Bharat Engineering Works Ltd. faced several problems as new competitors entered the market with modern technology. The company lacked proper management, planning, and organization. Production levels were insufficient and costs were too high. Mr. Arvind Kumar was hired as general manager to address these issues. He identified mismanagement, poor staff utilization, and weak organizational structure as key problems. Solutions included investing in new machinery, improving production efficiency, strengthening organization, and regaining lost customers. Reorienting strategies through product development was seen as the best approach to better compete in the market.
Bharat Engineering Works Ltd. faced several problems as new competitors entered the market with modern technology. The company lacked proper management, planning, and organization. Production levels were insufficient and costs were too high. Mr. Arvind Kumar was hired as general manager to address these issues. He identified mismanagement, poor staff utilization, and weak organizational structure as key problems. Solutions included investing in new machinery, improving production efficiency, strengthening organization, and regaining lost customers. Reorienting strategies through product development was seen as the best approach to better compete in the market.
Bharat Engineering Works Ltd. faced several problems as new competitors entered the market with modern technology. The company lacked proper management, planning, and organization. Production levels were insufficient and costs were too high. Mr. Arvind Kumar was hired as general manager to address these issues. He identified mismanagement, poor staff utilization, and weak organizational structure as key problems. Solutions included investing in new machinery, improving production efficiency, strengthening organization, and regaining lost customers. Reorienting strategies through product development was seen as the best approach to better compete in the market.
Bharat Engineering Works Ltd. faced several problems as new competitors entered the market with modern technology. The company lacked proper management, planning, and organization. Production levels were insufficient and costs were too high. Mr. Arvind Kumar was hired as general manager to address these issues. He identified mismanagement, poor staff utilization, and weak organizational structure as key problems. Solutions included investing in new machinery, improving production efficiency, strengthening organization, and regaining lost customers. Reorienting strategies through product development was seen as the best approach to better compete in the market.
• Bharat Engineering Works Is a major manufacturer of industrial machineries, besides other engineering products. • This organization has emerged as one of the most prominent manufacturers and exporters of Cast Iron Castings. • It has enjoyed considerable market preference due to limited competition thus the company had a Monopoly in the market for a very long period. • But the company started facing problems when two new companies entered the market with modern and foreign resources at their disposal. • Mr. Arvind Kumar was as the general manager to figure out the problem The problem • There was no proper management and planning of how the resources were handled are production was carried out • Due to which the production levels were insufficient as they could not match the quantity demanded in the market. • The company faced problems in marketing the product due it being inferior than its competition • Due to lack of modern technology (and the machines and other assets being very old), the cost of production was very high – meaning they could not lower the prices of their product when competition entered the market • With more options available at a cheaper price and a better quality in the market, and the company not being able to supply enough on time, Bharat engineering started losing its old and loyal customers too • The companies overall market share also dropped Planning • Planning is deciding in advance what to do, how to do it, when to do it and ho to do it.it involves anticipating the future • Here we can see that due to lack of planning when the competition was increased in the market the company faced problems (as mentioned earlier) and lost their market leader status. • In order to combat that issue, the company appointed Mr. Arvind Kumar as the general manager for the industrial machinery division • To get to the root problem that the company was facing the first step Mr. Kumar took was to get briefings about the problems within the company, and from this procedure, Mr. Kumar talked with all the operations managers and listed down all the problems that each of the department was facing. Staffing • Staffing is a process by which mangers built an organization through recruitment selection and development of individuals as an capable employees. • The man force available in the firm was not effectively utilized by the earlier manager • Earlier due to lack of planning mangers where not able to use the man force as per the need but Mr. Arvind Kumar re-appointed the staff not as per the vacancy but as per the skill they needed. Organizing • Through a survey Mr. Arvind Kumar got to know that there were poor working relationships among the employees and the superior staff so as a result it effected the production process, affecting the production efficiency because of lack of proper communications, and they could not achieve the set target (I. e. The sales department had no proper budget or a central organization team like group leaders to guide them). • The lack of organization in the company is one of the biggest problems, and to counter that what Mr. Kumar could do is to make a proper organization chain within the company where each divisions employees have to answer to their division manager only, and the division managers to their superiors (like CEO) Controlling • History has seen one of the best leaders in the form of Alexander, the great and he has rightly remarked, " I am not afraid of any of lions led by a sheep , I am an army of sheep led by a lion." In the case study , we have seen a huge gap between the top executives and low level managers. The leader need to know how to make maximum utilization of each and every member of the cooperation in the benefit of their company which was certainly missing here . Leaders need to lead by examples . A team member is by default controlled by the working styles of the leader. The leader should ensure that failure of any plan is his failure and success of any project would be team ' s success. And since there is a lot of mismanagement in the organization, the company should adopt a more centralized style of functioning and the employees are only responsible for their division and only answerable to their division manager. The top managers also need to decide a certain budget for each division from which they have to manage, so none of them are left hanging. SWOT analysis Strengths Weakness Opportunity Threat Knows market Use of old machines Because of the company name Foreign competition requirements well and loyal customers, enhancing product quality will strengthen market position Has customer trust Lack of organization in the Reduce production cost to More efficient (because its an old company increase profits products available in and respected market brand) High profit margins Mismanagement of funds Fall in market position Unable to supply demanded quantity Staffing mismanagement No future planning • In this case the re-orientation strategies will work the best in the long term for Bharat engineering since the company is facing a lot of problems at the moment, but it still has a lot of opportunities (there is high demand in the market) available in the market, if they are able to capitalize on those opportunities by making changes that can benefit them in the long run Possible solutions • The company should hire new engineers. • Use of latest technology is must, so that the production cost goes down • R&D could try innovating something new • Wooing the loyal customers back (by advertising about better products or/and delivering better products) Ansoff Matrix The product development would be the best strategy for the company where they will be introducing new and/or improved products in the already existing market, because there is a big scope in the current market for them, and an improvement in the product would mean that will be able to compete with the two new foreign companies. Solution The most probable solution can be the use of new machinery and technology instead of the old ones. It would reduce the cost of production which would ultimately result into the increase in efficiency and effectiveness of the company. It will result into lower cost of production which will make the profits higher than before. Plus as each year passes the value of the machine depreciates, so it would be wise to replace them soon But buying new machinery can also result into expensive investment in the starting and the employees can further face problems to deal with the new machinery unless proper training and development programs are organized by the company. Questions and Answers