Tri Bikram Dhungana

EMBA 09532

Sustaining a New Small Firm in Nepal

Case Summary

The case is basically about the euphoria in the small family business that is in the
verge of close. The case mainly highlights the importance of the vision and
understanding of business by the entrepreneurs. The size of organization does not
matter for success/ failure. For the business to grow one should always think some
changes and innovation.

Case Analysis

The son wants to turn his enterprise around so that he could pay back the loan.
Despite of many blockades he now manages to run his factories 15 days a month
and also he discovered the new procdut like detergent. Initially he tried with husk oil
instead of palm oil to produce soap but without success. Also his financial situation
does not favor him to invest more.

We can say he lack entrepreneurs characteristic. The systematic process innovation

was clearly lacking in the case. Beside analyzing and finding the missing link or
problem (that may have been created by change in perception, demographic,
problem in existing system/product, the customer demand etc) he himself decided
to use husk oil as well as developed new product like detergent. Too much planning
may lead to failure of business or drift away the idea, but no planning at all is
dangerous. There was no planning done in the sector like marketing strategies,
production strategies, customer demand, financial plan, the need analysis of
product in rural areas etc. What will he do if his detergent needs months to sell in
remote market? He has to close his production and wait till his products sell.
Ultimately his business is destined to fail with one blockade he may face.

He has tried some innovative idea to create detergent. The innovation ideas that
are implemented blindly have very less percentage of success. Mostly they tend to
fail if they are not properly analyzed, planned and implemented

He has low educational background he could not understand the systematic

innovation and entrepreneurs practice.

Recommendations:

a) Go for pouch of detergent and give some brand name instead of packet to
capture the remote market quickly. Because people can invest 1 or 2 rupees
easily.

b) Since he has knowledge of soap and detergent instead of making his own
product develop as a distributor of other successful soap product.
Tri Bikram Dhungana
EMBA 09532

c) Why not to start small shop (Kirana Shop) to sells all kind of FMCG product
and also market his detergent from same shop. This will help to market his
detergent in urban area too.

d) Close his venture before it gets too late and start of thinking new business (in
agriculture). Because his family can help him if he start the agriculture
business.

Looking at his financial condition, I recommend him with the fourth option to start
small vegetable or agriculture product shop in his locality.