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Case Study on Tea Time

Submitted By :

Md. Sarafuddin Chowdhury ID: 1505079 Md. Rubayat Uddin ID: 1505069 Faysal Ahmed ID: 1505007 MD. Shahidur Raihan ID: 1505051

Salauddin Quader chowdhury ID: 1304059
Salauddin Quader chowdhury
ID: 1304059

Tea Time

Tea Time started out as a trading company in 1969

In July 2002, Tea Time launched its own branded tea, under the label “Tea Time”

Tea Time  Tea Time started out as a trading company in 1969  In July

Price Setting

Problem: pricing setting

Analysis:

Not appropriate packaging price setting with quality of Tea Time for the local market.

Price Setting Problem: pricing setting Analysis: Not appropriate packaging price setting with quality of Tea Time

Formulation : Tea Time focused on differential Strategy with low price but market leaders focused only cost leadership.

alternative solutions :

If the company were able to take cost leadership approach, it would have gained more profit and sustained in the tea market.

 Formulation : Tea Time focused on differential Strategy with low price but market leaders focused

Recommendation: I think, the company should have considered as a cost leadership market because their competitors’ pricing strategy was cost leadership.

 Recommendation: I think, the company should have considered as a cost leadership market because their

: Lack of advertising campaign properly

Problem:Lack of advertising campaign properly.

Analysis: Tea Time did not have sufficient amount of money for advertising campaign compared to market leaders in the tea market.

: Lack of advertising campaign properly Problem: Lack of advertising campaign properly. Analysis: Tea Time did

Formulation The Company should have focused on more functional strategy but it did not do that one.

Alternative solution: If the company were able to launch proper advertising, definitely sales of the company would not have fallen.

 Formulation The Company should have focused on more functional strategy but it did not do

Recommendation: From my point of view, company should have invested more money the purpose of advertisement through advertising media like Television, Newspaper etc. to keep market by supporting of marketing counselor.

 Recommendation: From my point of view, company should have invested more money the purpose of

No clear scenario of debt-equity financing from outside investors.

problem:: No clear scenario of debt-equity financing from outside investors.

Analysis:: Tea Time did not account the balance of payment for the assets and liabilities of the company.

No clear scenario of debt-equity financing from outside investors.  problem: : No clear scenario of

Formulation:The Company should have clearly showed debt-equity ratio for understanding purpose

Alternative: If the company were able to finance to Tea Time company from other sources, so it could not have financed through earnings from sister companies. For this reason, Tea Time and its sister companies faced financial trouble.

 Formulation: The Company should have clearly showed debt-equity ratio for understanding purpose  Alternative: If

Recommendation:

According to my view point, company should have financed for new business from outside sources like financial institutes because a company should keep balance between debt and equity of the company.

 Recommendation: According to my view point, company should have financed for new business from outside

Tea Time had a net profit (loss).

Problem: Tea Time had a net profit (loss).

Analysis: It had more expense than income

Tea Time had a net profit (loss).  Problem: Tea Time had a net profit (loss).

Formulation:The Company should have used profitable measures at fixed interval in the period like profit margin, return on assets etc.

Alternative evaluation:Using profitable measures If Tea Time were able to take proper steps to reduce the loss of the company.

 Formulation: The Company should have used profitable measures at fixed interval in the period like

Recommendation: From my perspective, company should have been more conscious about its expenditure

 Recommendation: From my perspective, company should have been more conscious about its expenditure