JOT CASE STUDY
JOT CASE STUDY
Our Management Team has conducted an in-depth comprehensive review of various issues currently being faced by the management of Jot and to make recommendations. We have carried out an in-depth review of the operations and segmented our recommendations under the broad heads of Operational, Financial and Strategic Issues. We have used various management tools such as SWOC Analysis, PEST Analysis, DMUU, Long-Term Planning using 8Q Planning tools to assist in our analysis.
Operational Challenges-
a) Quality Issues in Spaceship toy- As a good corporate citizen and to avoid tarnishing of brand image, we recommend complete voluntary recall of product at all chains. Design protocols should be reiterated to avoid such incidents in future.
b) Delay in Delivery of Product by Gull- We recommend proactively keeping the customers informed of the current supply crisis, allocate the “restricted” supply to the “large” customers and thereafter balance, if any, to the smaller customers. Recourse to legal action against Gull and indemnifying the customers for all losses suffered as a result is also recommended as part of good Corporate Governance.
c) Information Technology- To keep pace with the growth, it is recommended to hire a full time IT expert and invest in a sound ERP system which enables real time inventory control and invoicing, in-depth profitability analysis at product and geography level, CAD-CAM, intelligent systems such as CRM, Competition benchmarking.
Financial Issues-
a) Working Capital Management- To overcome the current working capital crisis, JOT should endeavor to move to JIT based inventory system, evaluate direct shipping to customers wherever possible to reduce inventory levels and reduce debtors by offering prompt payment discount of 1% or look into bill discounting model.
b) Fixed Capital Management- Make a public issue of 20000 shares at a premium of €12 per share to raise € 0.24 mln on which no dividend should be paid for initial 3
Our Management Team has conducted an in-depth comprehensive review of various issues currently being faced by the management of Jot and to make recommendations. We have carried out an in-depth review of the operations and segmented our recommendations under the broad heads of Operational, Financial and Strategic Issues. We have used various management tools such as SWOC Analysis, PEST Analysis, DMUU, Long-Term Planning using 8Q Planning tools to assist in our analysis.
Operational Challenges-
a) Quality Issues in Spaceship toy- As a good corporate citizen and to avoid tarnishing of brand image, we recommend complete voluntary recall of product at all chains. Design protocols should be reiterated to avoid such incidents in future.
b) Delay in Delivery of Product by Gull- We recommend proactively keeping the customers informed of the current supply crisis, allocate the “restricted” supply to the “large” customers and thereafter balance, if any, to the smaller customers. Recourse to legal action against Gull and indemnifying the customers for all losses suffered as a result is also recommended as part of good Corporate Governance.
c) Information Technology- To keep pace with the growth, it is recommended to hire a full time IT expert and invest in a sound ERP system which enables real time inventory control and invoicing, in-depth profitability analysis at product and geography level, CAD-CAM, intelligent systems such as CRM, Competition benchmarking.
Financial Issues-
a) Working Capital Management- To overcome the current working capital crisis, JOT should endeavor to move to JIT based inventory system, evaluate direct shipping to customers wherever possible to reduce inventory levels and reduce debtors by offering prompt payment discount of 1% or look into bill discounting model.
b) Fixed Capital Management- Make a public issue of 20000 shares at a premium of €12 per share to raise € 0.24 mln on which no dividend should be paid for initial 3