After ten years of struggle a company manufacturing radio sets and computers surfaced in 1982-83 to make a profit of Rs 64 lakhs and then Rs 1.14 crores in 1983-84 but again slipped back to Rs 1?

Answer 1

After ten years of struggle, a company manufacturing radio sets and computers, surfaced in 1982-83 to make a profit of Rs 64 lakhs and then Rs. 1.14 crores in 1983-84, but again slipped back to Rs. 1.10 crore losses in the accounting period that followed. It is reported that the company's radio division was unlikely ever to pay its way, its computers failed to make a splash, and its earlier efforts to diversify were yet to bear fruit. According to high level executive, the company concentrated on manufacturing when it needed a marketing orientation. When a new CEO was appointed, his remedy for revival was to divisonalise the organization, introduce more accountability and diversify into direct to home television (DTH) and other areas. a) Analyze as to what went wrong with the implementation of the company's strategy? b) Critically comment on the measures of revival suggested by the new CEO. After ten years of struggle, a company manufacturing radio sets and computers, surfaced in 1982-83 to make a profit of Rs 64 lakhs and then Rs. 1.14 crores in 1983-84, but again slipped back to Rs. 1.10 crore losses in the accounting period that followed. It is reported that the company's radio division was unlikely ever to pay its way, its computers failed to make a splash, and its earlier efforts to diversify were yet to bear fruit. According to high level executive, the company concentrated on manufacturing when it needed a marketing orientation. When a new CEO was appointed, his remedy for revival was to divisonalise the organization, introduce more accountability and diversify into direct to home television (DTH) and other areas. a) Analyze as to what went wrong with the implementation of the company's strategy? b) Critically comment on the measures of revival suggested by the new CEO.