AGARWAL

AUTOMOBILES
OM CASE ANALYSIS
BY
Vaibhav Afzalpurkar EPGP-12A-121
Mainan Ray EPGP-12A-056
Sartaj Quraisi EPGP 12A-100
G Sridhar EPGP 12A-037
 CONTENT
• Background and Facts
• Issue Statement
• objective of the case
• Fuel Station Forecasting and Inventory Management
• Components
• Inventory Management Strength
• Inventory Management Weakness
• Inventory Management Opportunities
• Limitations 
• Conclusions
• Reccomendations
 BACKGROUND AND FACTS

• Agarwal Automobiles was an authorized fuel station for Bharat Petroleum Corporation Limited (BPCL), a major oil and gas company located in
the Sagar district of Madhya Pradesh, India.
• the fuel dispensing machines were installed by BPCL.
• there was a constant threat from competing stations and pressure from the parent company to increase sales
• Agarwal Automobiles did not use any formal analytical techniques to govern ordering and inventory management policies
• Agarwal Automobiles sold three main products at the fuel station: diesel, petrol, and high-speed petrol (HSP).
• In March 2015, to keep pace with technological developments, the fuel station was renovated and was transformed into a next-
generation pump station.
• However, despite all these achievements, the firm was feeling pressure from growing competition and rising customer expectations
• Agarwal Automobiles had three separate storage tanks, each with a different capacity, for each of the three fuel types.
 ISSUE STATEMENT

• Basically, developing a Agarwal Automobiles Fuel Station Forecasting and Inventory Management problem
statement is an extensive process and requires the proper brain storming of the teams in order to identify the
underlying loopholes or inefficiencies within the organization. Also, it offers the specific insights to the
management in understanding and looking at the factors that have been hidden from the management sight,
effecting the performance slowly and gradually.
• The factors and the operations getting effected and its overall impact on the organization specific the areas, such
as Profitability, sales or brand equity.
• Change at the advertising division of Agarwal Automobiles Fuel Station Forecasting And Inventory Management
Spreadsheet is enhancing uncertainty in the workplace causing numerous difficulties.
 OBJECTIVE OF THE CASE

• To see the mission and vision of the company and then analyze the current state of the organization
• To find out the best WAY OUT.
• To overcome the current issues that are deteriorating the organizational performance or productivity
 FUEL STATION FORECASTING AND INVENTORY
MANAGEMENT

• It is a strategic planning framework that is commonly used to evaluate the organization, a plan, business or any
other project.
• Agarwal Automobiles Fuel Station Forecasting and Inventory Management analysis mainly
have two dimensions internal and external dimensions. Internal dimension includes all the
factors that could affect the organization which is the strength and the weakness while the
external factor includes the environmental factors that is the opportunities and the threats.
 COMPONENTS OF ANALYSIS

• Agarwal Automobiles Fuel Station Forecasting and Inventory Management analysis is a process that include four
areas that are further divided into two dimensions i.e. internal and external factors. In analysis the strong and
weak aspect of an organization is determined by evaluating the elements within the environment while the
opportunities and threats of an organization are determined by examining the element outside the environment.
In this way allows the comparison of organization’s resources and capabilities with the competitive environment
in which it is operating.
 INVENTORY MANAGEMENT STRENGTH

• Strength is a characteristic that adds value to something by making it more special, unique and advantageous
when compared. In this element ,the abilities and the key properties of organization are discussed that gives an
organization an advantage over other organizations by making it more competitive. It defines the characteristics
and situations of an organization which makes it more effective and efficient when compare with its competitors.
• It defines the areas in which the organization hold a command or is good at doing it and that provides the
organization and important capability. It can be a skill, a resource, image, market leadership, relation with buyer
or supplier or any other advantage relative to its competitors that fulfill the needs of the market by providing the
organization with a comparative advantage.
 INVENTORY MANAGEMENT WEAKNESS

• Weakness refer to the situation in which the existing capabilities and the resources the company holds are weaker
or not sufficient compared to other organizations in the market. In other words it means the aspects in which the
organization is less efficient and needs to improve in order to align with the market trends. As these aspects
negatively affect the overall performance of the organization by making it weaker compared to its competitors.
• These are the factors that an organization lacks and does poorly in comparison to the organizations operating in
the same market at the same level. It is a deficiency or limitation of resources, capabilities, skills that majorly
affect the organizations effective performance. Management capabilities, Facilities, financial resources,
marketing skills and the weak brand image can be the sources of weakness.
 INVENTORY MANAGEMENT OPPORTUNITIES

• Opportunity is an advantage and the driving force for an organization. It is the convenient time or situation that is
present in the environment and will help the organization in achieving its goals. It is a factor that contribute
positively towards the growth of the organization. It is a condition existing in the external environment that allow
the organization to take an advantage of the organizational strengths and help in overcoming the weaknesses and
to neutralize the threats present in the environment.
 LIMITATIONS 

• The Agarwal Automobiles Fuel Station Forecasting and Inventory Management SWOT analysis is only a one
stage of the business planning process and do not provide the organization with an in-depth analysis or research
that could lead to a firm decisions. Apart from this it only cover the issues that are definite and doesn’t priorities
them. In addition to this it does not provide any solution or alternatives decisions. As a framework, SWOT does
processes a value but it doesn’t provide the organization with any specific direction on how the key aspects can
be identified.  It significantly rely on the capabilities of the manager that how effectively it can prioritize and
determine the most important element. Another limitation associated with SWOT analysis is that it provide equal
weight to each factor regardless of their impact or relevancy.
 CONCLUSIONS

• The OB analysis has actually looked at numerous theories to comprehend just how to handle the existing
scenario at hand. The complying with 3 options have actually been proposed to help Lewis manage the business
obstacles in the marketing department. Each of these options has been proposed for easing the change required to
bring the advertising and marketing division in accordance with the requirements of the market and for making
the cultural change that would follow as soon as the existing leader leaves.

Integration of marketing and advertising functions. Dividing Adverting as well as Production functions.
Combination of Advertising And Marketing with workflow.
 RECOMMENDATIONS
• The Agarwal Automobiles Fuel Station Forecasting and Inventory Management sales or profits or the
sustainability or increases in market share.
• Moreover, resorting to the second set of recommendation must be incorporated in the plan, in order to allow the
organization to quickly shift to the plan B, in order to avoid the losses and sustain the presence of the company in
the market.
• Lastly, under the recommendation, it is important to incorporate the finding from the past, so to make the given
Solution more acceptable.
• Agarwal Automobiles Fuel Station Forecasting and Inventory Management recommendation is that, incorporates
the findings from the past with contingency plan.
• Thus is important as to allow the organization. Shareholders to clearly understand what is required to done, how
it is required to do, who are the key player and how it will be implemented.