Group Presentation on shoe caselet

Presented by :• Aegidius Savio Mondol• Alok kumar• Amit Singh• Arif Ali• Bharat Patel• Anushree Mazumdar

INtroDuction

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.

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

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�

TOP- DOWN PLANNING

First stated by Douglas Mc.Gregor in the 1960’sThe 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.

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.

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.

MARKET DEVELOP

MENT

SALES OPTIMIZA

TION

NEW PRODUCT DEVELOP

MENT

DIVERSIFICATION

IGOR ANSOFF’s MATRIX

Existing Market New Market

Existing Product

New Product

10.09.12

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

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

Steps in planning

Being aware of opportunities

Setting objectives or

Goals

Considering planning premises

Comparing alternatives in

the light of Goals

Choosing alternatives

FINAL STEP BEFORE A PROPER C.B.A 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

Cost Benefit Analysis

Sl no. Alternatives

Cost Benefits

DecisionCost to firm Cost to

CustomerBenefit to

firmBenefit to customer

1 ONLY ADULT MALE

production cost, no

diversification..

Price of shoes

Same production process

ProtectionTo be taken under

consideration

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

consideration

Cost Benefit Analysis

Sl no. Alternatives

Cost Benefit

DecisionCost to firm Cost to

customerBenefits to firm

Benefits to

customer

3ONLY

YOUNG PEOPLE

Additional production

cost Away from traditional approach.

Price of shoes

Additional profits

Protection & multiple

choice

To be taken under

consideration

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

Cost Benefit Analysis

Sl no. Alternatives

Cost Benefits

DecisionCost to

firmCost to

customerBenefit to

firmBenefit to customer

5

Complementary goods :

Gloves , Jacket(synthetic leather) with shoes

Additional production

pricePrice Attract

customerProtection

& high satisfaction

REJECTED

6

Establishment 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

Optimal decision

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

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

Product feature

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