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Use: Grade

Communication For Managers

Individual Case Based Written Assignment 1

Case Analysis Report on

SEWA Trade Facilitation Center: Changing
the Spool
Submitted By:

Name:

Himanshu Patel

Roll No: 151419

Section: D
Batch: MBA - FT (2015-2017)

Submitted To:

Prof. Harishmita Trivedi

Institute of Management, Nirma University

Date of Submission: 12th October, 2015

Executive Summary:
SEWA Trade Facilitation Centre (STFC) is working towards the betterment
for the livelihoods of poor rural and urban as well as to civilize them by
education. But the problem is the finance, poor consumer relationship
management and consumer satisfaction, insufficient supply chain. This could be
because of despite the increase in revenue, profit is falling. They need to expand
their business and increase sales volume in the retail sector for the fulfilment of
the purpose of SEWA. For that to happen they need to arrange the funds from
the investors as well as other philanthropist interested in serving the purpose.

Word Count 100

Situation Analysis:
The case presents successful story of women empowerment. It is a
successful story
of Ms Ela Bhatt and SEWAs (Self Employed Womens
Association) success by persons such as Reema Nanavaty and Mona Dave which
continued to STFC establishments and presented the retail brand HANSIBA. It
had grown to size of 15000 poverty level artisan members from over 200 villages
from Gujarat of whom 3500 were the shareholders of the company. The Primary
objective of the organisation was towards working towards the betterment for
the livelihoods of poor rural and urban as well as to educate about the womens
struggle and lives. Each women paid 25 paisa to join the organisation SEWA in
the 1971 as a new branch of Textile Labour Association (TLA). Further going
SEWA faced such situation that led it away from Textile Labour Association (TLA).
By 2008, SEWA became the largest primary union in India.
We are facing dilemma that we need to decide between for Profit
organization or to remain not for profit organization. Being the parts of SEWA
with has become both organization and movement and is known for its extra
ordinary works for society its very important to choose any one option which
would not affect the mission and vision of STFC.
STCF has achieved huge achievement in terms for improving the living of
the poor artist and giving platform to their craftsmanship. The sale has increased
along with revenue. But changing into for profit organization will be helpful for
future growth or not is big problem. There are many opinions for and against the
proposed change. If look at the market of the products of STFC there are other
competitors also and to grow further there is need for some extra fund to survive
the competition.
There is good response of the product of STFC by their customer which are
reflected in its sales figure but capital is important for retail expansion which in
turn would ensure even more sales. The member them self-believed that they
had the capacity to produce more and to earn more but the lack of funds were
holding them back.
The challenge for them is changing the legal status of the organization
should not diminish the central role the artisans and their livelihoods play in the
organization; large shareholders should not dominate the vision and direction of
the organization.

Problem Statement:
Will Changing legal status help in achieving growth for STFC in
future without compromising on its primary objective for which it was
established or not?
Apart from that poaching the creative talent hidden in remote areas
and to utilize at maximum level and to overcome of their inability to
increase the share that reaches to the village artisans, the primary goal of
SEWA was the major problem.

Objectives:

To increase the retail chain and market share

To increase profit margin
To maintain the core vision and objective STFC.
To make fund available for increase the capacity of production.
To maintain relationship between SEWA and STFC.
Promote their retail brand HANSIBA

Options:
1. Continue being not for profit organization
2. Transform into for profit organization
3. To adopt Hybrid form of organization.

Evaluation of Options:
Option-1 Continue being not for profit organization
Outcome
Current role and membership will remain undiluted.
Relation between SEWA and STFC will have no adverse effect.
No chance of deviating from its actual objective and vision of
Inc.
Draw Back:
They will continue to face problem in form or external competition and
lack of fund. It is alarming for the future of the incorporation.
Option-2. Transform into for profit organization
Outcome
Investment and Funding for the expansion would be there at
disposal.

Increase in the outlets, quality of supply chain and inventory

management.
Professionalizing and bring in expertise to the sellers
ultimately very important for surviving the Incorporation
among competition.

Draw Back:
The Drawback will be dilution and danger of the existing member in the
organisation. There is chance of major investor dominance which will
deviate the STFC from its Vision and objective of serving poor women
across the country. Possibility of problem in relation between SEWA and
STFC as SEWA is non-profit organization.

Option-3. To Hybrid form of organization.

The mix strategy or Hybrid form of organisation can be the best to
optimise the not for profit organisation to get all the advantage of the
for profit organisation. It will expand successfully and is effective on the
basic objective and vision of STFC than purely profit or non-profit
organisation.
Draw Back:
It might confuse people about the stand of the incorporation as well as the
philosophy. Continuous confusion might attract drawback of both Option-1
and Option-2.

Recommendation:
I recommend that STFC should go for the Hybrid structure as it fulfills all
the criteria and decision objective. It will support STFC to expand more
and to increase its profit. It will also help to bring in more external
financial help and will also protect the interest of its existing stakeholders.
It will also not let the STFC deviate from its primary objective and vision
for which it was established. It will transfer the benefits to the members
and artisans who deserve it. The possibility of separation of SEWA and
STFC will no longer exist. So I suggest to go for Hybrid structure.

Action Plan:
The action plan for the Option-3:

Find out the interested investors and Philanthropist to Invest in the

new structure.
To redefine the Investment ratio such that control of STFC & SEWA
does not go away.
Expand more in terms of productions to achieve high revenue
earning and help in making proper supply chain management and
other business aspects
To bring in expertise to help them to better utilize the fund and carry
on new growth strategy.

Contingency Plan
If the Hybrid Model fails, STFC must switch to Non-Profit way. This will help
in maintaining the core objective of the organisation. With better
management they can counter the drawback of the non-profit model.

UNDERTAKING

To Whom It May Concern:

I,

Himanshu Patel

hereby declare that this assignment

is my original work and is not copied from anyone/anywhere. If found

similar to other sources, I shall take complete responsibility of the action
taken, thereof by, CFM Team.

Signature:
Name:

Himanshu Patel

Roll No.:

151419

Section:

Batch: MBA FT (2015 2017)

Date: 12th October, 2015