Essay on Kota Fibers

3343 Words14 Pages
Financial Management: Kota Fibres, Ltd. Kota Fibres, Ltd. was founded in 1962 in Kota, India. Created to produce nylon Fibre, Kota Fibres provided synthetic Fibre yarns to local textile weavers mainly to make the traditional women’s dress in India; the saris. Ms. Pundir was both the managing director and principal owner of the company. Kota Fibres used new technology and domestic raw materials to produce their quality product. The demand for saris amounted to 12 billion yards of fabric The Case Papers Kota Fibres, Ltd. was founded in 1962 in Kota, India. Created to produce nylon Fibre, Kota Fibres provided synthetic Fibre yarns to local textile weavers mainly to make the traditional women’s dress in India; the saris. Ms. Pundir was both…show more content…
The shareholders believe they are following a Utilitarianism model by laying off quite a few employees, but in turn, benefitting the greatest number by saving the additional employees their jobs and saving the company from bankruptcy. Finally, in the memos noted above, Ms. Pundir requested input on the issues, but she didn’t review or meet with the Managers to discuss their input. Hence, she doesn’t rely on her managers’ input. With her ease to push away extremely profitable business ideas to the side of her desk, who knows what she is looking over or signing simply to get it out of her way. Ms. Pundir could possibly be inaccurately portraying figures in order to please family members of the profit Kota Fibres should be receiving. LEADERSHIP STYLE: Ms. Pundir’s leadership style can be defined as delegative. In relation to the crumbling of Kota Fibres, Ms. Pundir has numerous business propositions she has asked her employees to investigate but fails to take the time of day to review the results. As the managing director and owner, Ms. Pundir has agreed to pass on high dividends to herself and the 11-member extended family. Ms. Pundir involved herself in every aspect of the business. She requests input from her managers but does not utilize their input. There were several memos on her desk from key management personnel which she didn’t read. If she had read the memos, then she would have noted
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