Name: rahul

Instructions
Please write your name on the top right corner of each sheet.

Test Format

 Total Points: 30
 Test Duration: 45 Minutes

The test presents a case study containing a set of facts that needs to be assimilated in
order to answer the questions as per the instructions provided. You are welcome to make
your own assumptions in order to support your arguments. Please be as concise and neat
as possible.

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 Name: rahul

Case Study
Facts
 After intensive research and study, you – an entrepreneur – have decided to enter
the automotive parts manufacturing sector in the United States. More specifically,
you plan to set up your own manufacturing operations for the production of
innovative and customized brake components including, but not limited to, brake
pads, brake shoes, brake rotors, brake drums, and brake systems.

Exercise
As the Chief Executive Office (“CEO”) and Chairman of your company – Brakes, Inc.
– it is your responsibility to make critical decisions (and execute appropriately) in order
to maximize the chances of success of your business operations. Please answer the
following questions in the space provided.

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1) Manufacturing
Keeping in mind that your own personal savings can only cover about 5 percent of the
estimated capital requirements, please list as many key decisions as possible – at least
7- 8 – for successful launch of your production activities.

A:
 Since only 5% of capital requirement is fulfilled with my personal saving I’d like to raise funds through
different approaches like loans, venture capitalist

 Choose optimal location, supply chain method and distribution techniques in order to reduce logistic cost
and delivery time .

 I’d try building best supplier- vendor relationship possible in order to maintain a steady and uninterrupted
supply of raw material.

 Look for a team with same amount of zeal , preferably someone who has prior work experiencer in the
same domain.

 As a tech say person myself ,I’d undoubtedly invest on equipping ourselves with new age technologies
like automation and artificial intelligence.

 Legal setbacks effects really bad on new age manufacturing firms , so I’d align all my production
facilities with local law and industry standards.

 My next big focus would be to integrate sustainable practices in my business.

 Ultimately I’d drive myself in developing a strong brand identity where products should maintain a great
quality while being reliable.

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2) Customers

Describe the type of customers you would target and the activities your company would
undertake to acquire customers. Note there are already three other major auto parts
manufacturers serving the industry.

A: Our target audience would be large auto manufacturers , spare parts distributors ,
service center etc. providing supreme quality and customization options in braking system
can only be our niche in this competitive market.

 Usage of data drivn decision

3) Pricing Strategies

Assume that in your quest for customers, you come across a potential customer interested
in purchasing 1,000 brake rotors from Brakes, Inc. Regarding pricing of each brake rotor,
you tell the potential customer that the cash price of each rotor is USD 50. In other words,
the potential customer can walk away with 1,000 units in return for cash today upon
payment of USD 50,000. The customer agrees and a deal is struck.
The very same day, another potential customer also expresses interest in purchasing 1,000
units of your brake rotors but states that it will require 2 months to be able to make the
necessary payment. You agree to sell on account and prepare an invoice to be paid in 2
months’ time at a price of X dollars per brake rotor. Will the price X dollars be equal,
less than, or greater than the 50 dollars you charged the first customer? Explain your
reasoning. (Assume ZERO credit risk, i.e., no risk of default by the customer)

A: greater than50$ because of time value of money concept. We need to keep in mind the lost
opportunity of 2 months duration where they were waiting to receive their payment.

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4) Risks

With respect to your business involving the manufacture and sale of innovative braking
solutions, list the primary risks that you face. Explain the risks in plain language –
specific technical jargon should be avoided. Can you suggest some strategies that you
could employ to mitigate (i.e., better manage) some of these risks?

A:

Market risk can be mitigated by diversifying into different markets like electrical vehicle parts or
also aftersales market.

Supply chain disruption can be mitigated by having an diversified supplier chain and making sure
to maintain a safety stock.

Technological risk can be mitigated by regular investment and encouragement for R&D and
keeping up with the industry trends.

Operational risks can be mitigated using new age technology. For an instance we can use IoT
sensors to reduce failure of machines.

 A: ddf

 dddd
 dd

5) Competitive Strategies

Assume you have now been manufacturing and selling brake parts/components for some five
years now and have a good knowledge of the competitive landscape. Can you list some
strategies to adopt that could give you an edge over the competition and help you gain
market share? Explain.

 Partnership : forming good relationship with auto manufacturers and service providers can
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secure us an exclusive customer base

 Customer centric approach: offering superior offers, warranties and customization options
and building a good relationship with customers will increase their brand loyalty towards
our brand

 Data analytics: usage of analytics to forecast demands, offer personalization and get
insights from customers.

 Innovation: continuous innovation can help us make our braking system than our
competitors. Eg: using lean manufacturing techniques will help us reduce manufacturing
cost.

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(ADDITIONAL SHEET PROVIDED IN CASE YOU RUN OUT OF SPACE)