Written Analysis and Communication
Assignment – 1
Case Analysis Report on
KANPUR CONFECTIONERIES PRIVATE LIMITED (A)
SUBMITTED BY:
BHUMIL PATEL
SECTION – A
ENTREPRENEURSHIP DEVELOPMENT INSTITUTE OF INDIA
7 September 2015
September 10, 1987
Mr. Alok Kumar Gupta,
Chairman and Managing Director,
Kanpur Confectioneries Private Limited,
Radha Industrial Estate,
Kanpur, Uttar Pradesh.
Subject: Submission of Report
Dear Sir,
This is with the reference to the situational analysis done by us on the Kanpur Confectionaries Private Limited (KCPL) manufacturing units for doing contract with A-One Confectioneries Private Limited (APL).
I hope you find this report satisfactory.
Sincerely,
Bhumil Patel
Patel
…show more content…
2. Unorganised Sector: During the same period, 70 new units came up, selling unbranded biscuits or selling them with brand names sounding similar to the leading brands.
The market was also changing; the cost of raw material was increasing along with the labour cost. In 1986 KCPL signed agreement with Pearson with initial order of 50 tonnes per month supply of biscuit with promised off take of 100 to 125 tonnes per month with conversion rate of Rs. 3 per kilo after reimbursing fully the cost of material.
A-One Confectionaries Private Limited (APL), national leader in biscuit industry, offered to place initial order for producing 70 tonnes of biscuit per month with conversion rate of Rs. 1.5 per kilo to KCPL. The initial contact was for three years. The APL would provide technical expertise, inspect the production process and recommend change in the process and equipment; these changes would be carried out by the KCPL at its own cost. The APL would place post two quality control officer at the KCPL plants. The APL would also share its 3 “APL secret ingredient” but KCPL would be required to buy the material from one of the authorised suppliers of APL. 2. Problem
To accept the contract agreement from APL or not 3. Options * Accept the offer of the APL * Reject the offer of the APL 4. Criteria of Evaluation * Effect on the profit of KCPL after signing of deal with APL. * The process
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