Would there be interference? Decision making within the family was seen by them as participative. The families in metropolitan cities preferred A- One or International. Alok met Shah after the conference and enquired whether he was serious in his proposal. The quality of materials received was checked in a laboratory for impurities and existence of metal particles.

The case writers express their gratitude to the members of the family for their co-operation in writing this case. It would also help them utilize the surplus capacity. It had desired to expand its supply to the market by subcontracting orders to other manufacturers. The biscuits were available in standard packs of grams. Canteens of institutions bought biscuits by floating competitive tenders.

Alok Kumar looked after finance and liaison functions; Vivek looked after human resource management and manufacturing; and Sanjay was responsible for marketing, logistics, and administration. In all there were 90 permanent employees. It would inspect the production processes of KCPL and recommend changes in processes and equipments, if needed. Sugar was the common raw material.

Click here to sign up. KCPL depended on both permanent and casual workers for its operations. The family members earned a salary.

The consumers were middle class families in urban and semi-urban areas. Would they be asked to make additional investments in manufacturing?


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The other three sons of Mohan Kumar started their own trading concerns in metal parts and containers. Maida was cleaned and fed to the mixing unit manually. What would they like to give to their sons when they grew up? He also mentioned that his company would provide technical guidance to the CMUs sudy offer fair conversion charges.

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As competition increased the net profit margins came down. KCPL did not sell loose biscuits to the Kirana shop. The proposal had both advantages and disadvantages. By 87 it had become a leading player in the sector with a monthly sale of tonnes.

Pearson relied on the expertise of KCPL.

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This had led to uneven production. The initial order from Pearson was for 50 tonnes per month between May and March Canteens of institutions bought biscuits by floating competitive tenders.

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It could not increase its prices to take care of rising costs of labour and material. It would also help them utilize the surplus capacity.

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KCPL was associated with this bank since The family members could disagree on issues without disrespect to the fraternal hierarchy. In the new competitive environment, KCPL got stuck in the middle. They either sold unbranded biscuits or sold them with brand names sounding similar to the leading brands.


They even imitated the packaging style of the leading brands. The company believed in the policy of ploughing back the surplus. The business become unattractive and uncompetitive.

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Its capacity was rendered surplus. The manufacturers had to pay an excise duty of 15 per cent and sales tax of seven per cent of sales value.

They were seen as high-priced biscuits without any additional benefits. It would outsource the supply from small and medium scale units by providing technical support. They had to decide soon as they were not sure whether other biscuit manufacturers were also interested in the opportunity and would out beat KCPL in approaching APL.

It could not withstand the competitive pressure.