NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 03
Submission BCS
International expansion solutions of Ramalingam Foods by KLS Consultants
Submission Date & Time: 2021-11-24 08:26:33
Event Name: NMO S4 Sprint One - IIM Visakhapatnam
Solution Submitted By: Lohitha Theegela
Assignment Taken
Create an IT plan to support this international expansion.Case Understanding
Ramalingam Foods was started by Mr. Ramalingam Venkatesh in South Bombay in 1965. It was a famous successful fast-food restaurant famous for their authentic south Indian freshly cooked food and filter coffee. In 1975, due to some political turmoil and strict rules that were implemented, food items had to be sold for bare minimum price. Ramalingam foods then had to come up with innovative solutions to sustain their business in such difficult times. ​ The company started selling Dosa-Idli batter and packets of South Indian chutneys at a very low cost still making a good margin. This was their innovative way to sustain themselves in emergency times. Later, this became their main business as many people found it convenient to carry these batter and chutney packets while going home from work and enjoy the delicacies at their homes. ​ In the year 1990, Mr. Vijay Ramalingam (son of the founder) started to look after the business. He wanted to grow his business by expanding their territory. But wet Idli-Dosa batter has a very minimum shelf life (5 days) and as it was a perishable item, transportation was also difficult. Thus, he came up with the idea of Idli-Dosa batter in a powder form (shelf life of 10 months). The new product was an instant hit. Business grew to all over the country selling varied products. Their portfolio included: Instant Dosa Mix, Instant Idli Mix, Instant Gulab Jamun Mix, Instant Laddu Mix, Instant coffee powder, Instant Dhokla Mix and other products of this kind. Currently, most products are available in 3 varieties of packaging: 200 gms, 500 gms and 1000 gms. ​ Some people are purchasing domestically and selling it abroad through shops mainly in Middle east, Southeast Asian countries and England. These shopkeepers are generally of Indian origin settles in those countries. When they visit India, they are purchasing in large quantities and are shipping it to their respective countries. Some restaurants also started using instant mixes in these countries. ​ The current Operating revenues of the company are Rs. 152 crores for FY 2019. EBITDA has increased by 3.16% over the previous year. The book's net worth has increased by 20%. ​ The company is planning for an international market expansion to one foreign region initially. They set aside INR 50 crore for International Business expansion for the FY 2020. The company currently does not have any necessary permissions and Licenses for International business. ​ ​BCS Solution Summary
The corporation intends to strongly penetrate the market, covering all vital aspects, with the 50 crores set aside for expansion. The company hopes to earn a revenue of 30 crores in the first year by exporting from Indian manufacturers to the five South Asian countries (Singapore, Myanmar, Indonesia, Thailand, and Malaysia) (from international markets).Solution
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For all three regions, the IT Department should be responsible for analyzing market demand and sales.​
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The data collected should be shared with Ramalingam Foods and KLS Consultancy simultaneously to reach an agreement on the expansion plan.​
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In every step of a business plan, the IT department should go hand in hand with other departments to assist in technology requirements.​
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Using regression models and interpolation, the demand can be forecasted based on past and present trends.​
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One of the ways to acquire comprehensive transparency into the sales process is to use sales tracking software.​
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By working with the Supply chain department, supply chain management software should be closely monitored as it increases efficiency and improves the relation with suppliers.​
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Our websites should be readjusted according to the local region to reach the target groups. For this purpose, a design team for the website should be put in place.​
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Tie up with local tourism for providing food and using a centralized model to overlook the process.​
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Due to its strategic position, computer-savvy workforce, and IT infrastructure, Malaysia has been a great place for foreign digital enterprises. This would increase the reach through the internet.​
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Setting up factories with automation in Malaysia will be easier as it is already established in India.​
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Should help in providing a competitive advantage to the business.​
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Cloud-based ERP solutions can also be used.​
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To provide the necessary training and support to the management, the latest tools should be used.
Conclusion
Ramalingam Foods initially planned to enter South East Asia after weighing all advantages and disadvantages, and thus chose five southeast Asian countries: Myanmar, Singapore, Indonesia, Thailand, and Malaysia, all of which have a major Indian population. Furthermore, according to detailed market analysis, these are the countries with local populations that are highly responsive to processed goods from other countries. Following that, the company can pursue aggressive expansion in the remaining two zones, namely the Middle East and the United Kingdom, with a more diverse product mix and SKUs in order to gain greater global market share in the long run​Attached File Details
Video
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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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