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Name: Abdul Rehman Faisal ERP: 14019 Class:1796

Case Study 1
Ans 1) George is right with his argument up to some extend that his workload should be reduced after
establishing a proper purchasing department. However, his reservation of getting wants of his
department satisfied without being questioned is causing the trouble among the departments. This is
where the purchasing department and the production department should work together. For example,
the purchasing department might have concerns about a raw material that is short in the market due to
which the price of that raw material is very high. In this situation, both these departments need to
discuss the alternate to that particular raw material.

Ans 2) Vipulabh believes that the purchasing and marketing department should be jointly be managed
as a unified process which is the right way of moving forward. A good marketing strategy cannot be
made without considering the input of marketing department. However, saying the purchasing
department should be the integral part of the marketing department is not the right thing as marketing
department depends on production department to produce output that they can market and sell, and
the production department itself depends on the purchasing department which provides them the most
best raw materials at the cheapest rates.

Ans 3) As stated in the case study, Rahman was working for bigger firm than Simplex before this. Due to
that, he might be thinking that whatever he is doing is the right thing to do. Furthermore, there is a
possibility that he is trying to impose the procedure and culture of previous organization, where he used
to work, in Simplex which George and Vipulabh are finding them hard to adapt.

Ans 4) The first thing that should be done is to list down the reasons why purchasing department was
established initially. Secondly I believe the head of the purchasing department should not be made the
subordinate of other departments. Instead the president should make sure that all the three
departments work together in cohesion and coordination by calling a meeting among the heads of these
departments so that their individual reservations can be solved and a plan can be framed that allows the
departments to work together.

Case Study 2
Ans 1) The company started facing various issues simultaneously after the entry of new competitors as
the profit margin decreases. First of all, there was a lack of support for the marketing department from
the behalf of sales support. Secondly sales persons lack funding to reach out to the new customers in
the market. Thirdly, the machinery and the equipment of Bharat Engineering Limited was outdated
whereas the machinery and the equipment of its competitors were latest due to which the competitors
had a cost advantage over Bharat Engineering Limited. Lastly, the director of research and development
was not focusing on short term projects which might increase the production efficiency by 20%.

Ans 2) To overcome these issues, the reservations of marketing department should be resolved by
introducing integrated planning system where marketing department and sales support will work
together. To resolve the reservations of sales support, dedicating teams should be formed who would
call potential customers and try to sell their product to them and also to keep in touch with the existing
customers. To enhance the efficiency of production, Bharat Engineering Limited should replace old
machinery and equipment with new ones and should also introduce new production methods. This all
will give them the cost advantage. Last but not the least, the director of research and development
should also focus more on short term projects as they might increase the production efficiency by 20%.