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0iurendra Kumar Agarwal ,a fresh mechanical engineer from the Benaras Hindu University
started his entrepreneurship journey by taking over his father¶s business namely Paras
Metal Works - a company dealing in the manufacturing of non-ferrous utensils.

0Understanding the facts of business in terms of raw-material procurement practices and finished
product market ,Agarwal decided to shift to Pune. A n approach to stay more closer to the
market.

0Establishment of Vishnu Metal works in the year 1969 at Vadgaonsheri with an initial investment
of 4,30,000.

0 Struggling for two years Agarwal barely met with break even for his Vishnu Metal Works.

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0Vishnu Metal Works specialized in the production of superiorly curved and light weighed
brass utensils which emerged as popular product in terms of both cost leadership and
superior product quality.

0Boosted with rapid growth of business with a turnover of 25 lakhs (in five years) ,Agarwal
decided to expand his operations and eventually started Five Star Metal works ,B.T. Rollings
Bramha Metal Works and Radha Rollings.

0By 1980 Agarwals business grew rapidly and reached a turnover of 75 lakh with production
rising to 500 kg of utensils per day.

0The year 1980 experienced the beginning of another era of Agarwals Business with
diversification into the manufacture of HDPE bags with the establishment of Pawgir Jute Mills.

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0Faced with severe competition from the stainless steel industry Agarwal decided to further
diversify his business and ventured into real estate (named Bramha Reality) with the
purchase of 60,000-sq-ft-plot costing 32 lakh.

0Pune witnessed emergence of Bramha as leading builder with all-round real projects ranging
from apartments,bunglows to office space,shops etc.

0Ventured into the hospitality business in the with the establishment of residency club and then
with Bramha Bazar Hotels Ltd.

0Chipped in Hafeez Contractor to establish what is now one of the pioneer 5 star hotel in Pune
namely Le Meridian which enjoyed a turnover of 35 crore in the very first year of coming into
operations.

0Intimidated with the success of his first hotel Agarwal decided to expand his hotel chain
further in and around various location of Pune and Mumbai.
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0mrganization established by an Entrepreneur is something like a tree that has started its
growth based on a single seed and have taken years of struggle to shape itself into the one it is
today.

0Managers for an organization are people who are collectively made responsible for the
upbringing of the tree (read organization) ensuring its all-round growth and development.

0He is one who needs to maintain integrity amongst employees of the organization. He also acts
as an interface between apex and bottom of an organization.

0He needs to convert all the resources into the other that are needed. He is ought to be
stubborn to fire someone, along with that he needs to be polite at the same time to bring out
maximum business.

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0He needs to be straight forward, sincere and all the positive qualities a supreme man needs
to possess.

0He keeps an eye on everything related to employees. He checks that, is the work assigned to
employees is properly distributed keeping their capability in mind, and also the time taken to
pursue it .mne of the most important tasks of a manager is to eliminate his people's excuses
for failure.

0He is the most answerable person in an organization because he is person who taken
collectively shouldered the organization¶s vision and responsibility for continuous growth and
sustenance .

0At last manager is one who¶s

0 ³Managing is getting paid for home runs that someone else hits.´

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0Strong Business Understanding ± Ability to read market conditions.

0Sound Technical Knowledge of the Entrepreneur.
0Intension to Achieve and Prosper
0Ability to foresee future.
0Fearless attitude even to take the most difficult decisions.
0Liking for seeking the best for his business.
0Customer mrientation

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0Inability or unwillingness to create new market for his product.

0In some extent he tend to be more reactive .

0Sometimes tend to be too optimistic.

0He never tried to develop his capabilities further ,facing a threat he shifted his gears to a all
- together different level.

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0 He diversified towards a very lucrative segment which at that time was unexplored and has
great potentials. Real Estate in Pune ± a business having the potentiality to be a sure shot s
success.
0 Pune was becoming one of the most significant hubs of industrialization (in various sectors)
in the West apart from its tourist attractions. This created demand for quality hotels which
was not tapped adequately. The success Agarwal achieved with his first hotel within two
months of operation is proof of the same.
0 He ventured into a niche segment in the form of his club business which was likely to
blossom more and more.
0We also see another opportunity for Agarwal, with his knowledge of producing brass utensils
he could have chipped into the stainless steel utensil industry. There was always a chance of
making a significant dent in the market.

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0 Threat from new entrants both in the real estate as well in the hospitality business.

0 Saturation of the market specifically in the real estate business.

0Tough Competition from major players who were veteran in the business where he diversified.

0 Source of Constant Fund (specifically at the time when the case was written).

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Due to paucity of information not all perspective of Fayol¶s 14 principles of management can be
referred.

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Post establishment of his unit in Pune Agarwal understood the need to have two separate
rolling mills and hence went for establishing Five Star Metal Works,B.T. Rollings Bramha Metal
Works and Radha Rollings. The entire product was produced with the help of the specialization
that this individual units offered such as melting scrap metal in the foundaries,rolling them and
then their pressing,polishing,finishing .



S.K.Agarwal assumed the authority as well the responsibility for his establishments. He was the
person who assumed the authority to take decision of shifting his base from Bandara to Pune
and others associated with him followed his will. He also took up the responsibility to ensure
that he took proper business decisions at ³right time´ for his business long term sustenance.

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The entire organization promoted by S.K.Agarwal was moving towards a common direction i.e.
to establish itself as a pioneer in respective industries in which they are operating.

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There are two instances in this regard, one when he decided to shift his entire family from
Bandara to Pune and struggled his family life in 500 sq-ft room. He considered his
organizations interest over his and his family.

The second instance is when he decided to diversify his business facing competition from the
stainless steel industry and eventually decided to sell his ³very close´ metal work business for
funding his diversification operations.

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$  a The case provides an insight into Agarwal¶s excellent planning capability. His
business decisions pertaining to both his utensil business as well as his
diversification into the service sector was backed by meticulous planning.
His planning skill is particular depicted through his decision to move his base to
Pune and he way he undertook the entire diversification activity.

 ( a This is another area where the case throws special focus. Mentioning about
Agarwals Utensil business he showcased his excellent organizing skill through his
establishment of the processing units in Pune.

Secondly the way he organized the plots , managed location ,engaged professionals
for his real estate and hospitality business. shows how a ³well thought ³ organization
process can enhance business success and growth factors.Agarwal was successful
with all the business in which he invested his mind showed how skillfully he
organized the resource before plunging into any business.
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i  a o business can attain success, taste growth or sustain without proper staffing
activity.
Though the case has limited information in this regards but through Agarwal¶s
decision to chip Hafeez Contractor for designing his hotel with the intention of
banking upon Contractor¶s long felt dream of getting associated with the architectural
work of a Five Star Facility and his decision to bring in 300 skilled artisans from the
pink city is a clear indication of his understanding of the importance of quality staffing.

&  a We have not information with this regard from the case but the case states that
Agarwal kept himself engaged with helm of affairs for each business that he ventured
into. According to the case though he struggled but he never met failure rather he
made profit very soon.
His utensil business enjoyed a turnover of I R 75 lakh by 1980.Turnover for his real
business was 10 crore by 1990,his club which commanded an initial fee of I R
1,00,000 has 2000 members till date (i.e when this case written).His hotel met 45
occupancy rate within two months of establishment. This shows how good and
technically sound he was with his directing abilities.
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 It implies measurement of accomplishment against the standards and

correction of deviation if any to ensure achievement of organizational
goals.

The purpose of controlling is to ensure that everything occurs in conformities with

the standards. An efficient system of control helps to predict deviations before
they actually occur. In this regards we don¶t have sufficient information from the
case to make a comment. But his business success figures and the way he
performed his business showed that had the much needed controlling ability.

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 a As head of the business Agarwal himself was a perfect human resource for the
company. His judgment of who can make his dreams come true and who can help him
in meeting his business goals showed how much importance he attributed to his human
resource.

An example from the case which justifies this is his decision to chip in Hafeez
Contractor and 300 artisans from Rajasthan to design his hotel.


 n the case we have few financial information and even those are restricted to the cost
that he incurred in his acquisition activities and his turnovers. But as it is never
mentioned that he had difficulty in arranging for funds for both continuing the business
as well as his acquisition activities proves that he had adequate means and options for
funding his business.
He was financially sound and had strong resource base in this regard. This is a ³must´
for the success of any business.

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    a Agarwal was very specific in this regards. He shifted his base from agpur to Pune
for facilitating his material resources required for his business. He had always
ensured that could get the best of the material for his business interest.
Even with his service sector business he had a good restaurant ± it becomes good
only when you use the right combination of material to produce the output (i.e. quality
food).For his hotel he engaged expert to install his utilities which are a very important
input for the success of a hotel.

   Agarwal produced lightweighted,superior finished brass utensils ,this was possible
because of his technologically superior machine strength. He had a well-equipped
health club again proving his intentions to have the best machines in place for his
business.
These are certain examples which shows how important it is to get the right
machine resources for attaining success in business.

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S.K.Agarwal¶s Business Interest can be classified in two broad segments a

1. Manufacturing Segment ( Utensil and HDPE bag business)

2. Service Segment (Real Estate and Hospitality Business)

With Regards to the Manufacturing Segment the case be analyzed with the help of 4 P¶ s of
Marketing .

 $
 - Agarwal¶s Vishnu Metal Works was specialized in providing light weighted
utensils which had superior finishing.

 $  - The specialization that the company had and their near location to the source of
3. resource enabled them to cut manufacturing cost and hence the company could
4. offer its product at the cheapest price
2.
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3. $  &
 
 ± When S.K. Agarwal first took over the business of his father he
understood that large portion of his customers are located in and
around the Mumbai, Pune region of Maharashtra.

He understood that transportation cost (from Bandara to these places)

was adding to his product price. Hence he decided to relocate to a
location near to his target market which will help him cut down a number
of cost and will also enable him to stay close to his target consumers.

4. $


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- In this respect not much information is available in the case ,
however the only thing that he have been done is he has kept
himself in close proximity with his buyers in particular and his main
market in general.

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Agarwals service sector initiatives (real estate and hospitality business) a

0Product a His basket of offerings was designed with the correct understanding of the market
and its need. In Real Estate he offered both commercial as well residential building
keeping into consideration that Pune was likely to become one of the prime locations.
A whooping turnover of I R mne Crore in the very first justifies his sence of business
understanding.

In the hospitality segment he understood the need of the hour and offered a club
which had all the facilities for that ³luxurious feeling". With his Residency club he
have got the bulls eye. His venture into hotels was also successful with his first
project ³Le Meridian Pune´ hit near breakeven sales within the first two months of
operations.The hotels design has become a benchmark for many.

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Price a Though not much information in this regard is available in the case study yet his
success figures speaks that his pricing strategies was done very intelligently to keep
that ³feel good´ factor attached with his offerings.

Place a Agarwal¶s project was planned around the best of the places in Pune. His first project in
real estate was in a prime location in the heart of the city.
Agarwal¶s club came in beautiful British Mansion (British Architectures of those days
are head turners ) located near Pune Railway station ± a posh area.
Agarwal¶s first hotel project was again located in a prime location behind Pune
Railways Station.

Promotion a His success speaks about his promotional efforts. He met overwhelming success
with his real estate projects. His club was another success and after that he tasted
success with his hotel. We feel that his offerings and their quality also served a
strong promotional tool.

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People a People are key to the success of service industry. Though we don¶t have information
on his people for both his real estate project as well as his club but the kind of people
who he associated with his hotel project speaks about the kind of hands he had with
him.
His hotel was designed by Hafeez Contractor ,one of the pioneer architects of the
country. The entire designing along with the installation of utilities was assigned to him.
Hafeez longing for an opportunity to design a five star hotel gave his best shot and
meticulously chalked out a hotel which stands tall even today as an outstanding art of
architecture.Agarwal chipped in the artisans from Jaipur who are know globally for
their work

Processes a They are important to deliver a quality service. Services being intangible,
processes become all the more crucial to ensure standards are met with.
The way he performed his business have proven that his processes was perfect.

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Physical Evidence a Services being intangible, customers depend on other cues to judge the
offering. This is where physical evidence plays a part.

For Agarwal¶s business his project location for both real estate and
hospitality business, the location of his club both place and the building
(An mld British Mansion with luxurious facilities), his hotel's location and its
designing (exterior and interior) etc .

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1. Threat to the brass utensil industry with the growing popularity of the stainless steel utensil
industry (both in terms of affordability and product features). The threat was so dangerous
Agarwal understood that either he diversify or perish.

2. Boom in the Real Estate Business in Pune ± both residential and commercial. Pune was
becoming the hub of commercial and residential establishment. His Turnover which
increased from I R 01 crore since his first project in real estate to I R 10 crore + by 1990
speaks about the amount of prospect that real estate business had in those days.

3. There was a chance in the Club Business with demand exceeding supply (i.e. interms of
opportunity to secure membership) many times. The success in terms of members (2000 in
number) who enrolled with club and the initial fee which escalated from I R 20,000 to
I R1,00,000 speaks in favors of Agarwals decision to diversify.

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4. Demand for rooms in his club exposed him to an opportunity to diversify in the main
line hotel industry. Pune was always a great destination for leisure tour and Agarwal
further identified its potential of becoming a prominent business location. He
identified the need of those who intend to enjoy a five star stay.

Gauging this he ventured into the hotel industry with the establishment of Pune¶s
Largest five star hotel. He chipped in the best hand to design the hotel, equipped it
with the best in class facilities with some absolutely new one (videoconferencing
facility ,squash court) etc.These facilities were designed keeping into consideration
the need of the business as well leisure travelers.

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0The Case provides an example of a road to success from a mere struggle to sustain. Faced
with a crisis just after taking over business as a fresh engineering graduate Agarwal took
calculative steps not only to sustain his business but to taste success.

0The Case has justified certain business principles such as a

a. Stay close to the source of raw material and your customer as far as possible.
b. Identify Business mpportunities and Threats early
c. Diversify for sustenance and further growth.
d. React to market demand and create facilities (product or service. which will create
further demand.

0 Agarwal Business sense was meticulous. Even when he ventured into the real estate
business he floated his business risk into two kind of properties one the residential one and the
other the commercial one.

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0The case speaks about the flexibility which need to be incorporated while making business
decisions. Agarwals prime business was facing with a crisis in the form of intense competition
and hence he decided to diversify. He funded his diversification activities by selling off his
brass utensil industries and his jute mill.

0His diversification decision was based on a solid market study, meticulous understanding of
the market need and project demand.

0The case also speaks about organizing decisions which has a definite positive impact on
business success.

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0 When Agarwal decided to move to Pune his decision was influenced by two factors which are
cutting down the cost of raw material and keeping a close tap on the largest brass utensil
market. Though these are right decisions yet we strongly feel that Agarwal showed very little
interest in developing new market for his products. This could have helped him to stay longer
in business than he actually did.

0 The case does not provide any an sight into the real figures which have prompted agarwal to
diversify. Agarwal was operating a jute mill which in those was profitable venture, still he
closed it down to finance his diversification. This probably raises a question pertaining to
why he did so.

0 The case lacks adequate statistical information which could help in better evaluating.
0 garwal¶s success figures. For example his success has been shown in terms of turn over he
reached with his business but turnover in real sense is not a very clear measure of success.

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The case provides an insight a very interesting entrepreneur ship case where in business
decisions and will power have paved the way to success for Mr.S.K.Agarwal.

These case stands an example of how with determination, market understanding and hard
work can make one a successful entrepreneur. This case stands an example for who wish to
take up entrepreneurship as a career option.

We conclude by mentioning that entrepreneurship is skill which if nourished can lead to

astonishing results.Mr.Agarwals business decisions and his ability to cope up with change have
always resulted in his success.

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