E016 NagaVishnu Gude BCA Report

Business Communication &
Analysis
Individual Assignment
Course Facilitator: Dr. Varun Rijhwani
Date of Submission: 18th Jan, 2023
Submitted By:
Name Roll No.

NAGA VISHNU GUDE E016
1
Situational Analysis
Gujarat Fisheries Central Co-operative Association Limited (GFCCA) has experienced a
decrease in profits in the current financial year as compared to last year. The mobile fish-
selling vans business in Ahmedabad has increased its sales from INR 48 Lakh to INR 56
Lakh, however, there is an overall deficit of INR 11 Lakh in sales. The business has not been
promising since its inception but it is kept operational because it offered benefits such as
increased visibility of GFCCA, and it is the only retail activity for GFCCA in Ahmedabad.
The business is facing fierce competition from local fish and meat vans. They are following
GFCCA vans and are setting up their sales vans near our point of sales, many of them do not
even have licenses to operate the business. This is leading to a potential decline in our market
share. The prices set by the players are not fixed and are fluctuating with demand whereas the
prices set by us are fixed, this might be one of the reasons for not seeing a significant increase
in sales. However, constant changes in prices might affect customer loyalty and a decrease in
brand value.
Ahmedabad is predominantly a vegetarian market so the target market population is less and
finding a sale point is challenging due to resistance from local people. However, Ahmedabad
is a growing metro city and there is a large influx of people from different regions of the
country which promises a potential market. The costs associated with running the business
are also more as compared to our competitors, the average monthly cost for each van is INR
50,706 (excluding INR 32,400 for diesel and maintenance) and the driver seems to be
unutilized during the sale hours. An approach to cut costs can be considered, however, there
is a risk of resistance from employees’ union.
The proposal to set up a modern fish market with a central government subsidy 0f 60% is a
promising one but sourcing the remaining 40% is difficult in the current scenario. GFCCA
can consider alternate sourcing options for the project. There is also resistance observed from
local leaders and traders against the project. The local leaders should be persuaded to go
ahead with the project otherwise the project seems infeasible.
Problem Statement
Despite its losses should GFCC continue its mobile fish-selling vans project, what should be
the strategy to set the business into profits?
Options
1. Improved business model – Continue with the existing fish-selling vans project and
take steps to cut costs by releasing the supervisor. Prices can be set according to
seasons instead of fixed prices.
2. Modern fish market - Discontinue the existing fish-selling vans project and go ahead
with setting up a new modern fish market
3. Online business model – Continuing with the existing fish-selling vans project and
venture into online business model
2
Criteria
1. Profitability: Estimating the profitability of the three options will help the company to
align its strategy in the right direction. Cost-benefit analysis can be performed to
analyze the feasibility of each option.
2. Competitive Advantage: The options can be evaluated based on the competitive
advantage they create in terms of strategic location and pricing to consumers. It helps
GFCCA to differentiate itself in the market from other players.
3. Relationship with key stakeholders: Being a Co-operative association it is important
for GFCCA to maintain cordial relations with local leaders, traders and employees’
unions. So, options are evaluated for their impact on stakeholders before making the
right decision.
Evaluation of Options Against Each Criterion

Profitability Competitive Relationship with
Advantage stakeholders
Improved Even though GFCC cuts With the existing The improved business
business costs, changes its pricing business model GFCC model might hamper
model strategy, and reports against has very little scope to relations with the
illegal players, continuing achieve competitive employees’ union as
with the existing business advantage. It can only we are trying to cut
model might not be create differentiation on costs by relieving the
profitable due to fierce the quality of product supervisor.
competition from local and the brand value it
players. has created.
Modern fish This might include a large New business model can This business model
market capex initially but can give competitive will hinder relations
generate stable revenue and advantage as it is with local leaders and
profits in long term. located in a prime local fish traders.
Revenue can be generated location and the pricing
by renting shops to loyal can be fixed by GFCC
traders and leaders as well. for all the players in the
modern market
Online This business model might With the online business This business model
business be expensive for GFCC as it model GFCC has very will not hinder relations
model has to constantly invest in less scope to achieve with traders, local
marketing and due to its competitive advantage, leaders, and
lack of experience in this players like Licious are employees’ union
model it might face already into this
difficulties. It might not business.
scale to a very large extent
as the market is
predominantly vegetarian
and consumers tend to buy
such items by physically
examining them. Hence, we
might not realize expected
profits.
3
Recommendation
Our recommendation to GFCCA would be option two – ‘Modern Fish Market’ which is to
discontinue its existing fish-selling vans business model and set up modern fish market. It can
be challenging to get funding for the infrastructure of modern fish market, it should consider
some potential options like the World bank and public sector banks as the model looks
promising. GFCCA will also face resistance from local leaders and traders, it can persuade
them by offering a profitable business opportunity in the new market by providing shops in
the market for less price as compared to market price. Thus, GFCCA should put strong
efforts in collaborating with its stakeholders and in persuading them.

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E016 NagaVishnu Gude BCA Report

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Business Communication &

Course Facilitator: Dr. Varun Rijhwani

Date of Submission: 18th Jan, 2023

Name Roll No.

Evaluation of Options Against Each Criterion

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