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Business Case Study - Hormaz

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Introduction

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. ...read more.

Middle

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 for various reasons after carrying out market research. Data collected: * Many clients willing to buy product * Competitive environment * Cheaper raw materials than India * Higher labor costs than India Despite all of Hozmallo Pump's financial struggles, the products are of very high quality and have a good brand image in India with its clients. ...read more.

Conclusion

Currently, to transport the pumps from its factory in Kolkata to clients the business uses road haulage. Armand's father adopted a long chain of command and had a very centralized approach to decision making. His father also believed in a very autocratic leadership style, but Armand does not agree with this and wants to change it to democratic. Displeased with the manager of the finance department, Armand recently dismissed him, and wants to higher a highly educated and skilled new manager. But he is short of money and will not be able to pay him a high salary. After taking a sip of his hot coffee, he opened his laptop and got straight to work! ...read more.

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Response to the question

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 ...

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Response to the question

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.

Level of analysis

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'.

Quality of writing

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.


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Reviewed by danielbeal 31/03/2012

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