Kota Fibres, Ltd

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Case Report for Kota Fibres, Ltd. Group 7 BA 141 (WFY) 8/11/2010 Table of Contents Point of View .............................................................................................................................................. 1 Case Context ............................................................................................................................................... 1 Problem Definition ...................................................................................................................................... 1 Framework of Analysis ............................................................................................................................... 1 Analysis…show more content…
Moreover, operating expenses were estimated to be 6 percent of sales in 2001, a figure higher compared to last year’s. Interestingly, this was due to the addition of a quality-control department, for which there had been no indications of a need for one, and the three young nephews of Mrs. Pundir, in whom she hoped to build an allegiance to the family business. She also proposed to pay dividends of Rs500,000 per quarter to only 11 individuals who held the entire equity of Kota Fibres, Ltd. Incidentally, these 11 individuals were members of her extended family. III. Problem Definition: Mrs. Pundir’s management of Kota Fibres’ cash is inefficient. Because the company is already anticipating the heavy selling season, the problem thus requires a solution that will generate cash inflows in the immediate future. IV. Framework for Analysis A. Gaining Familiarity B. Identifying the Problem C. Recognizing Sub-problems D. Identifying Goal/s E. Analyzing the Case F. Recommendation V. Analysis A. Gaining Familiarity Please refer to the Case Context above. B. Identifying the Problem Please refer to the Problem Definition in the previous page. C. Recognizing Sub-problems In 2001, Kota Fibres faced several sub-problems that reflected, if not confirmed, the inefficient management of the company’s cash holdings. Frequently overdrawn bank account Unpaid excise tax Delayed customer

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