Principles of Managemet Assignment
SECTION A
Bharat Engineering Works Limited is operating in the engineering products industry and is specialized in producing industrial machineries. They were the market leader until the latest development in the market. Until then, Bharat Engineering never had to struggle to increase sales and market their products. In Fact, they were unable to cater the whole market on their own. But, recently two competitors entered the market. And the previously soaring demand just started to fade away.
As the two new companies entered the market, Bharat Engineering Works Limited started facing problems. As a first thing their demand started to diminish rapidly. As we all know, more competition in the market means customers have more choices of substitutes. Customers started to switch to other substitutes in the market. As I believe, one major reason for this is Bharat Engineering not being able to cater the demand. Competitors will easily recognize such market gaps and move in immediately. In this case, the two new entrants entered the market and got hold of the unsatisfied customers and customers who were looking for a cheap and quality product.
Quality and cost problems are not to be forgotten. Bharat Engineering Works Limited has never looked forward and never really was aware of the newest developments in the market. One proof for that is the company using production machineries that are outdated and never innovating or overhauling the existing ones either. They just stayed right where they just stayed right where they started without further developing and catching up with the latest technology and other developments in the industry.
Lacking an integrated planning system is another challenge Mr. Kumar faced in the process. The board of directors of the company had already advised to implement such a system to the management formally and informally. Without such system information gathering and planning will be like labour work. Collaboration between
Bharat Engineering Works Limited is operating in the engineering products industry and is specialized in producing industrial machineries. They were the market leader until the latest development in the market. Until then, Bharat Engineering never had to struggle to increase sales and market their products. In Fact, they were unable to cater the whole market on their own. But, recently two competitors entered the market. And the previously soaring demand just started to fade away.
As the two new companies entered the market, Bharat Engineering Works Limited started facing problems. As a first thing their demand started to diminish rapidly. As we all know, more competition in the market means customers have more choices of substitutes. Customers started to switch to other substitutes in the market. As I believe, one major reason for this is Bharat Engineering not being able to cater the demand. Competitors will easily recognize such market gaps and move in immediately. In this case, the two new entrants entered the market and got hold of the unsatisfied customers and customers who were looking for a cheap and quality product.
Quality and cost problems are not to be forgotten. Bharat Engineering Works Limited has never looked forward and never really was aware of the newest developments in the market. One proof for that is the company using production machineries that are outdated and never innovating or overhauling the existing ones either. They just stayed right where they just stayed right where they started without further developing and catching up with the latest technology and other developments in the industry.
Lacking an integrated planning system is another challenge Mr. Kumar faced in the process. The board of directors of the company had already advised to implement such a system to the management formally and informally. Without such system information gathering and planning will be like labour work. Collaboration between
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