Written Analysis and Communication

Individual Assignment No 1
Case Analysis Report
On
SEWA Trade Facilitation Centre: Canging te Spool
Submitted by
Name : !arun !erma
Roll No : 1"11#$
Section : A
Institute o% &anagement' Nirma (niversity
)ate o% Su*mission: +",-uly,+.1"
/age 0 o% 6
For O%%ice (se:
0rade
Executive Summary
STFC' te non,pro%it trade organisation' %aces te dilemma o% addressing te issues due to lac1 o%
capital %unding 2ic in turn is restricting tem in carrying out teir activities in a *etter 2ay and
tere*y' very limited *ene%it reaces out to te core o% STFC' te rural artisan 2omen3
Te current state o% STFC 2it a *rie% description a*out its *ac1ground and inception is discussed3
Furter' 2e state teir core pro*lem o% lac1 o% capital 2ic is restricting STFC in acieving te
o*4ectives tat are te need o% te time3
In order to solve te pro*lem' STFC sould cal1 out 2ays o% inviting more investments and
interested people to elp STFC in teir trade goals' 2itout canging teir legal and social status o%
a not,%or,pro%it organi5ation3
Alternative pat' o% trans%orming into %or,pro%it entity migt *e re6uired 2en our action plan %ails
to acieve te desired results3
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Situation Analysis
Te case presents te igly motivated story o% 2omen empo2erment in India3 Te 4ourney o% &s
Ela 7att and SEWA 8SE9F E&/9O:E) WO&EN;S ASSOCIATION< 2as succeeded *y te li1es
o% Reema Nanavaty and &ona )ave 2ic continued to STFC %ormation and presented te retail
*rand =ANSI7A3
In 1>?1' SEWA started as trade union under T9A 2it te prime o*4ective o% improving living
conditions o% rural and ur*an poor 2omen *y providing tem means to earn liveliood3 Tey moved
%or2ard to creation o% SEWA *an1 %or providing %inancial elp to te mem*ers3 Focus moved on to
improving te produce and sale o% em*roidery 2or1 *y rural 2omen leading to te creation o%
7ans1anta and @utc Associations3 Repeated occurrence o% natural calamities and erratic
negligi*le montly income resulted in signi%icant increase in artisans *ecoming SEWA mem*er3
As te trade eApanded' production *ecame unorganised and a need 2as %elt to create a ne2
dedicated entity to *e carved out and tus STFC 8SEWA TRA)E FACI9ITATION CENTER< 2as
*orn in +.." as a not,%or,pro%it organisation3 SEWA mem*ers andled management' procurement'
supply cain and deliveries3 0aps and callenges started to reduce and *ene%its 2ere visi*le3
Su*se6uently STFC opened various retail stores in Ameda*ad' Ne2 )eli and &um*ai under te
*rand name' =ANSI7A 8named a%ter an em*roidery artisan<3
)emand increased' and so does te revenue generation3 Even international *uyers 2ere interested3
7ut still' per%ormance 2as not up to te mar13 Su*stantially lo2 margins did not allo2 te amount
tat reaced at te root level' te artisans3 &em*ers and outside 2ell,2isers reaced a consensus
tat to improve te trade activities' STFC 2ill ave to cange te 2ay it does te 4o*3 A need 2as
%elt %or trans%ormation into a %ull,%ledged %or,pro%it *usiness so as to remove limitations o% capital'
eApertise' management' cost e%%ectiveness' 2ic stood in pat o% STFC progress3
Problem Statement
Te core pro*lem %aced *y STFC' 2it respect to teir em*roidery trade is a*sence o% %inancial
resources3 Tis restricts tem in + aspects 2ic are:
Tapping te uge potential o% creativity and production capacity o% te artisans3
Tey are not a*le to increase te sare tat reaces to te village artisans: tose 2ose li%e
enricment as *een te goal o% SEWA3
Objectives
Increase pro%it margins %rom 2olesale and retail sales o% STFC3
Streamline te production and supply cain o% STFC products so as to cut costs' reduce
2astage and eApenses' tere*y leading to competitive prices o% te products3
Improve artisan;s s1ills and 6uality o% teir produce3
/romotion o% =ANSI7A retail *rand3
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Options and Alternatives
Te O*4ectives mentioned can *e acieved *y reorganising te 2ay STFC 2or1s3 Tis can *e done
*y eiter o% %ollo2ing availa*le alternatives:
13 Continue 2it te non,pro%it status o% STFC and %ind 2ays o% acieving te o*4ectives3
+3 0o %or a complete %or,pro%it status so as to invite capital investments and attract e%%icient
management and eAperiences %rom outside people' 2ile 1eeping te primary goal o% STFC
and SEWA intact3
"3 0o %or a y*rid *usiness model' a miA o% te non,pro%it and %or,pro%it models3
Evaluation o Alternatives
Continuin! t"e not#or#proit status# Te sa%est option availa*le 2it STFC is to continue 2it
te not,%or,pro%it model and %ind out 2ays to attract investments and process management eApertise3
Tere are a lot o% complications 2en it comes to trans%ormation o% STFC into a pro%it oriented
organisation li1e:
9egal Issues
Role o% SEWA mem*ers and village artisans post trans%ormation3
Wit pro%it oriented goals' it is very ard to carry along social aspects3
9ast and %oremost important' improvement o% te lives o% rural 2omen and teir %amilies3
STFC still %aces te persistent pro*lems o% losses in te sales' poor inventory management' delivery
delays' and supply cain issues3 Tese need to *e addressed *y attracting pilantropic investments
and eApertise %rom people 2o are motivated %or *etterment o% te society3 Wile tis seems ard to
implement' 2e do ave eAamples li1e Reema Nanavaty and oters 2o ave gone to te %artest o%
all to serve SEWA3
Adoptin! t"e or#proit model# I% 2e go *y te voices o% most o% te people in and around STFC'
li1e &s Nanavaty' &anali Sa' and !imal Am*ani' %or,pro%it model is te need o% te time %or
STFC3 Tis 2ill elp to %ill up te gaps and acieve te stated o*4ectives3 7ut all tis needs to *e
carried out very cautiously so tat STFC does not deters %rom its primary goal3 )ecisions ma1ing
sould not *e controlled *y outsiders3 Interests o% te SEWA mem*ers must al2ays *e placed at top3
$"e balanced %ay& t"e "ybrid model, Not compromising 2it te organisational goals and te
decision ma1ing autority' outside investments can *e invited %rom various sources' dividends and
income returns could *e paid 2ile still maintaining te same goals3 Tis 2ill include %e2 trade,o%%s
against oters 2ic are to *e cosen 2isely3
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(ecision
A%ter care%ul study o% all te availa*le options and alternatives' STFC sould continue as a not,%or,
pro%it organisation3 Issues 2it capital investments' process and product delivery streamlining'
eApertise at various stages o% %unctioning' *rand promotion %or retail stores can *e addressed 2ile
remaining inside te *oundaries o% a not,%or,pro%it entity to sa%eguard te core concepts on 2ic
SEWA 2as *uilt3
Action Plan
Reac out to all possi*le organisations and people' national and i% necessary at international
level' 2ic eiter *elieve in te motives o% SEWA' or migt *e interested in te em*roidery
*usiness carried out *y STFC3 Tis 2ill ensure tat STFC as te re6uired capital to proceed
2it oter o*4ectives3
Te capital ac6uired no2 as to *e canneli5ed %or various activities and optimi5ations o%
processes involved3 Foremost re6uirement is s1ill improvement o% artisans3
/roduct Buality improvement so as to ensure em*roidery 2or1 in garments' ome %urnisings
and accessories so tat products are pre%erred *y customers over oter availa*le options in
mar1et3
Arranging training %or active mem*ers to improve e%%iciency' reduce 2astage and ensure timely
delivery o% orders and retail supply3
Ensure tat te retail *rand =ANSI7A is *eing promoted ade6uately *y means o% trade %ares'
eAi*itions' promotional distri*utions and advertisements i% necessary3 Tis is very crucial to
gain mar1et sare amongst te toug competition in retail sector3
Contin!ency Plan
I% te not,%or,pro%it model %ails or seems li1e not 2or1ing te 2ay it is eApected to 2or1' STFC 2ill
ave to s2itc to te pro%it 2ay3 Tis 2ill ease investments and mar1et' process eApertise to iger
level o% precision re6uired3 Outside talent 2ill elp to acieve measura*le targets and timelines in a
very e%%icient 2ay3 SEWA and STFC mem*ers need to ensure' all tis is carried out in a 2ay
2itout treatening teir underlying o*4ectives and motives3
/age ) o% 6
Annexure C
To Wom It &ay Concern:
I' !arun !erma ere*y declare tat tis assignment is my original 2or1 and is not copied %rom
anyoneCany2ere3 I% %ound similar 2it sources' I sall ta1e complete responsi*ility o% action ta1en
tereo% *y WAC Team3
Signature
Name: !arun !erma
Roll No3: 1"11#$
Section: A
/age * o% 6