CASE STUDY : KANPUR CONFECTIONERIES

PRIVATE LIMITED

DIVYANG PATEL – 20165011HARSHIL SHAH – 20165012JASMINE J PEREIRA - 20165013

KANPUR CONFECTIONERIES PRIVATE LIMITED KCPL was started in 1945 by Mohan Kumar Gupta in Jaipur to sell sugar candies. As competition increased the margins came down. So they faced financial crisis and decided to shift their production to Kanpur. After the success of Kanpur project they also invested in Bihar and Madhya Pradesh. Now they decide to invest their surplus in Biscuit business. KCPL reached number two position in the market with monthly sale of 110 tones in 1973-74.

Mohan Kumar has six sons. Alok Kumar who has done graduation in commerce is taking care of Finance and liaison functions. Vivek Kumar who has done mechanical engineering is taking care of HRM and manufacturing. Sanjay was responsible for marketing, logistic and administration. The family members meet on 5th of every month to discuss about business. Respecting the laws of the land, not exploring labour, running business on ethical lines, treating the consumers as king and not evading taxes are their business principles.

CASE SUMMARY The main issues with the case are• Whether or not to accept the Offer given by A-one confectionaries

limited

• Absenteeism was increasing.• Increasing Competition

Advantage :Avoid marketing, brand building and distribution expenses

:Minimize the business risk and also utilizing the surplus capacities Disadvantage :Possible loss of independence : Dilution of company’s own brand : Harming of family’s vision

COST-LEADERSHIPCost leadership as described by Michael Porter means to have the lowest cost of operations in the industry to establish the competitive advantage.

Example from the case: KCPL purchased raw materials in bulk so that the cost can be minimized. The company had only 90 permanent labourers and rest were on contractual basis.

STRATERGIES USED TO GAIN COST LEADERSHIP

PACKAGING

SALES & DEALERSHI

PADVERTISI

NG

CUSTOMERS CLIENTS

COMMON RAW

MATERIAL

FINANCESROLES OF

EACH FAMILY

MEMBER

WAREHOUSE