Question
Keboko Limited, producing lipstick and other beauty products, has been enjoying increasing market share for a long time. Until 2021, its business was good. But
Keboko Limited, producing lipstick and other beauty products, has been enjoying increasing market share for a long time. Until 2021, its business was good. But after that, due to liberalization in the beauty industry, several multinational companies (MNCs) have entered the market. In this regard, there is a decrease in the market share of Keboko Limited. This company has adopted more of a centralized business model, with heads of divisions making even minor decisions. Before 2021, this business model had served the company very well, as customers had little choice. But now the company is under pressure to reform.
Task (20 marks)
a) Using the information in the case above, what major modification should Keboko Limited implement to increase its market share? Justify your answer (4 marks) b) How will the modification proposed by you help the company, considering this company is in the fast-moving consumer goods sector. (10 marks)
c) Explain how the General Manager of Keboko Limited can use the Directing function of management in his company. (6 marks).
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