FINANCIAL MANAGEMENT CASE STUDY ON

BHARAT PRAJAPATI

BHARAT PRAJAPATI
Mr. Bharat Prajapati, middle aged proprietor of G B Human Resource Management, analysed the information related to the enrolment numbers of last quarter (April-June 2010).The enrolment numbers were considerably low. In the last quarter the total enrolments in the CallTech Fresher course were around 210 students. This trend of low enrolments had been continuing for the last three quarters. Though Mr. Prajapati was able to make a break-even, his business failed to generate substantial profits that would commensurate to the investment and efforts made by him. This situation was making him think about the future of his business

HISTORY OF MR.BHARAT PRAJAPATI

Mr.Bharat Prajapati who was born and brought up in Surat, belonged from a business family, successfully running a business of manufacturing Reverse Osmosis Water Treatment Plant. He completed his graduation in Engineering from University of Surat. After completing his Engineering degree , he took admission in Business Management Program which he left it in midway because it did not provided him any insights. In pursuit of his dream, he attended a franchisee exhibition in July 2007 in Ahmedabad organised by Franchise India. On the first sight he liked the Franchisee Model of the Call Centre business offered by the Training Institute of Kolkata and started studying the pros and cons of that particular franchisee business model. He spoke to the promoters of the Institute and after few deliberations, the promoters got impressed by the enthusiasm and zeal shown by Mr. Bharat and granted him the license to start a unit franchisee in Surat on February 2008.

THE BIG AND SMALL CENTRES

CENTRE1- ITC Building Majura Gate. SURAT. TYPE :- Master Franchisor and Unit Franchisor OWNER:- BHARAT PRAJAPATI.. CENTRE 2- BARODA. TYPE :-Small unit. OWNER:-Dipanjan. CENTRE 3- ANAND TYPE :- Small unit. OWNER :- Sunil. CENTRE 4- VASTRAPUR TYPE :- Big unit. OWNER: - Romil. CENTRE 5:- Income-Tax. TYPE:- Big centre. OWNER:- Sumit. CENTRE 6:- MANINAGAR TYPE :- Big centre. OWNER:- Gopal. CENTRE 7:- GANDHI NAGAR. TYPE :- Big centre. OWNER:- Saurav. CENTRE 8 :-DELHI GATE . SURAT TYPE:- Small centre. OWNER :- Sohil CENTRE 9:- NASAURI. TYPE:- Small centre. OWNER :- Jeet CENTRE 10:- CHANDKHEDA. SABARMATI TYPE:- Small centre. OWNER:-Kapil

PROBLEMS
The training quality was not up to the mark. Business expansion was done without considering their ability to support franchise in providing quality placement. There were no standards set for the training module. The Business schools, Hotel Management institutes , Hospitality Management training institutes and Air hostess academy started with their own soft skills training programs. The expectation between franchisor & Master franchise did not match . Mr. BHARAT PRAJAPATI was not able to generate enough profit
from his business.

OPTIONS AVAILABLE
To leaving Master Franchisor & remained as unit franchisee with 3 centres (Baroda, Surat, Vastraupur). To completely leave the Master Franchisee

To starting a Medical Representative Training that had been picking up more as Pharmaceutical Industry were expanding & required a large number of work force. He was thinking to stay with the Master Franchisee and to improve the image of the franchisor through implementation of different quality control measures in terms of teaching, placement.

PROBLEMS OF BIG AND SMALL CENTRES, WITH THEIR REMEDIES

POOR QUALITY TRANING: REMEDY: We will be hiring trainers form good call centres to conduct workshop, once in a week@ 3000 per month. IRRATIONAL EXPANSION WITHOUT CONSIDERING THEIR ABITLY TO SUPPORT. REMEDY: After 150hrs of training we will send students to the real call centre environment for 5 days to face the real work experience. we will be getting feed back from the trainers about the students. The area's that they need to improve on. Then these areas will be more focused for the remaining training module. This step will help to improve the training program and will improve the image of the centre. This feature will increase the enrolment. As this facility has not been incorporated by any other training centre. with the increase in enrolment , profit will increase and hence the centres will be able to meet its expenses.

NON- STANDARDISED `TRAINING PROGRAM: we will ask the franchisor to provide the training module of the centre where the enrolment is high and quality placement is also good. so that the training module can be modified and improved. BUSINEESS SCHOOL, HOTEL MANAGEMENT INSTITUTES AND HOSPITALITY MANAGEMNT INSTITUES STARTED THEIR SOFT SKILL TRANING CLASSES IN THEIR INSTITUTES. REMEDY: Since these institutes will be hiring trainer's from other places to train their students. we can go in contract with them to train their students at lesser cost compared to what they would be paying somewhere else. FRANCHISOR WAS NOT BLE TO PROVIDE ADEQUATE SUPPORT TO THE MASTER FRANCHISEE. REMEDY: We will ask the franchisor to be transparent in the decision making and while implementing the business plan, the franchisor should think from the franchisee point of view too. ROYALTY PAYMENT TO THE FRANCHISOR. REMEDY: Royalty should be reduced to 20%, after consulting with the franchisor. INCREASE THE NO OF ENROLLMENT REMEDY: He should also cut down his central expenditure in advertisement and should focus mainly on local advertisements. The money saved from the central expenditure and seminars would help Mr. Bharat in organising workshops and seminars at various places which would in turn help them to attract and persuade the students and target group.