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Business Situation

Raj Exports is the exporting company in India. The exports of the company include rice and Indian spices to Oman, Saudi Arabia. Raj Exports trade on pulses. They had only local transport (only to cities in India) initially. They initiated a new business of sending goods on sea to other countries which requires more time. They have to hire a large ship to send the goods to other lands. Several tons of goods are transported at a time for which it needs a week or two. The travel time of the ship depends on the climatic conditions of the sea.

Number of employees required In charging the ship and crew who go to the ship Is fairly high. The wages for workers, the fuel for ship and maintenance of the ship Is taken care by the ship rental company. upon making It at the destination safely In ten days, It found another fifteen days to unload the goods. It should occur In Just two days. The explanation made by people on the other end was that there was some technical fault with the machinery which was utlllzed to unload the goods from the ship. The system has gone wrong and there

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were no other means of offloading the ship.

The main problem occurred was that the rent of the hip became too high as there was a delay for the ship. They could have checked the machinery in advance before arrival of the ship to unload the good. Now the rents and other expenses for the ship have crossed the price of the original goods. The company has to yield an additional sum for the ship renting company because they could not make it back on time and next trip orders for ship got cancelled also there was besides a large batch of fuel wastage for the ship. The disturbance occurred to the company is surely a heavy one and it needs another half dozen months to handle the red ink.

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