JDM OILS: DECIDING ON A GROWTH STRATEGY Case Solution
However, the main problem for the company is that it faced many business risks in order to implement these two choices, which would help the company in generating its market share and profitability in the organization. On the other hand, the researchers observed that the company has many business risks related to these two options, which are entirely different from the previous option, which makes decision more complicated and complex. Therefore, after evaluating the entire process, the management evaluated that the company would easily reduce the chances of business risk in its operations if it works hard in achieving its strategic business goals, which would help the company in achieving its steady business growth in the highly competitive market as well as assist it in generating more profitability in these complicated strategic options.
Product line of JMD Oils
The products manufactured by the JDM oils are as follows.
- Good Health
- Quality diary product
JMD Marketing Network
JMD has a wide marketing network in India in the following areas.
|S.No||Marketing Networks||S.No||Marketing Networks|
|4||Jammu and Kashmir||10||Uttar Pradesh|
In this case, the company wanted to consider the strategic option, which would help them in driving his organization to the next level of profitability and sales volumes. The financial risk for each strategic option is different, and the company faced numerous issues in implementing these decisions, which created complexity in achieving its targets goals in the market. The main issue for the company was how the company would be able gain the confidence of investors as well as how they achieve the best outcome for the JMD oils in the long term. On the other hand, in the Indian Market, the price of soybeans is volatile, which affects the supply chain process of the company. In order to improve the cost efficiency of the supply chain, Dhingra invested in the territory of east and south India where it put most of its focus on distribution network which helped the company in reducing the cost of producers as well as improving the market position of the company in the highly competitive market. The main benefit of using the cost-efficient model is that the company has reasonable expertise in these activities through which it would easily improve the supply chain activities of the company in the market. If the company focuses on these activities then it would lower the risk of being lost as well as the investment would be increased by setting up new factories in the Indian Territory. The first option that the company would adopt is that it would increase the sales volume and gross margin of its products which would not increase the profitability of the company in the oil industry. The second option that the company wanted to adopt is that it want to invest in brand building. The main problem with this strategy is that the nature of assets in this are intangible in nature as well as there was no certainty as to the outcome. On the other hand, the CEO of the company expected that if the company adopts this strategy in the organization, then it would lead towards growth in the next three years. It is also anticipated that after implementing strategy the company would achieve a gross margin of 40% in the first year and approximately 75% in the second year and it would show its full impact on the third year……………..
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