Case Study (1) : Mohsen Al-Aasar started his company in an old warehouse he rented in Sitra industrial area in 2002. Th

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Case Study (1) :
Mohsen Al-Aasar started his company in an old warehouse he rented in Sitra industrial area in 2002. The company is still in the same location where it started. The company manufactures paint products of oil and plastic, Its products of oil paints are still popular, especially wood painting. Mohsen Al-Aasar Company serves the areas near Sitra because the package of five gallons weighs 52.5 pounds, which makes shipping costs to long-distance is a difficult medium.
The main market of the company is small and medium-sized decoration companies. Until 2017, the company achieved a steady increase in the sales growth rate of this market, reaching in 2015 to 20%, and the company relied on building its reputation and competitive advantage on the rapid service that supply paints to the contractor/client in 24 hours.
The company now suffers from delaying product delivery due to its raw material purchasing policy to pay in advance.
Mohsen Alasser realized that he started to lose company market share, he already lost 7% of sales revenue value-added 2018 and delaying in paying short term loan installments.
The owner is now in an unenviable position, he is responsible for solving this problem and does all the administrative and financial work of the company. He is the one who communicates with clients, prepares financial accounts, appoints and supervises employees, replies the company mail and checks and signs All invoices. He does not separate himself from any day-to-day operation and does not wish to delegate authority to others. He instructs and orders his employees orally, which leads to some of his employees ignoring his orders.
With the increase in the volume of the company's activities, the company's customers began to complain about the delay of the arrival of orders and the contractors and interior designers refrained from giving the company large orders for fear of delay.
They are unable to pay financiers, they are unable to pay large amounts of overdue taxes, and all these reasons have led to weak customer confidence in the company.
Case Study Questions :