Shoe caselet

1. Group Presentation on shoe caselet
Presented by :
• Aegidius Savio Mondol
• Alok kumar
• Amit Singh
• Arif Ali
• Bharat Patel
• Anushree Mazumdar

2. INtroDuction

3. What is planning
Selecting missions and objectives as well
as the actions to achieve them, which
requires decision- making, that is,
choosing a course of action from among
alternatives.

4. Why such cost benefit analysis??
NEED = FELT DEPRIVATION
 Although income was good and spending habits were high
there was a strong shortage of a strong leathered footwear
for the working class.
 Demand was stronger because:
• Working in the harsh and dangerous natural conditions made
them require a resillient footwear at any cost.
• They had to skip a day’s work to buy a pair of footwear that
didn’t even last long

5. Types of planning
Planning in an organisational level can be
broadly categorised into three types.
They are:
 —Top- down Planning
 —Mixed Centralized Approach
 —Decentralized Approach

6. TOP- DOWN PLANNING
First stated by Douglas Mc.Gregor in the
1960’s
The top level managers set the goals of an
organization.
The employees are expected to work on the
basis of these goals and targets set by the
higher authority.
Employees cannot be innovative and
imaginative as they are restricted.

7. MIXED CENTRALIZED APPROACH
After laying down the goals and objectives by
the top management, these goals are generally
targeted to the specific departments.
For example: R&D dept. given the target of
designing, the finance dept. for setting up the
budget etc.
After these jobs are assigned then a proper
planning is formulated.

8. DECENTRALIZED APPROACH
Grass-root planning approach as the objectives
and goals are set at the basic functional level
by each individual ( keeping in mind the
constraints).
After the plans at the lowermost level are met
it rises up to the next level. For eg. from the
branch level to the zonal level and so on.
Entirely different from the top down approach
as it keeps in mind an individual’s ability to
innovate.

9. MARKET
DEVELOPMENT
SALES
OPTIMIZATION
NEW PRODUCT
DEVELOPMENT
DIVERSIFICATION
IGOR ANSOFF’s MATRIX
Existing Market New Market
Existing
Product
New
Product
10.09.12

10. Diversification
An organization that introduces new products into
new markets has chosen a strategy of
diversification. When companies have no previous
industry nor market experience this strategy is called
Unrelated diversification. Related diversification
describes how companies stay in a market with which
they have some familiarity.
10.09.12

11. Risks involved in Diversification
Diversification is the riskiest of the
four strategies presented in the
Ansoff matrix and requires the most
careful investigation. Going into an
unknown market with an unfamiliar
product offering means a lack of
experience in the new skills and
techniques required.
10.09.12

12. Steps in planning
Being aware of
opportunities
Setting
objectives or
Goals
Considering
planning
premises
Identifying
Alternatives
Comparing
alternatives in
the light of
Goals
Choosing
alternatives
Formulating
supporting
plans
Quantifying
plans by
making
budgets

13.  A segmentation strategy : the right products to the right individuals
 Identification of the demand pattern. ( as shown in the table below)
 Keeping this in mind and also the limitations and constraints associated
with each segment we start to prepare a Cost Benefit Analysis with each
feasible alternatives.
Sr. nos Target Segments Population Purchase
frequencies
Potential
sales
(in pairs)
1 Adult males (16-45
yrs)
50000 1.5 75000
2 Adult Females (16-
45 yrs)
60000 2.5 150000
3 Young ( 0-15 yrs) 150000 2.0 300000
4 Old ( above 45) 200000 1.5 30000

14. Cost Benefit Analysis
Sl
no.
Alternatives
Cost Benefits
DecisionCost to firm Cost to
Customer
Benefit to
firm
Benefit to
customer
1
ONLY
ADULT MALE
production
cost, no
diversificatio
n..
Price of
shoes
Same
productio
n process
Protection
To be
taken
under
considerati
on
2
ONLY
ADULT FEMALE
Additional
production
cost.
Price of
shoes,can’
t satisfy
people
needs.
Expansion
in
consumer
base
Protection
as well as
More
variety of
shoes
To be
taken
under
considerati
on

15. Cost Benefit Analysis
Sl
no.
Alternatives
Cost Benefit
Decision
Cost to firm
Cost to
customer
Benefits
to firm
Benefits
to
customer
3
ONLY
YOUNG
PEOPLE
Additional
production
cost
 Away from
traditional
approach.
Price of
shoes
Additional
profits
Protection
& multiple
choice
To be
taken
under
considerat
ion
4
Shoes for all
adult male,
female and
young
people
•Away from
traditional
approach
•Additional
production
cost
Price of
shoes
Additional
profits
and high
demand
multiple
choice,
serving
needs of
evryone
ACCEPTED

16. Cost Benefit Analysis
Sl
no.
Alternatives
Cost Benefits
Decision
Cost to
firm
Cost to
customer
Benefit to
firm
Benefit to
customer
5
Complemen
tary goods :
Gloves ,
Jacket(synth
etic leather)
with shoes
Additional
production
price
Price
Attract
customer
Protection
& high
satisfaction
REJECTED
6
Establishme
nt of
distribution
outlet near
the church
Additional
production
price as
well as
rent
price
Huge
customer
as well as
additional
profit
Easy
accessibility
to product
ACCEPTED

17.  Shoes for all adult men, women
and children
 Setting up of distribution outlet
near the church.
 Shoe has to be strong and
durable for minimum 6months
 Corporate Social Responsibility

18.  s
1. Wide comfortable fitting..
2. Wide soft leg for comfort.
4. Cushioned Hi-poly comfort insole.
5. Comfort moisture absorbing fabric
lining.
6. Outdoor tread designed for rough
terrain and uneven surfaces.
7. slip resistance.
8. Self cleaning

19. http://www.unitedworld.edu.in/
Campus
Ahmedabad Campus: Karnavati Knowledge Village,
A/907,Uvarsad, S.G.Highway, Gandhinagar
Kolkata Campus: Infinity Benchmark Tower 10th Floor,
Plot - G1, Block - EP& GP, Sec - V, Salt Lake, Kolkata.
Reg. Office: 407, Zodiac Square, 4th Floor Opp.
Gurudwara, S.G. Road, Bodakdev, Ahmedabad.