Bharat Engineering Works : Case Study

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Bharat Engineering Works Ltd. is a major manufacturer of industrial machineries besides other engineering products. It has enjoyed considerable market preference for its machines because of limited competition in the field. However, the scenario changed quickly because of the entry of two new competitors in the field with foreign technological collaboration. For the first time, the co. faced problem in marketing its products with usual profit margin. Sensing the likely problem, the chief executive appointed Mr.Arvind Kumar as General Manager to direct the operations of industrial machinery division. Mr. Kumar had a discussion with the Chief Executive about the nature of the problems facing the company so that he could fix up his priority. The Chief Executive advised him to consult various heads of departments to obtain first hand information. However, he emphasized that the company lacked an integrated planning system while members of the board of directors insisted on introducing this in several meetings.

After joining as GM, Mr. Kumar got briefings from the heads of all departments. He asked all departmental heads to identify major problems and issues concerning them. The marketing manager indicated that in order to achieve higher targets, he needed more sales managers and professionals. His main concern was a lack of engineering support to sales and marketing efforts. The company had adequate engineers but they were spread under 3 separate engineering groups. Sales people had no central organization which had the responsibility to provide sales support. Therefore, some jobs were being done from outside at higher costs or with lower quality. Besides, he needed a generous budget for demonstration system which could be sent on a trial basis to customer to win business.

The production manager complained about the old machines and equipment used in manufacturing. Therefore, cost of production was high, without the...
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