Question

Background :
You are Sarah, CFO at PT Kembang Gula, a FMCG company which manufactures and sells products necessities of the day which consist of:
1. Foods like: Chili sauce, soy sauce, tea etc.
2. Personal Care such as: shampoo, soap, moisturizer, toothpaste, etc.
3. Home Care such as: detergent, fabric softener, washing kitchen soap, floor cleaners, etc.
Putri is the CEO of PT Kembang Gula.

Task :
One day Sarah received an email from Putri, and asked for a reply to the email.
Email content:
Dear Sarah,
Seeing more and more not sure the business situation, national and global economy, and also still the length of travel Pandemi COVID19, then please give reviews and recommendations on the subject matter as follows:

1. With many variables that continue to change rapidly and significantly, how do we regulate the profitability and fundamental financial conditions of the company (the balance of loss/profit, balance sheet, cash flow) so that we remain healthy in the company and at the same time can still take any opportunities that arise in the market?

2. Please provide what is the example of business action that can be done by each section: Consumer & Market Insight, Marketing, Sales, Supply Chain and R&D, which is a unity with the corporate action above?

Later this issue will be discussed in the management meeting next week, but I want both of us to be able to discuss this first so that it can get the prefix proposals to be brought to the wider forum in the management meeting.

Answer 1

1) First of all , since it's a FMCG company , and most of the goods that the company deal in comder under daily necessities and not luxuries. So profitability will not be very much hit by the pandemic. Though , since the consumers are having lesser income and many have lost their jobs , there would be lesser and restrictive consumption of goods. To manage the profitability of the company , we should think in long term . We should reduce our prices for a while, or offers benefits such as buy one get one, free gifts , increased quantity etc so that the existing customers don't go away and we could also attract the low income group people towards our product. Since everyone is in the situation where they are looking for opportunity to save every penny. We should increase our customer care support base. We should provide for free and safe delivery of products since no one wants to come out in this situation . The consumers will prefer home delivery. All this will increase customer loyalty towards the product and can help the company in the long run.

2) The consumer and market insight team should work on finding out how the demands of consumers are changing. The consumption of which products are going down, what is stable or is their any product whose demand is increasing.

The marketing team should work on the price objectives. They sould make plan regarding how the prices of the goods having lesser demand can be reduced without being adversely affected.

The sales team needs to work on how to make new customers of the product. How to reach them when everyone is sitting in their homes and unwilling to meet anyone.

The supply chain needs to find new ways to deliver the product to the consumers . Home delivery has become a necessity . They should also think of the way so that the goods are easily available to everyone at their nearest shop.

Research and development department has to think of new ways to produce goods that is cost.effective.

3) Since it's the time of pandemic, the very first prerequisite for everyone is to keep themselves safe. This is not only personal requirement but also the requirement for the reputation of the company. Second the raw materials and other resources should be readily available. Stocks of raw materials has to be kept ready as transportation problems can arise. The information of the benefits provided by the company should reach the target customers. The labour and security of the workers should not be compromised for work. All the safety measures have to be prepared.