Research question
To what extent should Kutch chemicals industry should invest in another manufacturing unit to increase the profitability and the market share?
Theoretical Framework
Rationale:
I am writing this research proposal for my ia because I am interested to know more about my chemical company. How they function and how they manage to their tasks and how maintain customer base. My business has a lot of advantages of expansion we are opening a new power plant in Kutch. I am interested in finance and how running large organization has challenges. I also want to see my family business should accomplish growth in sales profability and to increase market share
Tools to be used:
- PEST analysis – This tool will help me to measure all external factors that can cause threat and opportunity to the company. These threats can be resolved in order to have a good going.
- Ansoff Matrix – This tool will help me to decide what strategy that business should adopt either market development or product development.
- Investment appraisal – this helps to analyse the financial feasibility of the investment to be made for the new office.
- Force field analysis will help me to do a qualitative assessment of the project by considering the driving and the restraining forces. This tools we also help me to evaluate a change.
Key Areas Of Syllabus:
1.7 Organisation planning tools
3.8 Investment Appraisal- It tells about the payback period.
3.4 Financial accounts
Methodology:
To what extent should kutch chemicals industry should invest in another manufacturing unit to increase the profitability and the market share?
Primary Research:
- I will be conducting various interview with the management including the chairman to understand the vision and mission of the business and will also conduct primary research of the project to know the scope of success of the project a many kind of people such as the managing director of the company, the head of the sales managers, the customers of the business, and the employers of the business
- I will conduct surveys and questioners
- I will also see the advantages and disadvantages of the company moving to a new market. How this can be an effective strategy to deal with the competitor.
Secondary research:
- I will collect past financial statements from the companies to study the financial position to suggest for raising the finance for investment.
- Looking through enquiry portals
- Studied various magazines, journals, websites about the chemical sector company
Problems likely to be encountered and possible solutions
Table-1.0:
Problems / Solutions
- Questions being too close ended / Will make the questions narrow and specific to the industry.
- Difficulty in collecting financial statements / The management will be assured that the financial data will not be misused and mishandled.
- Financial data are confidential in nature / We will share the concern of the management about the sensitivity of the financial information therefore will convince the promoter of the company that the financial data will be used to the extent of analysis and the purpose of reference.
- Business is operating in heavy industry / Will explore the vertical of the industry to understand the industry in detail.
Date / Stage / Action
21 March 2019 Forming research question. • Finalizing the research question and consulting the teacher.
21 April 2019 Taking the feedback on the research question and the research proposal.
Finalizing the research question according to the the feedback.
28 May 2019 Conducting the interview with the chairman. Making of the appendix 1
29 May 2019 Conducting the interview with the chief financial officer in the company headquarters in Gujarat Making of the appendix 2.
29 May 2019 Conducting the interview with the H.R . manager. Making of the appendix 3.
1 June 2019 Conducting the interview with project manager. Making of the appendix 4.
2 Jun 2019 Conducting the interview with the civil engineer. Making of the appendix 5.
4 Jun 2019 Collected the cost details from the companies Making of the appendix 6.
6 Jun 19 Research and estimation of projected revenue Making of the appendix 7
7 Jun 19 Analysing the profit and loss account provided by the company and making an appendix for the quantitative analysis. Making of the appendicex 8
I will do this later on when the financial data will be available.
9 Jun19 Making a discount factor table Making of the appendicex 9
13Jun 19 Completing the appendicex
Completing the appendices
1 July 19 to 3 July 19 Primary research Taking interviews going to the office and doing research.
10 July 2019 Drawing the tools and diagrams Identifying tools and the formula
Table of Contents:
1. Introduction………………….…………………………………………9
2. Methodology……………………………………………………………10
3. Main Findings ………………………………………………………….11
3.1 Feasibility……………………………………………………………11
3.2 Customer Preferences………………………………………………11
3.3 Positive aspects………………………………………………………12
3.4 Negative aspects……………………………………………………..13
4. Analysis…………………………………………………………………………………………14
4.1 Ansoff matrix…………………………………………………………14
4.2 PEST analysis………………………………………………………..15
5. Conclusion………………………………………………………………..18
6. Bibliography……………………………………………………………..19
7. Appendices ………………………………………………………………19
Acknowledgement
I would like to thank xxxxxxxxxx For lending her precious time and information about his business and for disclosing confidential information, financial without which this project would not be completed. I would also like to acknowledge and thank my Business Management teacher, for teaching me concept that is used in this internal assessment many times and for the feedback which is given for this Internal Assessment.
Executive Summary
Research question- To what extent should Kutch chemicals industry should invest in another manufacturing unit to increase the profitability and the market share?
Kutch chemicals industries is located in the Kutch in the Gujarat and providing chemicals for the pharmaceutical industries. They were looking at the option to a new manufacturing unit to increase their market share. They were setting a new manufacturing unit which is Kandla and the manufacturing unit is situated near the sea, so the transportations costs reduces. The labor is very cheap, and the labor is ample in Kutch. The research tolls that is used in analysis is PESTLE that would judge the qualitative factors regarding this decision and Investment Appraisal to judge the quantitative factors. All the data was collected through interview with the managing director of the company Kailash Goyal. For secondary research, online portals were consulted. The above analysis led me to the conclusion that the decision to open a new manufacturing unit was beneficial for the company. The payback period would be less for the company and they would get a lot of profits and they should go ahead with this decision.
Word count-191
1.Introduction- Kutch chemicals industry which is a private limited company with it’s head office in Gujarat. It deals in manufacturing chemicals for the pharmaceutical industries. The company manufactured produced chemicals such as Mono chloro benzene, Para di chloro benzene, Ortho di chloro benzene. I am going to look at the financial data for the company and analyse whether to open a new manufacturing unit would be beneficial for the company and whether it will give the company goods amount of profits and to increase the market share of the company
Need For Analysis
The company was started in 2002 and was the exporter to most of the countries in Indian subcontinent. The problem faced by the Kutch Chemicals is there is a lot of competition in the chemical industry. The Kutch Chemicals manufactures intermediate products in the chemical industry. They overcome the problem of the competition because the firm that produces intermediate products in the chemical industry is very less. The company also faced another problem. Due to the long span of the chemicals and their maintenance was required the company needed to find its new customers in another market because the market is saturated know.
The company successfully planned an expansion strategy to increase their customer base.
Therefore, my research question arose as- To what extent should Kutch chemicals industry should invest in another manufacturing unit to increase the profitability and the market share?
2.Methodology-
Primary research was an interview with the managing director of the company Kailash Goyal to collect the financial data of the company to analyze the market position of the company. The difficulty that I faced was to collect the primary data in order to analyse it.
Secondary research was in the form of financial accounts of the company. My research will be futuristic being based on the fact that the company’s position and situation will be different because the date will be different when the report will be prepared.
Ansoff matrix was used to weight the risk involved with this decision of expansion.
The pest analysis is used to consider the threats and opportunities in this expansion decision.
2019-7-29-1564415372