BUSINESS REPORT

PROJECT REPORT ON
MANAGERIAL ECONOMICS
BUSINESS REPORT

SUBMITTED BY, STUDY GROUP NO -1

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PROJECT IN ECONOMICS(BUSINESS REPORT)

we interviewed Mr. Shashikant Singh, who is the sole proprietor of shri Ganesh traders (C AND
F agent). he is the father of Aakash Singh Rajput.

Mr. Shashikant Singh is a commerce graduate. He has completed his BCom from Bhagat Singh
College, Delhi University in year 1988. After graduating, he joined Parle Products Pvt. Ltd. And
worked in different job profiles for a tenure of ten years. In 1999, he joined BIKANERVALA
Foods Pvt. Ltd. as a marketer. He worked in BIKANERVALA till 2011 and in the same year he
extracted the dealership of BIKANERVALA as a clearing and forwarding agent (C and F).

As a trading agency their primary objective is to provide services to the small distributors and
deals in various products offered by BIKANERVALA (Bikaner Snacks, Biscuits, namkeen and
sweets etc.)

According to Information stated by Shashikant Singh, the agency requires four major inputs i.e.
Land (GODOWN), Labour, Capital and Transportation. Among these inputs, Land, Capital and
transportation are fixed inputs and Labour is the variable input. These inputs are used by the
agency to provide their services.

During normal course of business, the only input that can affect the sale in any way in relatively
short period of time is Labour but nature of business is such that during festive season their sales
rise at such a rate that they have to rent extra godowns to store inventory and also have to hire
more number of transport vehicles to distribute goods (which they do not do in normal course)
because of which land and transportation are also variable inputs in the festive season.

When we asked Mr. Shashikant Singh about the relationship between price and demand of the
products, he said, "if the price increases by 10%, the demand of the product decreases by less
than 10%”.

Based on above statement we concluded that the product is inelastic in nature because price
elasticity of demand is less than 1.

Price elasticity of demand = percentage change in quantity/ percentage change in price

From information retrieved we know that change in demand is less than 10%, so numerator
becomes less than denominator, hence elasticity is less than 1.
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As, in comparison to demand, change in price is more. So, price becomes the driving factor of
total revenue. That’s why, total revenue will increase because price is also increasing.

Price (per unit) Demand(units) Revenue

₹ 20.00 100 ₹ 2,000.00
₹ 22.00 95 ₹ 2,090.00
₹ 24.00 90 ₹ 2,160.00
₹ 26.00 85 ₹ 2,210.00
₹ 28.00 80 ₹ 2,240.00

In Delhi, there are number of similar agencies which works as an c and f agent for
BIKANERVALA which provide similar type of services as their primary business. As specified
by Mr. Singh their competitors are Singhania Traders (C and F agent of Haldiram) and Kuldeep
Confectionary (C and F agent of Shah Namkeen).

Ganesh traders is a well-managed agency. There are various functions of their service providing
process which acts as their strength and makes them different in some aspects from other
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agencies. One of the most important features of such a service providing agency is to have good
time management and being time efficient. Ganesh traders are very efficient and delivers its
product on time. They are also good in handling of products received from the company.
Inventory is very well maintained and managed. A proper check is there to see that there should
be no damage to the products in the process of receiving, storing and distributing.

This business can be described as a monopolistic competition as all the firm offer product or
services that are similar but not perfect substitute and there is very low barrier to enter and exit in
the industry and there is heavy advertising and marketing cost in these type of business and these
type of business have low market power and they all are price maker and they have positive
economic profit in short run.

Although with such strengths, there are some shortcomings also which we analyzed by the
information provided. We can see that the growth of business has become stagnant. There is not
any big growth in the business when it comes to expansion. After so much knowledge and
experience about fast moving goods, Mr. Shashikant could have done something of himself in
FMCG sector.

When we asked him about “how his business is similar and different from his competitor”. He
said nature of business is such that we deal in similar product and provide similar services.
however, the difference can be depending upon the market share one have and also labour and
some times capital as the person having deep pocket will have access to the resources which help
in generating greater revenue than their competitors.

Completing this project and working on this project together we perceived that the concept that
we learn from textbook can differ when they have practical implication in real business world
and also one should have understanding of the application of theory and how the business inputs
PROJECT IN ECONOMICS(BUSINESS REPORT)

have impact over the revenue in short and long run and also how elasticity of demand would
affect the company’s total revenue