NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 03
Submission BCS
Ramalingam Foods
Submission Date & Time: 2021-11-25 10:55:01
Event Name: NMO S4 Sprint One - IIM Visakhapatnam
Solution Submitted By: Saurabh Wagh
Assignment Taken
To develop a financial plan for Ramalingam food for their international expansion.Case Understanding
Founded in 1965 by Mr. Ramalingam Venkatesh Ramalingam Foods is a successful fast-food restaurant. They were famous for their authentic south Indian food and filter coffee. During emergencies, strict rules were imposed on selling food items at a minimum price. Under immense pressure Ramalingam Foods found innovative solutions to sustain themselves in these harsh conditions and regulations. They started selling Dosa-Idli batter & packets at low cost while making a good margin. Later it became their main business. Soon Ramalingam Foods started selling food items in the Pan India market and expanded their portfolio of food items to a ready-to-eat instant mix. The management came to know that some people are buying this food item domestically and selling it internationally through their shops. Mr. Vijay wants to expand his business in the international market hence they have hired SyncIt consultancy services.BCS Solution Summary
Budget allocation for expanding the market in Singapore.Solution
SCS suggests Ramalingam Foods start their expansion from Southeast Asian Countries (Initially) which consists of Malaysia-Singapore-Indonesia where most of the south Indian population resides outside of India.
1. Singapore 354,000
2. Malaysia 2,987,950
3. Indonesia 120,000
Around 3.4 million target population.
The ease of doing business in these regions is high compared to other markets. It will cost less for Ramalingam foods to operate remotely or by renting warehouses in these regions. Selling their products in local shops and acquiring food licenses. Exporting goods from India to these countries costs less. So, in the early days of acquiring the market, Ramalingam doesn’t need to invest in a manufacturing plant. As these products are ready to eat, we will understand the market need and if the people in these regions are interested in Ramalingam food products we suggest Ramalingam foods to look for investors to invest in a Manufacturing plant.
- Ease of doing business in Malaysia, it has been ranked 12th globally
- South-Indian population in these regions is high
- Favorable government policies and great transport infrastructure
- Tax incentives for food production companies
Budget Allocations (For Singapore)
|
Marketing Department |
16.0 CR |
|
HR Department |
4.0 CR |
|
IT Department |
5.0 CR |
|
Legal Services |
2.0 CR |
|
Investment in real estate |
10.0 CR |
|
Automobiles |
6.0 CR |
|
Budget for Emergency Usage |
7.0CR |
Conclusion
The company should enter the Southeast Asian Market. We will start with Singapore first and will operate from India. As our market grow, we will expand into Malaysia and Indonesian Market.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
Indian Institute of Management Visakhapatnam
Gryffindor
Total Team Points: 56000
The Famous Five
Total Team Points: 0
Passionate Analyzers
Total Team Points: 0
The Core Five
Total Team Points: 49000
Phantoms
Total Team Points: 0
NMSSK
Total Team Points: 0
Spartans
Total Team Points: 0
Acumen
Total Team Points: 0
Team Amber
Total Team Points: 0
Team Deviators
Total Team Points: 0
The incredibles
Total Team Points: 0
The Think Tank
Total Team Points: 0