About Tea Time

Tea Time started out as a trading company in 1969 that purchased and exported tea
overseas. For the last thirty years the Chairman, who was the father of the
Managing Director of the company, believed that Tea Time was doing well.
However, over the last decade, increasing competition from overseas producers
and shrinking exports in the world market led the Chairmen to believe that the time
had come to enter the local market, through developing a quality blend for sale
under their brand. Their branded tea would augment their traditional business line,
which was export of tea. In July 2002, Tea Time launched its own branded tea,
under the label Tea Time.

Step-1: Price setting

Step-2: Not appropriate packaging price setting with quality of Tea Time for the
local market.
Step-3: Tea Time focused on differential Strategy with low price but market leaders
focused only cost leadership.
Step-4: If the company were able to take cost leadership approach, it would have
gained more profit and sustained in the tea market.
Step-5: I think, the company should have considered as a cost leadership market
because their competitors pricing strategy was cost leadership.
Step-1: Lack of advertising campaign properly.
Step-2: Tea Time did not have sufficient amount of money for advertising
campaign compared to market leaders in the tea market.
Step-3: The Company should have focused on more functional strategy but it did
not do that one.
Step-4: If the company were able to launch proper advertising, definitely sales of
the company would not have fallen.
Step-5: From my point of view, company should have invested more money the
purpose of advertisement through advertising media like Television, Newspaper
etc. to keep market by supporting of marketing counselor.

Step-1: No clear scenario of debt-equity financing from outside investors.

Step-2: Tea Time did not account the balance of payment for the assets and
liabilities of the company.
Step-3: The Company should have clearly showed debt-equity ratio for
understanding purpose.
Step-4: If the company were able to finance to Tea Time company from other
sources, so it could not have financed through earnings from sister companies. For
this reason, Tea Time and its sister companies faced financial trouble.
Step-5: According to my view point, company should have financed for new
business from outside sources like financial institutes because a company should
keep balance between debt and equity of the company.
Step-1: Tea Time had a net profit (loss).
Step-2: It had more expense than income.
Step-3: The Company should have used profitable measures at fixed interval in the
period like profit margin, return on assets etc.
Step-4: Using profitable measures If Tea Time were able to take proper steps to
reduce the loss of the company.
Step-5: From my perspective, company should have been more conscious about its
expenditure.

Chittagong University Center for Business Administration

Faculty of Business Administration, University of Chittagong
Case study analysis on: Strategic Management
Submitted To:
Dr. Md. Moazzam Husain
Department of Management, CU
Submitted by:
Md. Sarafuddin Chowdhury
ID: 1505079
Md. Rubayat Uddin
ID: 1505069
Faysal Ahmed
ID: 1505007
MD. Shahidur Raihan
ID: 1505051
Salauddin Quader chowdhury
ID: 1304059
Department of Marketing
Faculty of Business Administration