Question

E2. Arla is one of the popular dairy products manufacturers. They are producing
world popular dairy products in their company like cheese, yogurt, butter, milk and
milk based products. Milk powder is one the fast moving product of this company.
Idris is the CEO of that company and he is coordinating various department staffs in
that company. Idris having good analytical skills. He is trying to implement the
innovative financial management concepts in his organization. Idris quite often calls
the employees of all the departments and conduct meetings frequently during his

meeting he is always insisting the employees to work with limited means of
resources, and he allocates periodically budget for all the activities. The expenses
should incur within the budget itself. He will never allocate extra budget for any other
department. He is always connecting the decisions of the present with the outcomes
of the future. He prefer to have two important decisions by his own skills, one of
them is investment decision and the other one financial decisions. No business in
this world is risk free. Idris will take some concrete decisions at the end of every
financial year. If any uncertainty happens he is able to manage wisely, he is always
accepting any type of challenges in his business.
Solve the below questions:
(a). How does the Alternative financial services will create impact on this case?
(b). Identify the major challenges faced by Idris in his business, recommend any
two Non-banking financial institutions which is helpful to him in this situation?

Answer 1

IN THIS CASE THE CEO OF THE COMPANY IS PERFORMING good analytical financial services like he is allocating budgets properly, he connects planning with the outcomes etc but that too is limited to internal environment of the business. when its about the investment or financial decision he is taking all the decisions by his own . but now a days lot of financial services are available in the as well as outside the country like portfolio management services , mutual funds services or stock market services. if IDRIS would take the help of this financial service sectors it would definitely help to grow his business. As he can now pay attention to his daily decision making activities into the business . and the business will get the help of analytical financial services and institutes that he can channelize his savings in a positive manner and can invest further.

the major challenges faced by the IDRIS in his business is to do all the operations of business within a cost constraints . as he is not allowing any extra cost it is a very big challenge in case of adverse result or uncertainty in the outside environment .

the another challenge is to coordinate the activities of different persons and of different departments.

another is to enhance the profitability as well as the goodwill of the business through various investment decisions and to arrange funds for that through financial decisions . these two are various crucial decisions to take.

the two non banking financial institutions like mutual funds services and portfolio management service providers would help the company to take effective decisions at minimum cost.