Question: Need Answer as soon as possible Finance Manager Dear [Your Name Here], As a Manager Finance Manager at Reckitt, the Finance Director has nominated you
Need Answer as soon as possible
Finance Manager Dear [Your Name Here], As a Manager Finance Manager at Reckitt, the Finance Director has nominated you to be part of the evaluation committee responsible for determining whether to invest in the new "Reckitt- Dukaan" service. This service aims to make our products accessible to endconsumers in rural areas by introducing delivery of our entire product portfolio at their doorstep. You will represent your department and base your decision on the following financial facts provided below: 1. The current ROI (return on investment) for Reckitt's operations in the rural sector is relatively low compared to other regions, with an average of 7.5% per year. This is due to the higher operating costs and lower customer base in the region. 2. However, research shows that there is a significant untapped market for Reckitt's products in the rural sector, with an estimated potential customer base of 500,000 individuals who currently do not have access to the company's products. Launching the "Reckitt-Dukaan" service could help the company tap into this market and drive significant revenue growth. 3. In addition to expanding access to end-consumers in rural areas, the "ReckittDukaan" service could also help Reckitt to improve its supply chain and inventory management. By collecting data on customer demand and purchase patterns, the company could better anticipate inventory needs and avoid stockouts, reducing lost sales and improving overall profitability. 4. There may also be potential tax benefits for Reckitt if it invests in the rural sector. Some regions offer tax incentives for companies that invest in economically disadvantaged areas, which could help to offset the initial investment costs. 5. Launching the Reckitt-Dukaan service will require significant investment in infrastructure and technology, including the development of a mobile application or website, point-of-sale systems, and data analytics capabilities. This can range from several hundred thousand rupees, depending on the complexity and scale of the project. Additionally, there may be ongoing costs associated with maintenance, updates, and support of the infrastructure and technology. Your task is to: 1) Determine what you think is best for Reckitt, in the long run, keeping into account the return on investment 2) Evaluate how viable it would be to opt for a service delivery like "Reckitt-Dukaan" You must share your points with your colleagues and discuss the rationale behind it
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
