Q3.

Issues and challenges faced by JSW in implementing new business model:

The new model was decided to be executed in four different phases :
1. PHASE 1: (BY APRIL 2009)-50 outlets
2. PHASE 2: (BY APRIL 2010)- 150 outlets
3. PHASE 3: (BY APRIL 2011)- 150 outlets
4. PHASE 4: (BY APRIL 2012)- 250 outlets
Issues faced:
However several challenges were faced while implementing this model: These are as
follows:
1. They needed to obtain a general acceptance within the company of various functional
departments like sale and marketing workforce.
2. Getting dealers acceptance of the model was another issues faced by JSW.
3. The ordering process demanded by the company was highly sophisticated due to
which dealers were reluctant to accept it as they lacked knowledge regarding the use
of the system.
A. From The Dealers Perspective:
1. Some dealers were of the opinion that the company wanted to do away with the
dealers in the long run.
2. Also the company was providing standardized products because of which
customers were unhappy as they were not getting customized products.
3. There was also a growing interference from JSW in the day to day affairs of the
dealers. The dealers wanted the company to leave the selling aspect to them
4. Dealers also never used computers and had to forcefully handle the sophisticated
software of MIS to maintain daily reports, placing online orders etc.
5. It was also difficult for the dealers to sell all the products provided by the
company as some of them included high end products which were not accepted by
the customers.
6. Another issue faced by dealers was the idea of attracting the end customers into
their Shoppes.
B. From The Companys Perspective:
1. The company felt that dealers had not diverted all their business to the Shoppe
and had parallel outlets in which they sold other manufacturers products.
2. The dealers might also resort to unscrupulous activities through the use of
business development activity (BDA).
3. The dealers recruited executives who failed to meet the companys standards.
4. Dealers also did not send the executives for training programs whenever the
company conducted them.
5. The company wanted to get involved in the recruitment and training of the
executives to bring about a sense of professionalism and uniformity across all
outlets.
6. There was no system in place to measure the performance of all the dealers
and hence deciding the incentives was a difficult task.

Q4. What are the execution defects that were made by implementing team that gave rise to
many concerns to the company?
Reluctance of the dealers to adopt change: JSW had come up with elaborate model to
penetrate into the market and build long term relationship, dealers accepted this concept
reluctantly. They were doing well without such a change. Some were of the opinion that
the company wanted to do away with dealers in long run. Attempts by the company to
clear misconceptions remained unfruitful.
Standardised products: Dealers felt that they were not getting customised products as
quickly as before since the company had standardised products. As mentioned in the
case, a dealer pointed out that now they were forced to take whatever offered
Aversion to growing intervention by JSW: Dealers wanted the company to supply the
goods and not interfere in other matters like selling. It required them to maintain MIS
which many were not well acquainted with.
Pushing the new products: Dealers were finding it difficult to sell the new products. The
high end ones as they were not easily sellable in remote outlets. For example, a product
galvalume, a high end product had many low cost substitutes, hence less preferred.
Dealers had not diverted all their business to the Shoppe, they were selling other
manufacturers products also. The dealers did not adhere to the Shoppes decision as they
were not used to corporate culture and environment
Dealers were not interested in investing in Information Technology infrastructure and
since they did not understand the utility of these software they would not update the MIS
system
The recruitment of the dealers did not meet the company standard. The dealers would
recruit the locally available less expensive manpower. The dealers used the skilled staff
to do activities that could be performed by unskilled staff, this resulted in reduced morale
of the executives
The most important issue was that there was no system to track the performance of the
dealers and it was difficult to identify the incentives to be given to the dealers