The Case Challenge of Royal Thimphu College

Druk Kamtang Snacks and Spices, established on September 15, 2020, in Thimphu, Bhutan, specializes in manufacturing a variety of potato chips such as plain, spicy, and frozen French fries. Initially, Druk Kamtang joined the Start-up Centre of the Department of Cottage and Small Industry (DSCI), gaining valuable experience and earning a profit of Nu. 29,000 a month from 20 packets of production.

The challenge facing Druk Kamtang is its inability to meet market demand, resulting in a decrease in customers and revenue. In 2022, the company produced only 80–90 packages daily, earning an average revenue of Nu. 8,500 per day, a significant drop from its previous daily revenue of Nu. 10,000. This decline is attributed to limited production capacity due to a single small set of machines and competition from other chip companies. The company’s current product offering is a 130g chip packet priced at Nu. 100, which is not meeting the varied demands of customers who are seeking different sizes and lower prices.

The proposed solution to this challenge involves enhancing the company’s distribution channel by focusing on product attributes such as packaging and quantity. The plan includes introducing a new product size (55g) to compete in a different market segment and adopting eco-friendly packaging. This strategy is expected to help Druk Kamtang compete more effectively by catering to a broader range of customer preferences and increasing its market presence in both the 55g and 130g categories. Additionally, the use of eco-friendly packaging is aimed at attracting more customers and establishing a stronger brand presence in the market.

 

Etho Metho Tours and Treks, a prominent tourism company in Bhutan. Established in 1990, this company is among the oldest and most competent travel companies in the country, specializing in providing tourists with a range of tour packages, including cultural tours, treks, festival tours, and special tours such as rafting and mountain biking.

The primary challenge Etho Metho is facing is the decrease in the number of customers due to the pandemic and an increase in Sustainable Development Fees (SDF) by the government. This led to an increase in fees for availing Etho Metho’s services, resulting in customer dissatisfaction and a significant drop in tourists, from 35,000 in 2020 to 5,960 in 2022.

The proposed solution involves identifying factors responsible for customer dissatisfaction and improving customer satisfaction by showing the value they get for the price they pay. This includes redesigning the company’s website, pamphlets, and phone application to be more visually appealing and informative, and partnering with international travel agencies. Additionally, the company plans to decrease operational costs by adopting measures like using electric vehicles.

 

Norgu Lights, a small-scale assembly unit established in February 2022, located in Jungzhina, Thimphu, near the new Junghzina Sabji Bazaar. This company, owned by Mr. Chencho, specializes in assembling light products such as LED bulbs, surface lights, conceal lights, and tube lights using raw materials imported from China. Despite not manufacturing the products themselves, Norgu Lights has achieved a turnover of Nu. 4 million by assembling 70,000 LED lights and employing ten youths from Jigme Namgyel Engineering College.

The primary challenge faced by Norgu Lights is reaching all potential customers, especially in rural areas. The company has struggled with creating an effective marketing strategy and lacks a proper accounting system and a suitable website, which limits their customer outreach. Additionally, there is a perception among consumers that cheaper rates imply lower quality, which affects sales and revenue.

The proposed solution to these challenges includes creating a suitable marketing plan and a functional website to enhance customer outreach. This strategy would involve digital marketing and developing an accounting framework to effectively manage the company’s financial activities.

 

Tshangpa Printing Press, established in 2013 by Mr. Nima Tshering. Located in Kawajangsa, Thimphu, Bhutan, the company provides a range of printing services, including digital color printing, calendars, pamphlets, greeting cards, magazines, diary books, publications, and various types of offset printing works. Tshangpa Printing Press serves a diverse clientele, including government agencies, corporations, monastic bodies, and private businesses.

The company faces several challenges, primarily in financial management and working capital efficiency. These include the lack of a systematic accounting system, leading to reliance on outsourced accounting services, which incurs additional costs and does not aid in decision-making. The company also struggles with managing its working capital effectively, partly due to delayed payments from government customers and the impact of post-Covid cost reduction measures.

The proposed solution involves developing a suitable, cost-friendly, and user-friendly accounting system for the company, likely based on Excel. This solution aims to improve financial record-keeping and decision-making. Additionally, the company plans to develop working capital and sales strategies to address the mentioned problems.

 

USD Driving Institute, one of the oldest driving schools in Bhutan, offers a range of affordable driving courses, including professional driving for light and medium vehicles, and is known for its commitment to combating youth unemployment by providing quality driving education. USD Driving Institute distinguishes itself by not only offering practical driving lessons but also theory courses covering driving rules, signs, and signals.

The main challenge USD Driving Institute faces is high employee turnover, which has been increasing over the years, with a significant spike in 2022. The causes of this turnover include competition in the labor market, job satisfaction issues, and the absence of effective human resource policies that ensure job security.

The proposed solution to address this challenge involves developing internal service rules and regulations to reduce employee attrition, and designing an in-house system to maintain detailed records of employees.

Additionally, building a website for the institute is planned to facilitate information sharing with clients and expand market reach.