Group B2 (PGDM) Bharat Engineering Works Limited Case study

Bharat Engineering Works Limited had a monopoly market. The company had more orders then their supply. The company lost its monopoly by the entry of two competitors with foreign technological collaborations. First time company faced problems in marketing with usual profits. Sensing this an experienced person Mr . Arvind Kumar was appointed as GM by the CEO. Mr. Kumar discussed the problem and found out that there is a lack of integrated planning system. Mr. Kumar got briefings from the heads of all departments.

The marketing manager indicated the need for more sales manager and professionals. Lack of engineering support to sales was the major concerned. Some jobs were done from outside at higher cost with low quality. Old machinery and equipments used in manufacturing was major concerned for the production manager. Competitors had latest technologies. Companies machineries were not replaced.

Director of research and development did not specify any problems and changes. A Senior Scientist in R&D objected that the director did not emphasis on short term research which would have improved the production efficiency. The efficiency would have increased to 20% within a very short period. Mr Kumar got himself convinced in the management process of the company.

PROBLEMS:

The entry of new competitors in the field with foreign technological collaboration created huge problem in marketing its products with usual profit margin. The company lack an integrated planning system though the board of directors insisted on introducing this in several meetings. The main concerned of the company was the lack of engineering support to sales and marketing efforts. Sales people had no central organization which had responsibility to provide sales support. Obsolete machines and equipments were used in production. The company used to hire jobs at higher cost.

Q. The problem of Marketing Department was that the shortage of sales managers and the decentralization of authority over them. A. To overcome the problem of market department , firstly more sales managers should be hired and get trained and the authority over them should be centralized. Q. The problem of Production department was of the old machineries and equipments. A. The company should adapt to latest machineries and new equipments in low cost and better quality or should regularly checked and maintained.

Q. The problem of R&D department was that the director focused on only long term objectives and give secondary importance to short term objectives? A. The Director should have focused on efficient short term objectives in order to cope up with the current losses, the company was facing.

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