khanna company
I. COMPANY BACKGROUND
Khanna Manufacturing Company Limited (KMC) is engaged in manufacturing rubber-based products used in a variety of commercial applications. The company is located in Noida near Delhi and is one of the leading suppliers of these products to a large number of companies engaged in manufacturing automobile accessories, electronic and light engineering products. In recent years, KMC has been able to face the intensified competition in this business and has been growing rapidly. The main reasons for its growth have been its good image for quality products, technological improvements leading to increased production capacity, cost advantage and strong marketing team.
II. ISSUES AND CONCERN During the last two years of operation, the company has been facing frequent cash deficit problems, as a result of which the company has not been able to meet its obligation to pay to its suppliers in time, and this has forced the company to postpone its payments. The company’s reputation as a credit – worthy customer has gone down. Mr. Khanna speculates that if this experience is repeated, the suppliers would force the company for cash payments for its purchases. To prevent the occurrence of this type of unforeseen events, he wanted to plan his cash in a better way.
III. POINT OF VIEW
Mr. Khanna, CEO of the company.
IV. PROBLEM STATEMENT
Based on the given issues and concerns of the company, how will they resolve the cash deficit problem they’re now facing?
V. OBJECTIVES Specifically, the objectives of the study are the following: a. To be able to evaluate the existing situation of the company. b. To determine the set of policies implemented by Mr. Khanna in the company. c. To be able to come up with the most appropriate action on what to do with regards to the present condition of Khanna Manufacturing Company.
VI. AREAS OF CONSIDERATION
a. Goodwill of the Company
b. Credit policy of the company
c. Employees’ motivational aspect
d. Company’s
Khanna Manufacturing Company Limited (KMC) is engaged in manufacturing rubber-based products used in a variety of commercial applications. The company is located in Noida near Delhi and is one of the leading suppliers of these products to a large number of companies engaged in manufacturing automobile accessories, electronic and light engineering products. In recent years, KMC has been able to face the intensified competition in this business and has been growing rapidly. The main reasons for its growth have been its good image for quality products, technological improvements leading to increased production capacity, cost advantage and strong marketing team.
II. ISSUES AND CONCERN During the last two years of operation, the company has been facing frequent cash deficit problems, as a result of which the company has not been able to meet its obligation to pay to its suppliers in time, and this has forced the company to postpone its payments. The company’s reputation as a credit – worthy customer has gone down. Mr. Khanna speculates that if this experience is repeated, the suppliers would force the company for cash payments for its purchases. To prevent the occurrence of this type of unforeseen events, he wanted to plan his cash in a better way.
III. POINT OF VIEW
Mr. Khanna, CEO of the company.
IV. PROBLEM STATEMENT
Based on the given issues and concerns of the company, how will they resolve the cash deficit problem they’re now facing?
V. OBJECTIVES Specifically, the objectives of the study are the following: a. To be able to evaluate the existing situation of the company. b. To determine the set of policies implemented by Mr. Khanna in the company. c. To be able to come up with the most appropriate action on what to do with regards to the present condition of Khanna Manufacturing Company.
VI. AREAS OF CONSIDERATION
a. Goodwill of the Company
b. Credit policy of the company
c. Employees’ motivational aspect
d. Company’s