Business Case Study - Hormaz

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Business case study

Hozmallo Pumps

Hozmallo Pumps is a private limited company located in India, that manufactures and distributes high quality (producer good) water pumps for buildings all around the country. Cyrus Polpet started the company 71 years ago, but now his son, Armand is taking over as CEO. Since the last 2 years, sales of the business have been rapidly decreasing resulting in very low profits (fig. 1.1) mainly due to the soaring inflation in India. Furthermore, the financial strength of Hozmallo Pumps has not been good. After calculating, the Current ratio of the business is 0.98. Armand found his fathers Budgets for the business (fig. 1.2). Many other problems have occurred in the business too over the last 2 years.

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Young and ambitious, Armand has set certain goals for the future to improve Hozmallo Pumps:

  • Reduce costs
  • Increase profits
  • Spread risk of the business
  • Increase market share
  • Expand into new countries

Fig. 1.1

Armand wants to purchase the new ‘Pumpmaster 3000’ to reduce costs and increase output, but is finding it difficult to pull out $5,500 from the business. Also, he wants to expand the business operations into the middle-eastern market. Armand found that Oman would be a good country to expand into ...

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Here's what a star student thought of this essay

The charts/graphs are low quality. The student would be able to find or create better graphs, which would allow the examiner to understand the report with more ease if the graphs were more presentable.

The report states that the buisness is wanting to expand overseas. Although the student should be able to evaluate this ambtion. The student should include something on the lines of 'If I were the MD (Managing Direcor) I would not advise expanding the buisness overseas, unless the buisness is strong within it's current market. The business should be focused on making a larger profit within the business before expanding into others. This is due to that by expanding overseas, this would require large amounts of capital, and at this stage the business is unable to withdraw the necessary funds'.

In summary, the report is quite brief. The report states a business and evaluates the issues which the business is currently facing, alongside their future ambitions. However the report does lack detail and a number of points aren't justified/explained. The report states that a new CEO is needed, as it's been managed by another family member. However within a private limited company, there isn't any CEO. The report should state Managing Director, as I believe that the student has gotten a little confused. Within any Public Limited Company, there is a CEO, within any Private Limited Company there is a Managing Director. The job requires similar type roles, however the title is different.