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Joseph Ziggundu

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Submitted By pritish14
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What are the issues staring at Joseph Ziggundu? What should he do? How should he go about doing them?
General issues: * He is a management trainee and this is his first operating assignment. * There is a lack of information of UCC’s previous production or sales volumes, profitability, raw material needs, sales outlets etc. * KIDB did not specify an operating budget as it was recently saddled with extra businesses like UCC. * He is not aware of the processes followed in manufacturing the candles. * The quality of the candles depended on the precision of the manufacturing process. A small error in measurement would damage the candles. Hence care had to be taken during the manufacturing process.
Finance issues: * The daily operating costs were not known. * Uncertainty about the value of the assets such as the mould frames, property etc. * The candles were under-priced compared to the surrounding areas as the Government had fixed the sales price of the candles. * Ascertaining the profitability of the company(and hence if the business is sustainable). * Determining the requirement of capital investment in the business.
HR issues: * Details of the workforce like number and their skill level etc. * Relegation of roles and responsibilities. * Fixing daily working hours and the rigor of labor expected from the employees. * Fixing the daily wages of the workers.
Marketing and distribution issues: * Meeting the high demand of candles since it was the only candle making factory in the country. * Identifying the target consumers. * Should his business serve all the people of Kengolia? Was it his responsibility to ensure even distribution throughout the land?
Operation issues: * Needed to understand the step-by-step procedures to be followed in manufacturing the candles. * Making an inventory of the raw materials from time-to-time. * Ensuring there is no wastage of resources and time optimizing the process. * Looking into the maintenance of the factory equipment and the building (fixing the leaky roofs if necessary).
What should be done? How should he go about doing it? * He needs to gather as much data as possible from the other sources as nothing is available on paper. * If required, he should put forth a proposition for budget for which he will require a detailed balance sheet. * He should cut costs by optimizing the use of various resources. * Adequate relegation of roles and responsibilities. * Increase the number of batches made per day by recruiting more people and investing in equipments. * Forecast demand in order to meet it adequately. * Maintain cleanliness so that the wax can be re used. * Use a large amount of paraffin to mix with the polluted/dirtied wax so that the colour remains white. * Ask the customers to return used wax so that the cost can be reduced by reusing it.

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