Kanpur Confectionaries Pvt. ltd
Written analysis and Communication I
Assignment 1: Kanpur Confectioneries Private Limited (A)
Submitted to
Prof. Gita Chaudhuri
By
Ankita Gupta
Roll No. 1410120007
8.11.2014
School of Management and Entrepreneurship
Gautam Budh Nagar, U.P., 201314
interoffice memorandum to: Mr.ALok GuPta, chairman and managing director, KCPL from: Ankita Gupta, Executiv assistant subject: Report on A-one confectioneries offer date: Scrutinized report for the proposal from A-One confectioneries Private Limited and the recommendation is attached here. This report would help management to take decision about the proposal.
Summary
Situation Analysis
KPCL is a family business, manufactures biscuits under brand ‘MKG’. It was among the regional leader but the market is changing, costs of labour and material are increasing, competition is increasing. MKG sales are declining it has started incurring a loss. It increased its capacity from 120 to 240 tonnes due to increased demand but there is surplus capacity due to rise in competition. KPCL went into agreement with Pearson for making 50 tonnes biscuits in order to utilize surplus capacity and now it is considering to become APL’s contract manufacturer.
Problem Statement
Whether or not should KCPL take up APL’s offer of becoming contract manufacturer?
Options
1. KCPL should take up APL’s offer of becoming a contract manufacturer.
2. KCPL should not take up APL’s offer of becoming a contract manufacturer. Criteria
1. Time
2. Capacity Utilization and cost reduction
3. A Family Venture
4. APL and Pearson agreements
Evaluation
Option 1: KCPL will utilize its capacity but will not be able build its own brand further.
Option2: KCPL will have its independence in decision making and no brand dilution.
Recommendation
KCPL should not take up APL’s offer.
Situation Analysis
Kanpur Confectionaries Private Limited (KCPL) is a family owned business, producing glucose, cream, salt and Marie biscuits under
Assignment 1: Kanpur Confectioneries Private Limited (A)
Submitted to
Prof. Gita Chaudhuri
By
Ankita Gupta
Roll No. 1410120007
8.11.2014
School of Management and Entrepreneurship
Gautam Budh Nagar, U.P., 201314
interoffice memorandum to: Mr.ALok GuPta, chairman and managing director, KCPL from: Ankita Gupta, Executiv assistant subject: Report on A-one confectioneries offer date: Scrutinized report for the proposal from A-One confectioneries Private Limited and the recommendation is attached here. This report would help management to take decision about the proposal.
Summary
Situation Analysis
KPCL is a family business, manufactures biscuits under brand ‘MKG’. It was among the regional leader but the market is changing, costs of labour and material are increasing, competition is increasing. MKG sales are declining it has started incurring a loss. It increased its capacity from 120 to 240 tonnes due to increased demand but there is surplus capacity due to rise in competition. KPCL went into agreement with Pearson for making 50 tonnes biscuits in order to utilize surplus capacity and now it is considering to become APL’s contract manufacturer.
Problem Statement
Whether or not should KCPL take up APL’s offer of becoming contract manufacturer?
Options
1. KCPL should take up APL’s offer of becoming a contract manufacturer.
2. KCPL should not take up APL’s offer of becoming a contract manufacturer. Criteria
1. Time
2. Capacity Utilization and cost reduction
3. A Family Venture
4. APL and Pearson agreements
Evaluation
Option 1: KCPL will utilize its capacity but will not be able build its own brand further.
Option2: KCPL will have its independence in decision making and no brand dilution.
Recommendation
KCPL should not take up APL’s offer.
Situation Analysis
Kanpur Confectionaries Private Limited (KCPL) is a family owned business, producing glucose, cream, salt and Marie biscuits under