits.

SWOT analysis of the firm

Strengths:

 High specialization
 High differentiation
 Employee skill development
 Usage of latest hardware and software
 Highly skilled staff
 High qualified CEO
 High growth and profitability
 Ethical management philosophy

Weaknesses:

 High variable cost to operate

 Charges higher than competitors

Opportunities:

 Good reputation among customers and in the market

 Emerging need for error free Scientific journals

Threats:

 Competition from the local competitors

 Change in regulatory environment
  Unethical practices from the client

Problem identification

Primary problem:

 Apparently the primary problem here is the business will loose it’s major customer CIMC from
which 20% of their business revenue is generated, if they do not lower their price. On the other
hand, if they offer their services at a lowered price the quality of the service will also go down
which might hurt the reputation of the business in the long run.
 Unethical practices at authority level of CIMC.

Secondary problem:

 The company will take a temporary hit in revenue if the drop out of the bidding war.

Alternatives:

Alternative 1:

The company will upheld it’s current pricing scheme and will not lower the value of the product
provided. Therefore, it will not get the contract. But even after not getting the contract the majority of
80% business still withstands. This will be a collateral damage taking action for the company. Even when
they’ll loose CIMC as a client they’ll still get to serve the other customers at their regular rate with
regular work values and ethics.

 They’ll keep serving high quality products at their current costing scheme.
 They’ll let go of CIMC as a client
 After the completion of 1 year tenure of the CIMC contract, the Feedback from the government
to the CIMC on their publishing will be negative due to usage of low priced printers who does a
poor job at scientific journal publishing.
 Therefore, CIMC will have to look for a superior quality provider. And Vishala printers will grab
the opportunity then.

The cons of this alternative is that it might be quite risky plan of action to undertake.

Alternative 2:

The company will lay of some of it’s staffs to save it’s budget to do quality work and decrease it’s high
price in order to be able to make the lowest price offering at the CIMC’s contract awarding bidding. This
will ensure that they’ll get the work . This will keep them in the game.
Plan of action:

For reasons of convenience we are choosing alternative 2.

Short term plan:

For being able to keep the giant customer which is CIMC we’ll make some changes in our organizational
layout.

 Lay off staff/expertise to cut cost

 Use the freed up money/resources in providing the service at low cost
 Offer internships to meritorious university students at the firm, their work will ensure quality
control of the products produced.
 Quality won’t be compromised, nonetheless.
 The firm will notify the higher executives of the government about the ongoing unethical
practices undertaken by CIMC to ensure the return of normality in the industry.

Long term plan:

In the long term the firm needs to retain the expert workers they laid off initially to survive in the
bidding race for the CIMC contract.

 No staff will be laid off

 Retain the expert workers
 Making them do more work in exchange of annual bonuses
 Publish more than before to lessen fixed cost