The Fall and Rise of Cotton Yarn ‘Manja’

Abstract

This case highlights the crucial role played by the internal and external business environment policies in the success and failure of small-scale cotton yarn industry in India. This case study is about Rojgar Cotton Yarn Plant (RCYP), which was started in 1992 by Mr Naresh a Delhi University graduate, whose main objective of starting this plant was to create a niche in the market by providing good quality cotton yarn 'manja' at a reasonable price. Mr Naresh was very laborious and effective businessmen. Soon, with his high efforts RCYP flourished with leaps and bounds and since Mr Naresh was an opportunity seeker, he started a new plant, that is, New Rojgar Plant, and to manage the business effectively his father Mr Daman also joined the business. So, as the competition increased with the emergence of new players in the market and the changed customer demand which shifted from cotton yarn 'manja' towards 'Chinese manja', RCYP suffered with major losses and many employees lost their job. Although there were many government policies in various states against the trade of 'Chinese manja', it was not effective due to poor policy implementation, black marketing, lack of monitoring, provision of minor punishment and small fine. Mr Naresh was an entrepreneur, and he did not give up despite the challenges and changed his path towards a new opportunity. He started a new partnership firm, that is, Naveen Limited, with his friend which is a wholesaler of Chinese products such as toys and plastic goods in India. But on 16 August 2016, after the ban of 'Chinese manja' in Delhi, the sale of cotton yarn 'manja' increased. Hence, Mr Naresh is now in dilemma, whether to continue with this RCYP or invest the whole amount in Naveen Limited? Intended Course and Audience This case study will be helpful for BCom/BBA/MBA full-time or part-time students, academicians and practitioners for critically analysing the changing role of business environment. It particularly highlights the crucial role played by government policies and the impact of increased competition due to high demand of low-cost Chinese products. Further it explains how the Chinese market is sweeping away the

Enforcement methods and influential factors of competitive intelligence ethics adoption: a case of South African ICT industry

“…Probability random sampling technique was used to sample South African ICT firms to participate in this study. To achieve the commonly used and accepted 95% level of confidence given a sample frame of 5714 South African ICT companies, a sample of 385 was drawn for this study (Sachdeva, 2009). The sample size was calculated as follows:…”