In 2003, Partaab Singh and Tanveer decided to start a new business to
manufacture noncarbonated soft drinks. They believed that their location
in Lahore, close to high quality water, gave them a competitive edge.
Although Partaab Singh and Tanveer never worked together, Partaab
Singh had 10 years of experience in the soft drink industry. Tanveer had
recently sold his own firm and had funds to help finance the venture,
however, the partners needed to raise additional money from out side
investors. Both men were excited about the opportunity and spent almost
18 months developing their business plan.
With the help of a well developed plan, the two men were successful in
raising the necessary capital to begin their business. They leased facilities
and got underway. However, after almost two years, the plan’s goals
were not being met. There were cost overturns, and profits were not
nearly up to expectations.
Questions for analysis:
Although several problems were encountered in implementing the business
plan, the primary reason for low profits was embezzlement. Partaab Singh
was diverting company resources for personal use, even taking some of the
construction material purchased by the company and using it to build his own
a. What could Tanveer have done to avoid this situation?
b. What are his options after the fact?
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