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CASE : R.D. ENGINES LTD
Mr. Rao and Mr. Dash, two young and dynamic engineers with M.B.A. degree from the States, floated R.D. Engines Ltd. in the year 1985. Mr. Dash went to Japan to acquire technical know-how for the manufacture of Kerosene Engines. Mr. Rao remained in India to arrange for the finances and to look after the construction of the factory shed and office building. On his return from Japan, Mr. Dash arranged for the import of the machinery and procured raw materials. He also supervised the installation of machinery and physical arrangement of facilities.
R.D. Engines Limited started the production of Kerosene Engines in the year 1989 with Mr. Rao as the Managing Director and Mr. Dash as the Technical Director. Mr. Rao was looking after the finances, sales, public relations, personnel and purchase functions. Mr. Dash was looking after the Production, Stores, Quality Control and Planning. In the first few years, the company had very good sales because Kerosene being much cheaper than Diesel and Petrol. The main customers were farmers who used these engines
. for pumping the water and other agricultural operations. In fact, it was a multi-purpose engine.
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QUESTIONS
1. Comment on the acceptance of resignation of Mr. Chandra.
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2. What was wrong with the management of R.D. Engines Limited ?
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3. Was the conflict between two directors really unavoidable? Give reasons for your answer.
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4. Give your suggestions to improve the working of R.D. Engines Limited
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