Question

Indirect channe
Section B
8. Read the case and answer the questions at the end:
In 1976, the concept of merchandising was gradually picking up. Merchandisers were big players
with substantial capital backup and with sound business acumen. Their strategy was to buy in bulk
directly from manufacturers as the middlemen, Merchandisers thus posed a threat to the existence
of wholesalers especially in the consumer goods industry
, which had its impact on all the wholesalers
including those of the CWBM and MHA.
The CWBM management immediately prepared a contingency plan to gear itself up to meet the
ensuing situation. The strategy adopted by CWBM included following steps:
A. Growth in the existing lines;
B. Diversification into unrelated lines;
C. Takeover, mergers;
D. Growth in areas where Company's core strength could be utilized.
Growth in Existing Business
The sub options were:
1. Globalization;
2. Changing product mix;
3. Adding new facilities to cater efficiently to all the regions;
4. Setting up an assembling facility abroad to export computers to other countries.
Globalization: In the backdrop of volatile conditions in the Indian market and CWBM's plans to
maintain its growth rate it was felt by the management that the company must venture into global
markets. The company had immense scope of increasing its exports to European countries. The
CMD strongly felt that the realization of their growth rate with a target to doubling their sales every
two years was impossible to achieve without significant global presence.
Product Mix: From wristwatches arid calculators, the company decided to venture into
assembling the computers, telephone instruments and other telecom products such as walkie talkies
and selling computer hardware peripherals. There was an estimated demand of 30 crore p.a. On
the export front there was a demand for computer peripherals, wrist watches and packet calculators.
Adding new facilities to cater efficiently to all the regions: Some managers were of the
view that setting up new distribution centres in West, North and East India and making franchises all
over the country could give a boost to their sales. In view of this, the company acquired several
distribution facilities and gave away franchises to all those interested in company's products.
Setting up distribution centres abroad: Some managers were of the view that the larger
global demand could be satisfied by establishing distribution centres abroad especially in the Gulf to
service the Middle East.
Another option was to get into a joint venture with a Saudi Arabian company, which had sent a
preliminary inquiry in view of the rapid industrial growth in the region. An advantage in collaborating
with this company was that their government was encouraging local entrepreneurs, thus importing​

Answer 1

Answer:

i don't know sorry agjvgddjbusysxjbknkbjscj lnpbihhicrrchlnjuyftdttcj knjjgtdr