pro info case analysis

8/7/2019 Pro Info Case Analysis

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PRO INFO CASE ANALYSIS

INDEX

(1) Case Summary

(2) Why will the investors invest?


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(3) Our target audience

(4) Our Marketing and Promotion Strategy

(5) Cost Analysis

(6) Break even Analysis


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CASE SUMMARY

The case describes a situation wherein once a market leader in

desktop manufacturing is now going through a severe financial

crunch. With the advent of new competitors the company has


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been forced to reduce the selling price thereby leading to

unhealthy financial conditions.

With the entry of challenging competitors like DELL,

COMPAQ, IBM, APPLE- its sales and profit has drastically

rolled down and the problems before the management is:

y How to attract the investors to invest in the firm so as to

pool in capital for to further become a profit making

organization.

y To achieve the break even point within 2 years

Hence, thereby as management students we need to help the

organization to overcome the above stated problems.


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WHYWILL THE INVESTORS

INVEST??

y Investors primarily look for return on their investment

i.e. good dividend:Today before investing any investor

would want a good rate of dividend. He would look for

maximum gains on minimum investment.


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Involvement in decision making of the company:

Shareholders look forward for active participation in the

company so that all important decisions are in the best and

bonafide interest of the shareholders.

Beneficial exit options: An investor would like to invest a

company where he can freely withdraw his investment

without any legal obligations.


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OUR TARGET AUDIENCE

The audience we are looking forward to target is:


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y B- Schools: Most of the B-Schools provide a laptop to their

students which have become essential equipment in the

development of future managers.y Corporate: Certain business functions have technically

become impossible without the use of laptops. Hence we

can attach this area so as to get maximum sales turnover.


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HOWAREWE GOING TO

COMMUNICATE?


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y Business News Channels like CNBC, NDTV profit, Zee

Business etc.

y Newspapers like Times of India, Indian Express etc.


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Expenses(500/LAPTOP)

PRIME COST 1,37,50,000 1,65,00,000

FACTORY OVERHEADS :

Indirect

Material(500/LAPTOP) 12,50,000 15,00,000Indirect

Wages(@250/LAPTOP) 12,50,000 15,00,000

Rent 80,00,000 80,00,000

Maintenance 20,00,000 20,00,000

Works Salary 1,00,00,000 1,00,00,000

WORKS COST 3,62,50,000 3,95,00,000

OFFICE & ADMIN.

OVERHEADS:

Office Rent 20,00,000 20,00,000

Office Salaries 30,00,000 30,00,000

COST OF PRODUCTION 4,12,50,000 4,45,00,000SELLING & DISTRI.

OVERHEADS:

Salaries of Sales Personnel 50,00,000 50,00,000

Commission to Sales

personnel 12,50,000 15,00,000

Advertisement Expenses

(1000/ Laptop) 25,00,000 30,00,000

COST OF SALE 5,00,00,000 7,20,00,000

PROFIT 1,25,00,000 2,10,00,000

SALE(@25,000/LAPTOP) 6,25,00,000 9,30,00,000


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BREAK EVEN ANALYSIS


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Total Fixed Cost : Rs 6,00,00,000

Total Variable Cost : Rs 4,40,00,000

Sales : Rs 13,75,00,000

Contribution : Rs 9,35,00,000

BEP(Rupees)= Fixed Cost* Sales / Contribution

= 8,82,35,294

BEP achieved= 24*8,82,35,294/13,75,00,000

= 15 months 4 days.


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THANK YOU.

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