INDIVIDUAL ASSIGNMENT

Strategic Management

TOPIC: Case Study

“Bikes & Co. LTD.”

Assignment Submitted to:

Prof. Krishnan Chandramohan

Submitted By:
Adahrii Manikho
P20285 – (PGDM – B) 2020-2022

Rajagiri Business School, Kochi

26-01-2021

OVERVIEW:
 The case is about a company called 'Bikes and Co. Ltd.: Business Turnaround,' which

offers three different brands of bicycles: ASB, Samson, and Fellows. In this scenario, a recently

appointed CEO named Varanasi Rao tries to figure out the company's many difficulties and finds

solutions. Due to the poor growth in recent decades, he sees the need for a remedy. He also

sorted out the issue and discovered a strained connection between the vendors and the company's

executives. In this scenario, we'll see how Varanasi Rao went above and above to solve the

problem and provide a solution.

The entire problem was the responsibility of the entire function department in the

organization such as Human Resources, Sales department, Supply Chain management and head

managers in the head office. This was realized when Varanasi Rao investigate the organization’s

scenario.

PROBLEM STATEMENT:

 The most serious issues

 Inadequate management 

 Delays in receiving ordered materials 

 Delayed delivery of required products

 Inadequate infrastructure

WHAT EFFECT DO THEY HAVE ON THE COMPANY?

  Bikes were unable to be exported; 

 Inability to export bikes

 Profit reduction

 Increased fixed expenses

 Inability to boost sales

STRATEGY ANALYSIS:

SWOT ANALYSIS:

STRENGHTS:

 They have a large number of stores around the country

 They have a strong relationship with their vendors.

 Huge order every month at the end of the month

 In the past, it had a solid reputation.

WEAKNESSES:

 Inability to provide excellent customer service

 In each department, there aren't enough skilled supervisors.

 Cost-conscious

 Ineffective organizational structure

OPPORTUNITIES:
  Ability to attract a large number of new consumers

 Consistent demand

 It's still in style for an athletic look.

 People who are interested in cycling but are concerned about their health.

THREATS:

 Selling three brands might lead to confusion in purchasing decisions.

 Converting from a two-wheeler to a four-wheeler

 They rely heavily on suppliers, who may or may not be fully committed to the company.

 Excessive demand, resulting in the company's inability to satisfy the order.

ANALYSIS OF PORTER'S FIVE MODELS:

 Threat of new entrants:

 There is a chance that another firm with a better management system and model

may enter the market.

 Rivalry competitiveness:

 Rivalry emerges as a result of bad management, the firm is extremely exposed.

 Threat of substitutes:
  There is a threat of substitutes for high-income consumers who switch from two

to four wheelers.

 Buyer bargaining power:

 More clients will be attracted by a superior distribution route and design, and they

will be less impacted by price.

 Supplier bargaining power:

 The organization has an excellent working connection with outlet stores and has

been doing so for a long time.

RECOMMENDATIONS:

The facilities of the vendors, such as lighting, infrastructure, and hygiene, should be treated

carefully. This will both attract customers and inspire staff to perform better. Every purchase

order does not need to be signed by the CEO, as this causes a lot of delays. The production

should also focus on the design and current trend, rather than the CEO, and someone from the

management team should be given permission to sign. This is because even a child is picky and

can reasonably distinguish between design and color. The company’s personnel should be

assisting the vendors in improving their operations to achieve higher productivities and hence

better cost efficiencies. In doing so, the vendors will be more co-operative because the

employees will feel a sense of ownership and become more responsible. It will make the

employees feel secure to work and motivate them to perform better.

THA

NK

YOU