CASE STUDY ON Apex Electrical Ltd.

BY Shridhar Kadam 12 Amol Patil 18 Chetan Devadiga 23

Problem :
To open a new sub-office in Tamil Nadu and its effect on the interest of the company.

Strengths :
Manufacturing and marketing of electric motors of wide range of horse powers which was used in numerous application The company discourage the interferences of one dealer in another territory Company maintained good marketing information by regularly contacting the dealerss The companies distribution network grown over the past years had

Weakness :
There was no proper distribution network in the states of Tamil Nadu and Kerala. The regional office had very little information on the exact marketing set-up in the territory of Kerala and Tamil Nadu. The company was not able to exploit the full potential of the region due to the authoritarian rule of the distributors. The company ignored the regular complaints from the dealers which left the dealers unsatisfied. 4

Opportunities:
By opening sub office at Chennai the company can collect factual information that could be used to put up the convincing case against the distributors. By opening sub office the company can collect important information about the tenders and quotation in that region. By opening a sub office the dealers can be satisfied and their would be transparency of sales activity in that regions. 5

Threats :
Due to negligence in distribution network of Tamil Nadu and Kerala sales may get reduced.
By opening the sub-office in that region the current distributor may get unhappy which may affect the distribution activities in that region All the sales activities of Kerala and Tamil Nadu were channeled through one distributors.

What decision would you take if you were in place of Mr. Nathan? We would accept the proposal of the opening of the new sub-office at Chennai, because the presence of a new sub office may keep track on the distributor who was exploiting the companys condition and was taking undue advantages of it. It will help in channeling of the sales through another distributor. The distribution network can be kept under close control by getting good information about the marketing setup. The complaints from the dealers can be considered and acted upon them.

Do you feel the proposal of a new sub-office is economically justified against the stated policy of the company? If yes ,why? If no, how could it be made justifiable? Yes, the proposal of the new sub-office at Chennai is economically justifiable against the stated policy of the company, as the proposal achieves the fixed ratio of sales per rupee of expense(Rs.50), and it forecasts a profit of 10lakh in the this year & the expenses for the sub office was estimated to be just 1.2lakh. Hence the profit will not be hampered, So it is rational decision to take.