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need in approx 3000 words Case Study Questions for Practice 1. Primary Activities - Value Chain Analysis Good Garments Ltd (GGL) is engaged in business
need in approx 3000 words
Case Study Questions for Practice 1. Primary Activities - Value Chain Analysis Good Garments Ltd (GGL) is engaged in business of manufacturing branded readymade garments. It has a single manufacturing facility Majority of GGL's Revenue comes from export to US and European Countries. To strengthen its position further in the Global Market, at Tirupur in Tamilnadu. Raw Material is supplied by various Suppliers from across the country. GGL is planning to enhance quality and provide assurance through long term warranty. For the next year, GGL has set an objective to reduce the quality costs in each of the Primary Activities in its Value Chain. Required: Describe the Primary Activities as per Porter's Value Chain Analysis for GGL with brief description. 1. 2. Industry Structure Analysis - 5 Forces Model non-family Shareholders. ACL manufactures Cardboard Boxes for customers which are mainly manufacturers of shoes, cloths, crackers Ayodhya Cartons Limited (ACL) is a family owned business. The Family owns 80% of the Shares and the remaining 20% is owned by Six etc. Now, ACL's Board is considering joining the Paper Tubes market as well. Paper Tubes, also known as Cardboard Tubes, are cylinder-shaped components that are made with Cardboard. Paper Tubes can be used for a wide range of functions. Paper Tubes are usually ordered in bulk by many industries. Industries that rely on Paper Tubes include Food Processing, Shipping and Postal Service, Automotive Manufacturing, Material Handling, Textile, Pulp and Paper, Packaging, etc. Paper Tubes cost approximately 1% -3% of the total cost of the customer's finished goods. The information about Paper Tubes is as follows: Paper Tubes are made in machines of different size. The lowest cost machine is of 1, 89.000 including GST @ 5% and only one operator is required to run this machine. Two days training program is required to enable untrained person to run such a machine efficiently and effectively. A special paper is used in making Paper Tubes and this paper remains in short supply. 2. Presently, five major manufacturers of Paper Tubes have a total market share of 75%, offer product ranges which are similar in size and quality. The Market Leader currently has 24% share and the four remaining competitors hold on average 12.75% Share. The annual market growth is 3% per annum during recent years. 3. A current report "Insight on Global Activities of Foreign Based MNCs" released the news that now MNC's are planning to expand their packaging operations in overseas market by installing automated machines to produce Paper Tubes of any size. Another Company, HEG, manufactures a small , however increasing, range of Plastic Tubes which are capable of housing small products such as foils and paper-based products. Currently, these tubes are on an average 15% more costly than the equivalent sized Paper Tubes 4. Required: Evaluate whether ACL should join the Paper Tubes market as a performance improvement strategyStep by Step Solution
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