Problem Statement:

How to improve the productivity and utilize full capacity

Should he take up the APL offer or not

Criteria:

1. Abiding by law of the land

2. Non exploitation of labour
3. Business on ethical lines
4. Company’s vision

Options
 Take up the offer by APL
 Not take up

Analysis

Advantages and disadvantages of taking up APL

Advantages
1. Technical expertise from APL
2. Surplus capacity utilization
3. Financial assistance (input cost and overhead charges)
4. Network of new sellers
5. Minimize business risks

Disadvantages

1. Dilution of Family legacy

2. No independence in DM
3. Possible Machinery cost
4. Labour absenteeism will magnify
5. Loss of family prestige and giving up to the competitor

Advantages and disadvantages of not taking APL

1. Brand Name won’t be threatened

2. No Labour division
3. No external stake holder and hand in DM

Disadva
 1. U\
2. ;nused Surplus capacity
3. Loss of technical assistance
4. Additional revenue source

Recommendations

1. What has been company’s performance since you took charge in 1982? How does it
compare with KCPL’s performance when your father was in charge?

 Reduction in growth and net profit for KCPL

 Casual labour issues
 Capacity expansion and productivity

 Candy business shutdown due to margins

 Rise in competition from unorganized and organized sector

 No growth in production

What does the proposal of APL mean to you and your family members? Why?  

What will you do? Why?  

Not take up the offer by APL. The organization will overlook the APLs proposal for following
reasons-

 Disadvantages
 Taking loan for financial assistance
 Technical assistance to reduce operational issues
What challenges you see in going ahead with your decision? 

Current issues will continue

Labour issues