An Analysis of the Western India Limited Company

Overview

Western India Limited (WIL) is a 100 percent Indian company, which has been in existence for about thirty years. For the first twenty years, it was a subsidiary of a well-known British company. In its period of existence, WIL has grown tremendously with about 25 thousand customers worldwide and also executed over 400 major contracts. WIL’s product and service mix includes water filters, all engineered items, chemicals, as well as equipment required for effective water treatment and environmental management.

Even though WIL has done very well in the distant past as well as in the recent past, its operations are currently quite poor and seem to be driving it out of business.

The objective of this report is to identify the problems (where things went wrong), do an analysis (why things went wrong), and outline the possible consequences as well as suggestions.

Problems

• Inability to satisfy customers, due to:
• Slow or No response to customer requests
• Slow or No response to customer suggestions
• Slow or No response to customer complaints
• Inability to handle competition
• Does business at a loss by giving heavy discounts
• Bad pricing strategy
• Payment terms do not put after-sales service into consideration
• Unable to adhere to delivery schedule
• Poor after-sales services
• Inability to educate clients on the delivered product
• Failure in the execution of projects
• Poor communication amongst employees and departments
• Poor communication with clients

Analysis

A basic fact inferred from the case is that the successful management of technology, reputation, as well as the company as a whole, started going down the drain the moment the British Company pulled out.

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In other words, the managers who took over the company had very little knowledge about how to run the business. The business was sustained for another decade based on the foundation that was built in the first two decades. Solid foundations like Technology, WIL’s Reputation, Reliability, Dependable service, and a Strong R&D team. The problems that have been listed above consist of both internal and external problems whose roots have originated from within the company.

The following briefly explains the origin of the problems: 

No respect for the customers’ Wants/Needs:

WIL has a nonchalant attitude towards customers, especially existing customers. When a customer makes a request or complaint or gives some sort of suggestion, WIL is always slow to respond or does not respond at all. They fail to realize that they are in the kind of business where it costs about 5 times more when trying to source new clients compared to sustaining existing ones. As a result of this and the fact that the products delivered to the clients are usually far below the expected quality, customers do not trust WIL to execute any more projects for them.

No market intelligence system:

The company does not have an existing system for analyzing its target market. Most of the information used is collected in an Ad Hoc manner. Because of this, they are unaware of the market opportunities, and their strongest competitors and also lack tangible information which they would require to plan and implement pricing strategies. From a competitive point of view, WIL must consider its pricing on the pricing decisions of its competitors. For example, WIL had to do business at a loss by giving heavy discounts, just to beat a competitor.

Communication Breakdown:

This communication breakdown was mainly between various departments and individuals in the organization. According to the case, 70% of the employees quit the job after 3 years of joining, the reason being that, they don’t feel like a part of the company because nobody gives a listening ear to their opinions, instead,decisionsn making is done by those in authority regardless of what the employees think, plus they do not get recognition for their achievements. For example, for the past 8 years, Mr. Anil Pandey had been bringing up the issue of increasing customer dissatisfaction but wasn’t given any attention whatsoever. Now that the problems have surfaced, the managers are pushing the blame on one another.

Poor R&D and Marketing:

WIL’s target market is highly competitive with firms like Alpha, Mhatre, and Indian Engineering Limited as the main competitors. Indian Engineering is WIL’s strongest competitor. The table below shows the factors taken into consideration when a customer isdecidingn as to which company to work with. These factors are written in order of importance. Note that the WIL is rated very poor in the factors of main importance and average in factors of secondary importance. The poor ratings are a resuofresult of low marketing skills and poor R&D. Marketing is supposed to help WIL understand the client’s needs/requirements, while thorough R&D gives the team a better understanding of the product and would therefore be able to educate clients on the products and how to use it effectively.

WIL

Primary Importance

Product Quality – Poor

Technical Backup – Poor

Quality and Speed of Response -Poor  

Prompt Delivery – Poor

After Sales Service – Poor

Image of the Supplier –

Economical Price – Poor

Secondary Importance –

The proximity of Supplier –Average

Discounts offered -Average 

Credit period –Average

Availability of Required Pack Size – 

Consequences

If WIL continues to carry out its operations the way it’s been carried out currently, it could lead to the following consequences:

• Reduction in their customer base
• Reduction in Company Staff (Employees Could Quit)
• Drastic plunge in sales
• Fall in market share
• WIL gets a bad Image
• They could be bought over.

Suggestions

• WIL Needs training on marketing, R&D, and competitive bidding
• WIL Should focus more on satisfying and sustaining existing customers
• Plan Marketing Strategies which areprerequisitese for good pricing strategies
• WIL should consider applying MBO (Management By Objectives) to the running of the business. MBO simply means that subordinates, as well as their supervisors jointly arrive at particular objectives and also jointly derive strategies to execute the objectives.
• WIL should understand customer requirements before carrying out the project
• WIL should set up a customer care department that receives customers’ calls, suggestions, and complaints. Employees in this department should be fully trained and prepared for the job because this unit acts as the backbone of their customer base.
• WIL should place a strong emphasis on employee relations as well as an effective flow of communication through the different departments in the company.