NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 03
Submission BCS
International Market Expansion Plan for Ramalingam foods
Submission Date & Time: 2021-11-21 12:20:44
Event Name: NMO S4 Sprint One
Solution Submitted By: Mithlesh Singh
Assignment Taken
FINANCE DEPARTMENTCase Understanding
Ramalingam Foods is a successful fast-food restaurant famous for its authentic south Indian freshly cooked food and filter coffee. The company proved their innovative capabilities during the 1975 political turmoil and stayed in business. The company was able to tackle the critical problem of shelf life of their products by turning them into powder form. Over the years Ramalingam foods has seen a positive growth in their business and they are aiming to expand their business internationally. Presently, Ramalingam food's operating revenue is INR 152 crore for the financial year. It’s EBITA has increased by 3.16% over the previous year. Ramalingam food has set 50 crores for International Business Expansion for FY 2019-2020. Also, currently Ramalingam foods doesn’t have the necessary permissions & Licenses for International business. Ramalingam Foods cannot enter more than one foreign region as they don’t have sufficient capital and business knowledge currently.BCS Solution Summary
It would consist of the division of the funds with respect to departments which is given in the budget allotment imageSolution
Sr no. | Product | Weight In grams | Cost in ₹ | Weighted Average | |
1 | North Indian dishes Instant Mix | 200 | 89 | 17.8 | |
2 | North Indian dishes Instant Mix | 500 | 199 | 99.5 | |
3 | North Indian dishes Instant Mix | 1000 | 389 | 389 | |
4 | Desert Mixes | 200 | 110 | 22 | |
5 | Desert Mixes | 500 | 249 | 124.5 | |
6 | Desert Mixes | 1000 | 499 | 499 | |
7 | Chutney Powder | 200 | 75 | 15 | |
8 | Chutney Powder | 500 | 199 | 99.5 | |
9 | Chutney Powder | 1000 | 329 | 329 | |
10 | South Indian Instant Mix | 200 | 89 | 17.8 | |
11 | South Indian Instant Mix | 500 | 199 | 99.5 | |
12 | South Indian Instant Mix | 1000 | 389 | 389 | |
13 | Instant Coffee Mix | 200 | 149 | 29.8 | |
Weighted Average | ₹ 163.95 | ||||
Fund Allocation | |||||
Departments | Amount | ||||
Plant Development | Plant in India | 12.5 | |||
Warehouse in Sarjahah | 3 | ||||
Fund Allocation In various process | Raw Material | 12.5 | |||
Operations | 5 | ||||
Marketing | 2.5 | ||||
IT | 1.25 | ||||
Human Resourse | 1.25 | ||||
Fund | Contengency Fund | 12 | |||
Total Fund | 50 | ||||
Breakeven Analysis | |||||
Expense | Revenue | ||||
Fixed Cost | Plant | 12.5 | Per unit Price | 172.15 | |
Warehouse | 3 | ||||
Department Expense | 10 | ||||
Raw Material | 12.5 | ||||
Total Expense | 38 | ||||
BreakEven Quantity | 2207357.56 | ||||
To Break Even | 2207 tons of Produce Should Be sold | ||||
Conclusion
On the basis of the above solution, there would be a plan of increasing the business and expanding to more locations and the division of the funds would be the same.Attached File Details
Comments
Article Type: Business Case Scenario, Case Study Solution Submission
Business Case Detail
Title: NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 03
Type: Case Study
Stream: Management
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