NMIMS Global Access School for Continuing Education (NGA-SCE) Course: Management Theory and

Practice Internal Assignment Applicable for December 2021 Examination

1. Can you do a SWOT Analysis of any 1 Indian company of your choice dealing in FMCG?
Strength
 Investment in Technology-Amul has experienced exponential growth in the last few decades. The company is
continually investing in adaptive and revolutionary technologies within the dairy industry.

 Production Capacity-Amul is one of the largest manufacturers of milk and dairy products in the world. The
company is managed by the Gujarat Co-operative Milk Marketing Federation Limited, which is a dairy
producers cooperative which supplies the company with almost 18 million litres of Furthermore, the flavoured
milk industry in India is also expected to grow by 20 per cent, and once again, Amul is a market leader in
flavoured milk in India.

 Strong Brand Value Amul is one of the most recognizable and valuable brands in India. The Amul girl, the
company’s mascot which features on its advertisements is one of the oldest and most iconic brand mascots
which Amul uses even today.
Weakness
 High Operational Cost Amul has a high operational cost due to its massive size and complex structure. This
can become problematic for the company if the company experiences fall in demand. The company also heavily
depends on the dairy unions and communities for its supply of milk. As the needs of the dairy community are
changing with them demanding higher prices for their produce.
 Lack of Success in Certain Areas of Portfolio Expansion Amul has expanded its product portfolio to add
products such as butter, ghee, buttermilk, flavoured milk, ice cream, chocolates, cheese, creams, sweets and
more.
 Frequent Legal Issues The company has faced legal issues in the recent past wherein Amul chose to
advertise its products while disparaging the brand and products of its rivals. This led to Hindustan Unilever
filing a lawsuit against Amul in the Bombay High Court.
Opportunities
 High per capita Milk consumption India is a high milk consuming nation with milk and dairy products being
an essential component of the Indian diet. According to research, Indians consume almost 100 litres of milk per
annum.
 International Expansion Amul can serve global markets. The brand can expand into overseas markets such
as the Middle-East and the Asian markets by aggressively targeting Indian expats living in these countries.
Amul can organically broaden its international presence and consumer base.
Threats.
 Increasing Competition Amul is facing increasing competition in milk and dairy products sector from brands
such as Mother Dairy, Aavin, Quality Ltd, Nadini Dairy, HUL and other local players. Amul is also facing
increasing competition within the ice cream sector from Kwality Walls, Baskin Robins, Havmor, London Dairy
and other domestic brands
 Growing trend of Veganism in India Many people in India are turning towards veganism, which implies that
these people do not consume dairy or dairy products. This can impact the demand for Amul’s milk and dairy
products if the popularity of veganism increases and spreads across different parts of the country.
 NMIMS Global Access School for Continuing Education (NGA-SCE) Course: Management Theory and
Practice Internal Assignment Applicable for December 2021 Examination

2. MG Motors have been having a tough time from the time of their launch in India. They feel that there have been
a lot of pilferages and wastage in their production and they need to sort it out as soon as possible. Also, the time
taken to manufacturer one unit of their cars is extremely high as compared to global benchmarks. They have
hired you as a consultant for the same? Can you explain the concepts of JIT and Lean Production to them and
help them apply the same in order to reduce their troubles?

What is Just-in-Time (JIT)?

Just-in-time, or JIT, is an inventory management method in which goods are received from suppliers only as
they are needed. The main objective of this method is to reduce inventory holding costs and increase inventory
turnover.

Here are some of the important effects of a just-in-time inventory management system:

Reduces inventory waste A just-in-time strategy eliminates overproduction, which happens when the supply of
an item in the market exceeds the demand and leads to an accumulation of unsalable inventories. These
unsalable products turn into inventory dead stock, which increases waste and consumes inventory space. In a
just-in-time system you order only what you need, so there’s no risk of accumulating unusable inventory.

Decreases warehouse holding cost Warehousing is expensive, and excess inventory can double your holding
costs. In a just-in-time system, the warehouse holding costs are kept to a minimum. Because you order only
when your customer places an order, your item is already sold before it reaches you, so there is no need to store
your items for long. Companies that follow the just-in-time inventory model will be able to reduce the number
of items in their warehouses or eliminate warehouses altogether.

Gives the manufacturer more control In a JIT model, the manufacturer has complete control over the
manufacturing process, which works on a demand-pull basis. They can respond to customers’ needs by quickly
increasing the production for an in-demand product and reducing the production for slow-moving items. This
makes the JIT model flexible and able to cater to ever-changing market needs. For example, Toyota doesn’t
purchase raw materials until an order is received. This has allowed the company to keep minimal inventory,
thereby reducing its costs and enabling it to quickly adapt to changes in demand without having to
worry existing inventory.

Local Sourcing Since just-in-time requires you to start manufacturing only when an order is placed, you need to
source your raw materials locally as it will be delivered to your unit much earlier. Also, local sourcing reduces
the transportation time and cost which is involved. This in turn provides the need for many complementary
businesses to run in parallel thereby improving the employment rates in that particular demographic.
Smaller investments In a JIT model, only essential stocks are obtained and therefore less working capital is
needed for finance procurement. Therefore, because of the less amount of stock held in the inventory, the
organization’s return on investment would be high. The Just-in-time models uses the “right first time” concept
whose meaning is to carry out the activities right the first time when it’s done, thereby reducing inspection and
rework costs. This requires less amount of investment for the company, less money reinvested for rectifying
errors and more profit generated out of selling an item.

What is Lean Manufacturing?

Lean manufacturing is a production process based on an ideology of maximising productivity while

simultaneously minimising waste within a manufacturing operation. The lean principle sees waste is anything
that doesn’t add value that the customers are willing to pay for.
 NMIMS Global Access School for Continuing Education (NGA-SCE) Course: Management Theory and
Practice Internal Assignment Applicable for December 2021 Examination

Why is Lean Manufacturing Important and How Can it Help?

Waste in industry, whether that is idle workers, poor processes or unused materials are a drain on productivity,
and lean manufacturing aims to eliminate these. The motives behind this vary depending on opinion, from
increasing profits to providing benefits to customers.  However, whatever the over-arching motives, there are
four key benefits to lean manufacture:

 Eliminate Waste: Waste is a negative factor for cost, deadlines and resources. It provides no value to
products or services
 Improve Quality: Improved quality allows companies to stay competitive and meet the changing
needs and wants of customers. Designing processes to meet these expectations and desires keep you ahead of
the competition, keeping quality improvement at the forefront
 Reducing Costs: Overproduction or having more materials than is required creates storage costs,
which can be reduced through better processes and materials management
 Reducing Time: Wasting time with inefficient working practices is a waste of money too, while more
efficient practices create shorter lead times and allow for goods and services to be delivered faster
NMIMS Global Access School for Continuing Education (NGA-SCE) Course: Management Theory and
Practice Internal Assignment Applicable for December 2021 Examination

3. Lemon Tree, a premium chain of hotels across the country has suffered tremendous losses
during this pandemic and have hired you as a consultant in order to analyze the same

a. Can you explain Political, Economic and Social forces which have had an impact on
the business?
 Political Forces- Rule set by government to reduce the pandamic which
resulted in Lockdown restriction in travel
 Economic- Pandemic also lead to priritsation of spending by people rather
than traveling or restraint they focussed on Health treatments.
 Social forces- Pandmeic lead to lockdown and popele them self restricted to
go out or stay in hotels to avoid spread of covid

b. Can you also help them apply the contingency approach of Modern approach in
order to face the pandemic effectively?
Since lemon tree hotels are premium and near to hospitals and people who can
afford can pay a lum some amount.Since govertment introduce quarantine facilites.
Lemon tree can market the quarantine facilities for people who is coming from other
state or coutry .