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Shoe caselet


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Shoe caselet

Shoe caselet

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  • 1. Group Presentation on shoe caselet Presented by : • Aegidius Savio Mondol • Alok kumar • Amit Singh • Arif Ali • Bharat Patel • Anushree Mazumdar
  • 2. INtroDuction
  • 3. What is planning Selecting missions and objectives as well as the actions to achieve them, which requires decision- making, that is, choosing a course of action from among alternatives.
  • 4. Why such cost benefit analysis?? NEED = FELT DEPRIVATION  Although income was good and spending habits were high there was a strong shortage of a strong leathered footwear for the working class.  Demand was stronger because: • Working in the harsh and dangerous natural conditions made them require a resillient footwear at any cost. • They had to skip a day’s work to buy a pair of footwear that didn’t even last long
  • 5. Types of planning Planning in an organisational level can be broadly categorised into three types. They are:  —Top- down Planning  —Mixed Centralized Approach  —Decentralized Approach
  • 6. TOP- DOWN PLANNING First stated by Douglas Mc.Gregor in the 1960’s The top level managers set the goals of an organization. The employees are expected to work on the basis of these goals and targets set by the higher authority. Employees cannot be innovative and imaginative as they are restricted.
  • 7. MIXED CENTRALIZED APPROACH After laying down the goals and objectives by the top management, these goals are generally targeted to the specific departments. For example: R&D dept. given the target of designing, the finance dept. for setting up the budget etc. After these jobs are assigned then a proper planning is formulated.
  • 8. DECENTRALIZED APPROACH Grass-root planning approach as the objectives and goals are set at the basic functional level by each individual ( keeping in mind the constraints). After the plans at the lowermost level are met it rises up to the next level. For eg. from the branch level to the zonal level and so on. Entirely different from the top down approach as it keeps in mind an individual’s ability to innovate.
  • 10. Diversification An organization that introduces new products into new markets has chosen a strategy of diversification. When companies have no previous industry nor market experience this strategy is called Unrelated diversification. Related diversification describes how companies stay in a market with which they have some familiarity. 10.09.12
  • 11. Risks involved in Diversification Diversification is the riskiest of the four strategies presented in the Ansoff matrix and requires the most careful investigation. Going into an unknown market with an unfamiliar product offering means a lack of experience in the new skills and techniques required. 10.09.12
  • 12. Steps in planning Being aware of opportunities Setting objectives or Goals Considering planning premises Identifying Alternatives Comparing alternatives in the light of Goals Choosing alternatives Formulating supporting plans Quantifying plans by making budgets
  • 13.  A segmentation strategy : the right products to the right individuals  Identification of the demand pattern. ( as shown in the table below)  Keeping this in mind and also the limitations and constraints associated with each segment we start to prepare a Cost Benefit Analysis with each feasible alternatives. Sr. nos Target Segments Population Purchase frequencies Potential sales (in pairs) 1 Adult males (16-45 yrs) 50000 1.5 75000 2 Adult Females (16- 45 yrs) 60000 2.5 150000 3 Young ( 0-15 yrs) 150000 2.0 300000 4 Old ( above 45) 200000 1.5 30000
  • 14. Cost Benefit Analysis Sl no. Alternatives Cost Benefits DecisionCost to firm Cost to Customer Benefit to firm Benefit to customer 1 ONLY ADULT MALE production cost, no diversificatio n.. Price of shoes Same productio n process Protection To be taken under considerati on 2 ONLY ADULT FEMALE Additional production cost. Price of shoes,can’ t satisfy people needs. Expansion in consumer base Protection as well as More variety of shoes To be taken under considerati on
  • 15. Cost Benefit Analysis Sl no. Alternatives Cost Benefit Decision Cost to firm Cost to customer Benefits to firm Benefits to customer 3 ONLY YOUNG PEOPLE Additional production cost  Away from traditional approach. Price of shoes Additional profits Protection & multiple choice To be taken under considerat ion 4 Shoes for all adult male, female and young people •Away from traditional approach •Additional production cost Price of shoes Additional profits and high demand multiple choice, serving needs of evryone ACCEPTED
  • 16. Cost Benefit Analysis Sl no. Alternatives Cost Benefits Decision Cost to firm Cost to customer Benefit to firm Benefit to customer 5 Complemen tary goods : Gloves , Jacket(synth etic leather) with shoes Additional production price Price Attract customer Protection & high satisfaction REJECTED 6 Establishme nt of distribution outlet near the church Additional production price as well as rent price Huge customer as well as additional profit Easy accessibility to product ACCEPTED
  • 17.  Shoes for all adult men, women and children  Setting up of distribution outlet near the church.  Shoe has to be strong and durable for minimum 6months  Corporate Social Responsibility
  • 18.  s 1. Wide comfortable fitting.. 2. Wide soft leg for comfort. 4. Cushioned Hi-poly comfort insole. 5. Comfort moisture absorbing fabric lining. 6. Outdoor tread designed for rough terrain and uneven surfaces. 7. slip resistance. 8. Self cleaning
  • 19. Campus Ahmedabad Campus: Karnavati Knowledge Village, A/907,Uvarsad, S.G.Highway, Gandhinagar Kolkata Campus: Infinity Benchmark Tower 10th Floor, Plot - G1, Block - EP& GP, Sec - V, Salt Lake, Kolkata. Reg. Office: 407, Zodiac Square, 4th Floor Opp. Gurudwara, S.G. Road, Bodakdev, Ahmedabad.