Question

IRREGULAR SUPPLIES

It was the early 1930s, when a physician-turned textile trader in rural Karnataka found his business getting interrupted for want of regular supplies of cloth from the weavers. When he enquired from the weavers about the reason for their irregularity, he was told that there was no working capital available to them. There was no bank in the area. The only bank located in the town was not interested in lending to small operators particularly in the rural area. Local money-lenders used to charge very high rates of interest; borrowing at those rates had ruined some weavers in the past. The weavers, therefore, had developed a habit of working intermittently as and when their own money from sales came in and could be used for buying raw materials.
The trader’s immediate need was to find a way to ensure uninterrupted supply of textiles in his shop without which his own business would be in trouble. He thought of bringing the goods from Bombay (now Mumbai), but found that the process would be very expensive and time-consuming, as the area did not have any direct road/rail links with Bombay, with the main connection being via Madras (now Chennai). Besides, the transporters were not at all reliable.

Examine the course of action available to the trader under the above circumstances. What are your recommendations?

Answer 1

Answer:

sorry I didn't know answer

Answer 2

The given case is related with the real problem of the society that is lack of availability of resources. Though the facilities are there but their reach to th eend user is very minimal.

Stakeholder involved in these case are:

• The educated physician who turned as a textile trader
• The weavers and
• Other Traders.

The problem which is present with them are :

• Lack of supplies of raw materialss for the textile
• No working capital is available.
• Bank refused to lend and righ interest rate charged by the Moneylenders.
• Exporting it from outside is not reliable.

Course of action available to the trader in this situation can be:

• Communicate with the Bank Supervisor in order to grant loan to the Weavers.
• The habit of working intermittently in the Workers should be minimized by providing them extra profit in their sales.
• Also the Trader can sign an agreement with the weavers to provide them the capital and in turn buy back their the raw materials.

This all can be the probable course of action at this situation.

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