Cold storage vs Knitwear

Qualitative Data:

Ajay and Durgash joined MBA programme in University Department of Business

Management located in Uttaar Pradesh

They joined it for taking the better understanding of management concepts and practices

They studied together upto 12th standard and after that Ajay joined B.Com and Durgesh

joined B.Tech

Ajay did M.Com before joining MBA while Durgesh Joined MBA after E.Tech

Father of Ajay was in the business textile trading while Durgesh father’s was an

agriculturist with the substantial land holding

Both the them were earning good profits in their respective businesses

After passing MBA Ajay joined the textile company while Durgesh joined the

engineering company for their summer training

After completing their summer training, both of them were enthusiastic about their new

business which they are planning to start

They discussed their ideas with their parents , their parents were happy with their new

ideas and gave them 10 lakh Rs/- each for their business start up

As a final project Ajay opted knitwear industry while Durgesh opted for cold storage

They collected the information from the various sources like from machine

manufacturers, raw material suppliers etc

Both of them prepared the feasibility report for starting the new business in knitwear

and cold storage respectively

Problems:

On the basis of the feasibility report of both businesses, problems could be

Cold storage Knitwear

Profitability could be increased through

trading operations

Profitability would be affected by the

variation of raw material, cost of

production and competition

Managerial problems would be at low

if the entire storage was used for rental

Knitwear is facing intense competition

therefore huge promotional effort is

required

Expansion could be possible by

undertaking a chain of cold storage

For remaining competitive, promoters

have to manage both marketing and

production side

What Decision has to take?

They have to take the decision on the basis of feasibility report analysis that which

business will produce higher profit as well as competitive in the long run.???

Analysis: