"Write a consultancy proposal to Tulip Limited based on the below case study.Case Study - Tulip LimitedQuestions for Discussioni) Explain why Tulip Limited has not been able to achieve a satisfactory level of performance.ii) Clarify the roles as well as core competencies of the senior management of Tulip Limitedrequired for formulating and implementing a turnaround strategy for the company.iii) If you were the management consultant called in by the MD of Tulip Limited to assist thecompany, what proposals would you make to improve the situation? Justify your answer.1. BackgroundTulip Limited made and invitation to SS Consultancy Limited in order to identify and provide aconsultancy proposal for the prevailing management issues of Tulip Limited. In the backgroundit has provided the back ground of both Tulip Limited & SS Consultancy Limited with thehistory of two organizations.1.1 Back ground of the Tulip LimitedTulip limited was established in 1993 as an effort of local entrepreneur. Now the company isoperated as medium size company manufacture apparel products. The manufacturing plant islocated in Gampaha industrial area. In 1998 company was acquired by a trading house in Londonwhich is operating in textile and apparel industry. Mr. Nimal Perera is the current Managingdirector of the Company who took over the position in 1999.(Tulip Limited, 2017) 1.2 Back Ground of the SR Consultancy LimitedSS consultancy was formed in 2015, and main office of the firm is in Colombo Sri Lanka, SSconsultancy provides professional services of financial, marketing, management and strategicconsultations. SS consultancy serves for the wide range of corporate customer base includinglisted companies. Since 2015 the firm serviced more than 50 corporates. Professional ofdiversified sectors serves for the consultancy assignments of the firm. Firm is having a uniqueapproach for identify problems and alternative generation. (SS Consultancy Limited, 2016)2. Scope of the Assignment According to the preliminary discussion we had with the management team of Tulip Ltd, it wasidentified that the company is having key issues relates to each functional area. The scope of theconsultation exercise was designed to identify the key management problems of the companyand provide recommendations to resolve identified problems. Following issues were identified atthe preliminary discussions with the management. ? High rate of reject in the factory (over 8% p.m)? Delays in delivery of orders due to air freighting of merchandise? High absenteeism rate of factory employees? Reliability issues of MIS reports? Losses in post order costing3. Objectives The objective of the assignment is to identify the causes of current issues of the company andprovide detail analysis of the current situation. The assignment will help the management of thecompany to align the company based on the recommendations provided. Outcome of theConsultation assignment will cover the followings.? Review all policies and practices of the production system and monitor theproduction system to identify the effectiveness of the Production system.? Review all policies and practices of Supply chain of the Company and monitor thesupply chain activities to identify the pitfalls in supply chain ? Review all systems, policies and practices of Human resource functionandidentify thegaps of the HR strategy and capabilities ofmanagers and supervisorsto identify reasons for the absenteeism? Access the proficiency of the MIS of the company to ensure the accuracy of datainput, process and output? Review the management accounting systems of the company and identify thedeviations with the industry practices4. Study MethodsSS consultancy will follow following methodologies to collect information analyze the currentproblem of the Tulip Limited4.1 Interviews4.1.1 Individual InterviewsInterviews will be the main data collection method and sample of stake holders will beinterviewed in order to gather required information. Sample will cover all layers and functions ofthe Company. Interviews will be mainly focused to gather information about policies, proceduresand current practices of the company4.1.2 Focused Group interviews Focus group interviews will be carried with the group of stake holders of key issue areas.Objective of the focus group interviews is to identify issues of the processes and practices ofselected areas. During the focused group consultants will be expect to obtain insight on theshortcomings of process floor. This will also help SS consultants to identify attitudes, knowledgeand experience gaps of the tulip employees.4.2 QuestionnairesSS consultancy will use questionnaire based system to collect feedback from employees. Thiswill enable consultants to understand the employee view point on certain areas. This will be a printed form of questionnaire method where all levels of employees can participate for thesystem.4.3 Review Agreements, reports and other documents SS consultants will review company agreements, standard reports and financial reports as atwhen necessary to gather the required information during the process.4.4 Observation & System Walk through testObservation and System walk through is also a primary method of data collection. SSconsultants will follow system walk through tests and observe the current systems to obtaininformation on working patterns.5 Key DeliverablesSS consultancy will provide detail report of the assignment to Tulip Limited. During theassignment SS will provide a summary report (e-mail version) for the existing status of datagathered to Tulip in fortnight basis. After the completion of assignment draft report will bepresented to the management in soft & hard manner for the management comments. There willbe a presentation to the management of tulip to describe the gaps identified and recommendedalternatives. After obtaining the management comments for the draft report SS will provide thefinal report to the Tulip stating the issues identified, selected alternatives for implementation andimplementation plan along with the contingency plan.Key deliverables of the assignment are as follows.? Identify Gap of processes, practices and other issues of Tulip and suggestrecommended alternatives.? Identify the issues hinder the effectiveness of the Production system and providerecommendations for the production efficiency? Identify the ways that can efficient the Supply chain of the Company and providerecommendations? Identify thegaps of the HR strategywith the current practices and capabilities of managers and supervisors and provide recommendations to reduce theabsenteeism up to industry accepted rate ? Identify gaps in MIS and provide recommendations t? Identify the gaps &deviations in the management accounting practices with theindustry practices and provide recommendations i. Project plan to implement the recommendations ii. Post implementation monitoringiii. Conduct training to the stakeholders of the Tulip Ltd6 Investment SS Consultancy is planning to conduct the consultation exercise at Tulip Ltd under there phasesas data gathering, implementation & post implementation stage. The cost proposal for the TulipLimited mainly categorized under professional hours allocated for the exercise and consultantcost varies between each other according to the task performed by them. Further the quotedproposal can be changes based on the additional work undertake by the consultants in order tocarry out the consultancy assignment andadditional costs incurred due to particular exercisesuch as travelling cost, stationary cost, use of technical tools and software for such assignmentwill be billed at the time of occurring.Table 6.1: Financial Proposal No. of Rate perTotal (LKR)consultancy HourTask Hours (LKR) Review Production system. 40 3000120,000.00 Review supply chain activities40 3000120,000.00 Review Human resource function 30 300090,000.00 Access the proficiency of the MIS 60 4500270,000.00 Review the management accounting systems 30 300090,000.00 Analyze data & information gathered and provide recommendations 70 4500 315,000.00 Review of Implementation process 90 4500 405,000.00 Post implementation Review 10 300030,000.00 Internal Trainings and Training Materials 30 300090,000.00400.00 1,530,000.00 Source: SS Consultancy Limited7. Inputs required from the Client SS Consultancy is requesting fullest corporation from the management of tulip in order to carryout independent consultancy assignment. This will enable SS to obtain more accurateinformation n about the prevailing issues of the Company. In order to carry out a successfulconsultancy exercise and provide most suitable recommendations following Inputs will berequired at the end of Tulip Limited.I. Nominate capable individual as a contact person II. Provide access to all financials, legal documents and all internal documents whichare required for the assignment III. Scheduling of Individual and focus group interview with employees, clients andother stake holders the request of consultants.IV. Suitable work station should be allocated to consultancy staff 8. Other ConsiderationsSS Consultancy is agreeing to sign non-disclosure agreement with tulip in order to maintain theconfidentiality of the information shared between two parties.SS will maintain a list of issuesand present them in weekly basis (e-mail version) with the Tulip Limited contact personal. Therewill be updating meetings on fortnight basis.9. Time FrameAccording to the scope of the consultancy assignment, twenty weeks has been estimated tocomplete all three phases of the assignment. Implementation time line can be change based onthe recommendation suggested by consultant in the report. In the event of such SS consultantswill prepare an amended time line for the project form the amended project with the agreementof the management.Figure 9.1 Project Time LineWeek 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Initial Meeting and agreements Data Gathering & Recommendations Review Production system. Review supply chain activitiesReview Human resource function Access the proficiency of the MIS Review the management accounting systems Analyze data & information gathered and provide recommendations Draft Report & Approval Submission of Final Report Review of Implementation process Post implementation Review Internal Trainings and Training Materials Final Review and Project kick off"