GEP

Gameplan
TEAM FIRE – IIM TRICHY
 Reducing profitability and
market share

Inefficiency in overall supply

chain
Current
state Competitors’ pricing is lower

Logistics and production cost

rising
Identification of addressable issues:

Excess of waiting Logistics cost

Recent increase in Management of
time – addition of increases due to
attrition rate defective toys
reactors longer routes

Obsolete
Single avenue of Lower capacity
segmentation
monetization utilization
strategy
 Instead of selling all the defective toys at INR 50, it is
suggested to sell each toy at 15% of respective selling price

Problem Calculation of region wise defective toys from error rates and total
toys manufactured (appendix 1)
targeted:
Management of
defective toys
Assuming defective rate is constant throughout the toy categories

Calculating 15% of selling price from each category and

determining net profit (appendix 2)
Appendix 1
Calculation of defective toys from total toys and error rate of each region
Appendix 2
Calculating profit % if defective toys are sold at 15% of selling price