Agarwal Automobiles Fuel Station Forecasting and Inventory Management PDF

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Agarwal Automobiles Fuel Station Forecasting and Inventory Management Case Solution Posted by Adam Hudson on Dec-20-2017

1. INTRODUCTION OF Agarwal Automobiles Fuel Station Forecasting and Inventory Management CASE SOLUTION The Harvard business review has published the Agarwal Automobiles Fuel Station Forecasting and Inventory Management Case Study. Like all HBR case studies, the Agarwal Automobiles Fuel Station Forecasting and Inventory Management Case is designed and drafted in a manner to allow the reader to experience a real-world problem and solve it accordingly. The case study, like other HBR case studies, will help the reader and students develop a broader, and a clearer understanding of the business world and dynamics. The Agarwal Automobiles Fuel Station Forecasting and Inventory Management Case is based on a current managerial and strategic problem being faced by the organization, which must be solved tactfully to allow progression, as well as maintain a competitive position. This paper is written to facilitate the case solution for the Agarwal Automobiles Fuel Station Forecasting and Inventory Management Case Study. The case solution for the Agarwal Automobiles Fuel Station Forecasting and Inventory Management Case Study first identifies the central issue that is elaborated on throughout the case. The case solution then analyses the case through relevant strategic models and tools including the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. This analysis is to help in the identification of a feasible strategy and solution for the Agarwal Automobiles Fuel Station Forecasting and Inventory Management Case Study. Alternative solutions are also proposed in the case solution, primarily because alternative solutions often act as contingency plans.

2. PROBLEM IDENTIFICATION 2.1. Harvard business school case studies All case studies published by the Harvard business review comprise of a central problem that is faced by the protagonist. This problem mostly holds implications for managerial and strategic directions of the company. For readers and students of HBR case studies, it is critical to identify the problem that the Agarwal Automobiles Fuel Station Forecasting and Inventory Management faces. This problem is usually hinted towards in the introduction of the case and develops along the way.

2.2. Solving HBS case studies As a result, for solving the Agarwal Automobiles Fuel Station Forecasting and Inventory Management case, it is essential to read the case study thoroughly. The identification of the problem correctly is vital for undergoing the analysis rightly, and for developing relevant solutions for the Agarwal Automobiles Fuel Station Forecasting and Inventory Management Case Study. It is also essential to identify all the appropriate parties that are being impacted by the problem as well as the decision. The correct problem identification will ensure that all the solutions

developed during the case analysis of the Agarwal Automobiles Fuel Station Forecasting and Inventory Management Case Study are applicable and pragmatic.

EXTERNAL ENVIRONMENT ANALYSIS The external environment analysis is needed for the Agarwal Automobiles Fuel Station Forecasting and Inventory Management Case Study to make sure that it actively, and proactively responds to the macro-environment. The macro environment or the external environment for the Agarwal Automobiles Fuel Station Forecasting and Inventory Management Case includes those factors which are not in control of the business or the company directly. As a result:  

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The Agarwal Automobiles Fuel Station Forecasting and Inventory Management cannot influence these factors in its favour, and in contrast, these factors directly affect the operations and workings of the company. As a result, Agarwal Automobiles Fuel Station Forecasting and Inventory Management must make sure to continually assess and review the external environment to make sure that it responds to external factors, and take them into account, during strategic decisions, and strategy devising. Businesses like Agarwal Automobiles Fuel Station Forecasting and Inventory Management make use of strategic model tools continually to make sure that they are aware of the external environment. These include tools like the pestle analysis and Porter’s five force model, as well as strategic group analysis and pentagonal analysis, to name a few. The external analysis for the Agarwal Automobiles Fuel Station Forecasting and Inventory Management Case Study will assess and will apply the strategic models and tools to review the business environment for the company. PESTEL Analysis

3.1.1. Political Political factors and elements can have a direct and indirect impact on the business. This is seen through the Agarwal Automobiles Fuel Station Forecasting and Inventory Management Case Study.

3.1.1.1. Policy Makings  

Policymakers for the Agarwal Automobiles Fuel Station Forecasting and Inventory Management Case are in all likelihood to intervene in the business surroundings. Commercial restrictions and political stability are additionally integral factors that will determine the success or failure of Agarwal Automobiles Fuel Station Forecasting and Inventory Management.

3.1.1.2. Taxation   

Tax policy will influence the cost of doing business for Agarwal Automobiles Fuel Station Forecasting and Inventory Management. An increase in organization taxation (on business profits) has a similar impact as an expansion in expenses. Organizations can pass a portion of this increase on to shoppers in more expensive rates, yet it will likewise influence the bottom line of the business.

3.1.1.3. Government Support 

The government helps organizations in two primary ways: monetary help and regulatory.

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Agarwal Automobiles Fuel Station Forecasting and Inventory Management can use government assistance and grants for purposes of growing the business, advancement, exporting, and innovative work. Agarwal Automobiles Fuel Station Forecasting and Inventory Management can also be impacted by when Governments modify regulations and laws.

3.1.1.4. Political Stability    

Lack of political stability in a country impacts business tasks. Political stability is particularly essential for the organizations which work globally, such as Agarwal Automobiles Fuel Station Forecasting and Inventory Management. A forceful takeover could oust a legislature. The takeover could prompt mobs, plundering and general issue in nature. These disturb business tasks for Agarwal Automobiles Fuel Station Forecasting and Inventory Management. Purchasing political risk insurance is a way for Agarwal Automobiles Fuel Station Forecasting and Inventory Management to oversee political hazard. Organizations that have worldwide activities utilise such as insurance to lessen their risk presentation. The soundness of a political framework can influence the attractiveness of a specific nearby market for Agarwal Automobiles Fuel Station Forecasting and Inventory Management.

3.1.2. Economic The economic factors are one of the most important of PESTEL factors and can influence Agarwal Automobiles Fuel Station Forecasting and Inventory Management in several ways.

3.1.2.1. GDP   

Economic components have the most evident effect on the profitability and overall appeal of Agarwal Automobiles Fuel Station Forecasting and Inventory Management. Even though GDP per capita is a useful economic factor, GDP per capita gives just a fractional perspective on the economic factors that may influence Agarwal Automobiles Fuel Station Forecasting and Inventory Management. Higher GDP leads to higher disposable income and hence higher sales for Agarwal Automobiles Fuel Station Forecasting and Inventory Management.

3.1.2.2. Inflation  

Higher inflation will disintegrate the purchasing power of the consumer and the shopper Higher inflation will also harm the costs of raw materials and other inputs that are utilised by Agarwal Automobiles Fuel Station Forecasting and Inventory Management.

3.1.2.3. Interest Rates 

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Fluctuations in interest rates may translate into higher or lower costs for the purchase or sale of items and administrations provided by Agarwal Automobiles Fuel Station Forecasting and Inventory Management. Higher interest rates hurt the disposable cash of consumers.

3.1.2.4. Unemployment Rate 

A high unemployment rate is also unadvisable as it dissolves dispensable income of consumers, and will harm Agarwal Automobiles Fuel Station Forecasting and Inventory Management ’s position.

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The high unemployment rate will lead to lower sales for Agarwal Automobiles Fuel Station Forecasting and Inventory Management and impact its overall profitability and revenues.

3.1.2.5. How can the Agarwal Automobiles Fuel Station Forecasting and Inventory Management decrease the risk of economic instability?  

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Agarwal Automobiles Fuel Station Forecasting and Inventory Management can work towards building economies of scale Maintaining business costs and controlling the final price of the product can also help Agarwal Automobiles Fuel Station Forecasting and Inventory Management fight economic instability Agarwal Automobiles Fuel Station Forecasting and Inventory Management can also work towards building a sustainably managed workforce

3.1.3. Social Social influences will stem from social components of the macro environment. Under the PESTEL Analysis, they can influence Agarwal Automobiles Fuel Station Forecasting and Inventory Management in several ways:

3.1.3.1. Social patterns and consumer behaviour  

Social patterns affect work trends and patterns and are directly related to the behaviours of consumers. Social patterns also have a direct influence on buyer tastes and inclinations, and the specific kind, structure, and volume of interest for an item or service.

3.1.3.2. Social patterns and changing consumer needs 

The checking of social patterns will enable Agarwal Automobiles Fuel Station Forecasting and Inventory Management to reposition its items or administrations to meet the changing desires and needs of consumers.

3.1.3.3. Social trends in education   

Social trends of higher education have allowed firms like Agarwal Automobiles Fuel Station Forecasting and Inventory Management to have access to a pool of higher skilled talent – but at the same time, also face a more criticising consumer base. Higher education has also made consumers more aware of different product offerings by companies like Agarwal Automobiles Fuel Station Forecasting and Inventory Management. consumers are also more educated and knowledgeable of different substitutes of a product, as well as become more readily available at different touchpoints.

3.1.3.4. Social patterns make companies more consumercentric  

Companies like Agarwal Automobiles Fuel Station Forecasting and Inventory Management are expected to become more consumer-centric than product-centric. Similarly, Market segmentation and consumer grouping are dynamically moving towards measures of psychographics and lifestyles to understand the consumer more.

3.1.3.5. How can Agarwal Automobiles Fuel Station Forecasting and Inventory Management use social aspects for growth?   

Use consumer-centric means of segmentation and targeting. Use consumer-oriented and consumer-based marketing – which use emotional appeals to influence consumers. Make products more accessible at different touch points common to target consumers socially.

3.1.4. Technological The technological factors can influence Agarwal Automobiles Fuel Station Forecasting and Inventory Management in several ways:

3.1.4.1. Innovation  

The quick pace of technological change at Agarwal Automobiles Fuel Station Forecasting and Inventory Management may be driven through innovation. Business leadership at Agarwal Automobiles Fuel Station Forecasting and Inventory Management tries to push the limits of present limitations.

3.1.4.2. The advent of the internet and online retailing 

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The expansion of the Internet and online business has discarded many intermediaries. Agarwal Automobiles Fuel Station Forecasting and Inventory Management can communicate and retail directly to the consumers now, or through modern intermediaries such as eBay as well, for example. Agarwal Automobiles Fuel Station Forecasting and Inventory Management may also use current social networks to retail and use e-commerce to boost sales.

3.1.4.3. Social media and business growth   

Agarwal Automobiles Fuel Station Forecasting and Inventory Management can make use of social media to interact and reach with consumers Social media can also be used to reach the target market audience more effectively Social media is cost-effective and strategically more influential for Agarwal Automobiles Fuel Station Forecasting and Inventory Management

3.1.4.4. Improved value chain network  

For Agarwal Automobiles Fuel Station Forecasting and Inventory Management, technological innovation can be utilised to build on competitive advantage through several different ways. Agarwal Automobiles Fuel Station Forecasting and Inventory Management can incorporate less expensive production, improved access to clients, improved marketing, improvement in product quality, and increased levels of business intelligence than the competition.

3.1.4.5. Managing technology and the future for Agarwal Automobiles Fuel Station Forecasting and Inventory Management

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To flourish in a business world that is quick paced and receptive to innovative change, Agarwal Automobiles Fuel Station Forecasting and Inventory Management must stay cautious. It must be always be updated on any technological developments in the business and industry. Agarwal Automobiles Fuel Station Forecasting and Inventory Management should weary of how the company are probably going to influence its future attractiveness and profitability.

3.1.5. Environmental For Agarwal Automobiles Fuel Station Forecasting and Inventory Management, environmental aspects of the PESTEL analysis may include:

the

3.1.5.1. Environmental stability and business standards 

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Agarwal Automobiles Fuel Station Forecasting and Inventory Management may be expected to incorporate maintainability standards into their business methodologies and to help resource allocation choices. Agarwal Automobiles Fuel Station Forecasting and Inventory Management may also be subject to environmental laws – which will impact and guide its operations to become more environmentally friendly.

3.1.5.2. Environmental stability and budget allocation  

Leadership in the Agarwal Automobiles Fuel Station Forecasting and Inventory Management must measure the connection between natural activities and budgetary execution. Agarwal Automobiles Fuel Station Forecasting and Inventory Management also strategically decides and assesses if the organization have been estimating the monetary effect of natural and social activities.

3.1.5.3. Environmental sustainability  

Agarwal Automobiles Fuel Station Forecasting and Inventory Management also distinguishes and differentiates explicit zones of concern and impediments to the coordination of environmental sustainability into corporate performance and strategy Agarwal Automobiles Fuel Station Forecasting and Inventory Management also gives explicit direction concerning how organizations can push toward a superior reconciliation of ecological and social activities in their basic leadership procedures and tasks.

3.1.5.4. Environmental sustainability and business growth   

Agarwal Automobiles Fuel Station Forecasting and Inventory Management may use environmental issues to adjust financial, natural and social performance. Concerns towards the environment will enhance the business image for Agarwal Automobiles Fuel Station Forecasting and Inventory Management. Environmental sustainability within business goals and strategy will also reflect corporate responsibility on the part of Agarwal Automobiles Fuel Station Forecasting and Inventory Management.

3.1.5.5. Environmental sustainability and improved consumer relations

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Consumers will be more inclined towards the use of environmentally sustainable products. Environmental sustainability in operations works towards improving the bottom line and overall profitability for the business of Agarwal Automobiles Fuel Station Forecasting and Inventory Management. Improvement of cost management and operations will be observed in the business as well.

3.1.6. Legal Legal components can influence Agarwal Automobiles Fuel Station Forecasting and Inventory Management directly, and can likewise influence the instruments through which an organization buys its stock or connects with the client. The Agarwal Automobiles Fuel Station Forecasting and Inventory Management should be mindful, for example, of the following legal aspects:

3.1.6.1. Labour law    

Labour law refers to the guidelines in regulations that set up minimum and benchmark conditions. These include identifying with the work of people. Labour laws include aspects of minimum working age, least time-based compensation, etc. Agarwal Automobiles Fuel Station Forecasting and Inventory Management must be mindful of these laws in routine business tasks such as hiring, for example.

3.1.6.2. Discrimination law 

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Under the discrimination law, Agarwal Automobiles Fuel Station Forecasting and Inventory Management must ensure to avoid episodes of unequal or uncalled for treatment based on an individual's age, inability, sex, national source, race, religion, and sexual orientation. Agarwal Automobiles Fuel Station Forecasting and Inventory Management should train its human resource management team in ensuring that there is no:  Unequal hiring  Discrimination in recruitment  Internal discrimination in talent management  Bias in training opportunities  Unfair compensation systems  Prejudiced promotions and succession management

3.1.6.3. Health and safety laws:   

Under this, Agarwal Automobiles Fuel Station Forecasting and Inventory Management is required to give a protected work environment to their workers. Working environment security and wellbeing laws build up guidelines intended to dispense with individual wounds and injuries from happening in the work environment. all operations of Agarwal Automobiles Fuel Station Forecasting and Inventory Management should be designed to physically and emotionally safeguard and protect the employees and the labour force employed

3.2. Porter’s five forces 

The five forces identified in Porter's model can effect Agarwal Automobiles Fuel Station Forecasting and Inventory Management ’s ability to serve its clients and make a profit.

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A change in any of the five forces may regularly require a business unit from Agarwal Automobiles Fuel Station Forecasting and Inventory Management to reassess the market place given the general change in industry data and dynamics. The general industry appeal and attractiveness. Agarwal Automobiles Fuel Station Forecasting and Inventory Management should apply and centre their skills, plan of action or business models to accomplish profits above the business average. This may be d...