Contents

CASE I. The Impacts of Failure Managerial skills in Shwe Nagar Company 2

1.1 Introduction 3

1.2 Profile of the Shwe Nagar Company Limited 3

1.3 Case of the Shwe Nagar Company Limited 5

1.4 Case Question 7

CASE II. Problem of the Decrease Sales of Used Cars in ABC Company 8

2.1 Introduction 9

2.2 Profile of the ABC Car Company 9

2.3 Current Situation 10

2.4 Case of the ABC car company 10

2.5 Case Question 13

CASE III. Weakness of Location Decision in Apolo KTV, Night Club & Bar 14

3.1 Introduction 15

3.2 Profile of the Company 15

3.3 Problem of Apolo KTV, Night Club & Bar 17

3.4 Case Question 19

1
CASE I. The Impacts of Failure Managerial skills in Shwe Nagar
Company

2
 The Impacts of Failure Managerial skills in Shwe Nagar Company

1.1 Introduction
Managers must be in proficient in a number of areas to be able to perform
managerial tasks. Especially, they have many responsibilities to motivate employees
to perform at their highest capabilities. Unlike other people, managers must measure
their success by what they can get others to accomplish not by what they can do their
own. They have specific functions to carry out effectively such as hiring staff, training
new employees, coaching employees, dealing with problems, decision making,
evaluating performance, monitoring performance, monitoring expense and budgets,
and planning and goal setting for future. If a company has skillful and highly efficient
managers, it is sure that it can achieve great successes in its business operations. But,
the failure of managerial skills within a company may generate bad impacts for the
company. In this case study, the bad impacts of failure managerial skills in Shwe
Nagar Company are presented.
The role of the manager is very critical and important for every company to
yield favorable outcomes and beneficial results. It may be assumed that the more
efficient managers a company has, the more favorable and beneficial outcomes they
might enjoy. Consequently, the more successful managers can perform their tasks, the
more benefits their company can enjoy. Inversely, if managers are failure in their
skills, they might committee mistakes and improper performance at work. As the
result, the company may suffer unfavorable and harmful consequences. Shwe Nagar
Company has got some unfavorable impacts because of the failure management skills
of managers.

1.2 Profile of the Shwe Nagar Company Limited

The Shwe Nagar Company is a private company and an agro-based firm. It
was established in 2012. It is located at 402, Yaw Ah Twin Wun U Pho Hlaing Street,
Shwelinbann Industrial Zone, Hlaing Thar Yar Township, Yangon. It is specially both
an importer and distributor. The imported products of it are agrochemical products
and fertilizers. It imports from many foreign countries and distributes agricultural
products such as insecticide, herbicide, fungicide and foliar fertilizers, all around the
country.

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 The vision of the company is to be the leader of agriculture sector. The
mission is to position Shwe Nagar Company as a major global agro-based trading
entity. The objective of the company is to stand successfully as the most outstanding
and profitable agro-based economic development of Myanmar
Company Structure - The structure of the company constitutes of five departments,
including audit and finance, administration and license registration, planning and
project management, business development and strategy, and sales and marketing.
Every department is handled and managed by its individual manager and two assistant
managers. The company is carrying its business with the total employees of more than
250 employees. Of these, more than half of the total employees are serving as sale
and marketing staff. Moreover, there are next fifty workers who are paid wages by
daily for the factory and warehouse operations.

Figure 1.1 Organization Structrue

CEO

GM

Audit & Finance Admin & License Project & Business Sales &
Team Registration Planning Development Marketing

Manager Manager Manager Manager Manager

Devisional Devisional Devisional Devisional Devisional

Manager Manager Manager Manager Manager

Members Members Sales Men Sales Men Sales Men

Source: Shwe Nagar Company Limited in 2017.

Distribution and Selling System - When distributing and selling the company’s
products, the company uses the selling method of placing each regional sale manager
for each region. Assuming for the Ayeyarwaddy division, the assigned regional sale
manager must take all responsibilities for that division. This regional sale manager

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can manage and handle the regional sales to be developed and employees under his or
her region. In general, this manager must have the managerial and leadership skills.
The sales of a region exactly depend on the assigned sales manager for that region.
Placing the regional sale manager for a division or state means that the company
prefers to work with regions and regional members. Responsibilities and
accountabilities are divided sub-duties. This technique is effective way for the most
agricultural firms.
Promotion System - The company holds the award of ceremony for the best selling
wholesalers for every region and customers every year. For employees, the staff party
and the award of ceremony for the best employees are held every year.
Current Situation - The Company can be said in the situation of “Success”. Since
the establishment of the company, according to its objectives, the sales volumes were
increasing year by year. The numbers of employees are increased and its products can
be seen and purchased around the country. Now the company is operating normally
and it is encountering the sales-down situation comparing with prior years.

1.3 Case of the Shwe Nagar Company Limited

At the beginning, the company was at highly risk and it had to struggle
intensely to operate business functions such as production, distribution, marketing and
management. But, with the great efforts and excellent performances of managers and
staffs, the company began to lead on the right path of business after more than a year
period. The annual sales apparently rose up year by year. But, the annual sales are
sharply decreased. The sales volume are shown in the below table. This sale-down
situation is the main problem for the company. This effects are caused by the lack of
managerial and leadership skills.
Since the establishment of the company in 2012, the annual sales were
gradually increased until 2015. Later, the annual sales were down unpredictable. It
was found that the sales and marketing manager was weak in the managerial skills. In
2016, the position of sales and marketing manager in the company was replaced with
another person. Unfortunately, the new manager was weak in the managerial skills.
In a company, a manager must have the managerial skills such as human skills
or interpersonal skills, conceptual skills and technical skills. Practically at work,
moreover, a manger must have other skills to perform business operations effectively.
Although the sales and marketing manager of the Shwe Nagar Company had the

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technical skills, this manager did not have the human skills or interpersonal skills and
conceptual skills. Why the manager completed with technical skills is that he got the
Bachelor of Agriculture and Diploma of Agriculture. Besides, he had five-year
experiences in agro-commodities trading. He worked as a sales man in the sales and
marketing department of the company. Due to the great performance at the
department, he was promoted to be the head of the sales and marketing manager.
Consequently, as he did not have enough analytical skills, he also faced with
difficulties in applying critical thinking skill which needs sufficient knowledge about
company and its business operations. So, he made a lot of mistakes at work,
especially in strategic logistic tasks in which he could not make out new and effective
ideas and strategies when needed. That is why he failed to solve the problems that he
encountered in the department. Therefore, he had made a series of mistakes in the
management of human resources in which he could not control not lead the staff to
perform with high capacity. As the above table, the company failed to increase the
market share and sale rate. This failure and losses were caused mainly because of his
weakness in managerial skills.
The manager must see the whole through analysis and diagnosis of different
states. The sale and marketing manager is especially responsible for the company’s
overall sales and profits. He must know the specific goal of sale and marketing
department. He has lack of conceptual skills. Why it is said that he had the serious
wrongs when he communicated with main dealers. He did not give much respect to
main dealers but he paid much more favor to sub-dealers. Actually the company
depends mainly on the demand of main dealers. They can improve the sales and
effective marketing with less cost. The main dealers’ dissatisfactions were happened
and didn’t have motivations to hand in hand with the company. So, the company
gradually lost main dealers in many market areas. As the result, the company’s market
share declined gradually. The underlying reasons that caused such a failure business
operation are that he did not have special skills of his tasks.
A manager must sufficiently have knowledge and ability to work with people.
One of the most important management tasks is to work with people. Without people,
there do not be a need for existence of management and managers. As a manager,
collaboration strategy is able to build around people who involve in the functions of
the work. A proper and effective collaboration can change the attitude and behavior of
people in the organization. The sales and marketing manager of the company could
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not lead employees and team members at work. Instead of leading them as a leader,
he acted as a master of servants. He related the employees impolitely. When he
communicated with others, he treated in different ways. He showed his politeness and
humbleness in front of the CEO and higher ranks but not related with general workers
and other employees. When negotiating some cases with colleagues within the
company, there were difficulties.
Table 1.1 The Annual Sales of Shwe Nagar Co., Ltd

Year Annual sales (Kyats)

2014 690,000,000
2015 2,500,000,000
2016 1,500,000,000
2017 1,000,000,000

Source: Department of Sale and Marketing, Shwe Nagar Co., Ltd

Of course, a sale manager must have not only managerial skills but also sales
and marketing technical such as knowledge about customers’ behaviors so that he
might be able to proper and effective marketing strategies. He must clearly understand
the targeted customers and market of the products. In real, a sale manager is a liaison
between the company or products and the customers. He must clearly know the sale
and marketing strategies that might potentially reach the targeted market and
customers. But, he did not have such skills and he sold the products as he wished.
Actually, marketing manager is in touch with current trends both within the local and
world market at large. He must understand what kind of company could successfully
persuade the customers and what kind of products could also attract the customers. He
did not launch any promotion program to increase the market share and sale rate.
Absolutely, he did not have such important skills and he was not able to apply these
skills. The result was that market shares and the sale rates are sharply decreased year
by year.

1.4 Case Question

What should be the possible ways to access the managerial skill for that
marketing manager and to get confident each other or team-work for business success
in future?

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CASE II. Problem of the Decrease Sales of Used Cars in ABC
Company

8
 Problem of the Decrease Sales of Used Cars in ABC Company

2.1 Introduction
Transportation is one of the main infrastructures of a country that determines
the development of that country. It plays a pivotal role not only in governmental
sectors but also in public and private sectors. It is also one of the most important
factors for the socioeconomic development of a country. Especially, transportation is
the most decisive factor that affects the trade flow of a country. Transportation sector
includes transportation of goods, public transportation, car trading, car production and
assembling, and importing cars. Since regaining independence, the successive
government exercised closed door economic policy. There had been no competitive
car markets in Myanmar till 2011 when new government led by President U Thein
Sein adopted new car policy that aimed to increase the ratio of car owners in
Myanmar. According to new car policy, people can do car trading, joint-venture
assembling and importing cars legally. Since that time, a competitive market of used
cars and new cars had emerged in Myanmar.
A competitive market is a market in which a large numbers of producers or
suppliers compete with each other to satisfy the wants and needs of a large number of
consumers. In a competitive market, there is no only one producer or single customer
can decide the market operation. Also, no single force can individually determine the
price of goods and services. Competitive market creates both advantages or favorable
situations and disadvantages or unfavorable situations for businesses in the market.
Participating in a competitive market, competitors can capture the market share if they
can identify the new trends and changes in the marketplace and the nature and
characteristics of customers in the market. But, most often, many businesses have to
face unbalanced competition with much more powerful competitors so small business
often struggle with more limited resources. That makes the small business face with
troubles and problems in the market competitions. Such situation can be proved with
competitive market of used cars and brand new cars in Myanmar.

2.2 Profile of the ABC Car Company

The ABC Group is established in 2010, based on Yangon. At that time, the
company was just a small business for selling cars, purchasing cars and importing
cars, just a small numbers of cars and also automobile spare parts. The founder of the

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group was U Tin Hlaing who realized the possibilities of setting up a two and three
wheeler dealership. This group was constituted with the strong presence in 4 wheelers
segments. The group also gives many services concerning automobiles such as
licensing, documentations, custom documentations for importing and exchanging of
old cars and new cars.
In 2012, the founder explored the immense market potential because the
government changed the automobile policy. The sales and services in the firm were in
such a way it would suffice the needs of customers. Slowly but surely, the firm had
been able to make a mark of itself on the dealership map. The group has changed to
the ABC car company and it has attained incredible growth over the years. The efforts
of management have paid off substantially and the company had the automobile show
room. The company owns an advanced service station with a break down and quick
repair cell, which provides an excellent and defect less services to the customers.
Company Structure - Within the 8 years, the firm could achieve above 200
automobiles of turnover and over 800 vehicles are sold out from this dealership. Since
the firm has shown willingness to reach the top. Now, there are 25 staffs in the
company. The company is composed of three departments including sales and
marketing, finance and accounting, and importing and logistics. Each department is
handled by its individual manager. Making decisions all of the business operations are
determined by the founder discussing and solving with the departmental managers.

2.3 Current Situation

As occasionally, the brainstorming programs and training programs are held
and encouraged to participate for all staffs. All of the staff of the company is
committed to their work and they are their best to achieve their goals. The company is
now one of the leading automobiles dealers in Myanmar before changing the
automobile policy by the government at the beginning of 2018.

2.4 Case of the ABC car company

Car policy and rules and regulations of car importing are changed year by
year. Authorities announced the limitation of car models, engine power, left-hand
drive, right-hand drive and they termed CIF (Cost Insurance and Freight) prices, the
amount of taxes and custom duties. According to new car policy and regulations
issued in the beginning of 2018, car importers must import the lowest models from
2014 to 2017 left-hand drive cars. According to new car policy and regulations, it can

10
cause the implication for car importers and it makes worse very difficult for car
trading companies including the ABC car company.
Due to the issue of limitation for automobiles at once, the cars’ models that are
lower 2014-year models imported by the company before are decreased in sales. At
present, no one is willing to buy these model cars because of competitive advantages
comparing the new cars and the old ones. The nature of human beings is that everyone
likes new and more updated designs and technologies.
Firstly, in pricing, the most apparent issue is prices of cars. The new cars’
prices in the present market are a little more than those of the old cars. Even if it is a
used or good second-hand car, it will be imposed higher tax-rate if it has larger engine
power. It is natural that the higher the rate of tax is, the higher the price of car. The
nature of human beings is that everyone likes new and more updated designs and
technologies neglecting the engine power. In this situation, it is sure that everyone
chooses to buy the new car. It is described in the below table for the competitive price
happening in the present car market.

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Table 2.1: Price Comparison between Brand New Cars and Used Cars
Used Cars Brand New Cars
Brand Model Price Brand Model Price Variance
Name Year (Ks 00,000) Name Year (Ks 00,000)
Dihatsu 2008 130 Suzuki 2018 85 Price
Hijet Carry
Toyota 2013 1400 Toyota 2018 1200 Design
Landcruiser Fortuner
Range 2012 1250 Mazda 2018 1200 Maintenance
Rover CX9
Evoque
Toyota 2010 700 Ford 2018 780 Design &
Vanguard Everest Price
Toyota 2013 1200 KIA 2018 800 Comfortable
Harrier Sportage
Toya Axio 2011 265 Nissan 2018 235 Brand
SE LHD
Toyota 2011 295 Suzuki 2018 265 Easy to
Premio Ciaz Maintenance
Toyota 2003 245 Suzuki 2018 255 Design &
Wish Ertiga Consumption
Toyota 2014 330 Mazda 3 2018 350 Design
Yaris
Source: ABC Car Company in 2017.
Another factor is maintenance and repairing the car. In comparison between
uses cars and new cars, generally, used cars are more likely to be repaired and more
demand of maintenance than brand new cars. The more the car is repaired, the less the
satisfaction of the user is. The user has to spend much more expense for used cars
than new cars. Sometimes, while being repaired, if there were no spare-parts, it is very
difficult to find the same one. And the mechanisms invented the one that is nearly the
same as original one but it is not as good and reliable as the original one. This makes
more costs because using used car will make the user more expense for car. It will

12
also make his financial balance out of equilibrium. Of course, repairing the car over
and over again makes the user harmful physically and mentally.
Car design and technology also play an important role in care market. The
nature of human beings is that everyone likes new and more updated designs and
technologies. Similarly, more and more new and different high-techs are being made
by car companies as to gain customers’ attraction. As the result, customers are
interested in new technologies and they find cars with as many new and updated
technologies. Therefore, customers’ demands are willing to buy new cars, absolutely.
As the current car market, the prices of new cars are not much different from
the prices of used cars. The users are more willing to buy new cars. Moreover, the
customers who buy and use new cars can enjoy the incentives and facilities that car
companies offered for their cars. Customers can own a car without spending much
money by hire-purchase system which has from 3 years-term to 5 years-term. Besides,
the car companies guarantees the repairing and maintenance programs for at least
three-year warranty for engines and parts of mechanism and free of charge for other
services. Such beneficial schemes for incentives and extra offers made by car
companies effectively attract the customers to decide for buying a new car compared
with used car whenever they need a car
Because of the weakness of competitive advantages in the used cars, the ABC
Car Company is suffered the sale-down problem. The investment will flow into the
costs of fixed assets such as land costs, labor costs and other office assets. The
investment on the imported used cars cannot be returned as fast as. The company
encounters great challenges of return on investment (ROI). Although the supply is
much available, the demand for used cars is getting lower and lower. The company is
at extremely risk to survival its business because of uncertainty of income and profits.
Now, a large numbers of old model cars are being stocked at sale center. As the result,
the cash flow of company extremely delayed and it also makes company’s profits
decrease. So, how to manage the used cars stocked pile at sale center is the great
challenge for company.

2.5 Case Question

If you are a sale manager or business owner of car importing company, how
should you prepare for the lowest risk of unstable government legalization?

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CASE III. Weakness of Location Decision in Apolo KTV, Night Club
& Bar

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 Weakness of Location Decision in Apolo KTV, Night Club & Bar

3.1 Introduction
The location of a business is one of the most important factors that affect the
potential success of business. In general, businesses need to choose a suitable location
that is potentially able to generate the development and achievement of respective
business operations. Of course, every business should be located in an appealing area
because a business that locates in a desirable and favorable location will gain much
more achievement and benefits. On contrary, a business that locates in wrong location
will face with problems and losses.
The nature and characteristics of a suitable location for a business differs from
one business to another according to the nature and kinds of business. There are so
many criteria to be considered to choose a proper location for a business. If the type
of business is manufacturing or production business, the nearness or availability of
raw materials is very important. It is very essential because if the business is not
closed to outsource of raw material, transportation costs may reduce the profit margin.
Another important factor to be considered for choosing a business location is
the nearness to potential customers. In other words, the location of a business must
situate as near as the targeted market which determine the nature and types of
customers. For example, a business that aims to luxury market should be near the
location where people of high income mainly live. Likewise, a business that targets
the medium and low income people should choose the location where many people
get medium and low income level.

3.2 Profile of the Company

Apolo KTV, Night Club & Bar is situated at No. (31), Hnin Si Street, Tharkata
Township, Yangon. It is a high-class luxury entertainment center owned by the Shwe
Twenty First Group of Companies. The business operation is mainly based on the
entertaining and relaxing services. So the type of business is service type. Apolo
KTV, Night Club & Bar is founded at that place with the intention of one-stop service
with full facilities and the primary focus of Apolo KTV, Night Club & Bar is to
facilitate customers with grand and high standard classic taste of music and
performance and to provide a place where customers can enjoy upmost pleasure and
happiness and freedom life styles.

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 The vision of the company is to be an entertaining and relaxing center with
world class facilities in Myanmar.The mission is to become the most attractive
relaxing place for all kinds of people by providing all their wants and needs at a single
place.The Motto is KTV and Bar with DJ, Newly spots in Yangon. The objective of
the company is to provide customers with the best quality services.
Infrastructure and decorations
Apolo KTV, Night Club & Bar is built in the four-story grand building which
is 80 feet high, 40 feet wide and 80 feet long in a larger compound. It also has enough
space for car parking and security plans. The first floor of the building is arranged for
reception section and coffee shop. The second floor and third floor are arranged for
KTV rooms with mini bar. The top floor is arranged for night club together with bar
and mini-swimming pool. All of the interior decorations are highly classic luxury
styles that can provide privacy and lively recreation. Moreover, each KTV room is
facilitated with bathroom, toilet, dancing space, sofa settee, 58 inches LEDTV and
Karaoke sets. The customers can easily select any songs they like with tables. The
rooms are also planned for two persons, family room, gathering room (about 20
persons), special rooms and VIP rooms. Each class of KTV rooms is decorated
necessary facilities that are matched with its class. All of the KTV rooms are sound-
proofed with multi karaoke boxes.
Company Structure
There are more than 40 permanent employees and more than 40 part-time
employees. The whole business operations are headed by a general manager and two
assistant managers. There are mainly four departments: finance and account, HR,
admin, and service department respectively. More than twenty technicians are
operating and controlling the whole process of KTV and all kinds of entertaining
programs. The opening hour is from 18:00 pm to 3:00 am every-day.

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Figure 3.1: Organization Chart

Owner

General Manager

Operation Team Finance Team Admin & HR

BAR KTV Kitchen

Service Service Service

Staffs Staffs Staffs

Source: Organization Chart of Apolo KTV, Night Club & Bar in 2017

3.3 Problem of Apolo KTV, Night Club & Bar

The Apolo KTV is in the situation of lessen the incoming customers who want
to accept the relaxing and pleasure. As a service industry, the willing of relaxing of
customers’ is the critical factor in this industry. By the nature of KTV, it is a main
factor of investigation that influence where nightclubs locate within a city. It is found
that there are many lacks of factors in this KTV.
People who live around near in that entertainment center who receive low
income level compare with other entertainment centers. Other similar centers mainly
focus on people who live near these areas with high income level with pleasant
surroundings.
The income level of middle and lower who live in the area around that center
is really quite much than others. The nature of the service industry does not meet the
income level of people who lives around. Thus, they will not become as customers for
the Apolo KTV. In contrast, to consider for relevant customers who live away from
that area, it still cannot attract for them to enjoy the service. It is too much far away
for them to reach. All these industry service are similar not only this KTV but also
others also give superior services as well.
The location is so far and little attract to customers to enjoy back in that KTV.
That force to decrease the sale of the KTV income. In addition, the KTV also

17
purchase for operational materials such as; snacks, fruits, foods, electricity charges,
employees salary. These operational charges cost daily by daily. If customers do not
come and enjoy to the KTV, the daily charges will be wasted and the daily expenses
are also high. Consequently, the expenses cannot overcome the income of the Apolo
KTV.
Not only the facilities and providences at Apolo KTV, Night CLub & Bar are
better and more luxurious than many other KTVs and bars, but also the prices at
Apolo KTV Night Club & Bar are much cheaper than those of others. The following
table presents comparisons of prices of KTVs and bars. Moreover, Apolo KTV, Night
Club & Bar launches discount programs very often. Although the Apolo KTV, Night
Club & Bar are much more reasonable and affordable to all classes of customers than
many other competitive businesses, the customers did not come as much as it is
expressed.
Table 3.1 Comparison of Competitors’ Price

Normal Prices
Name of KTV (Kyats) Discount Prices (Kyats) VIP (Kyats)
Apolo 20,000 – 80,000 10,000 – 40,000 40,000 – 80,000

M3 25,000 – 90,000 20,000 – 70,000 70,000 – 150,000

Music Box 35,000 – 115,000 30,000 – 90,000 80,000 – 100,000

The One 45,000 – 145,000 30,000 – 90,000 100,000 – 120,000

Source: The Apolo KTV, Night Club & Bar (2015 – 2017)
As the nature of human being, after they join entertainment one industry, then
they do not stop in one place for their destination. So, after they join KTV, they would
like to go bar, club for dancing for enjoy. As to get a relationship for business, people
will join in another as sequence.
According to this KTV’s location, customers difficult to reach to others place
to join after this. It is really quite strange for customer to come and enjoy this service
which located in far way from other similar places as well. The owner decided to
choose that location where is quite far from town to make relax but it does not meet
the requirement to fill the targeted customers. Now, the targeted amounts of
customers have not yet come and there is no hope to come more.

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Table 3.2 Profit and Loss for Apolo KTV by Semi-Quarterly
Profit/Loss
Year Semi-Quarter Month Cost (000) Sale (000)
(000)
Apr - Sep 8,000 6,500
(1,500)
2015
Oct - Mar 7,800 5,500
(2,300)
Apr - Sep 7,500 4,500
(3,000)
2016
Oct - Mar 8,100 6,900
(1,200)
Apr - Sep 6,900 5,300
(1,600)
2017
Oct - Mar 7,300 4,900
(2,400)
Source: The Apolo KTV, Night Club & Bar (2015 – 2017)

Figure 3.2: Profit and Loss for Apolo KTV by Semi-Quarterly

9,000
8,000
7,000
6,000
5,000
4,000 Cost (000)
3,000 Slae (000)
2,000
1,000
-
Apr - Oct - Apr - Oct - Apr - Oct -
Sep Mar Sep Mar Sep Mar
2015 2016 2017

Source: The Apolo KTV, Night Club & Bar (2015 – 2017)
The above Table 3.3 and Figure 3.1 are shown the three years of profit and
loss due to sale and cost with the number and its graph. As per semi-quarterly, cost is
still higher than income level in three year. It still loss happen for three year since
they open the KTV.

3.4 Case Question

What is the possible solution for the failure of the Apolo KTV’s business
operation, if you are decision maker in this business?

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