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CASE : SUNRISE INDUSTRIES LTD.
"Sunrise" is the brand name of Sunrise Industries Ltd., a leading industrial house`of northern India with an annual turnover of more than Rs. 450 crores. The company produces a wide variety of electrical home appliances which are popular not only in India, but in foreign countries also. The Board of Directors is headed by Mr. Kamaldeep and its executive director is Mr. Ankit. The company has its head office at New Delhi and works at Ludhiana, about 300 km. from New Delhi. It is in the process of starting a new factory at NOIDA (about 25 km. from New Delhi) for the manufacture of refrigerators and air-conditioners. Sunrise Industries wasn`t always a big industrial giant. In fact, it had a very humble beginning. Kamaldeep, an electrical engineer, set up a small scale industrial unit in 1975. To start with, he undertook assembly and sale of sewing machines under the name `Sunrise` and gradually started manufacture of certain spare parts. Because of better quality,,greater selling skills and lower profit margin, his sales turnover touched the figure of Rs. 1 crore during 1979-80. The products included sewing machines, irons, fans, geysers,
etc.
In 1981, Kamaldeep entered into a partnership with Ankit, an M.B.A., who contributed a lot of capital into the business. The firm acquired a big industrial plot in the New Industrial Area of Ludhiana and converted their business into a company known as Sunrise Industries Ltd. in 1982. The brand name `Sunrise` was also registered in the name of the company. The company started the commercial production of single tub washing machines and instant geysers in 1983. Kamaldeep looked after production and Ankit took care of marketing and finance. They never looked back as they had a motivated work force of 40 workers and 5 foremen who worked like a big family.
It was during 1990 that the company shifted its head office to New Delhi and entered into a technical collaboration agreement with a foreign company. As a result, new generation twin tub semi-automatic washing machines and vacuum cleaners were launched in 1991 and the products were well received in the market because of latest technology and expanding market for electrical gadgets. The sales turnover increased tremendously every year.
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QUESTION
1. What changes in structural dimensions have taken place in Sunrise Industries ?
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2. Is the present structure organic ? Give reasons for your answer.
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3. Which approach to organisation do you feel can help the company tackle the current problems ?
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