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CASE STUDY
BY:Amit Kumar
Anurag Pai
Ayush Gupta
Krishnam Raju
Manav Kejriwal
V. Fanindra
IIPM SS 11-13 (A2)
CASE
Company XYZ is a Pepsi bottler in Delhi. The market for its
products are seasonal. It dips in the winter resulting in excess of
skilled bottling staff between Oct-Feb. If laid off, these employees
will be difficult and costly to replace. Each employee receives
three months of intensive training before being fully qualified.
There is a huge demand for these employees as well as there is a
shortage of bottlers.
SOLUTION
Recycling
Shifting of Skilled Employees
Outsourcing
Using different labour pay
ALTERNATIVE - 1
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RECYCLING
All the bottles which needs recycling will be done at
the time of October to February.
This would help us in reducing the material cost for
that period, and can make up with the labour cost.
Eco friendly process- Plant Based Material
ALTERNATIVE - 2
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THE PROCESSES
In Cold drinks process we have poor demand for
Pepsi bottling services and at the same time we have
bulky demand of hard drinks during the time period
from October to February.
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CONTD.
Hard drink Bottle Makers
Lot of work for Employees
Solution :-
Job Rotation
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ALTERNATIVE - 3
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OUTSOURCING
A strategy focusing on low-cost labour helps a firm keep a lid
on workforce charges. This is particularly important for a
company experiencing declining sales and poor performance,
as it prevents the firm from going "underwater".
Outsourcing means subcontracting work to another
organization. In other words, a company outsourcing a work
stream transfers the business function to an external service
provider.
So for the month of October to February we will be the service
provider.
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CONTD.
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ALTERNATIVE - 4
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CONT...
Training cost
Total labor 100
Labor training cost 4 rs. Per head per month
Therefore,
Training cost per head for 3 months = 4*3 = 12
So total cost for 3 months = 1200 rs.
Compare to on season cost where we are paying rs 600 per head,
here we are paying double the amount.
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CONCLUSION
As we have came with the conclusion that we would like to
put all the alternatives in front of the managers and would be
looking for it as a future perspective.
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THANK YOU
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