Professional Documents
Culture Documents
Strength
1. Producing simple and cheap cycles Weakness
2. Self motivated 1. No formal education regarding business
3. Focused towards their goals 2. Traditional business
4. Family support 3. Absence of innovation
SWOT
Opportunities Threats
1. Local government's support 1. Increased number of competitors
2. Demand of bicycles in rural areas 2. Availabilty of innovative cycles at relatively high price
3. Old fashioned cycles
2.Industrial
Location
1. Affordable Prices: The products offered by the company are as affordable as a person
from rural area can afford.
2. Industrial Location: Ludhiana is basically known for its industrial areas. So starting a
manufacturing industry in Ludhiana is a good choice.
3. Short-term credit facility: The Company provides short term credit to its wholesaler
so that they can sell their products easily.
PORTER’S ANALYSIS FOR BICYCLE INDUSTRY.
Threat of
new
entrants
Rivalry
Bargaining
power of
among Bargaining
power of
Suppliers. existing Buyers
competitors
Threat of
substitutes
4. PEOPLE PRESPECTIVE
Mr Anil Sachdeva is a compassionate leader. He knows to deal with his employees in order to
get best of them as well as he also knows to deal effectively with his customers’ and
wholesalers’.
Production
manager
Finance manager
Quality Control
manager
The company follows structure of “Centralization”. Mr Anil Sachdeva is the person having
authority to manage the entire company in which there are certain managers employed to
govern the work of the labours.
Production Manager: He is responsible for the all the work related to the production of
products (cycle and cycle parts).
Finance Manager: He deals with all the finance of the company that helps the company
to manage its day to day expenses.
Quality Control Manager: He is responsible for all the quality checks of the products
that are manufactured in K.D. CYCLES.
5. PRODUCTION AND OPERATION
Firstly, they purchase the raw material (iron, steel, rubber, etc.) and distribute among
different departments of the company in order to make different cycle parts. For this
they already have machinery installed which is used to manufacture those cycle parts.
Then these cycle parts are brought at one place to assemble and make it a single product.
After that the cycles’ are sent for finishing where they are being painted and designed
as well as they are being labelled by company’s logo.
At last they are being packed and are ready to be delivered to the wholesalers.
Ordering of Painting
Raw Assembling and
Materials Designing
Bootstrapping and Family and Friends are the only financial sources for the enterprise.
PARTICULARS IN ₹
Production Expenses 1500000 - 2000000
Cost per Bicycle 2700 - 3600
Margin Money 300 – 400
Price per Bicycle 3000 - 4000
Wages and Salaries 1642500+720000=2362500
Transportation Cost (one way) 15000
Miscellaneous Expenses 1000000
TURNOVER 50000000
Source: On the basis of personal visit.
NOTE:
1. Mr Anil Sachdeva told us his annual turnover is approximately ₹ 5 crore. According to
this we have assumed the rest of the expenses.
2. He also told us the price of per bicycle which is ₹ 3000-4000, which keeps
differentiating based on different models.
3. All the expenses mentioned above are imaginary. They are based on certain
assumptions.
7. CHALLENGES