MGT211 Introduction To Business Assignment 1 Solution Spring 2014

Case study

After the death of Mr. Nadeem Khan, his business of confectionery was divided among his two sons, Mr. Khalel Khan and Mr. Raheem Khan. Both were interested in carrying the brand name of Eastren’s Bakers but Khalel was smart enough to carry the brand name and Raheem started the same business with the name of Fresh Bakers in the same city. From the day one, Mr. Khalel started enjoying good sales with less effort as having same salespersons working with his father whereas Mr. Raheem was facing difficulty to hunt good professional bakers. He was less interested in hiring previous salespersons. In the beginning, Mr. Khalel offered same confectionery items but Mr. Raheem introduced some more items and for such purposes he took loan from his friend.
Raheem also tried to set a plant for dry milk but failed to manage the supplies as his actual cost was 50% higher as compared to estimated cost. It was a big loss. Mr. Khalel, as he has worked with his father, was having more information about the cost of raw material and machines thus avoided diversification at the initial stage. Now Mr. Raheem is getting advices from friends and relatives to get out of this situation whereas Mr. Khalel is enjoying good returns.


Solve the case study while answering following questions:

Q1. Identify any five factors that bring failure for Mr. Raheem. (5 Marks) 


1.Poor inventory management

2.Poor location

3.Personal use of business funds

4.Lack of experience

5.low quantity of material

Q2. Advice Mr. Raheem, how he can get out of this situation? (5 Marks)

1.Project a positive business image.

2.Level the playing field with technology.

3.Invest in yourself.

4.Take time off

5.Plan everything.