Product Overview

Mr. Kewal Balana, Proprietor of Ganga Enterprise at Sri Ganganagar, Rajasthan,India, was worried about the abolishment of 2% commission in May 2018, in 'Kachi-Aadat' line of business, due to direct online transfer of money to farmer's bank account. The firm suffered a net reduction in profit of Rs 1 million, 2% of Rs 50 million of commodities. , Mr. Bhushan Kumar, younger brother of Kewal Balana, wanted to quit Kachi- Aadat line of business and move to Pakki-Aadat line of business, where in the firm would sell commodities directly to industrial unit and charge 1% commission on net sales. His son Shobhit Kumar Balana on the other hand wanted to enter in the entirely new line of business.

Learning Objectives

To understand how to overcome from the government policy's impact on business. To discuss the various business opportunities available in terms of business strategies. To analyze the trade-off between various alternative in terms of business opportunities and to choose the best one after evaluating all the alternatives. To understand the mechanism of informal financing system in rural India.