Management

Product:

1. • Major products of processed mangoes include mango pulp/puree and mango concentrate).

1. • These products are used to produce juices, nectars, jams and multi-fruit beverages.

1. • They are also used as flavoring and ingredients for processed food products such as ice cream, yoghurt and bakery products.

Objective:

To make mango pulp available across the globe, especially to the Non Resident Indian population.

Prospective Customers:

Hoteliers, Households via Retailers & Hypermarkets/Supermarkets

Where will you find them:

US, UK and other countries based on market research.

How will you go to them:

Sales agents in respective countries and advertising.

Competition:

SME manufacturersAmerican Home Product Corporation (AHP), a highly growing American company, has four business lines: prescription drugs, packaged drugs, food products, housewares and household products. For a quite long time, AHP has applied a tight financial control and maintained an aggressive capital structure policy. Its mission is to make money for its stockholders and to maximize profits by minimizing costs. It has been able to finance internally its growth while paying a very high portion of its earning to its shareholders (60%).

Currently, AHP seems to have no business risk but may face a certain risk in the long run. Based on the ratios shown on the attached sheet, AHP should not worry about business risk since its working capital is very healthy ($1472.8 million) and cash excess $233 million. The high ROA, high profit margin, low current-to-asset ration and 49.71 collection days show that AHP can generate cash quickly, thus it can maintain current high growth rate. However, its decreasing annual sales growth from 14.1% in 1978 to 8.8% in 1981 (exhibit 1) shows that it faces future risk of losing market shares in all its business lines if it does not foresee competition and continue to focus on increasing stockholders’ value.

AHP’s...