CASE STUDY IIExcel Corporation Ltd on power and politics

There was a company was located in UP with head quarters in Delhi. The Unit wasmanufacturing
mopeds in its plant at Allahabad. The turnover of the plant was 100Crs. It made a loss of 3 crs in the lst
fiancial year. The MD was under great pressure toturn it around so that he can survive.The MD MR
Gupta was having second line Managed by Mr Bali VP (Finance ) and MrKrishna VP(Production) Mr Ram
kumar VP (Purcahse). Mr Bali and Mr Krishna hassecret desire of becoming MD after Mr Gupta
leaves.The average production of Mopeds was 150 per day at present in the company . breakpoint was
200 mopeds. The plant was designed for it.The machinery was importedfrom Italy and was 20 yrs
old.One day , production of Mopeds was only 125 in the day. MD wanted to know thereason for the
same. The production head Mr .Ram Kumar knew that production wasless as Machine shop did not
produce a part for the engine which stopped theproduction. This was due to non arrival of the casting
from the party. But he alsoinformed MD that party supplying the castings was not paid money by
FinanceMD called Finance head, who informed him that he stopped the payment as there isdispute
regarding the past supplies and he has asked the company to send theiraccountant for accounts
reconciliation. Mr Bali also informed that Audit has takenobjection last year on such payments to parties
when disputes are not resolved.1

Describe importance of political perspectiv