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Brand Management
Maximum Marks: 80

Question No. 1 is compulsory and is for 16 Marks. Please attempt any 4 questions from question number 2 to 9.

1. Case Study : (Compulsory)
BURNOL

Burnol has been around for six decades as a yellow burns-relief ointment. It has almost become a generic brand. Its yellow colour reminds one of turmeric, the traditional burns-relief remedy.
The brand has been recently acquired by Dr. Morepen (a subsidiary of Morepen Laboratories Ltd.) from Reckit Piramal. The brand has high recall value. Morepen is the brand’s third owner (Boots is the first, Pirmal second).
Burnol’s position in the mind space of the consumer is that of the burns ointment. It is open to marketers to reposition the brand. But sometimes the brand does not budge from its original position. Burnol is a typical example. It is so strong as anti-burn ointment that it has become intractable.
Burnol introduced by Boots started domestic manufacturing in 1948. JWT handled the account. Formerly, it was sold on prescription. In 1960 it became over-the counter (OTC) product.
As Indian housewives depended upon kerosene or wood-fed stoves, Burnol became an integral part of the household. In 1967, Burnol’s application was far widened, to include antiseptic properties against cuts and other wounds. But it did not succeed and Boots reverted to its original anti-burns position. In 1972, Shield was launched by SKF as a competitive brand. It was followed by Medigard by J.L. Morison. But they could not affect Burnol.
In 1980, a commercial on DD showed a daughter entering kitchen and getting burns due to oil splash. The mother uses Burnol and the VO says “Haath jal gaya? Shukar hai ghar mein Burnol jo hai”.
Kitchen became safer in 85s after the switch-over to LPG-based cooking and the use of gas-lighter instead of the match boxes. Burnol started stagnating.
Though the product had high recall, the actual reality was that households did not keep the product handy. Plain water was being recommended to treat burns. Turmeric, as it causes stains, was becoming a liability. The product composition was changed by changing colour from deep yellow to non-staining light yellow. People were coaxed to keep the product within easy reach, Sales showed some improvement.
In 1995, again it was repositioned as antiseptic for multiple usages. The colour was made even lighter. It was given a new perfume. But the brand failed to compete with other antiseptic creams such as Boroline and Dettol. The brand could not be moved from its ‘burns’ spot in the consumer mind. It’s becoming generic as a burns remedy proved to be its cause for stagnation.
In 2000, Burnol was sold to Reckitt Pirmal for 12.5 crore. It became Burnol Plus. It was positioned as ‘first aid cream’. It registered a turnover of ` 6.2 crore in 2002. As Reckit Pirmal joint venture came apart, Burnol was sold to Dr. Morepen in 2003. It is being relaunched in April 2004.

Burns market including dressings stand as ` 39 crore. Antiseptic market stands at ` 210 crore. The old need is passing into history. The strategy should be to retain its original uniqueness, and still broad-base it. There are new dangers such as geysers, irons, ovens and so on. Burnol can become a cream that ensures safety if present. Burnol should be promoted as brand that cares.
Burnol is now marketed by Dr. Morepen Lab as protective cream which should be kept handy always.

Question:
As a Management consultant give your comments on Burnol as a brand.

2. What do you understand by the concept of a Brand? Describe the characteristics of Brands.

3. a. Define the Brand Image. Explain the dimensions of Brand Image.
b. What is meant by Brand Identity? Explain the different elements of Brand Identity.

4. Discuss in detail the different stages of brand building process.

5. a. What is Brand Audit? Explain its importance.
b. Describe the two steps in brand audit.

6. “Positioning is an outcome of our perceptions about the brand relative to the competing brands” – Discuss with examples.

7. How do consumers perceive and choose brands? Discuss.

8. What are the different phases of strategic brand management process?

9. Discuss the “TEN COMMANDMENTS” of Global Branding.

Xaviers Institute of Business Management Studies

BUSINESS STRATEGY

Marks: 100
NOTE:
I. Answer ANY FIVE questions.
II. All questions carry 20 marks each.
III. Total numbers of questions are EIGHT.

———————————————————————-

Q.1. Write short notes on ANY TWO of the following
a. Globalization
b. Task and processes in formulating business strategy
c. TQM Philosophy
d. Characteristics of well formulated corporate objectives

Q.2. Describe Vision and Mission statements with suitable illustrations. What is the difference between vision and mission? How does business definition help in articulating the Mission statement?

Q.3. Describe Porter’s five forces model to analyse competition with reference to light commercial vehicle industry.

Q.4. Describe the GE multifactor portfolio matrix and state how the GE matrix is superior tool Vis a Vis the BCG matrix.

Q.5. a) Describe Ansoff’s matrix
b) What is the difference between market penetration and market development? Illustrate with suitable examples.

Q.6. What is “Best cost provider” strategy? What are the risks in pursuing this strategy?

Q.7. What strategic options a firm could follow when the firm is operating in a maturing industry?

Q.8. Describe the role of strategy supportive reward system with suitable illustrations.


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Advertising

_______________________________________________________________________________________________________________________________
PART – A (10 x 5 = 50)
Answer Any FIVE Questions
1. What is Advertising? Discuss its objectives and point out the problems of advertising in India.

2. How is Advertising effectiveness tested?

3. What are the important features of an Advertisement Copy?

4. Discuss the essential features of a sound advertising policy.

5. Mention the functions of an advertising agency.

6. Examine the function to be considered in the selection of Media for advertising.

7. What is sales promotion? Why it is importance in marketing industrial product?

8. Distinguish between Coupon and Sampling.

9. What are the factors governing basic Promotional strategy?

10. Outline the different methods of providing discounts in the selling process.

PART – B (2 x 15 = 30)
Answer Any TWO Questions
11. “Advertising Sells Product”. Do you agree with this statement? Give reasons and explain the functions performed by advertising.

12. “The success of Advertisement campaign depends on proper selection of Media” – Discuss.

13. “Advertising brings long-term benefits but Sales promotion is for quicker result”. Explain with an example.

14. Analyze the distinctive features of various elements of the Promotional mix. Illustrate with a suitable example.

15. Outline the different methods of providing discounts in the selling process.

Xaviers Institute of Business Management Studies

BUSINESS ENVIRONMENT

Note: Attempt any five questions. All questions carry equal marks
1. Discuss the changing scenario of business environment in India and its principal implications for the business.
2. (a) Explain the dualistic character of Indian economy and the problem of uneven income distribution.
(b) Outline the development of consumer movement in India.
3. (a) Write notes on (i) adjudication machinery for settlement of disputes, and (ii) Employees Pension Scheme, 1995.
(b) Enumerate the powers of the Central Government to control production, supply and distribution of essential commodities under the Essential Commodities Act, 1955.
4. Describe the important amendments proposed under the Companies (Amendment) Bill, 2003 and the additions proposed thereto by lrani Panel.
5. (a) Can SEBI compel a public company to get its securities listed on the stock exchanges while making a public issue? On what grounds can the listed securities be delisted by a stock exchange? State the rules in this regard.
(b) “The role of stock exchanges in India need not be over – emphasized”. Comment.
6. Describe the evolution of the concept of corporate governance and outline the various measures adopted in India to ensure good corporate governance.
7. Make a critical assessment of New Economic Policy keeping in view the long term objectives of economic development.
8. (a) What are the objectives of EXIM policy 2002 – 07? Explain its main provisions.
(b) Write an explanatory note on functions and coverage of WTO.
9. Distinguish between the following:
(a) Micro Environment and Macro Environment
(b) Economic Growth and Economic Development
(c) Money Market and Capital Market
(d) Entrepreneurship, Role and Promotional Role of Government


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Business Administration

Marks – 80

(Please attempt any 4 of the below mentioned case studies. Each Case study is for 20 marks)

MR. John

Please read the case and answer the questions given at the end.
John was rapidly becoming the main topic of discussion for the workers on E-shift. For the past year, he had been working in the jeep-transportation department at a large manufacturing plant. His record of attendance was good and his work was considered far above average by his immediate supervisor. His supervisor also considered John the informal leader of the transportation department. This feeling was shared by the foreman and the other workers.
Lately, though, John had been seen by several supervisors breaking different safety regulations. Most of the violations would have been of no more consequence than a good talking to, so the supervisors let them slide.
Finally, John was caught by the plant safety supervisor without his safety glasses on. This resulted in his being laid off without pay for five working days.
It was the plant’s policy that safety glasses must be to gain admittance to the plant and must be worn times in the plant. This policy was to ensure that no employee would lose his eye-sight from an accident or from a resulting fire.
This written policy stated that an employee who was caught not wearing his safety glasses would for the first offence get a five day lay-off and then for a second offence gets another five day suspension. After John returned to work, he was again observed not wearing his safety devices. Within a few days of his return, John was caught by the same safety supervisor without his safety glasses. The supervisor informed John in an angry voice, “l m getting tired of writing you up for stupid mistakes.” At this point, John replied, “Why don’t you go home and smash your head. ” The supervisor then struck John, dt which point John proceeded to beat the supervisor unconscious.
John was laid off from work until the company could decide what action to take regarding the fight. After a brief meeting the next day, Mr. Prasad, the transportation supervisor, informed John that he was terminated. A union steward then asked Mr. Prasad about the fate of the supervisor. Mr. Prasad replied, “He will remain at work as far as I know. ” The union steward immediately stepped to the telephone and called the union president. From the ensuing conversation, Mr. Prasad learnt that a wild cat strike might be ordered over the firing of John and not the supervisor.
Mr. Prasad knew that it was the company’s stated policy that whoever started or was involved in a fight would be terminated immediately. Mr. Prasad was beginning to wonder whether the company had made a mistake in its decision and what should be done now.
Questions:
(a) What is the problem in the case?
(b) How do you see the behavior of the safety supervisor? What would you do if you were the safety supervisor ?
(c) How do you see the change in John’s behavior from an informal leader to the one involved in a fight with a supervisor vis-a-vis the company’s policy?
(d) Could Mr. Prasad and the safety supervisor have prevented John’s case at the initial level?

ABC Company – An important decision

Please read the case and answer the questions given at the end.
One afternoon in January 1982, Amrit, industrial engineer of ABC Company, was called to the office of his immediate superior Nair, the production manager. Nair said, ‘Amrit I want to discuss a situation in the production department. A lot of people feel that Govinda is not the right man for the Assistant Superintendents position. The President and others have decided that I have got to fire Govinda or at least move him out of production. Everyone wants to fire Govinda, but I won’t do it to him. I was talking with Bhadra this morning, and we deckled that you might be able to make use of Govinda in your department.’
Amrit was surprised by both the information, and the proposal.
Nair concluded his comments with, ‘Amrit. I am asking you to take Govinda. You can say ‘No’. But then he gets fired. I have told Govinda this. Also, Govinda knows that if he goes with you, he will take a pay cut. However, I think you can make use of him both to your own and his satisfaction. You are, anyway, carrying out an in-process quality control and you might to able to make good use of Govinda in view of his long technical experience of production work. Think It over, and let me know by tomorrow.’
Amrit thought over the matter
ABC Company had been a successful enterprise until March 1982 at which time it suffered a sharp decline of profits: Sales had fallen off, and production costs had risen. The President adopted three measures which he hoped would improve the condition. First, by creating an Industrial Engineering Department for establishing work standards on all production operations, to determine which manufacturing costs were out of line and where remedial action should be taken. Amrit, 28 years old, who had been with the company for two years in the Purchasing Department, was selected. Amrit had WE. and MBA degrees to his credit. What he lacked in his business experience, he made up by his eagerness to learn. He was ambitious and liked by his associates. He wanted a transfer from Purchasing to Production for better opportunities for advancement.
Secondly, he consulted a Management Consultation firm to make a study of the Production Department. They pointed out that the chain of command was too long from Production Manager through Plant Superintendent through Assistant Superintendent to Foremen. They recommended the elimination of the position of Assistant Superintendent.
Thirdly, he engaged an Industrial Psychologist to appraise all the Supervisory Personnel.
Govinda had been with the company for 20 years since its founding and during this period had worked on every production operation, and his last 11 years had been in supervisory capacity. His manners were rough and aggressive, he had little formal education. The Industrial Psychologists report about Govinda contained the following points
(i) Evaluation for the position of Assistant Superintendent: Not good enough.
(ii) Capacity for good human relations in supervision will have friction frequently.
(iii) Need for development counseling: Counseling greatly needed.
(iv) General Evaluation: Govinda had a good ability profile. He suffers from a sense of inferiority. He does not like the responsibility of making decisions. His supervision is that of Autocratic type. Though he has the ability, as far as his personality make-up is
Questions:
(a) What is the problem in the case? Explain.
(b) Explain Govinda’s behavior and work experience vis-a-vis the psychologist’s report.
(c) How do you see Nair’s suggestion to Amrit? Give reasons.
(d) What are Amrit’s considerations in taking a decision? What should he do? Explain.

EMCORP Management
Please read the case and answer the questions given at the end.
Roy, the president and founder of Electric Manufacturing Corporation (EMCORP) is wondering how he can follow the advice of his doctor, who had told him to take it easy after last year’s coronary attack. EMCORP manufactures a full line of fractional horsepower electric motors sold to both original equipment manufacturers and distributors throughout the country. At present, the company employs approximately 1,000 people.
Roy, an engineer, has maintained tight control over all major functions throughout the years, and though each of the heads of the engineering, manufacturing, sales, finance and personnel departments has the title of vice-president, they come to Roy for approval before making any change in procedure. Usually, each of these executives sees Roy several times a day. The personnel director once suggested a weekly meeting, but Roy voted the idea as too time consuming. Now. Worried about his health as well as the problems of the company, Roy is beginning to feel the need for some relief from the constant pressure.
The manufacturing rising costs department shows a picture of, consistent failure to meet delivery schedules, and an increasing number of quality complaints. John, Vice President Manufacturing, admits to poor performance, but says that the cost figures from accounting are pure history and of no use since they do not reach manufacturing until the fifteenth of the month following the month in which the work is completed. He states that his failure to meet delivery schedules is due almost entirely to the fact that the sales department makes unrealistic promises, and does not bother to check manufacturing schedules. John attributes most of the quality problems to the incessant flow of engineering changes that come without warning and with no time to work out the production problems present in all new products. Roy admits to himself that he had asked Smyth, Vice President Engineering, to put all the approved changes into production immediately.
The vice president and general manager of sales, Rita, recognizes that she has no knowledge of the manufacturing schedules and realizes that she, too, is being criticized by Roy for many broken promises in regard to delivery dates. However, Rita’s chief complaint at the present time is the result of having sold a large order of standard motors to a distributor having a supply of replacement parts in stock, and then discovering that engineering had changed specifications: a change that made all replacement parts in the field obsolete. Another irritant for Rita is the tightening of credit requirements instituted by the finance department without prior consultation with the sales department. Again, Roy admits to himself that it is the same engineering change which caused so much trouble in manufacturing that is causing trouble for the sales department and making obsolete the existing stock of replacement parts. He also realizes that at his request, due to an unusually short cash position, the finance department tightened up on credit requirement.
Questions
(a) Define the major problem of EMCORP’s management.
(b) Will the formation of a committee be of any value in this situation? If a committee is needed, assign a title to the committee and indicate who should be members of the committee?
(c) In the event that Roy decides to retire, will the presence of a committee make it easier or more difficult for Roy’s successor? Discuss.

Ceylon Fertilizers
Ceylon Fertilizer is a urea manufacturing unit having a capacity of 500 tones per day. The total work force of the plant is around 2,000. Being a self-contained plant, it has its own workshop in order to take care of regular maintenance work. The workshop functions in two shifts a day under; shift in charge for each shift who is in the cadre of AEE. The workers have been grouped into two groups, i.e., Relay ‘A’ and ‘B’. The shift routine changes once a week, Sunday being the weekly holiday besides the two shifts, there are a group of people under a Senior AEE attending in general shift hours.
The Relay ‘A’, consisting of 18 workers is placed under the charge of Shri Muthu who is a graduate in mechanical engineering. After undergoing training for a period of six months in various divisions in fertilizers, he had acquired a thorough knowledge of works to be undertaken by the Workshop After being a Relay Supervisor for 3 years; he has been recently promoted to the post of AEE, who is the shift in charge. When he joined the workshop, he found that the tasks were done with the application of thumb-rules and higher officers had to be satisfied with such a quality of work.
Shri Muthu, on witnessing this, started to instruct his workers in various theoretical aspects of welding, machining etc. Which he had studied in his college. They all highly appreciated the skill and techniques he had taught. The workers now learnt to do things in a better way. Thus, he gained the confidence of workers. As he was able to finish his work in time and in a better way than relay ‘B’, more work orders were allotted to his group. A few workers in this group started to grumble and one of the Foremen came and told Mr. Muthu that the “other relay workers do not have much work load and our workers too do not want to strain much and they are murmuring over getting more work.” Muthu, however, convinced the Foreman that extra work should be taken as a credit and recognition, and they should do their best. After this had happened some workers even tried to get transferred to the other Relay.
One morning, Muthu was making arrangements for the work to be taken and was giving instructions to his foreman. Turner, Kali, came and told him, “Sir, father of Fitter Sami expired last night and we all want to go and attend the funeral” and added “it is customary for the men in the workshop to attend such funerals and the shift-in charge has to arrange a lorry or any conveyance for the people to go to Sami’s house, which is nearly eight km from the Plant. Since Muthu joined the company, this was the first such instance occurring and as he had to finish some urgent work orders. He told the worker Kali, “You all need not go to the funeral. I can, however, permit a few of you as representatives of Relay ‘A’ to go and offer condolences to Sami’s family.” Further, he regretted that he would not make any arrangements for conveyance, This statement created a turbulence among the workers and a group of workers stopped the work and started demanding that they be allowed to attend the funeral or else they wanted to stop work in the coming shifts. The Foreman hurried up to AEE, Mr. Muthu to explain the turbulent situation on the shop-floor.
On hearing this, Muthu told his Foreman, “I have given you an alternative and I have already told the urgency of work and I am going to allocate the work as per planning schedule. If the work is not done, I may have to take action against you.” Then the group of workers started discussing among themselves as to what to do next. A Turner came forth and said, “You are not considerate enough on human matters and if you are still adamant we may prefer half-a-day wages cut as we must go and attend the funeral. Anyhow you have to make arrangements for our conveyance.” Muthu at this instance noted that a small group, who were usually complaining about the workload and were murmuring, were keenly interested in the affair. He decided to face the situation as a matter of prestige. He issued the gate pass to whoever wished to go, still emphasizing that he would not arrange any conveyance. Nearly 25 per cent of the workers remained and the others collected money from all for the funeral and went off.
On that day, Muthu could finish only a part of the work as planned and he had to explain what had happened in his Relay, to his boss.
When he came the next morning, it was rumored that only a few of the workers attended the funeral and the others had gone to the cinema theatre near the village. Muthu got irritated by the workers’ behavior and started writing memos to those who had received the gate pass the previous day. Some workers got annoyed by this action of Muthu and they approached the union to intervene. The news had spread to other divisions and there was an overall protest at all places in the Fertilizer Plant.
Questions:
(a) What is your view of the action taken by Mr. Muthu?
(b) What are the weakness and strong points, as you consider, of Mr. Muthu as a Manager?
(c) How would you have tackled the situation, if you were Mr. Muthu?

MODERN INDUSTRIES

Modern Industries Limited (MIL) in Bangalore, a subsidiary of a multinational company, is a consumer durables manufacturing industry. Presently, the company has over 5000 employees and an annual turnover of about Rs. 75 crores. It is a reputed high-technology industry with a strong team of technological experts.

The company offers an excellent training scheme for fresh technical graduates, known as “Graduate Engineer Training (GET) Scheme” which is of 2 years’ duration. The objective of this scheme is to identify and train engineers for the specialized technological requirements of the company. Over the past decade several fresh graduates have undergone this training programme and at present hold key positions in the organization, having proved their worth to the company. Even those who have left the organization are reported to be doing extremely well in their jobs. The company regarded it as a Prize Scheme. It has gained high reputation among the student community and there is keen competition among graduates country-wide to join this scheme.

Mr. Mohan joined the company as a Graduate Engineer Trainee in 1986 after obtaining his B.Tech. Degree in Mechanical Engineering from I.I.T. Bombay. He has secured the second position in the class, and had a brilliant academic record to his credit. After his B.Tech., he had several attractive offers for employment including a scholarship from an American University, but he preferred to join MIL as a GET. He had reasons to do so. Firstly, the scheme had a high reputation and was helping fresh engineers to start their career in industry on a sound footing. Secondly, he was interested in getting practical experience rather than continuing his education. Thirdly, he was the eldest son of his parents, who were settled in Bangalore, and he wanted to stay with them and lessen their financial burden.

He did quite well during his training, which included working in different departments on specific assignments. This helped the trainees to get a feel of the challenges in different functional areas and at the same time enabled the departmental managers to know them. This helped the managers to identify the aptitudes of trainees and place them finally in suitable areas of specialization.

Mr. Mohan’s training was oriented towards his final placement in the production engineering department. After his training in 1988 he was placed in that department as an Engineer. The job was quite challenging: it called for a lot of hard work and ingenuity. He was required to tackle technical problems related to a particular manufacturing workshop, and was also expected to improve the existing process and parameters. The workshop was one of the key manufacturing areas. He was quick to understand the complexities of his job and was able to show improvements in a short period of time.

The company had a reasonably good system of performance appraisal and rewards, and the contributions of individuals were usually well rewarded. Mr. Mohan earned an additional increment in 1990 in appreciation of his contribution. This encouraged him to work with greater enthusiasm. He was also a member of some of the workgroups, which were formed from time to time for tackling specific problems; and did well in this capacity. He was quite competent in his area of work and earned an extra increment in 1991.

However, trouble started brewing from then onwards. he and his superior, Mr. Tagore did not agree on many matters. Mr. Tagore felt that Mr. Mohan was not cooperative, and tended to be dogmatic in his approach. This adversely affected their work relationship.

Mr. Tagore, who was the head of the production engineering department, had over 25 years’ experience and held a Diploma in Mechanical Engineering. He had worked for other organizations before joining the company in 1976. He was placed as Manager of production engineering department in 1984. He had sound practical knowledge and was handling the production engineering department quite effectively.

Generally ex-trainees were considered for promotion after 3 to 4 years of experience. In 1992, many of those who completed training in 1988 were promoted as Senior Engineers. Mr. Mohan was expecting his name to be in the list of promotes, but to his surprise it was not. His performance during the year was rated as normal, and this upset him greatly leading him to feel frustrated. He met the Training Manager and appraised him of the situation. He requested him to arrange for his transfer to some other functional area. The Training Manager took up the case but could not transfer Mr. Mohan, as the workshop serviced by him was a critical one and his expertise was very much in demand there.

The difference between Mr. Tagore and Mr. Mohan were widening and becoming serious on technical matters. Mr. Tagore complained that Mr. Mohan unnecessarily argued on every minor detail, and that this amounted to disobedience. Mr. Mohan was considered an obstacle to work; his annual increment for 1993 was also withheld.

Mr. Mohan was thoroughly upset. He met the General Manager and contended that he was fully competent in his job and, therefore, there was no reason for withholding his increment. He argued that his superior was less educated than him, and that this accounted for the widening of differences between him and the Manager. He requested the General Manager to look into the matter, and he promised to do.

A week later, the General Manager called him and informed him that he was being transferred to another department. Mr. Mohan was quite willing to work in that department provided he was posted there on promotion. Inter-departmental transfers were not uncommon. Young engineers, in particular, were transferred from one department to the other with a view building them up for higher positions which required better inter-functional understanding. In all such cases the practice was to post them on promotion. However, Mr. Mohan’s demand was not conceded. He was transferred in June 1993. His performance in the new department was far from satisfactory and he was considered to be a “deadwood” there. He was understandably disgusted. He tried for a scholarship abroad and succeeded. This lead to his decision to quit his job. He left the country in January 1994, full of bitterness and disgust.

Questions:

(a) How did a brilliant engineer turn out to be a “deadwood”?
(b) Was Mr. Mohan too sensitive and arrogant?
(c) Did Mr. Tagore handle sensitive and intelligent engineers properly?
(d) Was it not advisable to transfer Mr. Mohan in 1992 when the signs of trouble were seen?
(e) Should Mr. Tagore have stopped Mr. Mohan’s increment in 1993, knowing fully well that he was quite competent?


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Subject Title: Brand Management
Maximum Marks: 80

Question No. 1 is compulsory and is for 16 Marks. Please attempt any 4 questions from question number 2 to 9.

1. Case Study : (Compulsory)
BURNOL

Burnol has been around for six decades as a yellow burns-relief ointment. It has almost become a generic brand. Its yellow colour reminds one of turmeric, the traditional burns-relief remedy.
The brand has been recently acquired by Dr. Morepen (a subsidiary of Morepen Laboratories Ltd.) from Reckit Piramal. The brand has high recall value. Morepen is the brand’s third owner (Boots is the first, Pirmal second).
Burnol’s position in the mind space of the consumer is that of the burns ointment. It is open to marketers to reposition the brand. But sometimes the brand does not budge from its original position. Burnol is a typical example. It is so strong as anti-burn ointment that it has become intractable.
Burnol introduced by Boots started domestic manufacturing in 1948. JWT handled the account. Formerly, it was sold on prescription. In 1960 it became over-the counter (OTC) product.
As Indian housewives depended upon kerosene or wood-fed stoves, Burnol became an integral part of the household. In 1967, Burnol’s application was far widened, to include antiseptic properties against cuts and other wounds. But it did not succeed and Boots reverted to its original anti-burns position. In 1972, Shield was launched by SKF as a competitive brand. It was followed by Medigard by J.L. Morison. But they could not affect Burnol.
In 1980, a commercial on DD showed a daughter entering kitchen and getting burns due to oil splash. The mother uses Burnol and the VO says “Haath jal gaya? Shukar hai ghar mein Burnol jo hai”.
Kitchen became safer in 85s after the switch-over to LPG-based cooking and the use of gas-lighter instead of the match boxes. Burnol started stagnating.
Though the product had high recall, the actual reality was that households did not keep the product handy. Plain water was being recommended to treat burns. Turmeric, as it causes stains, was becoming a liability. The product composition was changed by changing colour from deep yellow to non-staining light yellow. People were coaxed to keep the product within easy reach, Sales showed some improvement.
In 1995, again it was repositioned as antiseptic for multiple usages. The colour was made even lighter. It was given a new perfume. But the brand failed to compete with other antiseptic creams such as Boroline and Dettol. The brand could not be moved from its ‘burns’ spot in the consumer mind. It’s becoming generic as a burns remedy proved to be its cause for stagnation.
In 2000, Burnol was sold to Reckitt Pirmal for 12.5 crore. It became Burnol Plus. It was positioned as ‘first aid cream’. It registered a turnover of ` 6.2 crore in 2002. As Reckit Pirmal joint venture came apart, Burnol was sold to Dr. Morepen in 2003. It is being relaunched in April 2004.

Burns market including dressings stand as ` 39 crore. Antiseptic market stands at ` 210 crore. The old need is passing into history. The strategy should be to retain its original uniqueness, and still broad-base it. There are new dangers such as geysers, irons, ovens and so on. Burnol can become a cream that ensures safety if present. Burnol should be promoted as brand that cares.
Burnol is now marketed by Dr. Morepen Lab as protective cream which should be kept handy always.

Question:
As a Management consultant give your comments on Burnol as a brand.

2. What do you understand by the concept of a Brand? Describe the characteristics of Brands.

3. a. Define the Brand Image. Explain the dimensions of Brand Image.
b. What is meant by Brand Identity? Explain the different elements of Brand Identity.

4. Discuss in detail the different stages of brand building process.

5. a. What is Brand Audit? Explain its importance.
b. Describe the two steps in brand audit.

6. “Positioning is an outcome of our perceptions about the brand relative to the competing brands” – Discuss with examples.

7. How do consumers perceive and choose brands? Discuss.

8. What are the different phases of strategic brand management process?

9. Discuss the “TEN COMMANDMENTS” of Global Branding.


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Inventory Management

Total Marks – 100
1. The section A consists of 20 marks
2. The section B consists of 60 Marks
3. The section C consists of 20 marks

Section A Marks 2 each

1.
(a) What is ABC analysis?
(b) Give four examples of MRP.
(c) What is meant by lead time?
(d) Define standardization.
(e) What are the various inventory models?
(f) What are the functions of inventory?
(g) Explain briefly the various types of inventories.
(h) Define traffic management.
(i) What is the need for feedback inventory information system?
(j) Give two factors considered for choosing equipments for material handling.

PART – B
Answer any Six questions from the followings: –
2. Explain the following terms:
Lead time, Re-order point, Stock out cost and Set-up cost.

3. What is the purpose of safety stock? How will the use of safety stock affect the EOQ? How will the safety stock affect the total annual carrying cost of the material?

4. Describe the relation between Material requirement planning and Master productions schedule. What are the advantages and limitations of MRP?

5. What are the objectives of stores management? How do you decide about the location and layout of an effective store in an organization?

6. What is the purpose of JIT? Why are flexible resources essential for JIT? Wow are suppliers affected by JIT?

Q.7 A) What is Raw Material? What are its two important factors? Describe.
B) Describe bought out components. What factors influence the decisions for bought out components?

Q.8 A) What are (KU) and (KO). Describe them in brief.
B) What are elements of ordering costs? How will you workout-ordering cost per order when you release 5000 orders a year with total ordering cost of Rs. 400000.

Q.9 A) What is Safety Stock? List out the various factors influencing the safety stock.
B) Define Service Level? How does it help in determining the Safety Stock? Explain with example.

Q.10 A) What is forecast? List out different types of forecasts.
Why is forecast needed?
B) Describe in brief dependent demands and independent Demands.

Q.11 Write Short notes on any 4 out of the followings: –
A) Inventory with Supplier
B) Inventory carrying cost.
C) FSN Classification
D) Other uses of EOQ.
E) Inventory Control through Stock – Levels.
F) Scrap / Surplus and its disposal.
G) Overhauling Spares
H) Role of computers in Inventory Management.

PART – C
CASE STUDY (COMPULSORY) WITH 05 Sub – question

M/s ABC is a car manufacturing company. They have a distribution system for marketing of finished goods as follows:-
A. Finished goods are sent to Central warehouse near the factory.
B. From here, the finished goods (cars) are sent by road to seven Regional warehouses located at important centers in the country.
C. Besides above two types of warehouses, there were 27 depots from where the cars are sent to different stockiest for sale.

Due to severe market competition and restrictions on bank credit, the Top Management of M/s ABC appointed an expert committee to streamline the distribution system, The committee found followings :-

1. Central warehouse, 7 Regional warehouse and 27 Depots together have finished stock (cars) equal to 105 days all India sales.
2. The Marketing Manager has no time to check the Finished Goods Stock as he is busy with marketing functions.
3. There are several cars which are lying for more than 2 years due to availability of new better models.
4. There was lack of controlling and supervising norms for monitoring the stock positions and taking corrective actions. Indents for new cars were sent without checking of stocks.

Apart from other things, the committee advised to put the finished Goods warehousing under Materials Management deptt. and advised a finished goods stock (Cars) equal to 48 days all India sales stock as ideal stock level in all the warehouses and depots together.
M/s ABC Management has appointed you as Materials Manager to complete the above tasks. How will you proceed? The questions are:-

1. Will you review the existing numbers of warehouses and depots for reduction? If so, why?
2. How will you find slow moving and non-moving stock of cars? What methodology will you suggest to dispose off such cars?
3. What shall be your methods for monitoring and controlling of finished Goods (car) to avoid accumulation of unsold stocks in future?
4. Will you retain Central warehouse and why?
5. What will be your distribution pattern for keeping stocks in central warehouse/Regional warehouse and Depots equal to the norms of 48 days All India Sales stock level?

MARKS : 80
SUB: Production Planning and Control
N. B.: 1) Answer any Five.

1. Discuss the objectives of Production Planning and Control.

2. What do you understand by Control phase? Explain the activities under this phase.

3. What are the different demand patterns on which the sales forecasting is based? Explain.

4. Describe the Delphi method of sales forecasting.

5. What is work study? Explain excess time.

6. Explain pre-production procedures with examples.

7. What is inventory management? Explain the systems of inventory management.

8. What is E.R.P. ? Describe different uses and benefits of E.R.P.

9. What are production control techniques? Explain in detail.

SUB: SAP Supply Chain Management

Answer any four questions.
All questions carry equal marks
(4 * 20 = 80)

1. How can SAP help supply chain professionals?

2. What are the SAP solutions for Transportation and Warehousing?

3. What are the challenges in implementing SAP based Supply chain management systems in India?

4. What are the advantages of implementing SAP based supply chain management systems in India?

5. Briefly explain the importance of SCM to various stakeholders and importance of SCM for e-commerce.

6. Please explain various stages of SAP based SCM system application implementation.

WAREHOUSE MANAGEMENT

Maximum Marks: 80

Please attempt any 8 questions out of the questions mentioned below.
1. What do you mean by supply chain in retail scenario? Give its importance and briefly explain the seven steps in effective collaboration?

2. Write a brief note on collaborative planning

3. Explain the usage of demand forecast response

4. What do you mean by Bull whip effect? Give the evolution & importance of precision retailing.

5. Next generation of POS & store system reduce that total cost of ownership (TCO)- Explain

6. Give a short note on any two

a) Advantage of RFID
b) Killing of the RFID tag
c) Privacy issues related with emerging Technologies

7. “Physical Distribution Decisions have to be responsive to the market conditions and hence are never static.” Explain this statement with factors influencing decisions from company’s perspective and also customer’s point of view.

8. What do you mean by Marketing Channels and what are the types of Channels? Also write factors determining length of channels with suitable examples.

9. “Importance of ‘Non-store Retailing’ is increasing in our country.” Explain this statement with its advantages and disadvantages with suitable examples.

10. Define Distribution Logistics and write its elements that give logistic importance among other functional areas of Distribution Management.

11. “A Good Supply Chain Management is important for providing Customer Value.” Discuss this statement with Value Chain Process.

12. Write short notes: (Any Two)
(a) Transportation and Material Handling
(b) Importance of Inventory Management
(c) Third Party Logistic
(d) Benchmarking the Supply Chain
(e) Wholesaling

13. The manager at a large manufacturing company is planning warehousing needs for the coming year. The manager predicts that warehousing needs will be normally distributed with a mean of 500,000 square feet and a standard deviation of 150,000 sft. He can obtain a full year lease at Rs 5 per sft per month or purchase storage space on the spot market. The spot market rates are Rs.7 per sft on the average per month. How large an annual contract should the manager sign?

14. What is the importance of cold storage warehousing in Retail sector? Please also list the importance of regional warehouses for a retailer.


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BUSINESS COMMUNICATION
N. B. : All cases are Compulsory.

CASE NO. 1
How to Proofread like a Pro :
Tips for creating the Perfect Document

You’ve carefully revised and polished your document, and it’s been sent off to the word-processing department or a designer to be put into final form. You can breathe a sigh of relief, but only for the moment : You’ll still be proofreading what comes out of the printer. To ensure that any document is error-free, always proofread the final version. Following are some hints to help make your proofreading more effective.
 Multiple passes – Go through the document several times, focusing on a different aspect each time. The first pass might be to look for omissions and errors in content; the second pass could be for layout, spacing, and other aesthetic features; a final pass might be to check for typographical, grammatical, and spelling errors.
 Perceptual tricks – Your brain has been trained to ignore transposed letters, improper capitalization, and misplaced punctuation. Try (1) reading each page from the bottom to the top (starting at the last word in each line,) (2) Placing your finger under each word and reading it silently, (3) making a slit in a sheet of paper that reveals only one line of type at a time, and (4) reading the document aloud and pronouncing each word carefully.
 Impartial reviews – Have a friend or colleague proofread the document for you. Others are likely to catch mistakes that you continually fail to notice. (All of us have blind spots when it comes to reviewing our own work)
 Typos – Look for the most common typographical errors (typos): transposition (such as teb), substitution (such as economic), and omission (such as productivity)
 Mechanics – When looking for errors in spelling, grammar, punctuation, and capitalization, if you’re unsure about something, look it up in a dictionary, a usage book, or another reference work.
 Accuracy – Double –check the spelling of names and the accuracy of dates, addresses, and all numbers (quantities ordered, prices, and so on). It would not do to order 500 staples when you want only 50.
 Distance – If you have time, set the document aside and proofread it the next day.
 Vigilance – Avoid reading large amounts of material in one sitting, and try not to proofread when you’re tired.
 Focus – Concentrate on what you’re doing. Try to block out distractions, and focus as completely as possible on your proofreading task.
 Caution – Take your time. Quick proofreading is not careful proofreading.
Proofreading may require patience, but it adds creditability to your document.
Career Applications :
1. What qualities does a person need to be a good proofreader ? Are such qualities inborn, or can they be learned ?
2. Proofread the following sentence :
application of these methods in stores in San Deigo nd Cinncinati have resulted in a 30 drop in robberies an a 50 percent decling in violence there, according at the developers if the security system, Hanover brothrs, Inc.

CASE NO. 2
ACTIONS SPEAK LOUDER THAN WORDS ALL AROUND
THE WORLD
“He wouldn’t look me in the eye. I found it disconcerting that he kept looking all over the room but rarely at me,” said Barbara Walters after her interview with Libya’s Colonel Muammar al-Qadhafi. Like many people in the United States, Walters was associating eye contact with trustworthiness, so when Qadhafi withheld eye contact, she felt uncomfortable. In fact Qadhafi was paying Walters a compliment. In Libya, not looking conveys respect, and looking straight at a woman is considered nearly as serious as physical assault.
Nonverbal communication varies widely between cultures, even between subcultures, and the differences strongly affect communication in the workplace. Whether you’re trying to communicate with your new Asian American assistant, the Swedish managers who recently bought out your company, the African American college student who won a summer internship with your firm, or representatives from the French company you hope will buy your firm’s new designs, your efforts will depend as much on physical cues as on verbal ones. Most Americans aren’t usually aware of their own nonverbal behavior, so they have trouble understanding the body language of people from other cultures. The list of differences is endless.
 In Thailand it’s rude to place your arm over the back of a chair in which another person is sitting.
 Finnish female students are horrified by Arab girls who want to walk hand in hand with them.
 Canadian listeners nod to signal agreement.
 Japanese listeners nod to indicate only that they have understood.
 British listeners stare at the speaker, blinking their eyes to indicate understanding.
 People in the United States are taught that it’s impolite to stare.
 Saudis accept foreigners in Western business attire but are offended by tight – fitting clothing and by short sleeves.
 Spaniards indicate a receptive friendly handshake by clasping the other person’s forearm to form a double handshake.
 Canadians consider touching any part of the arm above the hand intrusive, except in intimate relationships.
It may take years to adjust your nonverbal communication to other
cultures, but you can choose from many options to help you prepare. Books and seminars on cultural differences are readily available, as are motion pictures showing a wide range of cultures. You can always rent videos of films and TV shows from other countries. Examining the illustrations in news and business magazines can give you an idea of expected business dress and personal space. Finally, remaining flexible and interacting with people from other cultures who are visiting or living in your country will go a long way toward lowering the barriers presented by nonverbal communication.
Career Applications :
1. Explain how watching a movie from another country might help you prepare to interpret nonverbal behavior from that culture correctly.
2. One of your co-workers is originally from Saudi Arabia. You like him, and the two of you work well together. However, he stands so close when you speak with him that it makes you very uncomfortable. Do you tell him of your discomfort, or do you try to cover it up ?
CASE NO. 3
MASTERING THE ART OF CONSTRUCTIVE CRITICISM
To become better writers, people need to be evaluated, but taking criticism
from others is often difficult. The way you tell someone “ You did it wrong” can destroy goodwill and cooperation, or it can build the relationship and help the person learn from the mistake, improve performance, and retain self-esteem. To criticize more constructively, follow these suggestions :
 Get all the facts first : Don’t accept hearsay or rumors.
Find out specifically who did or said what, when, where, why, and how
 Don’t act in haste : Never act while you’re angry. Think things out before you write or speak, and then explain your criticism calmly, rationally, and objectively.
 Phrase your remarks impersonally : Criticize the mistake, not the person. Focus your remarks on the action only, and analyze it thoughtfully.
 Never criticize in an offhand manner : Treat the situation seriously. Take the time to state the problem in detail, explaining what was wrong and why.
 Avoid an abusive tone : Ridiculing someone, talking down to a person, or using sarcasm prevents people from accepting what you have to say.
 Make the offense clear : Don’t talk in generalities. Be specific about exactly what was done wrong.
 Preface the criticism with a kind word or a compliment : Start with a few words of praise or admiration, saying how much you value the person. First the good news, then the bad.
 Supply the answer : Explain how to do things right. Don’t dwell on the mistake, emphasize how to correct it and how to avoid repeating it.
 Ask for cooperation : Don’t demand cooperation. Asking makes the person feel like a team member and provides an incentive to improve.
 Limit yourself to one criticism for each offense : Don’t dredge up or rehash past mistakes. Focus on the current problem.
 End on a friendly note : Don’t conclude by leaving things up in the air, to be discussed again latter. Settle them now, and make the close friendly. Give the other person a pat on the back. Let the last memory of the matter be a good one.
 Forgive and forget : Once the criticism has been made, let the person start with a clean slate. Avoid looking for more mistakes, and give the person a chance to improve.
 Take steps to prevent a recurrence : Follow up to make sure the person is acting on your suggestions and doing things right.
If you follow these guidelines, constructive criticism can benefit you, your company, and – most important – the person you’re criticizing.
Career Applications :
1. Think back over the lessons you’ve learned in life. How did you benefit from some one telling you the truth about something you were doing wrong ?
2. With a partner, role-play a situation in which one of you is the boss and the other an employee. The boss is angry because the employee repeatedly arrives late for work, takes long lunches, and leaves 5 to 10 minutes early. However, the employee’s work is always excellent. After the role-play, analyze what the boss did right and what could be improved.
CASE NO. 4
WHAT YOU MAY LEGALLY SAY IN A SALES LETTER
As you prepare to write your sales letter, think carefully about your choice
of words. False or misleading statements could land you in court, so make sure your language complies with legal and ethical standards. To keep your sales letters within the limits of the law, review the legal considerations of these typical sales phrases :
 “Our product is the best on the market.” – This statement is acceptable for a sales letter because the law permits you to express an opinion about your product. In the process of merchandising a product, statements of opinion are known as “puffery,” which is perfectly legal as long as you make no deceptive or fraudulent claims.
 “Our product will serve you well for many years to come.” This statement from a sales brochure triggered a lawsuit by a disgruntled customer who claimed the manufacturer’s product lasted only a few years. The courts ruled that the statement was an acceptable form of puffery because the manufacturer did not promise that the product would last for a specific number of years.
 “We’re so confident you’ll enjoy our products that we’ve enclosed a sample of our most popular line. This sample can be yours for only $5.00! Please send your payment in the enclosed, prepaid envelope.” If you include a product sample with your sales letter, your readers may keep the merchandise without paying for it. Under the law, consumers may consider unordered goods as gifts. They are not obligated to return the items to you or submit payments for unsolicited merchandise
 “Thousands of high school students – just like you – are already enjoying this fantastic CD collection ! Order before March 1 and save !” If your sales letter appeals to minors, you are legally obligated to honour their contracts. At the same time, however, the law permits minors to cancel their contracts and return the merchandise to you. Sellers are legally obligated to accept contracts voided by minors and any goods returned by them. Legal adult status is defined differently from state to state, ranging from age 18 to age 21.
 “You’ll find hundreds of bargains at our annual scratch and dent’ sale! All sales are final on merchandise marked as is.” When you use the term as is in your sales letter, you are not misleading customers about the quality of your products. By warning consumers that the condition of sales items is less than perfect, you are not legally obligated to issue refunds to customers who complain about defects later on.
Career Applications :
1. Review two sales letters for content. List the “Puffery” statements in each letter.
2. Note any statements in these sales letters that appear questionable to you. Rewrite one of the statements, carefully choosing words that won’t be misleading to consumers.
CASE NO. 5
MINDING YOUR BUSINESS WITH ONLINE REPORTING
Mrs. Fields uses them. Mrs. Paul’s uses them. However, you don’t have to be in the cookie or fish business to work with electronic reports. More and more companies are adopting electronic reports over hard-copy reports to keep employees, managers, investors, and other stakeholders informed.
Computerized cash registers in Mrs. Fields cookie outlets are the heart of a sophisticated reporting system for monitoring and controlling operations. Rather than taking the time to write reports by hand, store managers enter data into the computer system by following report formats on their screen. Then they electronically transmit these reports to corporate headquarters in Park City, Utah. The computer system also serves as a two-way communication device, allowing store and corporate personnel to send messages back and forth in seconds. So Mrs. Fields corporate managers can quickly receive the information they need in order to track sales and productivity trends – and to spot potential problems – in more than 700 outlets around the world.
At Mrs. Paul’s a computerized reporting system allows production managers to continuously monitor and control the yield from the company’s fish – processing operation. The system calculates the production yield using the weight of the fish before it’s processed, the weight if abt scraosm and the weight of the finished fish meals. If the reports show that the actual yield drops below the expected yield, the managers can immediately adjust the equipment to improve the yield. The production managers have instant access to electronic reports at each stage of the operation, so they can find and fix problems more quickly than if they had to wait for printed reports.
FedEx, the well-known package-shipping firm, uses extensive satellite and computer technologies to track the location of every package in the company’s system. Customers can then access electronic reports to monitor the status of their shipments at any time. This tracking system not only helps the company serve its customers better, but it puts valuable information in the hands of customers with a click of the mouse. Like many companies, FedEx posts an electronic copy of its annual report and other corporate informational reports at its website.
As Mrs. Fields, Mrs. Pauls, FedEx, and other companies know, keeping customers, employees, investors, and other stakeholders informed with electronic reports is the only way to do business in the global workplace.

Career Applications
1. What advantages and disadvantages do you see in asking store managers at Mrs. Fields to file electronic troubleshooting reports immediately on the company’s intranet ?
2. What kinds of electronic reports might a company want to post on its website ?

Human Resource Management

(i) There are three Sections A and B and C.
(ii) Attempt any three questions each from Section A and B. All questions carry 10 marks each.
(iii) Section C is compulsory for all and carries 40 marks.
SECTION A
1. Define and differentiate between Job Analysis, Job Description and Job Evaluation. Select an appropriate job evaluation method and create a plan for evaluating jobs of scientists in different grades.
2. Discuss the role of indoctrination in organizations. How can Performance Appraisal, and Training and Development be made an integral part of Human Resource Planning? Discuss.
3. Discuss the scope of Human Resource Audit. While auditing Reward systems for employees in a manufacturing organization, which factors should be taken into account and why? Explain with suitable examples.
4. Define and discuss the need for Human Resource Planning in an organization. Briefly discuss various approaches to HRP
5. Write short notes on any three of the following:
(a) Training methods
(b) Value determinants of HRP
(c) Human Resource accounting
(d) Labour Market Behavior
(e) Promotion and Reward Policies
SECTION B
1. Define and discuss the objectives of Human Resource Planning at organizational level. How does it help in determining and evaluating future organizational capabilities, needs and anticipated problems? Explain with suitable examples.
2. Define and describe Job Analysis. Briefly discuss several methods in which information about a job is collected and evaluated.
3. What is the purpose and process of recruitment function? Discuss various methods of sourcing manpower.
4. How is monetary value assigned to different dimensions of Human Resources costs, investments, and worth of the employees? Briefly explain Cost and Economic value approaches of measurement.
5. Write short notes on any three of the following :
(a) MBO
(b) Succession Planning
(c) Competency Mapping
(d) Job Evaluation
(e) H.R. Inventory

SECTION C
1. Quality control Department
Read the case given below and answer the questions given at the end.
Mr. Kapil Kumar and Mr. Abbas Ali were working in a scooter manufacturing public sector industry as Senior Quality Control Engineers in 1988. One post of Deputy Chief Quality Controller has fallen vacant due to the retirement of the incumbent and the management decided to recruit a qualified, knowledgeable and experienced professional from outside so that the present quality standard may be improved thus ensuring better marketability of their scooters in the face of stiff competition. Mr. Kapil Kumar, who was a mechanical engineer with about 15 years experience in the Quality Control Department dealing with mopeds and scooters, could have been promoted to fill the post on the basis of seniority. However, the management was looking for a graduate in statistics with experience in latest Quality Control (QC) techniques like statistical quality control, quality assurance and other related areas rather than a mechanical or automobile engineer with the routine experience in quality control. As such instead of promoting Kapil Kumar, the management advertised for the post of Deputy Chief Quality Controller – since as per company rules it was DR (Direct Recruitment) vacancy also.
Selection of Outsider
Out of the applications received in response to the advertisement, six candidates were called for interview including the two internal candidates, Mr. Kapil Kumar and Mr. Abbas Ali. The person selected was an outsider, one Mr. Ratnam, who had over 12 years experience SQC, quality assurance etc., in the two-wheeler private manufacturing industry. Mr. Ratnam joined within 2 months time expecting that in his new position he would be the main controller for quality. However, after joining the organization he came to know that he would be the second senior most person in the hierarchy for controlling the quality and would be reporting to one, Kirpal Sing,. The Chief for Quality Controls. Mr. Kirpal Singh had come up to this post by seniority and was basically a diploma holder in automobile engineering. He had to his credit about 28 years of industrial experience, out of which 20 years were spent in Quality Control Department of two industries. He joined the present organization in its Quality Control Department and had 17 years experience in the organization and was due for retirement within the next 2 or 3 years. On learning about the retirement time of Mr. Kirpal Singh, Mt. Ratnam had the consolation that he would be able to take up the position of ‘Chief Controller of Quality’ very soon.
Interference from Top
Ratnam could not put forth many good suggestions (for quality control) because of the interference and direct supervision of Kirpal Singh. He, however, could pick up a good deal of knowledge about the working of the company, the nature-and tendency of different production department heads particularly with regard to care for quality, organization for ‘QC’ in the company, the various components required for assembly of the company’s two-wheeler scooter and the expected quality standards, drawback in the present system of quality controls. etc.
Right from the time the advertisement for the selection of Deputy Chief Quality Controller appeared, the O.A. (Officers Association) of the organization had been pressing the management to consider the case of Kapil Kumar for promotion to the above post based on his seniority in the organization.
Meanwhile, the management obtained a license in 1989 for producing Three-Wheeler Autos. As a result of this and the pressure from O.A., Ratnam was transferred to look after the Quality Control Department at the company’s new Three-Wheeler plant, whereas Kapil Kumar was promoted as Deputy Chief Quality Controller in the present two-wheeler scooter plant in 1990 (after creating one additional post of Deputy Chief Quality Controller for the new Project).
In 1991, the State Government, which controlled the company in question, changed the Managing Director. During the regime of this new Managing Director, Kapil Kumar was promoted as Chief (Quality Controls) next year, when Kirpal Singh retired. This decision was based on the recommendations of Kirpal Singh and partly attributed to pressure from O.A., for further promotion of Kapil Kumar based on his vast experience in the Quality Control function of this industry. Abbas Ali rose to the position held earlier by Kapil Kumar.
Allotment of Company Quarters
The Company had its own township near the factory. Its quarter allotment scheme was based on the length of service, i.e., date of joining. Ratnam had asked for a suitable quarter at the time of interview and was thus allotted a tile quarter meant for the Senior Engineer’s cadre. He learnt about this, after occupying the quarter. Ratnam asked for a change of Quarter – preferably a RCC-roof quarter, – but his request was turned down, since he had put in only few months of service whereas many others senior to him, on the beds of their longer length of service in the Company (having over 10 years service), were staying in tiled-roof quarters and were awaiting a chance for a RCC-roof quarter. Kapil Kumar and Abbas Ali were residing in RCC-roof quarters. Soon after Kapil Kumar’s promotion to the post of Chief (Quality Controls), he was allotted a bungalow.
The management’s decision in this case must be viewed in the context of the downtrend in the demand for scooters and three-wheeler autos during 1993 following complaints from dealers about the deteriorating quality of components as also their short life. Notably the complaints had risen ten-fold in that year as compared to that in 1988.
Questions
(a) Was the management justified in taking a decision to recruit a qualified and experienced person from outside as Deputy Chief Quality Controller?
(b) Was it in the interest of the organization to transfer Ratnam to the new auto-wheeler plant and promote Kapil Kumar? What could have prompted the management to take this decision?
(c) How do you view the role of O.A.s in supporting only the local and internal candidates and overlooking the interests of direct recruits even when they were family members of the Association, particularly at a time, when the industry needed professionally qualified persons to fill key technical posts?
(d) How would you react to the management’s scheme for quarter allotment and why?

2. Pearl Engineering
Pearl Engineering Company was a large heavy-engineering unit. It attached great importance to the recruitment and training of its senior supervisors. Apart from selecting them from within the organization, the company recruited, every. Alternate year, about ten young engineering graduates and offered them training for a period of two years, before they were appointed as senior supervisors. Such appointments were made to about 40 per cent of the vacancies of senior supervisors that occurred in the organization. This was considered necessary by management as a planned programme of imparting vitality to the organization. Besides, many of the old-timers, who had risen from the ranks, did not possess the necessary academic background with the result that they could not keep pace with the technological changes. Management also believed that in the rapidly changing conditions of industry, a bank of technically competent supervisors played a pivotal role, besides serving as a pool from which to select future departmental managers.
Engineering Graduates were selected from amongst those who applied in response to an all-India advertisement. For the selection of one engineer, on an average, eight applicants were called for interview. A selection committee consisting of the General Manager, the Production Manager, the Personnel Manager and the Training Officer interviewed and selected the candidates. The selection interview was preceded by a written test and only those who secured 40 per cent marks qualified for interview.
The engineers thus selected had to undergo a two year intensive theoretical and practical training. A well-staffed and equipped Training Institute was directly responsible for the training of the graduate engineers, besides training trade apprentices and operatives required by the company. Lectures on theoretical subjects were given at the Training Institute and practical training was imparted in all the works departments under the guidance of qualified and experienced instructors. A few lectures by senior officers of the company were also arranged to acquaint them with the company policies on different matters. During the last quarter of their two-year training programme they were deputed to work fulltime to familiarize themselves with the conditions in departments where they were to be absorbed eventually.
On successful completion of training, the graduate engineers were offered appointments, depending on their performance and aptitude as revealed during training. On placement in the work departments, however, most of them faced some difficulty or the other.
According to management, some of the heads of departments, who were themselves not qualified engineers, did not have sufficient confidence in these younger men. They preferred the subordinates who came up from the ranks to hold positions of responsibility. A few discredited them saying that it would take years before these youngsters could pick up the job. Besides, some of the employees, whose promotional opportunities were adversely affected by the placement of graduate engineers, tried their best to run down the latter as a class, sometimes working on the group feelings of the workers. Some of the supervisors who were not graduate engineers also spoke derisively of them as “the blue-eyed boys” of the organization. Management knew that many of the graduate engineers were not utilized according to their capacity or training, nor was any attempt made to test or develop their potentialities. They also knew that many of the graduate engineers were, therefore, dissatisfied with their work life. Some of them who did not get equal promotional opportunities as their colleagues placed in other departments, were looking for better jobs elsewhere.
On the other hand, according to management, the young graduate engineers were themselves partly responsible for the hostile attitude of others in the organization. Some of them failed to appreciate that a newcomer invited hostility in the beginning and it took time before he was accepted as a member of the work-group. They did not realize that they would be fully productive only after gaining about five to seven years experience in the organization. A few thought that they belonged to a superior cadre and threw their weight around. They did not bother to understand and appreciate the problems of the rank-and-file of employees who worked under them.
In spite of these drawback, the General Manager of the company felt that these men were a set of disciplined supervisors. They had a sense of pride in their profession, and with the extensive training they had received, they would be able to take up any responsible position in the organization in course of time.
The General Manager could not allow the situation to continue especially when it was a difficult and costly process to recruit and train young engineering graduates of the requisite type and caliber. He knew that the prosperity of the company, to a large extent, depended on these young men. In addition, a large number of lucrative employment opportunities were available to these young engineers elsewhere and there was a systematic raid on them, He, therefore, called a meeting of all heads of departments to review the situation.
Questions:
(i) Identify the issues related to manpower planning as evident in the case.
(ii) Discuss the strategies to tackle the percentage of internal promotion at the organizational level.
(iii)What type of additional training programmes should be imparted for direct entrants?
(iv) Suppose you are the head of the personnel division. What would be your suggestions in the meeting – Which has been called by the General Manager?


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Quantitative Techniques

Please attempt any one question out of section A and any 10 questions out of Section B. The section A is for 20 Marks and Section B is for 80 Marks (8 Marks X 10 Questions)
Total Marks – 100
Section A

1. Distinguish between decision making under certainty and decision making under uncertainty. Mention certain methods for solving decision problems under uncertainty. Discuss how these methods can be applied to solve decision problems.

2. Distinguish between probability and non-probability sampling. Elucidate the reasons for the use of non-probability sampling in many situations in spite of its theoretical weaknesses.

3. What are models? Discuss the role of models in decision-making. How can you classify models on the basis of behavior characteristics?

4. What are matrices? How are determinants different from matrices? Discuss few applications of matrices in business.

Section B
Write short notes on any ten of the following:
(a) Concept of Maxima and Minima
(b) Types of classification of data
(c) Pascal Distribution
(d) Multi-stage sampling & Multi-phase sampling
(e) Box-Jenkins Models for Time Series
(f) Determinant of a Square Matrix
(g) Primary and Secondary Data
(h) Bernoulli Process
(i) The Student’s t Distribution
(j) Use of Auto-correlations in identifying Time Series
(K) Absolute value function
(l) Quantiles
(m) Criteria of pessimism in decision theory
(n) Cluster vs. Stratum
(o) Moving average models

(p) Step function
(q) More than type ogive
(r) Subjectivist’s criterion in decision making
(s) Double sampling
(t) Auto regressive models

Subject – Principles and Practice of Management

Communicating in a Crisis

Overview Valley High School, situated in Kodaikanal, was established in 1980 and is owned by a well respected charitable trust. It overlooks a lake and is a modern building equipped with state-of-the-art facilities. The total student enrolment is 2000, out of which more than 50% are girls and the rest boys. The students are all from affluent, educated families. The school has established a good reputation for itself, thanks to the consistently good performance of students in the public examinations. The school is headed by a lady Principal and also has a couple of Supervisors and a team of 25 teachers. The teachers have had extensive experience, are well qualified and are known for their commitment to imparting quality education to students. Due to the recent heavy monsoons, the school was faced with the problem of flooding, with water entering the rooms on the ground floor and water seepage on the terrace. Since repair work had to be done, the school had to be closed for a couple of weeks. The work was carried out by reputed contractors, but the building still looks a little run down.
The crisis the school had just reopened after this two week break. The same morning, a fire suddenly broke out on the third floor and spread to other floors, blocking the stairways. There was widespread panic, as the children started jumping off the balconies, injuring themselves in the process. The Principal and staff had a tough time trying to calm down the children and take control of the situation. Fire engines were called and several of them arrived and began their fire fighting operations. In the meanwhile, many parents also arrived and tried to enter the building to speak to the Principal. The phones were ringing continuously. There was total chaos.

Question 1 :- How communication crises arise?
Question 2 :- What Principal should do to calm down the angry parents?
Question 3 :- How school will regain its reputation? What services school should provide in order to maintain its reputation?

Case Study 2

Case Study on The power of Non-Verbal Communication

The Power of Nonverbal Communication Soon after I graduated from engineering college, I accepted a position with the Sundaram Foundry, a medium-sized firm located in a small town in Tamil Nadu. It was a good position, since I was the assistant to Mr. Vishwanath, the General Manager and president of this family owned company, although there were many technical problems, the work was extremely interesting and I soon learnt all about the foundry business. The foundry workers were mostly older men and were a closely knit team. Many of them were related and had been in the foundry for several years. Therefore, they felt that they knew the business in and out and that a technical education had no value. In fact, Mr. Vishwanath had mentioned to me even at the time of my joining, that I was the only engineer ever to be employed in the foundry. He also let me know that the foundry workers, although a good group, were very clannish, since they had been working together for several years. Therefore, it would probably take them some time to accept me. I introduced myself to the group of foundry workers, a few days after my joining. As I went around in turn, I felt them eyeing me coldly. As I went down the main aisle of the foundry, I heard them talking to each other in low voices and laughing. I found their behavior to be very childish and felt that it was best to ignore these signs of hostility. I thought that if I ignored them, they would automatically stop these antics. A few weeks after this incident, I happened to visit the enamel shop. As I entered, I noticed a worker cleaning the floor with a hose, from which water flowed at high pressure. I was aware that it was the practice to clean the shop at least once a week. I turned my back on the worker and was busy near a dipping tank, when I suddenly felt the force of a stream of water hitting me. I was almost knocked down by the pressure and slipped on the wet floor. When I turned around, the worker looked away in the other direction, as if he had not noticed this happening. However, I was pretty sure that he had intentionally turned the hose on me.

Question 1 – What message did the foundry workers and the new engineer convey to each other through their non-verbal behavior?

Question 2 – Mr. Vishwanath, the General Manager and President, was not often present at the foundry. What could this non-verbal behavior mean to the workers and the new engineer?

Question 3. How could the engineer, the foundry workers and Mr. Vishwanath be more effective, both verbally and nonverbally?

Question 4. What do you suggest that the engineer should do, after the hosing incident?

Case Study 3

BS GETS A D-PLUS ON DIVERSITY FROM MULTIETHNIC COALITOIN

On February 3, 2000, President and CEO of CBS Leslie Moonves signed a pact with Kweisi Mfume, president and CEO of the national association for advancement of colored people (NAACP), who had joined forces with the Hispanic media coalition, and the American Indians in film and television to request the CBS help to increase Indians in film and television to request that CBS help to increase ethnic presence in the television industry. The agreement stipulated the CBS would increase minority participation both on and off screen by June 30.

In April 2000, CBS announced the appointment of Josie Thomas to the newly created position of senior vice president of Diversity at CBS Television. Her job was to improve outreach and recruitment, hiring, promotion, and monitoring practices in all divisions of CBS. That fall Moonves announced that 16 of the 21 CBS shows, including news magazines, would prominently feature minorities. “We think we are a leader in this area,” Moonves said “We think we are ahead of the curves”

Despite Mooves’s Statement that as “broadcasters, we believe strongly that it is our duty to reflect the public that makes up our viewing audience,” there were many who did not feel the company was sincere in its efforts to improve hiring practices. The national Hispanic Foundation for the Arts criticized CBS for not scheduling “American Family,” A pilot drama about middle – class Hispanic family. Moonves said “American Family” simply did not fit in CBS’s schedule, since there were already too many strong dramas planned. He said he took the unusual step of allowing the show’s producer to pitch the CBS-developed networks but no one picked it up. Meanwhile, the June 30 deadline had come and gone without much outward sign of change at CBS television.

Josie Thomas is committed to CBS’s new mandate for multicultural diversity. Twelve of CBS’ prime time series will have minorities in permanent roles and other series will have minority in recurring role. Fore of the network’s shows- C.S.I., the district, the fugitive and welcome to New York have minorities in leading roles.

Since signing the agreement, CBS has established a strong working relationship with national minority supplier council in order to help minority supplier council and women’s businesses. The company has bolstered its internship program to include paid internships on the west coast, pairing up interns with their areas of interest, Such as finance or entertainment. There are 10 minority interns in the program. Moreover, CBS has now made diversity a factor in employee job performance evaluation. “Each area of the network has developed a detailed plan for diversity,” said Thomas. “Manager will be reviewed with respect to their diversity efforts and that will be a factor in compensation decisions.” Ms. Thomas noted that Ghen Maynard, an Asian American Pacific Islander, had just been promoted form director to vice president of alternative programming for the entertainment division.

“Will all believe there is a long way to go,” Thomas said. “What I have found is there are some things that already exist that are positive, such as news magazines having minority anchors. We think ‘city of angels’ renewal was an important step. The ratings were mediocre to low, and we did feel the program was a risk. It says a lot about our commitment”

In June 2001, the coalition gave the Big 4 Broadcast Networks (all of whom had signed an agreement) a report card for their efforts to diversity shows on – air and behind the scenes. CBS got a D-plus.

Mr. Nogales, of the National Hispanic Media Coalition, said he was disappointed “We expect progress; we signed for progress” “The numbers in comparison to last year actually look better” Nogales says. “There have been gains for people of color. There was movement. But it has to be movement across the board, not just for one group.” He is referring to the fact that most of the gains have been made by black actors, writes and producers. Black actors appear as regular in at least 19 of the six major networks’30 new prime-time series. Hispanics shows up in only eight, Asians in five and Native Americans in one.

The pressure being put on the networks- including threats of “boycott” and legal action – is having results. At CBS the number of minority writers and producer has more than tripled, from four to fourteen, including six executive or co executive producer however, obstacles to a fully integrated future remain serious-particularly because of misconceptions about the nature of the television audience and about the way pop culture works. Network executive worry that “ghetto shows” might promote stereotypes. They wonder if shows like The cosby show are “black” enough. Then again, they think that casting too many minorities may drive white viewers away. Some network executives are afraid to cast minority actors in “negative” roles because they may be criticized for it minority writers, who have been getting more work lately, wonder if they are not just “tokens”; and despite some progress it is still almost impossible for Hispanic actor to get non- Hispanic roles.

Both the NAACP and the coalition have been battling discrimination for years. CBS is just finding out that a profound change toward pluralism can take place only with true insight on the part of management. CBS spokesperson Chris Ender says “We have made tremendous strides to increase diversity on screen, behind the camera and in the executive suites. However we certainly recognize that more can be done and more will be done.”

As far as Nogales is concerned. “It’s still a white guy’s world,” and the june 2001 statics for network television prove he is right.

Questions
Question 1:- What advantages would accrue to CBS if it becomes a more diverse workplace?

Question 2:- Where would you have placed CBS on the organizational diversity continuum and where would you place CBS now? Why?

Question 3:- Which approach (es) to pluralism best sums up the diversity policy that is being developed at CBS? Explain

Question 4:- How do the attitudes of management at CBS as depicted in your case study affect the company’s progress toward forming a more diverse workforce? Explain.

Case Study 4

McDonald’s Listening Campaign

At the end of 2002, the world’s largest quick service retailer made its first ever quarterly loss and faced a number of challenges. It responded by launching its Plan to Win program, part of a global strategy to modernize the business, followed by the Listening Campaign in the UK. Here, Ali Carruthers explains how the two initiatives were linked in the UK, and the impact The Listening Campaign has had on communication, culture, image and media perception.

In 2003, things were looking bleak for McDonald’s. Its share price was the lowest it had been in a decade and it faced a series of seemingly insurmountable problems: It was demonized by the UK media in the fierce debate raging over obesity; it faced huge competition on the high street; and it was suffering under a wave of Anti-Americanism in the wake of the wars in Afghanistan and Iraq.
Added to this was the fact that the restaurants themselves were beginning to look dated and UK health lobbyists were determined to push home the message that McDonald’s food was bad for people.
Speaking earlier this year to the BBC, the UK CEO Peter Beresford said: “We had taken our eye off the customer, we were not customer focused, we were not customer driven. And so we reorganized and regrouped. We decided we had to stop and take stock of where we were. We had to be better, but we had to change the way we were running this business.”
The Plan to Win
The senior management put their heads together and devised the Plan to Win program, which went public in the last quarter of 2003. A key part of its focus was a shift to more choice and variety foods, with salads appearing permanently on the menu for the first time in the organization’s history. Key restaurants began to receive make over and a supporting advertising campaign with international stars was planned, all of which were intended to turn the food chain’s image around.
But just as things were beginning to look up for the organization, trouble raised its head again in the shape of the documentary film “Supersize me,” which in turn re-ignited the obesity debate in the media. It was then discovered that one of the salads McDonald’s was marketing contained more calories than one of its hamburgers. The UK press reacted with predictable glee and once again McDonald’s was in the spotlight for all the wrong reasons.
The Listening Campaign. The company responded promptly. Working with agency Blue Rubicon, the in-house communication and media relations team devised the Listening Campaign. It made the most of the arrival of new UK CEO Peter Beresford in July 2004, building on his personal credibility and that of McDonald’s with the Listening Tour. Beresford spoke directly to customers in focus groups, met with franchise holders and with employees in 12 UK cities over the space of six weeks, starting at the end of October.
The key ingredient was listening to customers and staff and then showing the results of this. “Part of the reason [for doing it] was that we had to introduce Peter very quickly to employees, customers and stakeholders,” says head of internal communications AIi Carruthers. “It was also signaling that he’d continue to work to change our culture and lead the drive for a real transparency of approach. We’ve been building on that work ever since.”
Focus groups for stakeholders

The communication team made the most of Beresford’s time by booking ahead so that local franchisees could meet him when he travelled to regional centers for customer focus groups. Next, Listening Groups were created for the company’s regional offices with corporate rather than restaurant-based employees taking part. Initial meetings were centered around three classic focus group questions:
* What works?
* What would you change?
* How would you change it?
In each session, six to 10 employees took part and the sessions lasted around two hours. After the first session, an action plan was drawn up and fed back to the employees in a second round of focus groups. Then the agreed proposed changes were put in place by the organization.
Proposed changes put in place
A range of short, medium and long term actions have been instigated as a result of the focus groups. These include a firm commitment to hold monthly town-hall sessions to regularly address key issues within the organization. “We’ve agreed to use these sessions to feature various departmental heads,” says Carruthers.
“That’s so people can put names to faces, understand the organizational structure better and get an understanding of what goes on outside their own departments.” The company has also committed itself to involving a new group of employees every six months, and to being more transparent about its promotion process and how people are assessed for promotion. It now holds regular Plan to Win meetings, which are related to the global strategy. “We’re using the town-hall sessions to communicate the global strategy to thebroader office group rather than just senior management so there’s a wider understanding of what we’re doing,” says Carruthers.
The company has also committed to a peer-nominated quarterly recognition scheme for the regional and head offices. It’s planned that the town halls will also be used in the recognition scheme. “People need to say well done to each other and be acknowledged by the senior team,” says Carruthers.
A change in company culture
According to Carruthers, the strategy has been recognized globally – a drive for greater face-to-face communication, more transparency, a growth in leadership behavior and accountability. “Basically we’ve been trying to make people feel they’re able to ask questions,” she says. “There’s nothing wrong with challenging the status quo as long as it’s done in a constructive and respectful way. If we can use some of those ideas we can probably make it a more enjoyable place for everyone to work.”
There’s no doubt that the Listening Campaign has had an impact on the senior team and general employees alike. Carruthers has had feedback from both groups and believes the exercise has been an eye-opener for the senior team: “They frequently mention experiences they’ve had in those groups. There’s nothing quite like hearing issues for yourself; the good ones and the more awkward ones.”
The feedback from focus-group participants has been very good; employees say they feel listened to and think their feedback is being taken on board. “They feel confident to ask questions or send e-mails directly to people they thought wouldn’t have listened to their suggestions previously. It’s changing the culture. Anything that builds trust and transparency is good. Now it’s about delivering on the changes that we said we’d make.”
A hotline to the CEO
A hotline to the CEO has made the company’s drive for transparency and commitment to employees even more credible. The “Ask Peter” e-mail address was established when Beresford took up his post and has seen a fair amount of traffic. “It’s word of mouth – people see that it’s well responded to,” says Carruthers. She sees it as important to be straight with employees about how e-mails are dealt with and who sees them. “We’re very up-front about the fact that I see all e-mails as well as Peter, but if we forward them to other departments, they’ll be anonymous.”
A combination of high and low technology adds to the feeling of personal contact: Beresford will often answer e-mails with a hand-written reply. In one famous instance he replied to nearly 100 in one week. “It doesn’t always happen that way, but it’s these things that make a difference. People see it’s coming from him and it’s quite a personal touch.”
Committing to communication, A new round of Listening focus groups with fresh employees is due to kick off in October. The whole cycle of questions, action-planning and feedback will be replayed. “We’re working with a new group of employees because we want to keep changing and avoid having a formalized council of volunteers,” says Carruthers. “They’ll look at what they think has happened so far, whether anything could have been done differently and then we’ll hold a review of the proposals.”
It’s a genuine commitment to keep the focus groups running on an ongoing basis. Carruthers is also expecting that the flexibility and fresh new faces will ensure that new topics arise: “They’re things that inevitably come up along the way and get added to the agenda for change. We just need to follow them through and then tell people the results.”
The results
Since Beresford’s Listening Tour there’s been a turnaround in the media coverage of McDonald’s, which has been much more positive. The Listening Campaign is changing the internal culture of the company and its focus group cycles are becoming permanent two-way communication channels.
Results back in August this year from the last employee survey showed that internal communication is now ranked by employees as number four out of 25 departments. “The communications strategy has helped people become aware of who we are and what we do,” says Carruthers. The Listening Campaign has also helped McDonald’s raise its profile externally, as it was nominated in this year’s UK Chartered Institute of Public Relations Excellence Awards and short-listed for Best Use of Media Relations in the PR Week Awards.

Questions

Question1. Based on this case, develop guidelines for improving communication with each of different stakeholders, through better listening.

Question 2:- What are the essentials for the effective communication?

Question 3:- Write about McDonald marketing plan which they have implemented for the success?

Question 4:- Do the SWOT analysis of following:-

• McDonald
• Food Industry


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INTERNATIONAL BUSINESS
N. B.: 1) Attempt any four cases 2) All cases carries equal marks.
No: 1
BPO – BANE OR BOON ?
Several MNCs are increasingly unbundling or vertical disintegrating their activities. Put in simple language, they have begun outsourcing (also called business process outsourcing) activities formerly performed in-house and concentrating their energies on a few functions. Outsourcing involves withdrawing from certain stages/activities and relaying on outside vendors to supply the needed products, support services, or functional activities.
Take Infosys, its 250 engineers develop IT applications for BO/FA (Bank of America). Elsewhere, Infosys staffers process home loans for green point mortgage of Novato, California. At Wipro, five radiologists interpret 30 CT scans a day for Massachusetts General Hospital.
2500 college educated men and women are buzzing at midnight at Wipro Spectramind at Delhi. They are busy processing claims for a major US insurance company and providing help-desk support for a big US Internet service provider-all at a cost upto 60 percent lower than in the US. Seven Wipro Spectramind staff with Ph.Ds in molecular biology sift through scientific research for western pharmaceutical companies.
Another activist in BOP is Evalueserve, headquarterd in Bermuda and having main operations near Delhi. It also has a US subsidiary based in New York and a marketing office in Australia to cover the European market. As Alok Aggarwal (co-founder and chairman) says, his company supplies a range of value-added services to clients that include a dozen Fortune 500 companies and seven global consulting firms, besides market research and venture capital firms. Much of its work involves dealing with CEOs, CFOs, CTOs, CIOs, and other so called C-level executives.
Evaluserve provides services like patent writing, evaluation and assessment of their commercialization potential for law firms and entrepreneurs. Its market research services are aimed at top-rung financial service firms, to which it provides analysis of investment opportunities and business plans. Another major offering is multilingual services. Evalueserve trains and qualifies employees to communicate in Chinese, Spanish, German, Japanese and Italian, among other languages. That skill set has opened market opportunities in Europe and elsewhere, especially with global corporations.
ICICI infotech Services in Edison, New Jersey, is another BOP services provider that is offering marketing software products and diversifying into markets outside the US. The firm has been promoted by $2-billion ICICI Bank, a large financial institution in Mumbai that is listed on the New York Stock Exchange.
In its first year after setting up shop in March 1999, ICICI infotech spent $33 million acquiring two information technology services firms in New Jersy-Object Experts and ivory Consulting – and command Systems in Connecticut. These acquisitions were to help ICICI Infotech hit the ground in the US with a ready book of contracts. But it soon found US companies increasingly outsourcing their requirements to offshore locations, instead of hiring foreign employees to work onsite at their offices. The company found other native modes for growth. It has started marketing its products in banking, insurance and enterprise resource planning among others. It has earmarket $10 million for its next US market offensive, which would go towards R & D and back-end infrastructure support, and creating new versions of its products to comply with US market requirements. It also has a joint venture – Semantik Solutions GmbH in Berlin, Germany with the Fraunhofer Institute for Software and Systems Engineering, which is based in Berlin and Dortmund, Germany – Fraunhofer is a leading institute in applied research and development with 200 experts in software engineering and evolutionary information.
A relatively late entrant to the US market , ICICI Infotech started out with plain vanilla IT services, including operating call centeres. As the market for traditional IT services started wakening around mid-2000, ICICI Infotech repositioned itself as a “Solutions” firm offering both products and services. Today , it offers bundied packages of products and services in corporate and retail banking and include data center and disaster recovery management and value chain management services.
ICICI Infotech’s expansion into new overseas markets has paid off. Its $50 million revenue for its latest financial year ending March 2003 has the US operations generating some $15 million, while the Middle East and Far East markets brought in another $9 million. It new boasts more than 700 customers in 30 countries, including Dow Jones, Glazo-Smithkline, Panasonic and American Insurance Group.
The outsourcing industry is indeed growing form strength. Though technical support and financial services have dominated India’s outsourcing industry, newer fields are emerging which are expected to boost the industry many times over.
Outsourcing of human resource services or HR BPO is emerging as big opportunity for Indian BPOs with global market in this segment estimated at $40-60 billion per annum. HR BPO comes to about 33 percent of the outsourcing revenue and India has immense potential as more than 80 percent of Fortune 1000 companies discuss offshore BOP as a way to cut costs and increase productivity.
Another potential area is ITES/BOP industry. According to A NASSCOM survey, the global ITES/BOP industry was valued at around $773 billion during 2002 and it is expected to grow at a compounded annual growth rate of nine percent during the period 2002 – 06, NASSCOM lists the major indicators of the high growth potential of ITES/BOP industry in India as the following.
During 2003 – 04, The ITES/BPO segment is estimated to have achieved a 54 percent growth in revenues as compared to the previous year. ITES exports accounted for $3.6 billion in revenues, up form $2.5 billion in 2002 – 03. The ITES-BPO segment also proved to be a major opportunity for job seekers, creating employment for around 74,400 additional personnel in India during 2003 – 04. The number of Indians working for this sector jumped to 245,500 by March 2004. By the year 2008, the segment is expected to employ over 1.1 million Indians, according to studies conducted by NASSCOM and McKinsey & Co. Market research shows that in terms of job creation, the ITES-BOP industry is growing at over 50 per cent.
Legal outsourcing sector is another area India can look for. Legal transcription involves conversion of interviews with clients or witnesses by lawyers into documents which can be presented in courts. It is no different from any other transcription work carried out in India. The bottom-line here is again cheap service. There is a strong reason why India can prove to be a big legal outsourcing Industry.
India, like the US, is a common-law jurisdiction rooted in the British legal tradition. Indian legal training is conducted solely in English. Appellate and Supreme Court proceedings in India take place exclusively in English. Due to the time zone differences, night time in the US is daytime in India which means that clients get 24 hour attention, and some projects can be completed overnight. Small and mid – sized business offices can solve staff problems as the outsourced lawyers from India take on the time – consuming labour intensive legal research and writing projects. Large law firms also can solve problems of overstaffing by using the on – call lawyers.
Research firms such as Forrester Research, predict that by 2015 , more than 489,000 US lawyer jobs, nearly eight percent of the field, will shift abroad..
Many more new avenues are opening up for BOP services providers. Patent writing and evaluation services are markets set to boom. Some 200.000 patent applications are written in the western world annually, making for a market size of between $5 billion and $7 billion. Outsourcing patent writing service could significantly lower the cost of each patent application, now anywhere between $12,000 and $15,000 apiece-which would help expand the market.
Offshoring of equity research is another major growth area. Translation services are also becoming a big Indian plus. India produces some 3,000 graduates in German each year, which is more than that in Switzerland.
Though going is good, the Indian BPO services providers cannot afford to be complacent. Phillppines, Maxico and Hungary are emerging as potential offshore locations. Likely competitor is Russia, although the absence of English speaking people there holds the country back. But the dark horse could be South Affrica and even China
BOP is based on sound economic reasons. Outsourcing helps gain cost advantage. If an activity can be performed better or more cheaply by an outside supplier, why not outsource it ? Many PC makers, for example, have shifted from in – house assembly to utilizing contract assemblers to make their PCs. CISCO outsources all productions and assembly of its routers and witching equipment to contract manufactures that operate 37 factories, all linked via the internet.
Secondly, the activity (outsourced) is not crucial to the firm’s ability to gain sustainable competitive advantage and won’t hollow out its core competence, capabilities, or technical know how. Outsourcing of maintenance services, date processing, accounting, and other administrative support activities to companies specializing in these services has become common place. Thirdly, outsourcing reduces the company’s risk exposure to changing technology and / or changing buyer preferences.
Fourthly, BPO streamlines company operations in ways that improve organizational flexibility, cut cycle time, speedup decision making and reduce coordination costs. Finally, outsourcing allows a company to concentrate on its core business and do what it does best. Are Indian companies listening ? If they listen, BPO is a boon to them and not a bane.

Questions:
1. Which of the theories of international trade can help Indian services providers gain competitive edge over their competitors?
2. Pick up some Indian services providers. With the help of Michael Porter’s diamond, analyze their strengths and weaknesses as active players in BPO.
3. Compare this case with the case given at the beginning of this chapter. What similarities and dissimilarities do you notice? Your analysis should be based on the theories explained.

No: 2
PERU
Peru is located on the west coast of South America. It is the third largest nation of the continent (after Brazil and Argentina) , and covers almost 500.000 square miles (about 14 per cent of the size of the United States). The land has enormous contrasts, with a desert (drier than the Sahara), the towering snow – capped Andes mountains, sparkling grass – covered plateaus, and thick rain forests. Peru has approximately 27 million people, of which about 20 per cent live in Lima, the capital. More Indians (one half of the population) live in Peru than in any other country in the western hemisphere. The ancestors of Peru’s Indians were the famous incas, who built a great empire. The rest of the population is mixed and a small percentage is white. The economy depends heavily on agriculture, fishing , mining, and services, GDP is approximately $15 billion and per capita income in recent years has been around $4,3000. In recent years the economy has gained some relative strength and multinationals are now beginning to consider investing in the country.
One of these potential investors is a large New York based bank that is considering a $25 million loan to the owner of a Peruvian fishing fleet. The owner wants to refurbish the fleet and add one more ship.
During the 1970s, the Peruvian government nationalized a number of industries and factories and began running them for the profit of the state in most cases, these state – run ventures became disasters. In the late 1970s the fishing fleet owner was given back his ships and allowed to operate his business as before. Since then, he has managed to remain profitable, but the biggest problem is that his ships are getting old and he needs an influx of capital of make repairs and add new technology. As he explained it to the new York banker. “Fishing is no longer just an art. There is a great deal of technology involved. And to keep costs low and be competitive on the world market, you have to have the latest equipment for both locating as well as catching and then loading and unloading the fish”
Having reviewed the fleet owner’s operation, the large multinational bank believes that the loan is justified. The financial institution is concerned, however, that the Peruvian government might step in during the next couple of years and again take over the business. If this were to happen, it might take an additional decade for the loan to be repaid. If the government were to allow the fleet owner to operate the fleet the way he has over the last decade, the fleet the way he has over the last decade, the loan could be repaid within seven years.
Right now, the bank is deciding on the specific terms of the agreement. Once theses have been worked out, either a loan officer will fly down to Lima and close the deal or the owner will be asked to come to New York for the signing. Whichever approach is used, the bank realizes that final adjustments in the agreement will have to be made on the spot. Therefore, if the bank sends a representative to Lima, the individual will have to have the authority to commit the bank to specific terms. These final matters should be worked out within the next ten days.
Questions:
1. What are some current issues facing Peru? What is the climate for doing business in Peru today?
2. What type of political risks does this fishing company need to evaluate? Identify and describe them.
3. What types of integrative and protective and defensive techniques can the bank use?
4. Would the bank be better off negotiating the loan in New York or in Lima ? Why?

No: 3
RED BECOMING THICKER
The Backdrop
There seems to be no end to the troubles of the coloured – water giant Coca Cola. The cola giant had entered India decades back but left the country in the late 1970s. It staged a comeback in the early 1990s through the acquisitions route. The professional management style of Coca Cola did not jell with the local bottlers. Four CEOs were changed in a span of seven years. Coke could not capitalize on the popularity of Thums Up. Its arch rival Pepsi is well ahead and has been able to penetrate deep into the Indian market. Red in the balance sheet of Coke is becoming thicker and industry observers are of the opinion that it would take at least two decades more before Coke could think of making profits in India.

The Story
It was in the early 1990s that India started liberalizing her economy. Seizing the opportunity, Coca Cola wanted to stage a comeback in India. It chose Ramesh Chauhan of Parle for entry into the market. Coke paid $100 million to Chauhan and acquired his well established brands Thums Up, Goldspot and Limca. Coke also bagged 56 bottlers of Chauhan as a part of the deal. Chauhan was made consultant and was also given the first right of refusal to any large size bottling plants and bottling contracts, the former in the Pune – Bangalore belt and the latter in the Delhi and Mumbai areas.
Jayadeva Raja, the flamboyant management expert was made the first CEO of Coke India. It did not take much time for him to realize that Coke had inherited several weaknesses from Chauhan along with the brands and bottlers. Many bottling plants were small in capacity (200 bottlers per minute as against the world standard of 1600) and used obsolete technology. The bottlers were in no mood to increase their capacities, nor were they willing to upgrade the trucks used for transporting the bottle. Bottlers were more used to the paternalistic approach of Chauhan and the new professional management styles of Coke did not go down well with them. Chauhan also felt that he was alienated and was even suspected to be supplying concentrate unofficially to the bottlers.
Raja was replaced by the hard – nosed Richard Niholas in 1995. The first thing Nicholas did was to give an ultimatum to the bottlers to expand their plants or sell out. Coke also demanded equity stakes in many of the bottling plants. The bottlers had their own difficulties as well. They were running on low profit margins. Nor was Coke willing to finance the bottlers on soft terms. The ultimatum backfired. Many bottlers switched their loyalty and went to Pepsi. Chauhan allegedly supported the bottlers, of course, from the sidelines.
Coke thought it had staged a coup over Pepsi when it (Coke) clamed the status of official drink for the 1996 Cricket World Cup tournament. Pepsi took on Coke mightily with the famous jingle “Nothing official about it”. Coke could have capitalized on the sporty image of Thums Up to counter the campaign, but instead simply caved in.
Donald Short replaced Nicholas as CEO in 1997. Armed with heavy financial powers, Short bought out 38 bottlers for about $700 million. This worked out to about Rs 7 per case, but the cost – effective figure was Rs 3 per case. Short also invested heavily in manpower. By 1997, Coke’s workforce increased to 300. Three years later, the parent company admitted that investment in India was a big mistake.
It is not in the culture of Coke to admit failure. It has decided to fight back. Coke could not only sustain the loss, it could even spend more money on Indian operations. It hiked the ad budget and appointed Chaitra Leo Burnett as its ad agency. During 1998 – 99, Coke’s ad spend was almost three times that of Pepsi.
Coke is taking a look at its human resources and is taking initiatives to re – orient the culture and inject an element of decentralization along with empowerment. Each bottling plant is expected to meet predetermined profit, market share, and sales volumes. For newly hired management trainees, a clearly defined career path has been drawn to enable them to become profit centre heads shortly after completion of their probation. Such a decentralized approach is something of a novelty in the Coke culture worldwide.
But Alezander “Von Behr, who replaced Short as Chef of Indian operations, reiterated Coke’s commitment to decentralization and local responsiveness. Coke has divided India into six regions, each with a business head. Change in the organization structure has disappointed many employees, some of whom even quit the company.
Coke started cutting down its costs. Executives have been asked to shift from farm houses to smaller houses and rentals of Gurgaon headquarters have been renegotiated. Discount rates have been standardized and information systems are being upgraded to enable the Indian headquarters to access online financial status of its outposts down to the depot level.
Coke has great hopes in Indian as the country has a huge population and the current per capita consumption of beverages is just four bottles a year.
Right now, the parent company (head – quartered in the US) has bottle full of problems. The recently appointed CEO-E Neville Isdell needs to struggle to do the things that once made the Cola Company great. The problems include –
Meddling Board
Coke’s star- studded group of directors, many of whom date back to the Goizueta era, has built a reputation for meddling.
Moribund Marketing
Once world class critics say that today the soda giant has become too conservative, with ads that don’t resonate with the teenagers and young adults that made up its most important audience.
Lack of Innovation
In the US market, Coke hasn’t created a best – selling new soda since Diet Coke in 1982. In recent years Coke has been outbid by rival Pepsi Co for faster growing noncarb beverages like SoBe Gatorade.
Friction with Bottlers
Over the past decade, Coke has often made its profit at the expenses of bottlers, pushing aggressive price hikes on the concentrate it sells them. But key bottlers are now fighting back with sharp increases in the price of coke at retail.

International Worries
Coke desperately needs more international growth to offset its flagging US business, but while some markets like Japan remain lucrative, in the large German market Coke has problems so far as bottling contracts go.
When its own house is not in order in the large country, will the company be able to focus enough on the Indian market?

Questions:

1. Why is that Coke has not been able to make profit in its Indian operations?
2. Do you think that Coke should continue to stay in India? If yes, why?
3. What cultural adaptations would you suggest to the US expatriate managers regarding their management style?
4. Using the Hofstede and the value orientations cultural models, how can you explain some of the cultural differences noted in this case?

NO. 4
THE ABB PBS JOINT VENTURE IN OPERATION
ABB Prvni Brnenska Stojirna Brno, Ltd. (ABB-PBS), Czechoslovakia was a joint venture in which ABB has a 67 per cent stake and PBS a.s. has a 33 per cent stake. This PBS share was determined nominally by the value of the land, plant and equipment, employees and goodwill, ABB contributed cash and specified technologies and assumed some of the debt of PBS. The new company started operations on April 15, 1993.
Business for the joint venture in its first two full years was good in most aspects. Orders received in 1994, the first full year of the joint venture’s operation, were higher than ever in the history of PBS. Orders received in 1995 were 2½ times those in 1994. The company was profitable in 1995 and ahead of 1994s results with a rate of return on assets of 2.3 per cent and a rate of return on sales of 4.5 per cent.
The 1995 results showed substantial progress towards meeting the joint venture’s strategic goals adopted in 1994 as part of a five year plan. One of the goals was that exports should account for half of the total orders by 1999. (Exports had accounted for more than a quarter of the PBS business before 1989, but most of this business disappeared when the Soviet Union Collapsed). In 1995 exports increased as a share of total orders to 28 per cent, up from 16 per cent the year before.
The external service business, organized and functioning as a separate business for the first time in 1995, did not meet expectations. It accounted for five per cent of all orders and revenues in 1995, below the 10 per cent goal set for it. The retrofitting business, which was expected to be a major part of the service business, was disappointing for ABB-PBS, partly because many other small companies began to provide this service in 1994, including some started by former PBS employees who took their knowledge of PBS-built power plants with them. However, ABB-PBS managers hoped that as the company introduced new technologies, these former employees would gradually lose their ability to perform these services, and the retrofit and repair service business, would return to ABB-PBS.
ABB-PBS dominated the Czech boiler business with 70 per cent of the Czech market in 1995, but managers expected this share to go down in the future as new domestic and foreign competitors emerged. Furthermore, the west European boiler market was actually declining because environmental laws caused a surge of retrofitting to occur in the mid -1980 s, leaving less business in the 1990 s. Accordingly ABB-PBS boiler orders were flat in 1995.
Top managers at ABB-PBS regarded business results to date as respectable, but they were not satisfied with the company’s performance. Cash flow was not as good as expected. Cost reduction had to go further. The more we succeed, the more we see our shortcomings” said one official.
Restructuring
The first round of restructuring was largely completed in 1995, the last year of the three-year restructuring plan. Plan logistics, information systems, and other physical capital improvements were in place. The restricting included :
• Renovating and reconstructing workshops and engineering facilities.
• Achieving ISO 9001 for all four ABB-PBS divisions. (awarded in 1995)
• Transfer of technology from ABB (this was an ongoing project)
• Intallation of an information system.
• Management training, especially in total quality assurance and English language.
• Implementing a project management approach.
A notable achievement of importance of top management in 1995 was a 50 per cent increase in labour productivity, measured as value added per payroll crown. However, in the future ABB-PBS expected its wage rates to go up faster than west European wage rates (Czech wages were increasing about 15 per cent per year) so it would be difficult to maintain the ABB-PBS unit cost advantage over west European unit cost.
The Technology Role for ABB-PBS
The joint venture was expected from the beginning to play an important role in technology development for part of ABB’s power generation business worldwide. PBS a.s. had engineering capability in coal – fired steam boilers, and that capability was expected to be especially useful to ABB as more countries became concerned about air quality. (When asked if PBS really did have leading technology here, a boiler engineering manager remarked, “Of course we do. We burn so much dirty coal in this country; we have to have better technology”)
However, the envisioned technology leadership role for ABB-PBS had not been realized by mid – 1996. Richard Kuba, the ABB-PBS managing director, realized the slowness with which the technology role was being fulfilled, and he offered his interpretation of events.
“ABB did not promise to make the joint venture its steam technology leader. The main point we wanted to achieve in the joint venture agreement was for ABB-PBS to be recognized as a full-fledged company, not just a factory. We were slowed down on our technology plans because we had a problem keeping our good, young engineers. The annual employee turnover rate for companies in the Czech Republic is 15 or 20 per cent, and the unemployment rate is zero. Our engineers have many other good entrepreneurial opportunities. Now we’ve begun to stabilize our engineering workforce. The restructing helped. We have better equipment and a cleaner and safer work environment. We also had another problem which is a good problem to have. The domestic power plant business turned out to be better than we expected, so just meeting the needs of our regular customers forced some postponement of new technology initiatives.”
ABB-PBS had benefited technologically from its relationship with ABB. One example was the development of a new steam turbine line. This project was a cooperative effort among ABB-PBS and two other ABB companies, one in Sweden and one in Germany. Nevertheless, technology transfer was not the most important early benefit of ABB relationship. Rather, one of the most important gains was the opportunity to benchmark the joint venture’s performance against other established western ABB companies on variables such as productivity, inventory and receivables.

Questions:
1. Where does the joint venture meet the needs of both the partners? Where does it fall short?
2. Why had ABB-PBS failed to realize its technology leadership?
3. What lessons one can draw from this incident for better management of technology transfers?

NO. 5.
CHINESE EVOLVING ACCOUNTING SYSTEM
Attracted by its rapid transformation from a socialist planned economy into a
market economy, economic annual growth rate of around 12 per cent, and a population in excess of 1.2 billion, Western firms over the past 10 years have favored China as a site for foreign direct investment. Most see China as an emerging economic superpower, with an economy that will be as large as that of Japan by 2000 and that of the US before 2010, if current growth projections hold true.
The Chinese government sees foreign direct investment as a primary engine of China’s economic growth. To encourage such investment, the government has offered generous tax incentives to foreign firms that invest in China, either on their own or in a joint venture with a local enterprise. These tax incentives include a two – year exemption from corporate income tax following an investment, plus a further three years during which taxes are paid at only 50 per cent of the standard tax rate. Such incentives when coupled with the promise of China’s vast internal market have made the country a prime site for investment by Western firms. However, once established in China, many Western firms find themselves struggling to comply with the complex and often obtuse nature of China’s rapidly evolving accounting system.
Accounting in China has traditionally been rooted in information gathering and compliance reporting designed to measure the government’s production and tax goals. The Chinese system was based on the old Soviet system, which had little to do with profit or accounting systems created to report financial positions or the results of foreign operations.
Although the system is changing rapidly, many problems associated with the old system still remain.
One problem for investors is a severe shortage of accountants, financial managers, and auditors in China, especially those experienced with market economy transactions and international accounting practices. As of 1995, there were only 25,000 accountants in china, far short of the hundreds of thousands that will be needed if China continues on its path towards becoming a market economy. Chinese enterprises, including equity and cooperative joint ventures with foreign firms, must be audited by Chinese accounting firms, which are regulated by the state. Traditionally, many experienced auditors have audited only state-owned enterprises, working through the local province or city authorities and the state audit bureau to report to the government entity overseeing the audited firm. In response to the shortage of accountants schooled in the principles of private sector accounting, several large international auditing firms have established joint ventures with emerging Chinese accounting and auditing firms to bridge the growing need for international accounting, tax and securities expertise.
A further problem concerns the somewhat halting evolution of China’s emerging accounting standards. Current thinking is that China won’t simply adopt the international accounting standards specified by the IASC, nor will it use the generally accepted accounting principles of any particular country as its mode. Rather, accounting standards in China are expected to evolve in a rather piecemeal fashion, with the Chinese adopting a few standards as they are studied and deemed appropriate for Chinese circumstances.
In the meantime, current Chinese accounting principles present difficult problems for Western firms. For example, the former Chinese accounting system didn’t need to accrue unrealized losses. In an economy where shortages were the norm, if a state-owned company didn’t sell its inventory right away, it could store it and use it for some other purpose later. Similarly, accounting principles assumed the state always paid its debts – eventually. Thus, Chinese enterprises don’t generally provide for lower-of-cost or market inventory adjustments or the creation of allowance for bad debts, both of which are standard practices in the West.
Questions:
1. What factors have shaped the accounting system currently in use in China?
2. What problem does the accounting system, currently in sue in China, present to foreign investors in joint ventures with Chinese companies?
3. If the evolving Chinese system does not adhere to IASC standards, but instead to standards that the Chinese governments deem appropriate to China’s “Special situation”, how might this affect foreign firms with operations in China ?

NO. 6
UNFAIR PROTECTION OR VALID DEFENSE ?
“Mexico Widens Anti – dumping Measure …………. Steel at the Core of US-Japan Trade Tensions …. Competitors in Other Countries Are Destroying an American Success Story … It Must Be Stopped”, scream headlines around the world.
International trade theories argue that nations should open their doors to trade. Conventional free trade wisdom says that by trading with others, a country can offer its citizens a greater volume and selection of goods at cheaper prices than it could in the absence of it. Nevertheless, truly free trade still does not exist because national governments intervene. Despite the efforts of the World Trade Organization (WTO) and smaller groups of nations, governments seem to be crying foul in the trade game now more than ever before.
We see efforts at protectionism in the rising trend in governments charging foreign producers for “dumping” their goods on world markets. Worldwide, the number of antidumping cases that were initiated stood at about 150 in 1995, 225 in 1996, 230 in 1997 , and 300 in 1998.
There is no shortage of similar examples. The Untied States charges Brazil, Japan, and Russia with dumping their products in the US market as a way out of tough economic times. The US steel industry wants the government to slap a 200 per cent tariff on certain types of steel. But car markers in the United States are not complaining, and General Motors even spoke out against the antidumping charge – as it is enjoying the benefits of law – cost steel for use in its auto product ion. Canadian steel makers followed the lead of the United States and are pushing for antidumping actions against four nations.
Emerging markets, too, are jumping into the fray. Mexico recently expanded coverage of its Automatic Import Advice System. The system requires importers (from a select list of countries) to notify Mexican officials of the amount and price of a shipment ten days prior to its expected arrival in Mexico. The ten-day notice gives domestic producers advance warning of incoming low – priced products so they can complain of dumping before the products clear customs and enter the marketplace. India is also getting onboard by setting up a new government agency to handle antidumping cases. Even Argentina, China, Indonesia, South Africa, South Korea, and Thailand are using this recently – popularized tool of protectionism.
Why is dumping on the rise in the first place? The WTO has made major inroads on the use of tariffs, slashing tem across almost every product category in recent years. But the WTO does not have the authority to punish companies, but only governments. Thus, the WTO cannot pass judgments against individual companies that are dumping products in other markets. It can only pass rulings against the government of the country that imposes an antidumping duty. But the WTO allows countries to retaliate against nations whose producers are suspected of dumping when it can be shown that : (1) the alleged offenders are significantly hurting domestic producers, and (2) the export price is lower than the cost of production or lower than the home – market price.
Supporters of antidumping tariffs claim that they prevent dumpers from undercutting the prices charged by producers in a target market and driving them out of business. Another claim in support of antidumping is that it is an excellent way of retaining some protection against potential dangers of totally free trade. Detractors of antidumping tariffs charge that once such tariffs are imposed they are rarely removed. They also claim that it costs companies and governments a great deal of time and money to file and argue their cases. It is also argued that the fear of being charged with dumping causes international competitors to keep their prices higher in a target market than would other wise be the case. This would allow domestic companies to charge higher prices and not lose market share – forcing consumers to pay more for their goods.

Questions
1. “You can’t tell consumers that the low price they are paying for a particular fax machine or automobile is somehow unfair. They’re not concerned with the profits of companies. To them, it’s just a great bargain and they want it to continue.” Do you agree with this statement? Do you think that people from different cultures would respond differently to this statement? Explain your answers.
2. As we’ve seen, the WTO cannot currently get involved in punishing individual companies for dumping – its actions can only be directed toward governments of countries. Do you think this is a wise policy ? Why or why not? Why do you think the WTO was not given the authority to charge individual companies with dumping? Explain.
3. Identify a recent antidumping case that was brought before the WTO. Locate as many articles in the press as you can that discuss the case. Identify the nations, products (s), and potential punitive measures involved. Supposing you were part of the WTO’s Dispute Settlement Body, would you vote in favor of the measures taken by the retailing nation? Why or why not?


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Inventory Management

Total Marks – 100
1. The section A consists of 20 marks
2. The section B consists of 60 Marks
3. The section C consists of 20 marks

Section A Marks 2 each

1.
(a) What is ABC analysis?
(b) Give four examples of MRP.
(c) What is meant by lead time?
(d) Define standardization.
(e) What are the various inventory models?
(f) What are the functions of inventory?
(g) Explain briefly the various types of inventories.
(h) Define traffic management.
(i) What is the need for feedback inventory information system?
(j) Give two factors considered for choosing equipments for material handling.

PART – B
Answer any Six questions from the followings: –
2. Explain the following terms:
Lead time, Re-order point, Stock out cost and Set-up cost.

3. What is the purpose of safety stock? How will the use of safety stock affect the EOQ? How will the safety stock affect the total annual carrying cost of the material?

4. Describe the relation between Material requirement planning and Master productions schedule. What are the advantages and limitations of MRP?

5. What are the objectives of stores management? How do you decide about the location and layout of an effective store in an organization?

6. What is the purpose of JIT? Why are flexible resources essential for JIT? Wow are suppliers affected by JIT?

Q.7 A) What is Raw Material? What are its two important factors? Describe.
B) Describe bought out components. What factors influence the decisions for bought out components?

Q.8 A) What are (KU) and (KO). Describe them in brief.
B) What are elements of ordering costs? How will you workout-ordering cost per order when you release 5000 orders a year with total ordering cost of Rs. 400000.

Q.9 A) What is Safety Stock? List out the various factors influencing the safety stock.
B) Define Service Level? How does it help in determining the Safety Stock? Explain with example.

Q.10 A) What is forecast? List out different types of forecasts.
Why is forecast needed?
B) Describe in brief dependent demands and independent Demands.

Q.11 Write Short notes on any 4 out of the followings: –
A) Inventory with Supplier
B) Inventory carrying cost.
C) FSN Classification
D) Other uses of EOQ.
E) Inventory Control through Stock – Levels.
F) Scrap / Surplus and its disposal.
G) Overhauling Spares
H) Role of computers in Inventory Management.

PART – C
CASE STUDY (COMPULSORY) WITH 05 Sub – question

M/s ABC is a car manufacturing company. They have a distribution system for marketing of finished goods as follows:-
A. Finished goods are sent to Central warehouse near the factory.
B. From here, the finished goods (cars) are sent by road to seven Regional warehouses located at important centers in the country.
C. Besides above two types of warehouses, there were 27 depots from where the cars are sent to different stockiest for sale.

Due to severe market competition and restrictions on bank credit, the Top Management of M/s ABC appointed an expert committee to streamline the distribution system, The committee found followings :-

1. Central warehouse, 7 Regional warehouse and 27 Depots together have finished stock (cars) equal to 105 days all India sales.
2. The Marketing Manager has no time to check the Finished Goods Stock as he is busy with marketing functions.
3. There are several cars which are lying for more than 2 years due to availability of new better models.
4. There was lack of controlling and supervising norms for monitoring the stock positions and taking corrective actions. Indents for new cars were sent without checking of stocks.

Apart from other things, the committee advised to put the finished Goods warehousing under Materials Management deptt. and advised a finished goods stock (Cars) equal to 48 days all India sales stock as ideal stock level in all the warehouses and depots together.
M/s ABC Management has appointed you as Materials Manager to complete the above tasks. How will you proceed? The questions are:-

1. Will you review the existing numbers of warehouses and depots for reduction? If so, why?
2. How will you find slow moving and non-moving stock of cars? What methodology will you suggest to dispose off such cars?
3. What shall be your methods for monitoring and controlling of finished Goods (car) to avoid accumulation of unsold stocks in future?
4. Will you retain Central warehouse and why?
5. What will be your distribution pattern for keeping stocks in central warehouse/Regional warehouse and Depots equal to the norms of 48 days All India Sales stock level?

Production Planning and Control
N. B.: 1) Answer any Five.

1. Discuss the objectives of Production Planning and Control.

2. What do you understand by Control phase? Explain the activities under this phase.

3. What are the different demand patterns on which the sales forecasting is based? Explain.

4. Describe the Delphi method of sales forecasting.

5. What is work study? Explain excess time.

6. Explain pre-production procedures with examples.

7. What is inventory management? Explain the systems of inventory management.

8. What is E.R.P. ? Describe different uses and benefits of E.R.P.

9. What are production control techniques? Explain in detail.

SUB: SAP Supply Chain Management

Answer any four questions.
All questions carry equal marks
(4 * 20 = 80)

1. How can SAP help supply chain professionals?

2. What are the SAP solutions for Transportation and Warehousing?

3. What are the challenges in implementing SAP based Supply chain management systems in India?

4. What are the advantages of implementing SAP based supply chain management systems in India?

5. Briefly explain the importance of SCM to various stakeholders and importance of SCM for e-commerce.

6. Please explain various stages of SAP based SCM system application implementation.

WAREHOUSE MANAGEMENT

Maximum Marks: 80

Please attempt any 8 questions out of the questions mentioned below.
1. What do you mean by supply chain in retail scenario? Give its importance and briefly explain the seven steps in effective collaboration?

2. Write a brief note on collaborative planning

3. Explain the usage of demand forecast response

4. What do you mean by Bull whip effect? Give the evolution & importance of precision retailing.

5. Next generation of POS & store system reduce that total cost of ownership (TCO)- Explain

6. Give a short note on any two

a) Advantage of RFID
b) Killing of the RFID tag
c) Privacy issues related with emerging Technologies

7. “Physical Distribution Decisions have to be responsive to the market conditions and hence are never static.” Explain this statement with factors influencing decisions from company’s perspective and also customer’s point of view.

8. What do you mean by Marketing Channels and what are the types of Channels? Also write factors determining length of channels with suitable examples.

9. “Importance of ‘Non-store Retailing’ is increasing in our country.” Explain this statement with its advantages and disadvantages with suitable examples.

10. Define Distribution Logistics and write its elements that give logistic importance among other functional areas of Distribution Management.

11. “A Good Supply Chain Management is important for providing Customer Value.” Discuss this statement with Value Chain Process.

12. Write short notes: (Any Two)
(a) Transportation and Material Handling
(b) Importance of Inventory Management
(c) Third Party Logistic
(d) Benchmarking the Supply Chain
(e) Wholesaling

13. The manager at a large manufacturing company is planning warehousing needs for the coming year. The manager predicts that warehousing needs will be normally distributed with a mean of 500,000 square feet and a standard deviation of 150,000 sft. He can obtain a full year lease at Rs 5 per sft per month or purchase storage space on the spot market. The spot market rates are Rs.7 per sft on the average per month. How large an annual contract should the manager sign?

14. What is the importance of cold storage warehousing in Retail sector? Please also list the importance of regional warehouses for a retailer.


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CONTACT:DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com

MANAGEMENT INFORMATION SYSTEMS

Marks: 80

SECTION A

Answer any 4 sub Questions. Each question carries five marks. (4X5= 20)

1.
(a) What is Information system?
(b) What is prototyping?
(c) What is Web Based System?
(d) What is hyperlink?
(e) What is knowledge management system?

SECTION B

Answer any five Questions. Each question carries 6 marks. (5×6= 30)

2. What is EIS? Explain its advantages and disadvantages.
3. What are the major challenges involved in building, operating and maintaining information system?
4. How does an organisation impact in IT? Explain.
5. Explain the four stage model of IT planning.
6. What are the steps involved in implementation and evaluation of a system?
7. What is DSS? What are the models? Explain its components.
8. What are the benefits and application of content management?

SECTION C

Answer any three Questions. Each question carries 10 marks. (3×10= 30)

9. What are the types of IS? Explain each of them.
10. Explain a) ERP b) SCM.
11. What are recent developments in MIS area?
12. How do you manage the multimedia content?
13. What are the ethics in IT?
14. Explain the features and characteristics of objects in object oriented analysis and design.

Human Resource Management

(i) There are three Sections A and B and C.
(ii) Attempt any three questions each from Section A and B. All questions carry 10 marks each.
(iii) Section C is compulsory for all and carries 40 marks.
SECTION A
1. Define and differentiate between Job Analysis, Job Description and Job Evaluation. Select an appropriate job evaluation method and create a plan for evaluating jobs of scientists in different grades.
2. Discuss the role of indoctrination in organizations. How can Performance Appraisal, and Training and Development be made an integral part of Human Resource Planning? Discuss.
3. Discuss the scope of Human Resource Audit. While auditing Reward systems for employees in a manufacturing organization, which factors should be taken into account and why? Explain with suitable examples.
4. Define and discuss the need for Human Resource Planning in an organization. Briefly discuss various approaches to HRP
5. Write short notes on any three of the following:
(a) Training methods
(b) Value determinants of HRP
(c) Human Resource accounting
(d) Labour Market Behavior
(e) Promotion and Reward Policies
SECTION B
1. Define and discuss the objectives of Human Resource Planning at organizational level. How does it help in determining and evaluating future organizational capabilities, needs and anticipated problems? Explain with suitable examples.
2. Define and describe Job Analysis. Briefly discuss several methods in which information about a job is collected and evaluated.
3. What is the purpose and process of recruitment function? Discuss various methods of sourcing manpower.
4. How is monetary value assigned to different dimensions of Human Resources costs, investments, and worth of the employees? Briefly explain Cost and Economic value approaches of measurement.
5. Write short notes on any three of the following :
(a) MBO
(b) Succession Planning
(c) Competency Mapping
(d) Job Evaluation
(e) H.R. Inventory

SECTION C
1. Quality control Department
Read the case given below and answer the questions given at the end.
Mr. Kapil Kumar and Mr. Abbas Ali were working in a scooter manufacturing public sector industry as Senior Quality Control Engineers in 1988. One post of Deputy Chief Quality Controller has fallen vacant due to the retirement of the incumbent and the management decided to recruit a qualified, knowledgeable and experienced professional from outside so that the present quality standard may be improved thus ensuring better marketability of their scooters in the face of stiff competition. Mr. Kapil Kumar, who was a mechanical engineer with about 15 years experience in the Quality Control Department dealing with mopeds and scooters, could have been promoted to fill the post on the basis of seniority. However, the management was looking for a graduate in statistics with experience in latest Quality Control (QC) techniques like statistical quality control, quality assurance and other related areas rather than a mechanical or automobile engineer with the routine experience in quality control. As such instead of promoting Kapil Kumar, the management advertised for the post of Deputy Chief Quality Controller – since as per company rules it was DR (Direct Recruitment) vacancy also.
Selection of Outsider
Out of the applications received in response to the advertisement, six candidates were called for interview including the two internal candidates, Mr. Kapil Kumar and Mr. Abbas Ali. The person selected was an outsider, one Mr. Ratnam, who had over 12 years experience SQC, quality assurance etc., in the two-wheeler private manufacturing industry. Mr. Ratnam joined within 2 months time expecting that in his new position he would be the main controller for quality. However, after joining the organization he came to know that he would be the second senior most person in the hierarchy for controlling the quality and would be reporting to one, Kirpal Sing,. The Chief for Quality Controls. Mr. Kirpal Singh had come up to this post by seniority and was basically a diploma holder in automobile engineering. He had to his credit about 28 years of industrial experience, out of which 20 years were spent in Quality Control Department of two industries. He joined the present organization in its Quality Control Department and had 17 years experience in the organization and was due for retirement within the next 2 or 3 years. On learning about the retirement time of Mr. Kirpal Singh, Mt. Ratnam had the consolation that he would be able to take up the position of ‘Chief Controller of Quality’ very soon.
Interference from Top
Ratnam could not put forth many good suggestions (for quality control) because of the interference and direct supervision of Kirpal Singh. He, however, could pick up a good deal of knowledge about the working of the company, the nature-and tendency of different production department heads particularly with regard to care for quality, organization for ‘QC’ in the company, the various components required for assembly of the company’s two-wheeler scooter and the expected quality standards, drawback in the present system of quality controls. etc.
Right from the time the advertisement for the selection of Deputy Chief Quality Controller appeared, the O.A. (Officers Association) of the organization had been pressing the management to consider the case of Kapil Kumar for promotion to the above post based on his seniority in the organization.
Meanwhile, the management obtained a license in 1989 for producing Three-Wheeler Autos. As a result of this and the pressure from O.A., Ratnam was transferred to look after the Quality Control Department at the company’s new Three-Wheeler plant, whereas Kapil Kumar was promoted as Deputy Chief Quality Controller in the present two-wheeler scooter plant in 1990 (after creating one additional post of Deputy Chief Quality Controller for the new Project).
In 1991, the State Government, which controlled the company in question, changed the Managing Director. During the regime of this new Managing Director, Kapil Kumar was promoted as Chief (Quality Controls) next year, when Kirpal Singh retired. This decision was based on the recommendations of Kirpal Singh and partly attributed to pressure from O.A., for further promotion of Kapil Kumar based on his vast experience in the Quality Control function of this industry. Abbas Ali rose to the position held earlier by Kapil Kumar.
Allotment of Company Quarters
The Company had its own township near the factory. Its quarter allotment scheme was based on the length of service, i.e., date of joining. Ratnam had asked for a suitable quarter at the time of interview and was thus allotted a tile quarter meant for the Senior Engineer’s cadre. He learnt about this, after occupying the quarter. Ratnam asked for a change of Quarter – preferably a RCC-roof quarter, – but his request was turned down, since he had put in only few months of service whereas many others senior to him, on the beds of their longer length of service in the Company (having over 10 years service), were staying in tiled-roof quarters and were awaiting a chance for a RCC-roof quarter. Kapil Kumar and Abbas Ali were residing in RCC-roof quarters. Soon after Kapil Kumar’s promotion to the post of Chief (Quality Controls), he was allotted a bungalow.
The management’s decision in this case must be viewed in the context of the downtrend in the demand for scooters and three-wheeler autos during 1993 following complaints from dealers about the deteriorating quality of components as also their short life. Notably the complaints had risen ten-fold in that year as compared to that in 1988.
Questions
(a) Was the management justified in taking a decision to recruit a qualified and experienced person from outside as Deputy Chief Quality Controller?
(b) Was it in the interest of the organization to transfer Ratnam to the new auto-wheeler plant and promote Kapil Kumar? What could have prompted the management to take this decision?
(c) How do you view the role of O.A.s in supporting only the local and internal candidates and overlooking the interests of direct recruits even when they were family members of the Association, particularly at a time, when the industry needed professionally qualified persons to fill key technical posts?
(d) How would you react to the management’s scheme for quarter allotment and why?

2. Pearl Engineering
Pearl Engineering Company was a large heavy-engineering unit. It attached great importance to the recruitment and training of its senior supervisors. Apart from selecting them from within the organization, the company recruited, every. Alternate year, about ten young engineering graduates and offered them training for a period of two years, before they were appointed as senior supervisors. Such appointments were made to about 40 per cent of the vacancies of senior supervisors that occurred in the organization. This was considered necessary by management as a planned programme of imparting vitality to the organization. Besides, many of the old-timers, who had risen from the ranks, did not possess the necessary academic background with the result that they could not keep pace with the technological changes. Management also believed that in the rapidly changing conditions of industry, a bank of technically competent supervisors played a pivotal role, besides serving as a pool from which to select future departmental managers.
Engineering Graduates were selected from amongst those who applied in response to an all-India advertisement. For the selection of one engineer, on an average, eight applicants were called for interview. A selection committee consisting of the General Manager, the Production Manager, the Personnel Manager and the Training Officer interviewed and selected the candidates. The selection interview was preceded by a written test and only those who secured 40 per cent marks qualified for interview.
The engineers thus selected had to undergo a two year intensive theoretical and practical training. A well-staffed and equipped Training Institute was directly responsible for the training of the graduate engineers, besides training trade apprentices and operatives required by the company. Lectures on theoretical subjects were given at the Training Institute and practical training was imparted in all the works departments under the guidance of qualified and experienced instructors. A few lectures by senior officers of the company were also arranged to acquaint them with the company policies on different matters. During the last quarter of their two-year training programme they were deputed to work fulltime to familiarize themselves with the conditions in departments where they were to be absorbed eventually.
On successful completion of training, the graduate engineers were offered appointments, depending on their performance and aptitude as revealed during training. On placement in the work departments, however, most of them faced some difficulty or the other.
According to management, some of the heads of departments, who were themselves not qualified engineers, did not have sufficient confidence in these younger men. They preferred the subordinates who came up from the ranks to hold positions of responsibility. A few discredited them saying that it would take years before these youngsters could pick up the job. Besides, some of the employees, whose promotional opportunities were adversely affected by the placement of graduate engineers, tried their best to run down the latter as a class, sometimes working on the group feelings of the workers. Some of the supervisors who were not graduate engineers also spoke derisively of them as “the blue-eyed boys” of the organization. Management knew that many of the graduate engineers were not utilized according to their capacity or training, nor was any attempt made to test or develop their potentialities. They also knew that many of the graduate engineers were, therefore, dissatisfied with their work life. Some of them who did not get equal promotional opportunities as their colleagues placed in other departments, were looking for better jobs elsewhere.
On the other hand, according to management, the young graduate engineers were themselves partly responsible for the hostile attitude of others in the organization. Some of them failed to appreciate that a newcomer invited hostility in the beginning and it took time before he was accepted as a member of the work-group. They did not realize that they would be fully productive only after gaining about five to seven years experience in the organization. A few thought that they belonged to a superior cadre and threw their weight around. They did not bother to understand and appreciate the problems of the rank-and-file of employees who worked under them.
In spite of these drawback, the General Manager of the company felt that these men were a set of disciplined supervisors. They had a sense of pride in their profession, and with the extensive training they had received, they would be able to take up any responsible position in the organization in course of time.
The General Manager could not allow the situation to continue especially when it was a difficult and costly process to recruit and train young engineering graduates of the requisite type and caliber. He knew that the prosperity of the company, to a large extent, depended on these young men. In addition, a large number of lucrative employment opportunities were available to these young engineers elsewhere and there was a systematic raid on them, He, therefore, called a meeting of all heads of departments to review the situation.
Questions:
(i) Identify the issues related to manpower planning as evident in the case.
(ii) Discuss the strategies to tackle the percentage of internal promotion at the organizational level.
(iii)What type of additional training programmes should be imparted for direct entrants?
(iv) Suppose you are the head of the personnel division. What would be your suggestions in the meeting – Which has been called by the General Manager?


BUSINESS COMMUNICATION XIBMS ONGOING EXAM ANSWER SHEETS PROVIDED

BUSINESS COMMUNICATION XIBMS ONGOING EXAM ANSWER SHEETS PROVIDED

CONTACT:
DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com
Business Communication

N. B. : 1) Attempt any Four Case studies
2) All case studies carry equal marks.
No: 1
A REPLY SENT TO AN ERRING CUSTOMER
Dear Sir,
Your letter of the 23rd, with a cheque for Rs. 25,000/- on account, is to hand.
We note what you say as to the difficulty you experience in collecting your outstanding accounts, but we are compelled to remark that we do not think you are treating us with the consideration we have a right to expect.
It is true that small remittances have been forwarded from time to time, but the debit balance against you has been steadily increasing during the past twelve months until it now stands at the considerable total of Rs. 85,000/-
Having regard to the many years during which you have been a customer of this house and the, generally speaking, satisfactory character of your account, we are reluctant to resort to harsh measures.
We must, however, insist that the existing balance should be cleared off by regular installments of say Rs. 10,000/- per month, the first installment to reach us by the 7th. In the meantime you shall pay cash for all further goods; we are allowing you an extra 3% discount in lieu of credit.
We shall be glad to hear from you about this arrangement, as otherwise we shall have no alternative but definitely to close your account and place the matter in other hands.
Yours truly,
Questions:
1. Comment on the appropriateness of the sender’s tone to a customer.
2. Point out the old – fashioned phrases and expressions.
3. Rewrite the reply according to the principles of effective writing in business.
NO. 2
WAVE
(ATV : Advertising Radio FM Brand)
A young, gorgeous woman is standing in front of her apartment window dancing to the 1970s tune, “All Right Now” by the one – hit band free. Across the street a young man looks out of his apartment window and notices her. He moves closer to the window, taking interest. She cranks up the volume and continues dancing, looking out the window at the fellow, who smiles hopefully and waves meekly. He holds up a bottle of wine and waves it, apparently inviting her over for a drink. The lady waves back. He kisses the bottle and excitedly says, “Yesss.” Then, he gazes around his apartment and realizes that it is a mess. “No !” he exclaims in a worried tone of voice. Frantically, he does his best to quickly clean up the place, stuffing papers under the sofa and putting old food back in the refrigerator, He slips on a black shirt, slicks back his hair, sniffs his armpit, and lets out an excited , “Yeahhh!” in eager anticipation of entertaining the young lady. He goes back to the window and sees the woman still dancing away. He points to his watch, as if to say “ Come on. It is getting late.” As she just continues dancing, he looks confused. Then a look of sudden insight appears on his face, “Five,” he says to himself. He turns on his radio, and it too is playing “All Right Now.” The man goes to his window and starts dancing as he watches his lady friend continue stepping. “Five, yeah,” he says as he makes the “okay” sign with his thumb and forefinger. He waves again. Everyone in the apartment building is dancing by their window to “All Right Now.” A super appears on the screen: “Are you on the right wavelength ?”
Questions :
1. What is non – verbal communication ? Why do you suppose that this commercial relies primarily on non-verbal communication between a young man and a gorgeous woman ? What types of non – verbal communication are being used in this case ?
2. Would any of the non-verbal communications in this spot (ad) not work well in another culture ?
3. What role does music play in this spot ? Who is the target market ?
4. Is the music at all distracting from the message ?
5. How else are radio stations advertised on TV ?

NO. 3
ARVIND PANDEY CAUGHT IN BUSINESS WEB
Arvind Pandey is a project manager at Al Saba Construction Company in Muscat. It s a flourishing company with several construction projects in Muscat and abroad. It is known for completing projects on time and with high quantity construction. The company’s Chairman is a rich and a highly educated Omani. A German engineer is Arvind’s Vice – President for urban and foreign construction projects.
Three months ago, Al Saba had submitted a tender for a major construction project in Kuwait. Its quotation was for $ 25 million. In Kuwait the project was sponsored and announced by a US – based construction company called Fuma. According to Al Saba, their bid of $ 25 million was modest but had included a high margin of profit.
On 25 April, Arvind was asked to go to Kuwait to find out from the Fuma project manager the status of their construction proposal. Arvind was delighted to know that Fuma had decided to give his company. (Al Saba) the construction project work. The project meant a lot of effort and money in planning the proposed construction in Kuwait.
But before Arvind could tank the Fuma project manager, he was told that their bird should be raised to $ 28 million. Arvind was surprised. He tried to convince the Fuma project manager that his (Arvind company had the bast reputation for doing construction work in a cost effective way . However, he could always raise the bid by $ 3 million. But he wanted to know why he was required to do so.
The Fuma manager’s reply was, “That’s the way we do our business in this part of the world, $ 1 million will go to our Managing Director in the US, I shall get $ 1 million, you, Mr. Pandey, will get $ 1 million in a specified account in Swiss Bank.
Arvind asked, “ But why me ?”
“ So that you never talk about it to any one.” The Fuma Project Manager said.
Arvind promised never to leak it out to any one else. And he tried to bargain to raise the bid by $ 2 million. For. Arvind was familiar with the practice of “ pay – offs” involved in any such thing. He thought it was against his loyalty to his company and his personal ethics.
Arvind promised the Fuma project manager that the bid would be raised to $ 28 million and fresh papers would be put in. He did not want to lose the job.
He came back to Muscat and kept trying to figure out how he should place the whole thing before his German Vice President. He obviously was at a loss.
Questions :
1. Analyse the reasons for Arvind Pandey’s dilemma.
2. Does Arvind Pandey really face a dilemma ?
3. In your view what should Arvind Pandey do ? Should he disclose it to his German Vice President ?

NO. 4.
COMPANY ACCEPTING A CONTRACT
A computer company was negotiating a very large order with a large size corporation. They had a very good track record with this client.
In this corporation, five different departments had pooled their requirements and budgets. A committee was formed which had representation from all the departments. The corporation wanted the equipment on a long lease and not outright purchase. Further, they wanted all the hardware and software form one supplier. This meant that there should be bought – out items from many suppliers since no one supplier could meet all the requirements of supply from its range of products.
The corporation provided an exhaustive list of very difficult terms and conditions and pressurized the vendors to accept. The computer company who was finally awarded the contract had agreed to overall terms that were fine as far as their own products were concerned but had also accepted the same terms for the brought – out items. In this case, the bought – out items were to be imported through a letter of credit. The percentage of the bought – out items versus their own manufacture was also very high. One of the terms accepted was that the “system” would be accepted over a period of 10 days after all the hardware had been linked up and software loaded.
The computer company started facing trouble immediately on supply. There were over 100 computers over a distance connected with one another with software on it. For the acceptance tests, it had been agreed that the computer company would demonstrate as a pre-requisite the features they had claimed during technical discussions.
Now, as you are aware, if a Hero Honda motorcycle claims 80 km to a litre of petrol, it is under ideal test conditions and if a motorcycle from the showroom were to be tried for this test before being accepted, it would never pass the test. In corporation’s case, due to internal politics, the corporation persons from one department – who insisted on going exactly by the contract – did not sign acceptance since the “ system” could not meet the ideal test conditions.
Further, in a classic case of, “ for want of a horse – shoe, payment for the horse was held up”, the computer company tried to get the system accepted and payment released. The system was so large that at any point of time over a period of 10 days something small or the other always gave problems. But the corporation took the stand that as far as they were concerned the contract clearly were concerned the contract clearly mentioned that the “system” had to be tested as a whole and not module by module.
Questions :
1. Comment on the terms and conditions placed by the corporation.
2. What factors influenced the computer company’s decision to accept the contract ?
3. Was it a win – win agreement ? Discuss ?

NO. 5
EMPLOYMENT INTERVIEW OF R P SINHA
Mr. R P Sinha is a MBA. He is being interviewed for the position of Management Trainee at a reputed company. The selection committee’s is chaired by a lady Vice – President. Mr. Sinha’s interview was as follows :
Committee : Good morning !
Mr. Sinha : Good morning to Sirs and Madam !
Chairperson : Please, sit down.
Mr. Sinha : Thank you (sits down at the edge of the chair, keeps his portfolio on the table)
Q. Chairperson : You are Mr. R. P. Sinha
A Sinha : Yes, Madam. This is how I am called.
Q. Chairperson : You have passed MBA with 1st Division.
A. Sinha : Yes, Madam.
Q. Chairperson : Why do you want to work in our organization ?
A Sinha : It is just like that. Also, because it has good reputation.
Q. Member A : This job is considered to be quite stressful. Do you think you can manage the stress involved.
A. Sinha : I think there is too much talk about stress these days. Sir, would you tell clearly what you mean by stress ? I am very strong for any stress.
Q. Member B : What are your strengths ?
A. Sinha : Sir, who am I talk boastfully about my strengths. You should tell me my strengths.
Q. Member C : What are your weaknesses ?
A. Sinha : I become angry very fast.
Q. Member A : Do you want to ask us any questions ?
A Sinha : Yes Sir ! What are the future chances for one who starts as a management trainee ?
The member tells M. Sinha the typical career path for those starting as Management Trainee. The Chairperson thanks Mr. Sinha. Mr. Sinha promptly says in reply, “you are welcome,” and comes out.

Questions :
1. Do you find Mr. Sinha’s responses to various questions effective ? Give reasons for your view on each answer given by Mr. Sinha.
2. Rewrite the responses that you consider most effective to the above questions in a job interview.
3. Mr. Sinha has observed the norm of respectful behaviour and polite conversation. But, do you think there is something gone wrong in his case ? Account for your general impression of Mr. Sinha’s performance at the interview.

NO. 6
Comment on the form and structure of the Report.

MARKS : 80

SUB : BUSINESS ETHICS

N. B. : 1) Attempt any Four Cases
2) All cases carries equal marks.
No : 1
PUBLIUS
Although many people believe that the World Wide Web is anonymous and secure from censorship, the reality is very different. Governments, law courts, and other officials who want to censor, examine, or trace a file of materials on the Web need merely go to the server (the online computer) where they think the file is stored. Using their subpoena power, they can comb through the server’s drives to find the files they are looking for and the identify of the person who created the files.
On Friday June 30, 2000, however, researches at AT & T Labs announced the creation of Publius, a software program that enables Web users to encrypt (translate into a secret code) their files – text, pictures, or music – break them up like the pieces of a jigsaw puzzle, and store the encrypted pieces on many different servers scattered all over the globe on the World Wide Web. As a result, any one wanting to examine or censor the files or wanting to trace the original transaction that produced the file would find it impossible to succeed because they would have to examine the contents of dozens of different servers all over the world, and the files in the servers would be encrypted and fragmented in a way that would make the pieces impossible to identify without the help of the person who created the file. A person authorized to retrieve the file, however, would look through a directory of his files posted on a Publius – affiliated website, and the Publius network would reassemble the file for him at his request. Researchers published a description of Publius at www.cs.nyu.edu/waldman/publius.

Although many people welcomed the way that the new software would enhance freedom of speech on the Web, many others were dismayed. Bruce Taylor, an antipornography activist for the National Law Center for Children and Families, stated : “It’s nice to be anonymous, but who wants to be more anonymous than criminals, terrorists, child molesters, child pornographers, hackers and e-mail virus punks.” Aviel Rubin and Lorrie Cranor, the creators of Publius, however, hoped that their program would help people in countries where freedom of speech was repressed and individuals were punished for speaking out. The ideal user of Publius, they stated, was “a person in China observing abuses of human rights on a day – to – day basis.”
Questions :
1. Analyze the ethics of marketing Publius using utilitarianism, rights, justice, and caring. In your judgement, is it ethical to market Publius ? Explain.
2. Are the creators of Publius in any way morally responsible for any criminal acts that criminals are able to carry out and keep secret by relying on Publius ? Is AT & T in any way morally responsible for these ? Explain your answers.
3. In your judgment, should governments allow the implementation of Publius ? Why or why not ?

NO. 2
A JAPANESE BRIBE
In July 1976, Kukeo Tanaka, former prime minister of Japan, was arrested on charges of taking bribes ($ 1.8 million) from Locjheed Aircraft Company to secure the purchase of several Lockheed jets. Tanaka’s secretary and serial other government officials were arrested with him. The Japanese public reacted with angry demands for a complete disclosure of Tanaka’s dealings. By the end of the year, they had ousted Tanaka’s successor, Takeo Miki, who was widely believed to have been trying to conceal Tanaka’s actions.
In Holland that same year, Prince Bernhard, husband of Queen Juliana, resigned from 300 hundred positions he held in government, military, and private organizations. The reason : He was alleged to have accepted $ 1.1 million in bribes from Lockheed in connection with the sale of 138 F – 104 Starfighter jets.
In Italy, Giovani Leone, president in 1970, and Aldo Moro and Mariano Rumor, both prime ministers, were accused of accepting bribes from Lockheed in connection with the purchase of $ 100 million worth of aircraft in the late 1960s. All were excluded from government.
Scandinavia, South Africa, Turkey, Greece, and Nigeria were also among the 15 countries in which Lockheed admitted to having handed out payments and at least $ 202 million in commissions since 1970.
Lockheed Aircraft’s involvement in the Japanese bribes was revealed to have begun in 1958 when Lockheed and Grumman Aircraft (also an American firm) were competing for a Japanese Air Force jet aircraft contract. According to the testimony of Mr. William Findley, a partner in Arthur Young & Co. (auditors for Lockheed), in 1958 Lockheed engaged the services of Yoshio Kodama, an ultra right – wing war criminal and reputed underworld figure with strong political ties to officials in the ruling Liberal Democratic Party. With Kodama’s help, Lockheed secured the Government contract. Seventeen years later, it was revealed that the CIA had been informed at the time (by an American embassy employee) that Lockheed had made several bribes while negotiating the contract.

In 1972, Lockheed again hired Kodama as a consultant to help secure the sale of its aircraft in Japan. Lockheed was desperate to sell planes to any major Japanese airline because it was scrambling to recover from a series of financial disasters. Cost overruns on a government contract had pushed Lockheed to the brink of bankruptcy in 1970. Only through a controversial emergency government loan guarantee of $ 250 million in 1971 did the company narrowly avert disaster. Mr. A. Carl Kotchian, president of Lockheed from 1967 to 1975, was especially anxious to make the sales because the company had been unable to get as many contracts in other parts of the world as it had wanted.
This bleak situation all but dictated a strong push for sales in the biggest untapped market left-Japan. This push, if successful, might well bring in revenues upward of $ 400 million. Such a cash inflow would go a long way towards helping to restore Lockheed’s fiscal health, and it would, of course, save the jobs of thousands of firm’s employees. (Statement of Carl Kotchian)
Kodama eventually succeeded in engineering a contract for Lockhed with All – Nippon Airways, even beating out McDonnell Douglas, which was actively competing with Lockheed for the same sales. To ensure the sale, Kodama asked for and received from Lockheed about $9 million during the period from 1972 to 1975. Much of money allegedly went to then – prime minister Kukeo Tanaka and other government officials, who were supposed to intercede with All – Nippon Airlines on behalf of Lockheed.
According to Mr. Carl Kotchian, “ I knew from the beginning that this money was going to the office of the Prime Minister.” He was, however, persuaded that, by paying the money, he was sure to get the contract from All-Nippon Airways. The negotiations eventually netted over $1.3 billion in contracts for Lockheed.
In addition to Kodama, Lockheed had also been advised by Toshiharu Okubo, an official of the private trading company, Marubeni, which acted as Lockheed’s official representative. Mr. A. Carl Kotchian later defended the payments, which he saw as one of many “Japanese business practices” that he had accepted on the advice of his local consultants. The payments, the company was convinced, were in keeping with local “ business practices.”
Further, as I’ve noted, such disbursements did not violate American laws. I should also like to stress that my decision to make such payments stemmed from my judgment that the (contracts) …… would provided Lockheed workers with jobs and thus redound to the benefit of their dependents, their communities, and stockholders of the corporation. I should like to emphasize that the payments to the so-called “ high Japanese government officials” were all requested y Okubo and were not brought up from my side. When he told me “ five hundred million yen is necessary for such sales,” from a purely ethical and moral standpoint I would have declined such a request. However, in that case, I would most certainly have sacrificed commercial success….. (If) Lockheed had not remained competitive by the rules of the game as then played, we would not have sold (our planes) ……… I knew that if we wanted our product to have a chance to win on its own merits, we had to follow the functioning system. (Statement of A. Carl Kotchian)
In August, 1975, investigations by the U.S. government led Lockheed to admit it had made $ 22 million in secret payoffs. Subsequent senate investigations in February 1976 made Lockheed’s involvement with Japanese government officials public. Japan subsequently canceled their billion dollar contract with Lockheed.
In June 1979, Lockheed pleaded guilty to concealing the Japanese bribes from the government by falsely writing them off as “marketing costs”. The Internal Revenue Code states, in part. “ No deduction shall be allowed….. for any payment made, directly or indirectly, to an official or employee of any government …. If the payment constitutes an illegal bribe or kickback.’ Lockheed was not charged specifically with bribery because the U.S. law forbidding bribery was not enacted until 1978. Lockheed pleaded guilty to four counts of fraud and four counts of making false statements to the government. Mr. Kotchian was not indicated, but under pressure from the board of directors, he was forced to resign from Lockheed. In Japan, Kodama was arrested along with Tanaka.

Questions :
1. Fully explain the effects that payment like those which Lockheed made to the Japanese have on the structure of a market.
2. In your view, were Lockheed’s payments to the various Japanese parties “bribes” or “extortions” ? Explain your response fully.
3. In your judgment, did Mr. A. Carl Kotchian act rightly from a moral point of view ? (Your answer should take into account the effects of the payments on the welfare of the societies affected, on the right and duties of the various parties involved, and on the distribution of benefits and burdens among the groups involved.) In your judgment, was Mr. Kotchian morally responsible for his actions ? Was he, in the end, treated fairly ?
4. In its October 27, 1980, issue, Business Week argued that every corporation has a corporate culture – that is, values that set a pattern for its employee’s activities, opinions and actions and that are instilled in succeeding generations of employees (pp.148-60) Describe, if you can, the corporate culture of Lockheed and relate that culture to Mr. Kotchian’s actions. Describe some strategies for changing that culture in ways that might make foreign payments less likely.

NO. 3
THE NEW MARKET OPPORTUNITY
In 1994, anxious to show off the benefits of a communist regime, the government of China invited leading auto manufacturers from around the world to submit plans for a car designed to meet the needs of its massive population. A wave of rising affluence had suddenly created a large middle class of Chinese families with enough money to buy and maintain a private automobile. China was now eager to enter joint ventures with foreign companies to construct and operate automobile manufacturing plants inside China. The plants would not only manufacture cars to supply China’s new internal market, but could also make cars that could be exported for sale abroad and would be sure to generate thousands of new jobs. The Chinese government specified that the new car had to be priced at less than $5000, be small enough to suit families with a single child (couples in China are prohibited from having more than one child), rugged enough to endure the poorly maintained roads that criss-crossed the nation, generate a minimum of pollution, be composed of parts that were predominantly made within China, and be manufactured through joint – venture agreements between Chinese and foreign companies. Experts anticipated that the plants manufacturing the new cars would use a minimum of automation and wuld instead rely on labor – intensive technologies that could capitalize on China’s cheap labor. China saw the development of a new auto industry as a key step in its drive to industrialize its economy.
The Chinese market was an irresistible opportunity for General Motors, Ford and Chrysler, as well as for the leading Japanese, European and Korean automobile companies. With a population of 1.2 billion people and almost double digit annual economic growth rates, China estimated that in the next 40 years between 200 and 300 million of the new vehicles would be purchased by Chinese citizens. Already cars had become a symbol of affluence for China’s new rising middle class, and a craze for cars had led more than 30 million Chinese to take driving lessons despite that the nation had only 10 million vehicles, most of them government – owned trucks.

Environmentalists, however, were opposed to the auto manufactures’ eager rush to respond to the call of the Chinese government. The world market for energy, particularly oil, they pointed out, was based in part on the fact that China, with its large population, was using relatively low levels of energy. In 1994, the per-person consumption of oil in China was only one sixth of Japan’s and only a quarter of Taiwan’s. If China were to reach even the modes per person consumption level of South Korea, China would be consuming twice the amount of oil the United States currently uses. At the present time, the United States consumes one forth of the world’s total annual oil supplies, about half of which it must import from foreign countries.
Critics pointed out that if China were to eventually have as many cars on the road per person as Germany does, the world would contain twice as many cars as it currently does. No matter how “ pollution – free” the new car design was, the cumulative environmental effects of that many more automobiles in the world would be formidable. Even clean cars would have to generate large amounts of carbon dioxide as they burned fuel, thus significantly worsening the greenhouse effect. Engineers pointed out that it would be difficult, if not impossible, to build a clean car for under $5000. Catalytic converters, which diminished pollution, alone cost over $200 per car to manufacture. In addition, China’s oil refineries were designed to produce only gasoline with high levels of lead. Upgrading all its refineries so they could make low-lead gasoline would require an investment China seemed unwilling to make.
Some of the car companies were considering submitting plans for an electric car because China had immense coal reserves which it could burn to produce electricity. This would diminish the need for China to rely on oil, which it would have to import. However, China did not have sufficient coal burning electric plants nor an electrical power distribution system that could provide adequate electrical power to a large number of vehicles. Building such an electrical power system also would require a huge investment that the Chinese government did not seem particularly interested in making. Moreover, because coal is a fossil fuel, switching from an oil – based auto to a coal – based electric auto would still result in adding substantial quantities of carbon dioxide to the atmosphere.
Many government officials were also worried by the political implications of having China become a major consumer of oil. If China were to increase its oil consumption, would have to import all its oil from the same countries that other nations relied on, which would create large political, economic and military risks. Although the United States imported some of its oil from Venezuela and Mexico, most of its imports came from the Middle East – an oil source that China would have to turn to also. Rising demand for Middle East oil would push oil prices sharply upward, which would send major shocks reverberating through the economics of the United States and those of other nations that relied heavily on oil. State Department officials worried that China would begin to trade weapons for oil with Iran or Iraq, heightening the risks of major military confrontations in the region. If China were to become a major trading partner with Iran or Iraq, this would also create closer ties between these two major power centres of the non-Western world – a possibility that was also laden with risk. Of course, China might also turn to tapping the large reserves of oil that were thought to be lying under Taiwan and other areas neighboring its coast. However, this would bring it into competition with Japan, South Korea, Thailand, Singapore, Taiwan, the Phillippines, and other nations that were already drawing on these sources to supply their own booming economies. Many of these nations, anticipating heightened tensions, were already puring money into their military forces, particularly their navies. In short, because world supplies of oil were limited, increasing demand seemed likely to increase the potential for conflict.
Questions :
1. In your judgment, is it wrong, from an ethical point of view, for the auto companies to submit plans for an automobile to China ? Explain your answer ?
2. Of the various approaches to environmental ethics outlined in this chapter, which approach sheds most light on the ethical issues raised by this case ? Explain your answer.
3. Should the U.S. government intervene in any way in the negotiations between U.S. auto companies and the Chinese government ? Explain.
NO. 4
WAGE DIFFERENCES AT ROBERT HALL
Robert Hall Clothes, Inc., owned a chain of retail stores that specialized in clothing for the family. One of the Chain’s stores was located in Wilmington, Delaware. The Robert Hall store in Wilmington had a department for men’s and boy’s clothing and another department for women’s and girl’s clothing. The departments were physically separated and were staffed by different personnel : Only men were allowed to work in the men’s department and only women in the women’s department. The personnel of the store were sexually segregated because years of experience had taught the store’s managers that, unless clerks and customers were of the same sex, the frequent physical contact between clerks and customers would embarrass both and would inhibit sales.
The clothing in the men’s department was generally of a higher and more expensive quality than the clothing in the women’s department. Competitive factors accounted for this : There were few other men’s stores in Wilmington so the store could stock expensive men’s clothes and still do a thriving business, whereas women’s clothing had to be lower priced to compete with the many other women’s stores in Wilmington. Because of these differences in merchandise, the store’s profit margins on the men’s clothing was higher than its margins on the women’s clothing. As a result, the men’s department consistently showed a larger dollar volume in gross sales and a greater gross profit, as is indicated in Table 7.11.
Because of the differences shown in Table 7.11 women personnel brought in lower sales and profits per hour. In fact male salespersons brought in substantially more than the females did (see Tables 7.12 and 7.13)
Men’s Department Women’s Department

Year
Sales
($) Gross Profit
($) Percent Profit
($)
Sales
($) Gross Profit
($) Percent Profit
($)
1963 210,639 85,328 40.5 177,742 58,547 32.9
1964 178,867 73,608 41.2 142,788 44,612 31.2
1965 206,472 89,930 43.6 148,252 49,608 33.5
1966 217,765 97,447 44.7 166,479 55,463 33.5
1967 244,922 111,498 45.5 206,680 69,190 33.5
1968 263,663 123,681 46.9 230,156 79,846 34.7
1969 316,242 248,001 46.8 254,379 91,687 36.4
TABLE 7. 12

Year Male Sales per Hour
($) Female Sales Per Hour
($) Excess M Over F (%)
1963
1964
1965
1966
1967
1968
1969 38.31
40.22
54.77
59.58
63.18
62.27
73.00 27.31
30.36
33.30
34.31
36.92
37.20
41.26 40
32
64
73
71
70
77

As a result of these differences in the income produced by the two departments, the management of Robert Hall paid their male salespersons more than their female personnel. Management learned after a Supreme Court ruiling in their favor in 1973 that it was entirely legal for them to do this if they wanted. Wages in the store were set on the basis of profits per hour per department, with some slight adjustments upward to ensure wages were comparable and competitive to what other stores in the area were paying. Over the years, Robert Hall set the wages given in Table 7.14. Although the wage differences between males and females were substantial, they were not as large as the percentage differences between male and female sales and profits. The management of Robert Hall argued that their female clerks were paid less because the commodities they sold could not bear the same selling costs that the commodities sold in the men’s department could bear. However, the female clerks argued, the skills, sales efforts, and responsibilities required of male and female clerks were “substantially” the same.
TABLE 7. 13

Year Male Gross Profits per Hour
($) Female Gross Profits Per Hour
($) Excess M Over F (%)
1963
1964
1965
1966
1967
1968
1969 15.52
16.55
23.85
26.66
28.74
29.21
34.16 9.00
9.49
11.14
1143
12.36
12.91
15.03 72
74
114
134
133
127
127

TABLE 7. 14

Year Male Earnings per Hour
($) Female Earnings Per Hour
($) Excess M Over F (%)
1963
1964
1965
1966
1967
1968
1969 2.18
2.46
2.67
2.92
2.88
2.97
3.13 1.75
1.86
1.80
1.95
1.98
2.02
2.16 25
32
48
50
45
47
45

Questions :
1. In your judgment, do the managers of the Robert Hall store have any ethical obligations to change their salary policies ? If you do not think they should change, then explain why they have an obligation to change and describe the kinds of changes they should make. Would it make any difference to your analysis if, instead of two departments in the same store, it involved two different Robert Hall Stores, one for men and one for women ? Would it make a difference if two stores (one for men and one for women) owned by different companies were involved ? Explain each of your answers in terms of the relevant ethical principles upon which you are relying.
2. Suppose that there were very few males applying for clerks’ jobs in Wilmington while females were flooding the clerking job market. Would this competitive factor justify paying males more than females ? Why ? Suppose that 95 percent of the women in Wilmington who were applying for clerks’ jobs were single women with children who were on welfare while 95 percent of the men were single with no families to support. Would this need factor justify paying females more than males ? Why ? Suppose for the sake of argument that men were better at selling than women; would this justify different salaries ?

3. If you think the managers of the Robert Hall store should pay their male and female clerks equal wages because they do “substantially the same work” then do you also think that ideally each worker’s salary should be pegged to the work he or she individually performs (such as by having each worker sell on commission) ? Why ? Would a commission system be preferable from a utilitarian point of view considering the substantial book keeping expenses it would involve ? From the point of view of justice ? What does the phrase substantially the same mean to you ?

NO. 5
NAPSTER’S REVOLUTION
Eighteen – year old Shawn “NAPSTER” Fanning, then a freshman at Northeastern University, dropped out of school and founded Napster Inc. (website was at w.w.w.napster.com) in San Mateo, California in May 1999. Two months earlier, working in his college dorm room, he had developed both a website that let users locate other users who were willing to share whatever music files they had in MP3 format on the hard drives of their computers and a software program (called “Napster) that let users copy these music files from each other over the Internet. When an early free version of the program he posted on Download.com received more than 300,000 hits and was named “Download of the week,” he decided to devote himself full time to developing his program and website. The final version of his version of his program was officially released August 1999, and in May 2000, with more than 10 million people – most of them students on college campuses where Napster was especially popular – signed up at its website, Shawn’s company received $ 15 million of start – up funds from venture capital firms in California’s “Silicon Valley.”
Fanning grew up in Brockton, Massauchettes, the son of a nurse’s aid and the stepson of a truck driver, in a family of four half-brothers and half-sisters. He got the nickname “Napster” during a basketball game when a player commented on his closely cropped sweaty head of hair. Fanning had taught himself programming and had held several summer programming jobs.
The company Shawn helped establish gave the Napster program away for free and charged users nothing to use its website to post the URL addresses where personal copies of music could be downloaded. Nevertheless, a month later, Shawn found himself embroiled in a legal and ethical controversy when two record tables, two musicians (Metallica and Dr. Dre), and two industry trade groups of music companies (the National Music Publishers Association and the Recording Industry Association of America) filed suits against his young company claiming that Napster’s software was enabling other to make and distribute copies of copyrighted music that the musicians and companies owned.

On June 12, the two industry trade groups filed preliminary injunctions against the company demanding that it remove all the songs owned by their member companies from Napster’s song directories. According to the two groups, a survey of 2555 college students showed a correlation between Napster use and decreased CD purchases. College students were outraged, especially fans of Metallica and Dr. Dre. Supporters of Napster argued that Napster allowed people to hear music that they then went out and purchased, so Napster actually helped the music companies. Music sales had increased by over $500 million a year since Napster had started to operate, but the music companies claimed that this was a result of a booming economy. Supporters of Napster also argued that individuals had a moral and legal right to lend other individuals a copy of the music on the CDs that they had purchased. After all, they argued, the law explicitly stated that an individual could make a copy of copyrighted music he or she had purchased to hear the music on another player. Moreover, according to Fanning, Napster was not doing anything illegal, and the company was not responsible if other people used its software and website to copy music in violation of copyright law any more than a car company was responsible when its autos were used by thieves to rob banks. Much of the music that was downloaded using Napster, they claimed, was in the public domain (i.e.not legally owned by anyone) and was being legally copied. The music companies countered that an individual had no right to give multiple copies of their music to others even if the individual had paid for the original CD. If everyone was allowed to copy music without paying for it, they charged, eventually the music companies would stop producing music and musicians would stop creating it. Other musicians claimed, however, that Napster and the Web gave them a way to put their music before millions of potential fans without having to beg the music companies to sponser them.
In March 2000, the band Metallica hired consultant PDNet to electronically “evesdrop” on users who assumed they were anonymously accessing Napster’s website. The following week the band’s lawyers handed Napster a list with the names of 300, 000 people that Metallica claimed had violated its copyrights using Napster’s service and that Metallica now wanted removed from Napster’s services. Fanning complied with the demand of Metallica, whose drummer, Lars Ulrich, was one of his musical heros. “If they want to steal our music,” said Ulrich, “ why don’t they just go down to Tower Records and grab them off the shelves ?” Many young people protested that the bands should not be alienating their own fans in this way. One fan posted a note on an MP3 chat room : “Give me a break ! I have been dropping 16 bucks an album for Metallica’s music since I was a teenager. They made a fortune off us and now they accuse us of stealing from them. What nerve !” Howard King, a Los Angeles lawyer for Metallica and Dr. Dre, stated that “I don’t know Shawn Fanning but he seems to be a pretty good kid who came up with a sensational program. But this sensational program has allowed people to take music without paying ………. Shawn probably had no idea of the legal ramifications of what he created. I’m sure the though never crossed his mind.”
In August 2000, a federal judge in San Francisco, Marilyn Patel, responded to the suit against Napster. Judge Patel called Shawn’s company a “monster” and charged that the only purpose of Napster was to copy pirated music without paying for it. The judge ordered Napster to remove all URLS from its website that referenced material that was copyrighted.
Judge Patel’s ruling would have shut down the company’s website immediately. But a few days later, an appeals court reversed Judge Patel and allowed the company to continue operating. The reprieve was only temporary. On Monday February 12, 2001, the Ninth Circuit Court of Appeals in San Francisco affirmed Judge Patel’s ruling. The company attempted to circumvent the ruling by negotiating agreements with the music companies that would pay them certain annual fees in return for withdrawing the suit.
Napster was not the only software that allowed individuals to swap files from
One personal computer to another over the Internet. The software program named “Gnutella” let individuals swap any kind of files – music, text, or visuals – over the Internet, but Gnutella did not operate a centralized index like the website that Napster had established. Observers predicated that if Napster was put out of business, numerous underground websites would be created providing the kind of listing service that the company had earlier provided on its website. Already a website named zeropaid.com provided free copies of Gnutella and many other Napster clones that users could download and use to share digital music files with each other. Unlike Napster, these software products did not require a central website to connect users to each other, making it impossible for music companies to find and target single entity whom they could sue. Many observers predicated that Napster was only the beginning of an upheaval that would revolutionize the music industry, forcing music companies to lower their prices, make their music easily available on the Internet, and completely change their business models.
Questions :
1. What are the legal issues involved in this case, and what are the moral issues ? How are the two different kinds of issues different from each other, and how are they related to each other ? Identify and distinguish the “systemic, corporate and individual issues” involved in this case.

2. In your judgment, was it morally wrong for Shawn Fanning to develop and release his technology to the world given its possible consequences ? Was it morally wrong for an individual to use Napster’s website and software to copy for free the copy righted music on another person’s hard drive ? If you believe it was wrong, then explain exactly why it was wrong. If you believe it was not morally wrong, then how would you defend your views against t he claim that such copying is stealing ? Assume that it was not I illegal for an individual to copy music using Napster. Would there be anything immoral with doing so ? Explain ?

3. Assume that it is morally wrong for a person to use Napster’s website and software to make a copy of copyrighted music. Who, then, would be morally responsible for this person’s wrong doing ? Would only the person himself be morally responsible ? Was Napster, the company, morally responsible ? Wash shawn Fanning morally responsible ? Was any employee of Napster, the company, morally responsible ? Was the operator of the server or that portion of the Internet that the person used morally responsible ? What if the person did not know that the music was copyrighted or did not think that it was illegal to copy copyrighted music ?

4. Do the music companies share any of the moral responsibility for what has happened ? How do you think technology like Napster is likely to change the music industry ? In your judgment, are these changes ethically good or ethically bad ?

NO. 6
WORKING FOR ELI LILLY & COMPANY
Eli Lilly, the discoverer of Erythromycin, Darvon, Ceclor, and Prozac, is a major pharmaceutical company that sold $6.8 billion of drugs all over the world in 1995, giving it profits of $2.3 billion. Headquartered in Indianpolis, Minnesota, the company also provides food, housing, and compensation to numerous homeless alcoholics who perform short-term work for the company. The work these street people perform, however, is a bit unusual.
Before approving the sale of a newly discovered drug, the U.S. Food and Drug Administration requires that the drug be put through three phases of tests after being tested on animals. In phase I, the drug is taken by healthy human individuals to determine whether it has any dangerous side effects. In Phase II, the drug is given to a small number of sick patients to determine dosage levels. In Phase III, the drug is given to large numbers of sick patients by doctors and hospitals to determine its efficacy.
Phase I testing is often the most difficult to carry out because most healthy individuals are reluctant to take a new and untested medication that is not intended to cure them of anything and that may have potentially crippling or deadly side effects. To secure test subjects, companies must advertise widely and offer to pay them as such as $250 a day. Eli Lilly, however, does not advertise as widely and pays its volunteers only $85 a day plus free from and board, the lowest in the industry. One of the reasons that Lily’s rates are so low is because, as a long time nurse at the Lily Clinic is reported to have indicated, “ the majority of its subjects are homeless alcoholics” recruited through word of mouth that is spread in soup kitchens, shelters, and prisons all over the United States. Because they are alcoholics, they are fairly desperate for money. Because they alcoholics, they are fairly desperate for money. Because phase I testes can run several months, test subjects can make as $4500 – an enormous sum to people who are otherwise unemployable and surviving on handouts. Interviews with several homeless men who have participated in Lily’s drug tests and who describe themselves as alcoholics who drink daily suggest that they are, by and large, quite happy to participate in an arrangement that provides them with “easy money”. When asked, one homeless drinker hired to participate in a Phase I trail said he had no idea what kind of drug was being tested on him even though he had signed an informed – consent form. An advantage for Lilly is that this kind of test subject is less likely to sue if severely injured by the drug. The tests run on the homeless men, moreover, provide enormous benefits for society. It has been suggested, in fact, that in light of the difficulty of securing test subjects, some tests might be delayed or not performed at all if it were not for the large pool of homeless men willing and eager to participate in the tests.
The Federal Drug Administration requires that people who agree to participate in Phase I tests must give their “ informed consent” and must take a “ truly voluntary and a uncoerced decision.” Some have questioned whether the desperate circumstances of alcoholic and homeless men allow them to make a truly voluntary and uncoerced decision when they agree to take an untested potentially dangerous drug for $ 85 a day. Some doctors claim that alcoholics run a higher risk because they may carry diseases that are undetectable by standard blood screening and that make them vulnerable to being severely named by certain drugs. One former test subject indicated in an interview that the drug he had been given in a test several years before had arrested his heart and “ they had to put things on my chest to start my heart up again.” The same thing happened to another subject in the same test. Another man indicated that the drug he was given had made him unconscious for 2 days while others told of excruciating headaches.
In earlier years, drug companies used prisoners to test drugs in Phase I tests. During the 1970s, drug companies stopped using prisoners when critics complained that their poverty and the promise of early parole in effect were coercing the prisoners into “Volunteering”. When Lilly first turned to using homeless people during the 1980s, a doctor at the company is quoted as saying, “ We were constantly talking about whether we were exploiting the homeless. But there were a lot of them who were willing to stay in the hospital for four weeks.” Moreover, he adds. “Providing them with a nice warm bed and good medical care and sending them out drug – and alcohol – free was a positive thing to do.”
A homeless alcoholic indicated in an interview that when the test he was participating in was completed, he would rent a cheap motel room where I’ll get a case of Miller and an escort girl have sex. The girl will cost me $ 200 an hour.” He estimated that it would take him about two weeks to spend the $ 4650 Lily would pay him for his services. The manager at another cheap motel said that when test subjects completed their stints at Lily, they generally arrived at his motel with about $ 2500 in cash : “ The guinea pigs go to the lounge next door, get drunk and buy the house a round. The idea is, they can party for a couple of weeks and go back to Lily and do the next one.”
Questions :
1. Discuss this case from the perspective of utilitarianism, rights, justice and caring. What insight does virtue theory shed on the ethics of the events described in this case ?
2. “ In a free enterprise society all adults should be allowed to make their own decisions about how they choose to earn their living.” Discuss the statement in light of the Lily case.
3. In your judgment, is the policy of using homeless alcoholics for test subjects morally appropriate ? Explain the reasons for your judgment. What does your judgment imply about the moral legitimacy of a free market in labor ?
4. How should the managers of Lily handle this issue ?


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BUSINESS ETHICS

N. B. : 1) Attempt any Four Cases
2) All cases carries equal marks.
No : 1
PUBLIUS
Although many people believe that the World Wide Web is anonymous and secure from censorship, the reality is very different. Governments, law courts, and other officials who want to censor, examine, or trace a file of materials on the Web need merely go to the server (the online computer) where they think the file is stored. Using their subpoena power, they can comb through the server’s drives to find the files they are looking for and the identify of the person who created the files.
On Friday June 30, 2000, however, researches at AT & T Labs announced the creation of Publius, a software program that enables Web users to encrypt (translate into a secret code) their files – text, pictures, or music – break them up like the pieces of a jigsaw puzzle, and store the encrypted pieces on many different servers scattered all over the globe on the World Wide Web. As a result, any one wanting to examine or censor the files or wanting to trace the original transaction that produced the file would find it impossible to succeed because they would have to examine the contents of dozens of different servers all over the world, and the files in the servers would be encrypted and fragmented in a way that would make the pieces impossible to identify without the help of the person who created the file. A person authorized to retrieve the file, however, would look through a directory of his files posted on a Publius – affiliated website, and the Publius network would reassemble the file for him at his request. Researchers published a description of Publius at www.cs.nyu.edu/waldman/publius.

Although many people welcomed the way that the new software would enhance freedom of speech on the Web, many others were dismayed. Bruce Taylor, an antipornography activist for the National Law Center for Children and Families, stated : “It’s nice to be anonymous, but who wants to be more anonymous than criminals, terrorists, child molesters, child pornographers, hackers and e-mail virus punks.” Aviel Rubin and Lorrie Cranor, the creators of Publius, however, hoped that their program would help people in countries where freedom of speech was repressed and individuals were punished for speaking out. The ideal user of Publius, they stated, was “a person in China observing abuses of human rights on a day – to – day basis.”
Questions :
1. Analyze the ethics of marketing Publius using utilitarianism, rights, justice, and caring. In your judgement, is it ethical to market Publius ? Explain.
2. Are the creators of Publius in any way morally responsible for any criminal acts that criminals are able to carry out and keep secret by relying on Publius ? Is AT & T in any way morally responsible for these ? Explain your answers.
3. In your judgment, should governments allow the implementation of Publius ? Why or why not ?

NO. 2
A JAPANESE BRIBE
In July 1976, Kukeo Tanaka, former prime minister of Japan, was arrested on charges of taking bribes ($ 1.8 million) from Locjheed Aircraft Company to secure the purchase of several Lockheed jets. Tanaka’s secretary and serial other government officials were arrested with him. The Japanese public reacted with angry demands for a complete disclosure of Tanaka’s dealings. By the end of the year, they had ousted Tanaka’s successor, Takeo Miki, who was widely believed to have been trying to conceal Tanaka’s actions.
In Holland that same year, Prince Bernhard, husband of Queen Juliana, resigned from 300 hundred positions he held in government, military, and private organizations. The reason : He was alleged to have accepted $ 1.1 million in bribes from Lockheed in connection with the sale of 138 F – 104 Starfighter jets.
In Italy, Giovani Leone, president in 1970, and Aldo Moro and Mariano Rumor, both prime ministers, were accused of accepting bribes from Lockheed in connection with the purchase of $ 100 million worth of aircraft in the late 1960s. All were excluded from government.
Scandinavia, South Africa, Turkey, Greece, and Nigeria were also among the 15 countries in which Lockheed admitted to having handed out payments and at least $ 202 million in commissions since 1970.
Lockheed Aircraft’s involvement in the Japanese bribes was revealed to have begun in 1958 when Lockheed and Grumman Aircraft (also an American firm) were competing for a Japanese Air Force jet aircraft contract. According to the testimony of Mr. William Findley, a partner in Arthur Young & Co. (auditors for Lockheed), in 1958 Lockheed engaged the services of Yoshio Kodama, an ultra right – wing war criminal and reputed underworld figure with strong political ties to officials in the ruling Liberal Democratic Party. With Kodama’s help, Lockheed secured the Government contract. Seventeen years later, it was revealed that the CIA had been informed at the time (by an American embassy employee) that Lockheed had made several bribes while negotiating the contract.

In 1972, Lockheed again hired Kodama as a consultant to help secure the sale of its aircraft in Japan. Lockheed was desperate to sell planes to any major Japanese airline because it was scrambling to recover from a series of financial disasters. Cost overruns on a government contract had pushed Lockheed to the brink of bankruptcy in 1970. Only through a controversial emergency government loan guarantee of $ 250 million in 1971 did the company narrowly avert disaster. Mr. A. Carl Kotchian, president of Lockheed from 1967 to 1975, was especially anxious to make the sales because the company had been unable to get as many contracts in other parts of the world as it had wanted.
This bleak situation all but dictated a strong push for sales in the biggest untapped market left-Japan. This push, if successful, might well bring in revenues upward of $ 400 million. Such a cash inflow would go a long way towards helping to restore Lockheed’s fiscal health, and it would, of course, save the jobs of thousands of firm’s employees. (Statement of Carl Kotchian)
Kodama eventually succeeded in engineering a contract for Lockhed with All – Nippon Airways, even beating out McDonnell Douglas, which was actively competing with Lockheed for the same sales. To ensure the sale, Kodama asked for and received from Lockheed about $9 million during the period from 1972 to 1975. Much of money allegedly went to then – prime minister Kukeo Tanaka and other government officials, who were supposed to intercede with All – Nippon Airlines on behalf of Lockheed.
According to Mr. Carl Kotchian, “ I knew from the beginning that this money was going to the office of the Prime Minister.” He was, however, persuaded that, by paying the money, he was sure to get the contract from All-Nippon Airways. The negotiations eventually netted over $1.3 billion in contracts for Lockheed.
In addition to Kodama, Lockheed had also been advised by Toshiharu Okubo, an official of the private trading company, Marubeni, which acted as Lockheed’s official representative. Mr. A. Carl Kotchian later defended the payments, which he saw as one of many “Japanese business practices” that he had accepted on the advice of his local consultants. The payments, the company was convinced, were in keeping with local “ business practices.”
Further, as I’ve noted, such disbursements did not violate American laws. I should also like to stress that my decision to make such payments stemmed from my judgment that the (contracts) …… would provided Lockheed workers with jobs and thus redound to the benefit of their dependents, their communities, and stockholders of the corporation. I should like to emphasize that the payments to the so-called “ high Japanese government officials” were all requested y Okubo and were not brought up from my side. When he told me “ five hundred million yen is necessary for such sales,” from a purely ethical and moral standpoint I would have declined such a request. However, in that case, I would most certainly have sacrificed commercial success….. (If) Lockheed had not remained competitive by the rules of the game as then played, we would not have sold (our planes) ……… I knew that if we wanted our product to have a chance to win on its own merits, we had to follow the functioning system. (Statement of A. Carl Kotchian)
In August, 1975, investigations by the U.S. government led Lockheed to admit it had made $ 22 million in secret payoffs. Subsequent senate investigations in February 1976 made Lockheed’s involvement with Japanese government officials public. Japan subsequently canceled their billion dollar contract with Lockheed.
In June 1979, Lockheed pleaded guilty to concealing the Japanese bribes from the government by falsely writing them off as “marketing costs”. The Internal Revenue Code states, in part. “ No deduction shall be allowed….. for any payment made, directly or indirectly, to an official or employee of any government …. If the payment constitutes an illegal bribe or kickback.’ Lockheed was not charged specifically with bribery because the U.S. law forbidding bribery was not enacted until 1978. Lockheed pleaded guilty to four counts of fraud and four counts of making false statements to the government. Mr. Kotchian was not indicated, but under pressure from the board of directors, he was forced to resign from Lockheed. In Japan, Kodama was arrested along with Tanaka.

Questions :
1. Fully explain the effects that payment like those which Lockheed made to the Japanese have on the structure of a market.
2. In your view, were Lockheed’s payments to the various Japanese parties “bribes” or “extortions” ? Explain your response fully.
3. In your judgment, did Mr. A. Carl Kotchian act rightly from a moral point of view ? (Your answer should take into account the effects of the payments on the welfare of the societies affected, on the right and duties of the various parties involved, and on the distribution of benefits and burdens among the groups involved.) In your judgment, was Mr. Kotchian morally responsible for his actions ? Was he, in the end, treated fairly ?
4. In its October 27, 1980, issue, Business Week argued that every corporation has a corporate culture – that is, values that set a pattern for its employee’s activities, opinions and actions and that are instilled in succeeding generations of employees (pp.148-60) Describe, if you can, the corporate culture of Lockheed and relate that culture to Mr. Kotchian’s actions. Describe some strategies for changing that culture in ways that might make foreign payments less likely.

NO. 3
THE NEW MARKET OPPORTUNITY
In 1994, anxious to show off the benefits of a communist regime, the government of China invited leading auto manufacturers from around the world to submit plans for a car designed to meet the needs of its massive population. A wave of rising affluence had suddenly created a large middle class of Chinese families with enough money to buy and maintain a private automobile. China was now eager to enter joint ventures with foreign companies to construct and operate automobile manufacturing plants inside China. The plants would not only manufacture cars to supply China’s new internal market, but could also make cars that could be exported for sale abroad and would be sure to generate thousands of new jobs. The Chinese government specified that the new car had to be priced at less than $5000, be small enough to suit families with a single child (couples in China are prohibited from having more than one child), rugged enough to endure the poorly maintained roads that criss-crossed the nation, generate a minimum of pollution, be composed of parts that were predominantly made within China, and be manufactured through joint – venture agreements between Chinese and foreign companies. Experts anticipated that the plants manufacturing the new cars would use a minimum of automation and wuld instead rely on labor – intensive technologies that could capitalize on China’s cheap labor. China saw the development of a new auto industry as a key step in its drive to industrialize its economy.
The Chinese market was an irresistible opportunity for General Motors, Ford and Chrysler, as well as for the leading Japanese, European and Korean automobile companies. With a population of 1.2 billion people and almost double digit annual economic growth rates, China estimated that in the next 40 years between 200 and 300 million of the new vehicles would be purchased by Chinese citizens. Already cars had become a symbol of affluence for China’s new rising middle class, and a craze for cars had led more than 30 million Chinese to take driving lessons despite that the nation had only 10 million vehicles, most of them government – owned trucks.

Environmentalists, however, were opposed to the auto manufactures’ eager rush to respond to the call of the Chinese government. The world market for energy, particularly oil, they pointed out, was based in part on the fact that China, with its large population, was using relatively low levels of energy. In 1994, the per-person consumption of oil in China was only one sixth of Japan’s and only a quarter of Taiwan’s. If China were to reach even the modes per person consumption level of South Korea, China would be consuming twice the amount of oil the United States currently uses. At the present time, the United States consumes one forth of the world’s total annual oil supplies, about half of which it must import from foreign countries.
Critics pointed out that if China were to eventually have as many cars on the road per person as Germany does, the world would contain twice as many cars as it currently does. No matter how “ pollution – free” the new car design was, the cumulative environmental effects of that many more automobiles in the world would be formidable. Even clean cars would have to generate large amounts of carbon dioxide as they burned fuel, thus significantly worsening the greenhouse effect. Engineers pointed out that it would be difficult, if not impossible, to build a clean car for under $5000. Catalytic converters, which diminished pollution, alone cost over $200 per car to manufacture. In addition, China’s oil refineries were designed to produce only gasoline with high levels of lead. Upgrading all its refineries so they could make low-lead gasoline would require an investment China seemed unwilling to make.
Some of the car companies were considering submitting plans for an electric car because China had immense coal reserves which it could burn to produce electricity. This would diminish the need for China to rely on oil, which it would have to import. However, China did not have sufficient coal burning electric plants nor an electrical power distribution system that could provide adequate electrical power to a large number of vehicles. Building such an electrical power system also would require a huge investment that the Chinese government did not seem particularly interested in making. Moreover, because coal is a fossil fuel, switching from an oil – based auto to a coal – based electric auto would still result in adding substantial quantities of carbon dioxide to the atmosphere.
Many government officials were also worried by the political implications of having China become a major consumer of oil. If China were to increase its oil consumption, would have to import all its oil from the same countries that other nations relied on, which would create large political, economic and military risks. Although the United States imported some of its oil from Venezuela and Mexico, most of its imports came from the Middle East – an oil source that China would have to turn to also. Rising demand for Middle East oil would push oil prices sharply upward, which would send major shocks reverberating through the economics of the United States and those of other nations that relied heavily on oil. State Department officials worried that China would begin to trade weapons for oil with Iran or Iraq, heightening the risks of major military confrontations in the region. If China were to become a major trading partner with Iran or Iraq, this would also create closer ties between these two major power centres of the non-Western world – a possibility that was also laden with risk. Of course, China might also turn to tapping the large reserves of oil that were thought to be lying under Taiwan and other areas neighboring its coast. However, this would bring it into competition with Japan, South Korea, Thailand, Singapore, Taiwan, the Phillippines, and other nations that were already drawing on these sources to supply their own booming economies. Many of these nations, anticipating heightened tensions, were already puring money into their military forces, particularly their navies. In short, because world supplies of oil were limited, increasing demand seemed likely to increase the potential for conflict.
Questions :
1. In your judgment, is it wrong, from an ethical point of view, for the auto companies to submit plans for an automobile to China ? Explain your answer ?
2. Of the various approaches to environmental ethics outlined in this chapter, which approach sheds most light on the ethical issues raised by this case ? Explain your answer.
3. Should the U.S. government intervene in any way in the negotiations between U.S. auto companies and the Chinese government ? Explain.
NO. 4
WAGE DIFFERENCES AT ROBERT HALL
Robert Hall Clothes, Inc., owned a chain of retail stores that specialized in clothing for the family. One of the Chain’s stores was located in Wilmington, Delaware. The Robert Hall store in Wilmington had a department for men’s and boy’s clothing and another department for women’s and girl’s clothing. The departments were physically separated and were staffed by different personnel : Only men were allowed to work in the men’s department and only women in the women’s department. The personnel of the store were sexually segregated because years of experience had taught the store’s managers that, unless clerks and customers were of the same sex, the frequent physical contact between clerks and customers would embarrass both and would inhibit sales.
The clothing in the men’s department was generally of a higher and more expensive quality than the clothing in the women’s department. Competitive factors accounted for this : There were few other men’s stores in Wilmington so the store could stock expensive men’s clothes and still do a thriving business, whereas women’s clothing had to be lower priced to compete with the many other women’s stores in Wilmington. Because of these differences in merchandise, the store’s profit margins on the men’s clothing was higher than its margins on the women’s clothing. As a result, the men’s department consistently showed a larger dollar volume in gross sales and a greater gross profit, as is indicated in Table 7.11.
Because of the differences shown in Table 7.11 women personnel brought in lower sales and profits per hour. In fact male salespersons brought in substantially more than the females did (see Tables 7.12 and 7.13)
Men’s Department Women’s Department

Year
Sales
($) Gross Profit
($) Percent Profit
($)
Sales
($) Gross Profit
($) Percent Profit
($)
1963 210,639 85,328 40.5 177,742 58,547 32.9
1964 178,867 73,608 41.2 142,788 44,612 31.2
1965 206,472 89,930 43.6 148,252 49,608 33.5
1966 217,765 97,447 44.7 166,479 55,463 33.5
1967 244,922 111,498 45.5 206,680 69,190 33.5
1968 263,663 123,681 46.9 230,156 79,846 34.7
1969 316,242 248,001 46.8 254,379 91,687 36.4
TABLE 7. 12

Year Male Sales per Hour
($) Female Sales Per Hour
($) Excess M Over F (%)
1963
1964
1965
1966
1967
1968
1969 38.31
40.22
54.77
59.58
63.18
62.27
73.00 27.31
30.36
33.30
34.31
36.92
37.20
41.26 40
32
64
73
71
70
77

As a result of these differences in the income produced by the two departments, the management of Robert Hall paid their male salespersons more than their female personnel. Management learned after a Supreme Court ruiling in their favor in 1973 that it was entirely legal for them to do this if they wanted. Wages in the store were set on the basis of profits per hour per department, with some slight adjustments upward to ensure wages were comparable and competitive to what other stores in the area were paying. Over the years, Robert Hall set the wages given in Table 7.14. Although the wage differences between males and females were substantial, they were not as large as the percentage differences between male and female sales and profits. The management of Robert Hall argued that their female clerks were paid less because the commodities they sold could not bear the same selling costs that the commodities sold in the men’s department could bear. However, the female clerks argued, the skills, sales efforts, and responsibilities required of male and female clerks were “substantially” the same.
TABLE 7. 13

Year Male Gross Profits per Hour
($) Female Gross Profits Per Hour
($) Excess M Over F (%)
1963
1964
1965
1966
1967
1968
1969 15.52
16.55
23.85
26.66
28.74
29.21
34.16 9.00
9.49
11.14
1143
12.36
12.91
15.03 72
74
114
134
133
127
127

TABLE 7. 14

Year Male Earnings per Hour
($) Female Earnings Per Hour
($) Excess M Over F (%)
1963
1964
1965
1966
1967
1968
1969 2.18
2.46
2.67
2.92
2.88
2.97
3.13 1.75
1.86
1.80
1.95
1.98
2.02
2.16 25
32
48
50
45
47
45

Questions :
1. In your judgment, do the managers of the Robert Hall store have any ethical obligations to change their salary policies ? If you do not think they should change, then explain why they have an obligation to change and describe the kinds of changes they should make. Would it make any difference to your analysis if, instead of two departments in the same store, it involved two different Robert Hall Stores, one for men and one for women ? Would it make a difference if two stores (one for men and one for women) owned by different companies were involved ? Explain each of your answers in terms of the relevant ethical principles upon which you are relying.
2. Suppose that there were very few males applying for clerks’ jobs in Wilmington while females were flooding the clerking job market. Would this competitive factor justify paying males more than females ? Why ? Suppose that 95 percent of the women in Wilmington who were applying for clerks’ jobs were single women with children who were on welfare while 95 percent of the men were single with no families to support. Would this need factor justify paying females more than males ? Why ? Suppose for the sake of argument that men were better at selling than women; would this justify different salaries ?

3. If you think the managers of the Robert Hall store should pay their male and female clerks equal wages because they do “substantially the same work” then do you also think that ideally each worker’s salary should be pegged to the work he or she individually performs (such as by having each worker sell on commission) ? Why ? Would a commission system be preferable from a utilitarian point of view considering the substantial book keeping expenses it would involve ? From the point of view of justice ? What does the phrase substantially the same mean to you ?

NO. 5
NAPSTER’S REVOLUTION
Eighteen – year old Shawn “NAPSTER” Fanning, then a freshman at Northeastern University, dropped out of school and founded Napster Inc. (website was at w.w.w.napster.com) in San Mateo, California in May 1999. Two months earlier, working in his college dorm room, he had developed both a website that let users locate other users who were willing to share whatever music files they had in MP3 format on the hard drives of their computers and a software program (called “Napster) that let users copy these music files from each other over the Internet. When an early free version of the program he posted on Download.com received more than 300,000 hits and was named “Download of the week,” he decided to devote himself full time to developing his program and website. The final version of his version of his program was officially released August 1999, and in May 2000, with more than 10 million people – most of them students on college campuses where Napster was especially popular – signed up at its website, Shawn’s company received $ 15 million of start – up funds from venture capital firms in California’s “Silicon Valley.”
Fanning grew up in Brockton, Massauchettes, the son of a nurse’s aid and the stepson of a truck driver, in a family of four half-brothers and half-sisters. He got the nickname “Napster” during a basketball game when a player commented on his closely cropped sweaty head of hair. Fanning had taught himself programming and had held several summer programming jobs.
The company Shawn helped establish gave the Napster program away for free and charged users nothing to use its website to post the URL addresses where personal copies of music could be downloaded. Nevertheless, a month later, Shawn found himself embroiled in a legal and ethical controversy when two record tables, two musicians (Metallica and Dr. Dre), and two industry trade groups of music companies (the National Music Publishers Association and the Recording Industry Association of America) filed suits against his young company claiming that Napster’s software was enabling other to make and distribute copies of copyrighted music that the musicians and companies owned.

On June 12, the two industry trade groups filed preliminary injunctions against the company demanding that it remove all the songs owned by their member companies from Napster’s song directories. According to the two groups, a survey of 2555 college students showed a correlation between Napster use and decreased CD purchases. College students were outraged, especially fans of Metallica and Dr. Dre. Supporters of Napster argued that Napster allowed people to hear music that they then went out and purchased, so Napster actually helped the music companies. Music sales had increased by over $500 million a year since Napster had started to operate, but the music companies claimed that this was a result of a booming economy. Supporters of Napster also argued that individuals had a moral and legal right to lend other individuals a copy of the music on the CDs that they had purchased. After all, they argued, the law explicitly stated that an individual could make a copy of copyrighted music he or she had purchased to hear the music on another player. Moreover, according to Fanning, Napster was not doing anything illegal, and the company was not responsible if other people used its software and website to copy music in violation of copyright law any more than a car company was responsible when its autos were used by thieves to rob banks. Much of the music that was downloaded using Napster, they claimed, was in the public domain (i.e.not legally owned by anyone) and was being legally copied. The music companies countered that an individual had no right to give multiple copies of their music to others even if the individual had paid for the original CD. If everyone was allowed to copy music without paying for it, they charged, eventually the music companies would stop producing music and musicians would stop creating it. Other musicians claimed, however, that Napster and the Web gave them a way to put their music before millions of potential fans without having to beg the music companies to sponser them.
In March 2000, the band Metallica hired consultant PDNet to electronically “evesdrop” on users who assumed they were anonymously accessing Napster’s website. The following week the band’s lawyers handed Napster a list with the names of 300, 000 people that Metallica claimed had violated its copyrights using Napster’s service and that Metallica now wanted removed from Napster’s services. Fanning complied with the demand of Metallica, whose drummer, Lars Ulrich, was one of his musical heros. “If they want to steal our music,” said Ulrich, “ why don’t they just go down to Tower Records and grab them off the shelves ?” Many young people protested that the bands should not be alienating their own fans in this way. One fan posted a note on an MP3 chat room : “Give me a break ! I have been dropping 16 bucks an album for Metallica’s music since I was a teenager. They made a fortune off us and now they accuse us of stealing from them. What nerve !” Howard King, a Los Angeles lawyer for Metallica and Dr. Dre, stated that “I don’t know Shawn Fanning but he seems to be a pretty good kid who came up with a sensational program. But this sensational program has allowed people to take music without paying ………. Shawn probably had no idea of the legal ramifications of what he created. I’m sure the though never crossed his mind.”
In August 2000, a federal judge in San Francisco, Marilyn Patel, responded to the suit against Napster. Judge Patel called Shawn’s company a “monster” and charged that the only purpose of Napster was to copy pirated music without paying for it. The judge ordered Napster to remove all URLS from its website that referenced material that was copyrighted.
Judge Patel’s ruling would have shut down the company’s website immediately. But a few days later, an appeals court reversed Judge Patel and allowed the company to continue operating. The reprieve was only temporary. On Monday February 12, 2001, the Ninth Circuit Court of Appeals in San Francisco affirmed Judge Patel’s ruling. The company attempted to circumvent the ruling by negotiating agreements with the music companies that would pay them certain annual fees in return for withdrawing the suit.
Napster was not the only software that allowed individuals to swap files from
One personal computer to another over the Internet. The software program named “Gnutella” let individuals swap any kind of files – music, text, or visuals – over the Internet, but Gnutella did not operate a centralized index like the website that Napster had established. Observers predicated that if Napster was put out of business, numerous underground websites would be created providing the kind of listing service that the company had earlier provided on its website. Already a website named zeropaid.com provided free copies of Gnutella and many other Napster clones that users could download and use to share digital music files with each other. Unlike Napster, these software products did not require a central website to connect users to each other, making it impossible for music companies to find and target single entity whom they could sue. Many observers predicated that Napster was only the beginning of an upheaval that would revolutionize the music industry, forcing music companies to lower their prices, make their music easily available on the Internet, and completely change their business models.
Questions :
1. What are the legal issues involved in this case, and what are the moral issues ? How are the two different kinds of issues different from each other, and how are they related to each other ? Identify and distinguish the “systemic, corporate and individual issues” involved in this case.

2. In your judgment, was it morally wrong for Shawn Fanning to develop and release his technology to the world given its possible consequences ? Was it morally wrong for an individual to use Napster’s website and software to copy for free the copy righted music on another person’s hard drive ? If you believe it was wrong, then explain exactly why it was wrong. If you believe it was not morally wrong, then how would you defend your views against t he claim that such copying is stealing ? Assume that it was not I illegal for an individual to copy music using Napster. Would there be anything immoral with doing so ? Explain ?

3. Assume that it is morally wrong for a person to use Napster’s website and software to make a copy of copyrighted music. Who, then, would be morally responsible for this person’s wrong doing ? Would only the person himself be morally responsible ? Was Napster, the company, morally responsible ? Wash shawn Fanning morally responsible ? Was any employee of Napster, the company, morally responsible ? Was the operator of the server or that portion of the Internet that the person used morally responsible ? What if the person did not know that the music was copyrighted or did not think that it was illegal to copy copyrighted music ?

4. Do the music companies share any of the moral responsibility for what has happened ? How do you think technology like Napster is likely to change the music industry ? In your judgment, are these changes ethically good or ethically bad ?

NO. 6
WORKING FOR ELI LILLY & COMPANY
Eli Lilly, the discoverer of Erythromycin, Darvon, Ceclor, and Prozac, is a major pharmaceutical company that sold $6.8 billion of drugs all over the world in 1995, giving it profits of $2.3 billion. Headquartered in Indianpolis, Minnesota, the company also provides food, housing, and compensation to numerous homeless alcoholics who perform short-term work for the company. The work these street people perform, however, is a bit unusual.
Before approving the sale of a newly discovered drug, the U.S. Food and Drug Administration requires that the drug be put through three phases of tests after being tested on animals. In phase I, the drug is taken by healthy human individuals to determine whether it has any dangerous side effects. In Phase II, the drug is given to a small number of sick patients to determine dosage levels. In Phase III, the drug is given to large numbers of sick patients by doctors and hospitals to determine its efficacy.
Phase I testing is often the most difficult to carry out because most healthy individuals are reluctant to take a new and untested medication that is not intended to cure them of anything and that may have potentially crippling or deadly side effects. To secure test subjects, companies must advertise widely and offer to pay them as such as $250 a day. Eli Lilly, however, does not advertise as widely and pays its volunteers only $85 a day plus free from and board, the lowest in the industry. One of the reasons that Lily’s rates are so low is because, as a long time nurse at the Lily Clinic is reported to have indicated, “ the majority of its subjects are homeless alcoholics” recruited through word of mouth that is spread in soup kitchens, shelters, and prisons all over the United States. Because they are alcoholics, they are fairly desperate for money. Because they alcoholics, they are fairly desperate for money. Because phase I testes can run several months, test subjects can make as $4500 – an enormous sum to people who are otherwise unemployable and surviving on handouts. Interviews with several homeless men who have participated in Lily’s drug tests and who describe themselves as alcoholics who drink daily suggest that they are, by and large, quite happy to participate in an arrangement that provides them with “easy money”. When asked, one homeless drinker hired to participate in a Phase I trail said he had no idea what kind of drug was being tested on him even though he had signed an informed – consent form. An advantage for Lilly is that this kind of test subject is less likely to sue if severely injured by the drug. The tests run on the homeless men, moreover, provide enormous benefits for society. It has been suggested, in fact, that in light of the difficulty of securing test subjects, some tests might be delayed or not performed at all if it were not for the large pool of homeless men willing and eager to participate in the tests.
The Federal Drug Administration requires that people who agree to participate in Phase I tests must give their “ informed consent” and must take a “ truly voluntary and a uncoerced decision.” Some have questioned whether the desperate circumstances of alcoholic and homeless men allow them to make a truly voluntary and uncoerced decision when they agree to take an untested potentially dangerous drug for $ 85 a day. Some doctors claim that alcoholics run a higher risk because they may carry diseases that are undetectable by standard blood screening and that make them vulnerable to being severely named by certain drugs. One former test subject indicated in an interview that the drug he had been given in a test several years before had arrested his heart and “ they had to put things on my chest to start my heart up again.” The same thing happened to another subject in the same test. Another man indicated that the drug he was given had made him unconscious for 2 days while others told of excruciating headaches.
In earlier years, drug companies used prisoners to test drugs in Phase I tests. During the 1970s, drug companies stopped using prisoners when critics complained that their poverty and the promise of early parole in effect were coercing the prisoners into “Volunteering”. When Lilly first turned to using homeless people during the 1980s, a doctor at the company is quoted as saying, “ We were constantly talking about whether we were exploiting the homeless. But there were a lot of them who were willing to stay in the hospital for four weeks.” Moreover, he adds. “Providing them with a nice warm bed and good medical care and sending them out drug – and alcohol – free was a positive thing to do.”
A homeless alcoholic indicated in an interview that when the test he was participating in was completed, he would rent a cheap motel room where I’ll get a case of Miller and an escort girl have sex. The girl will cost me $ 200 an hour.” He estimated that it would take him about two weeks to spend the $ 4650 Lily would pay him for his services. The manager at another cheap motel said that when test subjects completed their stints at Lily, they generally arrived at his motel with about $ 2500 in cash : “ The guinea pigs go to the lounge next door, get drunk and buy the house a round. The idea is, they can party for a couple of weeks and go back to Lily and do the next one.”
Questions :
1. Discuss this case from the perspective of utilitarianism, rights, justice and caring. What insight does virtue theory shed on the ethics of the events described in this case ?
2. “ In a free enterprise society all adults should be allowed to make their own decisions about how they choose to earn their living.” Discuss the statement in light of the Lily case.
3. In your judgment, is the policy of using homeless alcoholics for test subjects morally appropriate ? Explain the reasons for your judgment. What does your judgment imply about the moral legitimacy of a free market in labor ?
4. How should the managers of Lily handle this issue ?


BUSINESS COMMUNICATION XIBMS ONGOING EXAM ANSWER SHEETS PROVIDED

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Business Communication

N. B. : 1) Attempt any Four Case studies
2) All case studies carry equal marks.
No: 1
A REPLY SENT TO AN ERRING CUSTOMER
Dear Sir,
Your letter of the 23rd, with a cheque for Rs. 25,000/- on account, is to hand.
We note what you say as to the difficulty you experience in collecting your outstanding accounts, but we are compelled to remark that we do not think you are treating us with the consideration we have a right to expect.
It is true that small remittances have been forwarded from time to time, but the debit balance against you has been steadily increasing during the past twelve months until it now stands at the considerable total of Rs. 85,000/-
Having regard to the many years during which you have been a customer of this house and the, generally speaking, satisfactory character of your account, we are reluctant to resort to harsh measures.
We must, however, insist that the existing balance should be cleared off by regular installments of say Rs. 10,000/- per month, the first installment to reach us by the 7th. In the meantime you shall pay cash for all further goods; we are allowing you an extra 3% discount in lieu of credit.
We shall be glad to hear from you about this arrangement, as otherwise we shall have no alternative but definitely to close your account and place the matter in other hands.
Yours truly,
Questions:
1. Comment on the appropriateness of the sender’s tone to a customer.
2. Point out the old – fashioned phrases and expressions.
3. Rewrite the reply according to the principles of effective writing in business.
NO. 2
WAVE
(ATV : Advertising Radio FM Brand)
A young, gorgeous woman is standing in front of her apartment window dancing to the 1970s tune, “All Right Now” by the one – hit band free. Across the street a young man looks out of his apartment window and notices her. He moves closer to the window, taking interest. She cranks up the volume and continues dancing, looking out the window at the fellow, who smiles hopefully and waves meekly. He holds up a bottle of wine and waves it, apparently inviting her over for a drink. The lady waves back. He kisses the bottle and excitedly says, “Yesss.” Then, he gazes around his apartment and realizes that it is a mess. “No !” he exclaims in a worried tone of voice. Frantically, he does his best to quickly clean up the place, stuffing papers under the sofa and putting old food back in the refrigerator, He slips on a black shirt, slicks back his hair, sniffs his armpit, and lets out an excited , “Yeahhh!” in eager anticipation of entertaining the young lady. He goes back to the window and sees the woman still dancing away. He points to his watch, as if to say “ Come on. It is getting late.” As she just continues dancing, he looks confused. Then a look of sudden insight appears on his face, “Five,” he says to himself. He turns on his radio, and it too is playing “All Right Now.” The man goes to his window and starts dancing as he watches his lady friend continue stepping. “Five, yeah,” he says as he makes the “okay” sign with his thumb and forefinger. He waves again. Everyone in the apartment building is dancing by their window to “All Right Now.” A super appears on the screen: “Are you on the right wavelength ?”
Questions :
1. What is non – verbal communication ? Why do you suppose that this commercial relies primarily on non-verbal communication between a young man and a gorgeous woman ? What types of non – verbal communication are being used in this case ?
2. Would any of the non-verbal communications in this spot (ad) not work well in another culture ?
3. What role does music play in this spot ? Who is the target market ?
4. Is the music at all distracting from the message ?
5. How else are radio stations advertised on TV ?

NO. 3
ARVIND PANDEY CAUGHT IN BUSINESS WEB
Arvind Pandey is a project manager at Al Saba Construction Company in Muscat. It s a flourishing company with several construction projects in Muscat and abroad. It is known for completing projects on time and with high quantity construction. The company’s Chairman is a rich and a highly educated Omani. A German engineer is Arvind’s Vice – President for urban and foreign construction projects.
Three months ago, Al Saba had submitted a tender for a major construction project in Kuwait. Its quotation was for $ 25 million. In Kuwait the project was sponsored and announced by a US – based construction company called Fuma. According to Al Saba, their bid of $ 25 million was modest but had included a high margin of profit.
On 25 April, Arvind was asked to go to Kuwait to find out from the Fuma project manager the status of their construction proposal. Arvind was delighted to know that Fuma had decided to give his company. (Al Saba) the construction project work. The project meant a lot of effort and money in planning the proposed construction in Kuwait.
But before Arvind could tank the Fuma project manager, he was told that their bird should be raised to $ 28 million. Arvind was surprised. He tried to convince the Fuma project manager that his (Arvind company had the bast reputation for doing construction work in a cost effective way . However, he could always raise the bid by $ 3 million. But he wanted to know why he was required to do so.
The Fuma manager’s reply was, “That’s the way we do our business in this part of the world, $ 1 million will go to our Managing Director in the US, I shall get $ 1 million, you, Mr. Pandey, will get $ 1 million in a specified account in Swiss Bank.
Arvind asked, “ But why me ?”
“ So that you never talk about it to any one.” The Fuma Project Manager said.
Arvind promised never to leak it out to any one else. And he tried to bargain to raise the bid by $ 2 million. For. Arvind was familiar with the practice of “ pay – offs” involved in any such thing. He thought it was against his loyalty to his company and his personal ethics.
Arvind promised the Fuma project manager that the bid would be raised to $ 28 million and fresh papers would be put in. He did not want to lose the job.
He came back to Muscat and kept trying to figure out how he should place the whole thing before his German Vice President. He obviously was at a loss.
Questions :
1. Analyse the reasons for Arvind Pandey’s dilemma.
2. Does Arvind Pandey really face a dilemma ?
3. In your view what should Arvind Pandey do ? Should he disclose it to his German Vice President ?

NO. 4.
COMPANY ACCEPTING A CONTRACT
A computer company was negotiating a very large order with a large size corporation. They had a very good track record with this client.
In this corporation, five different departments had pooled their requirements and budgets. A committee was formed which had representation from all the departments. The corporation wanted the equipment on a long lease and not outright purchase. Further, they wanted all the hardware and software form one supplier. This meant that there should be bought – out items from many suppliers since no one supplier could meet all the requirements of supply from its range of products.
The corporation provided an exhaustive list of very difficult terms and conditions and pressurized the vendors to accept. The computer company who was finally awarded the contract had agreed to overall terms that were fine as far as their own products were concerned but had also accepted the same terms for the brought – out items. In this case, the bought – out items were to be imported through a letter of credit. The percentage of the bought – out items versus their own manufacture was also very high. One of the terms accepted was that the “system” would be accepted over a period of 10 days after all the hardware had been linked up and software loaded.
The computer company started facing trouble immediately on supply. There were over 100 computers over a distance connected with one another with software on it. For the acceptance tests, it had been agreed that the computer company would demonstrate as a pre-requisite the features they had claimed during technical discussions.
Now, as you are aware, if a Hero Honda motorcycle claims 80 km to a litre of petrol, it is under ideal test conditions and if a motorcycle from the showroom were to be tried for this test before being accepted, it would never pass the test. In corporation’s case, due to internal politics, the corporation persons from one department – who insisted on going exactly by the contract – did not sign acceptance since the “ system” could not meet the ideal test conditions.
Further, in a classic case of, “ for want of a horse – shoe, payment for the horse was held up”, the computer company tried to get the system accepted and payment released. The system was so large that at any point of time over a period of 10 days something small or the other always gave problems. But the corporation took the stand that as far as they were concerned the contract clearly were concerned the contract clearly mentioned that the “system” had to be tested as a whole and not module by module.
Questions :
1. Comment on the terms and conditions placed by the corporation.
2. What factors influenced the computer company’s decision to accept the contract ?
3. Was it a win – win agreement ? Discuss ?

NO. 5
EMPLOYMENT INTERVIEW OF R P SINHA
Mr. R P Sinha is a MBA. He is being interviewed for the position of Management Trainee at a reputed company. The selection committee’s is chaired by a lady Vice – President. Mr. Sinha’s interview was as follows :
Committee : Good morning !
Mr. Sinha : Good morning to Sirs and Madam !
Chairperson : Please, sit down.
Mr. Sinha : Thank you (sits down at the edge of the chair, keeps his portfolio on the table)
Q. Chairperson : You are Mr. R. P. Sinha
A Sinha : Yes, Madam. This is how I am called.
Q. Chairperson : You have passed MBA with 1st Division.
A. Sinha : Yes, Madam.
Q. Chairperson : Why do you want to work in our organization ?
A Sinha : It is just like that. Also, because it has good reputation.
Q. Member A : This job is considered to be quite stressful. Do you think you can manage the stress involved.
A. Sinha : I think there is too much talk about stress these days. Sir, would you tell clearly what you mean by stress ? I am very strong for any stress.
Q. Member B : What are your strengths ?
A. Sinha : Sir, who am I talk boastfully about my strengths. You should tell me my strengths.
Q. Member C : What are your weaknesses ?
A. Sinha : I become angry very fast.
Q. Member A : Do you want to ask us any questions ?
A Sinha : Yes Sir ! What are the future chances for one who starts as a management trainee ?
The member tells M. Sinha the typical career path for those starting as Management Trainee. The Chairperson thanks Mr. Sinha. Mr. Sinha promptly says in reply, “you are welcome,” and comes out.

Questions :
1. Do you find Mr. Sinha’s responses to various questions effective ? Give reasons for your view on each answer given by Mr. Sinha.
2. Rewrite the responses that you consider most effective to the above questions in a job interview.
3. Mr. Sinha has observed the norm of respectful behaviour and polite conversation. But, do you think there is something gone wrong in his case ? Account for your general impression of Mr. Sinha’s performance at the interview.

NO. 6
Comment on the form and structure of the Report.


BUSINESS ENVIRONMENT XAVIER INSTITUTE EXAM ANSWER SHEETS PROVIDED

BUSINESS ENVIRONMENT XAVIER INSTITUTE EXAM ANSWER SHEETS PROVIDED
CONTACT:

DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com

Note: Attempt any five questions. All questions carry equal marks
1. Discuss the changing scenario of business environment in India and its principal implications for the business.
2. (a) Explain the dualistic character of Indian economy and the problem of uneven income distribution.
(b) Outline the development of consumer movement in India.
3. (a) Write notes on (i) adjudication machinery for settlement of disputes, and (ii) Employees Pension Scheme, 1995.
(b) Enumerate the powers of the Central Government to control production, supply and distribution of essential commodities under the Essential Commodities Act, 1955.
4. Describe the important amendments proposed under the Companies (Amendment) Bill, 2003 and the additions proposed thereto by lrani Panel.
5. (a) Can SEBI compel a public company to get its securities listed on the stock exchanges while making a public issue? On what grounds can the listed securities be delisted by a stock exchange? State the rules in this regard.
(b) “The role of stock exchanges in India need not be over – emphasized”. Comment.
6. Describe the evolution of the concept of corporate governance and outline the various measures adopted in India to ensure good corporate governance.
7. Make a critical assessment of New Economic Policy keeping in view the long term objectives of economic development.
8. (a) What are the objectives of EXIM policy 2002 – 07? Explain its main provisions.
(b) Write an explanatory note on functions and coverage of WTO.
9. Distinguish between the following:
(a) Micro Environment and Macro Environment
(b) Economic Growth and Economic Development
(c) Money Market and Capital Market
(d) Entrepreneurship, Role and Promotional Role of Government

BUSINESS STRATEGY

Marks: 100
NOTE:
I. Answer ANY FIVE questions.
II. All questions carry 20 marks each.
III. Total numbers of questions are EIGHT.

———————————————————————-

Q.1. Write short notes on ANY TWO of the following
a. Globalization
b. Task and processes in formulating business strategy
c. TQM Philosophy
d. Characteristics of well formulated corporate objectives

Q.2. Describe Vision and Mission statements with suitable illustrations. What is the difference between vision and mission? How does business definition help in articulating the Mission statement?

Q.3. Describe Porter’s five forces model to analyse competition with reference to light commercial vehicle industry.

Q.4. Describe the GE multifactor portfolio matrix and state how the GE matrix is superior tool Vis a Vis the BCG matrix.

Q.5. a) Describe Ansoff’s matrix
b) What is the difference between market penetration and market development? Illustrate with suitable examples.

Q.6. What is “Best cost provider” strategy? What are the risks in pursuing this strategy?

Q.7. What strategic options a firm could follow when the firm is operating in a maturing industry?

Q.8. Describe the role of strategy supportive reward system with suitable illustrations.

Xaviers Institute of Business Management Studies

MANAGEMENT CONTROL SYSTEMS

Marks: 80

Note: Attempt any five questions. All questions carry equal marks.
1. Explain the various components of control systems.
2. Explain the following models and highlight their usefulness in formulating business unit strategies:
(a) The BCG Model
(b) General Electric (GE) Planning Model
3. Explain the boundary conditions in the context of profit centre. Also explain the process of performance measurement of profit centers.
4. What do you understand by Investment Centres? Explain the methods used for measuring investment centre performance.
5. What do you mean by budgetary control system? Explain the process of budgetary control in an organization.
6. Describe the criteria on which the incentives of business unit managers are decided.
7. What are the various special control issues faced by Multi National Corporations?
8. What are the characteristics of a project organization? Explain how these characteristics affect the control system design of a project.


What is Information system?

(a) What is Information system?

ANSWERS PROVIDED WHATSAPP OR MOB +91 9924764558 OR +91 9447965521

MANAGEMENT INFORMATION SYSTEMS

Marks: 80

SECTION A

Answer any 4 sub Questions. Each question carries five marks. (4X5= 20)

1.
(a) What is Information system?
(b) What is prototyping?
(c) What is Web Based System?
(d) What is hyperlink?
(e) What is knowledge management system?

SECTION B

Answer any five Questions. Each question carries 6 marks. (5×6= 30)

2. What is EIS? Explain its advantages and disadvantages.
3. What are the major challenges involved in building, operating and maintaining information system?
4. How does an organisation impact in IT? Explain.
5. Explain the four stage model of IT planning.
6. What are the steps involved in implementation and evaluation of a system?
7. What is DSS? What are the models? Explain its components.
8. What are the benefits and application of content management?

SECTION C

Answer any three Questions. Each question carries 10 marks. (3×10= 30)

9. What are the types of IS? Explain each of them.
10. Explain a) ERP b) SCM.
11. What are recent developments in MIS area?
12. How do you manage the multimedia content?
13. What are the ethics in IT?
14. Explain the features and characteristics of objects in object oriented analysis and design.


XAVIERS MBA MAY MONTH EXAM ANSWERS PROVIDED

XAVIERS MBA MAY MONTH EXAM ANSWERS PROVIDED WHATSAPP 91 9924764558
Entrepreneurship
Total marks – 100

PART – A
Answer any 5 questions. Each question carries 4 marks.
1. Define the term ‘spontaneous entrepreneur’.
2. Define a tiny industry.
3. What do you mean by seed capital?
4. Who is an entrepreneur?
5. State four functions of SISI.
6. What do you mean by industrial clusters?
7. Define the term project report.
8. What do you mean by network analysis?
9. What is venture capital?
10. What is DIC?
11. What do you mean by job rotation?
12. Explain the term ‘business environment’. (5×4=20 Marks)

PART – B
Answer any eight questions. Each question carries 5 marks.
13. Discuss the need for and importance of project appraisal.
14. What are common errors in project formulation?
15. Discuss the qualities for a successful entrepreneur.
16. Suggest some measures for developing rural entrepreneurship.
17. Explain the different phases of a typical EDP.
18. What factors determine the capital structure of an enterprise?
19. Discuss the role and functions of SIDBI.
20. Discuss the salient features of the new small enterprise Policy.
21. Explain the factors influencing organisational climate.
22. Make a list of the major considerations in the layout of plants.
23. Examine the suitability of small enterprises to the Indian economy.
24. Discuss the specific problems of women entrepreneurs. (8×5=40 Marks)

PART – C
Answer any two questions. Each question carries 20 marks.
25. Briefly discuss the factors affecting entrepreneurial growth in a developing economy.
26. Explain the institutional frame work for the promotion of small enterprises in India.
27. What is a project report? Show its contents by preparing a proforma project
report.
28. Discuss the dimensions of a typical project appraisal proposed for small enterprises.
(2×20=40 Marks)

MANAGEMENT INFORMATION SYSTEMS

Marks: 80

SECTION A

Answer any 4 sub Questions. Each question carries five marks. (4X5= 20)

1.
(a) What is Information system?
(b) What is prototyping?
(c) What is Web Based System?
(d) What is hyperlink?
(e) What is knowledge management system?

SECTION B

Answer any five Questions. Each question carries 6 marks. (5×6= 30)

2. What is EIS? Explain its advantages and disadvantages.
3. What are the major challenges involved in building, operating and maintaining information system?
4. How does an organisation impact in IT? Explain.
5. Explain the four stage model of IT planning.
6. What are the steps involved in implementation and evaluation of a system?
7. What is DSS? What are the models? Explain its components.
8. What are the benefits and application of content management?

SECTION C

Answer any three Questions. Each question carries 10 marks. (3×10= 30)

9. What are the types of IS? Explain each of them.
10. Explain a) ERP b) SCM.
11. What are recent developments in MIS area?
12. How do you manage the multimedia content?
13. What are the ethics in IT?
14. Explain the features and characteristics of objects in object oriented analysis and design.

Managerial Economics
Total Marks – 80
Answer any FIVE Questions. All Questions carry equal marks

1. Managerial Economics is the application of Economic Theory to business management. Discuss. [16]

2. What are the needs for demand forecasting? Explain the various steps involved in demand forecasting. [16]

3. Define production function. How is it helpful while taking output decisions? [16]

4. (a) ‘ The monopolist represents one man industry’? Comment and discuss how equilibrium position can be attained by the monopolist.
(b) Use appropriate diagrams to supplement your answer. [10+6]

5. (a) Define partnership and explain its salient features and limitations.
(b) What are the qualities of a good partner? [8+8]

6. What are the components of working capital? Explain each of them. [16]

7. Give a brief account on the important records of Accounting under Double entry system and discuss briefly the scope of each. [16]

8. (a) From the information (given with attachments), calculate [16]
i. Debt Equity ratio
ii. Current ratio
(b) Calculate Interest Coverage ratio from the information (given with attachments) .
A.

B.

Marketing Management

Max. Marks : 80

Instructions :
(1) Attempt any five questions.
(2) All questions carry equal marks.

Q.1) Define Marketing Management. Discuss its importance and scope in today’s
dynamic Competitive Environment.

Q.2) What is ‘Product Life Cycle’ ? How Marketing Mix Decisions have to
be adjusted at different stages of PLC (Product Life Cycle) ?

Q.3) Explain various pricing strategies a firm can adopt.

Q.4) What is Product Mix ? Explain various Product Mix Strategies with suitable
examples.

Q.5) Discuss various cultural issues involved in International Marketing.

Q.6)
(A) What is Consumer Buying Behaviour ?
(B) Explain various steps involved in Buying Consumer Goods.

Q.7) Write short notes : (Any Two)
(a) Promotion through International Exhibitions and Trade Fares
(b) Use of Internet as a Marketing Tool
(c) Channel Conflicts

OPERATIONS MANAGEMENT

Maximum Marks: 100

Note: Attempt any five questions. All questions carry equal marks. Assume any missing data suitably.

1. (a) Draw a systems view diagram of any service organization of your choice. Identify its various components. Explain its interdisciplinary nature. 10
(b) What are the major characteristics of a Production system? Discuss some of its upcoming issues that provide economies in production and efficiency in the performance of the system. 10

2. (a) Explain with examples, how the TQM concept can integrate design engineering, manufacturing and service. 10
(b) What are process capability studies ? Explain the process capability index with applications to a real life example. 10

3. (a) Compare traditional process planning with Computer Aided Process Planning (CAPP). Also explain a generative CAPP system. 10
(b) Explain the objectives of Total Productive maintenance. Give its importance. Also comment on the concept of TPM promotion. 10

4. (a) Why is forecasting required in operations management ? Discuss the concept of forecast error as applied to different conditions. 10
(b) How are quantitative models of forecasting different from qualitative models ? Discuss in detail time-series model as used for forecasting. 10

5. (a) What is facility planning ? Explain with examples different types of layouts as used in manufacturing organisations. 10
(b) Discuss work measurement as a process to establish task time. Explain the various techniques for developing time standards. 10

6. (a) Explain just in time manufacturing with the help of examples. Discuss its advantages and disadvantages. 10
(b) For an independent demand inventory model, derive the equation for Economic Order Quantity. List all assumptions. 10

7. Write short notes on any four of the following: 4×5=20
(a) OPT
(b) Break even analysis
(c) Lean manufacturing
(d) Kanban system
(e) Line of Balance for Production Control
(f) Purpose of aggregate plans.

Organizational Behaviour

Max. Marks: 80

Answer any 8 questions. All questions carry equal marks

1. As a manager how do you improve workers perception in the organization?

2. Explain the factors affecting individual differences.

3. Write a short note on Hawthorne studies.

4. Discuss the need for studying OB.

5. Briefly explain defensive mechanisms.

6. Explain the factors influencing individuals’ personality development.

7. Explain two factor theory of motivation.

8. How do you create and sustain organizational culture.

9. Explain the Managerial grid leadership style of Blake and Mouton.

10. Explain the various sources of attitudes formation.

11. What is self concept? How you defend yourself from various environment problems.

•••

Principles and Practice of Management

Communicating in a Crisis

Overview Valley High School, situated in Kodaikanal, was established in 1980 and is owned by a well respected charitable trust. It overlooks a lake and is a modern building equipped with state-of-the-art facilities. The total student enrolment is 2000, out of which more than 50% are girls and the rest boys. The students are all from affluent, educated families. The school has established a good reputation for itself, thanks to the consistently good performance of students in the public examinations. The school is headed by a lady Principal and also has a couple of Supervisors and a team of 25 teachers. The teachers have had extensive experience, are well qualified and are known for their commitment to imparting quality education to students. Due to the recent heavy monsoons, the school was faced with the problem of flooding, with water entering the rooms on the ground floor and water seepage on the terrace. Since repair work had to be done, the school had to be closed for a couple of weeks. The work was carried out by reputed contractors, but the building still looks a little run down.
The crisis the school had just reopened after this two week break. The same morning, a fire suddenly broke out on the third floor and spread to other floors, blocking the stairways. There was widespread panic, as the children started jumping off the balconies, injuring themselves in the process. The Principal and staff had a tough time trying to calm down the children and take control of the situation. Fire engines were called and several of them arrived and began their fire fighting operations. In the meanwhile, many parents also arrived and tried to enter the building to speak to the Principal. The phones were ringing continuously. There was total chaos.

Question 1 :- How communication crises arise?
Question 2 :- What Principal should do to calm down the angry parents?
Question 3 :- How school will regain its reputation? What services school should provide in order to maintain its reputation?

Case Study 2

Case Study on The power of Non-Verbal Communication

The Power of Nonverbal Communication Soon after I graduated from engineering college, I accepted a position with the Sundaram Foundry, a medium-sized firm located in a small town in Tamil Nadu. It was a good position, since I was the assistant to Mr. Vishwanath, the General Manager and president of this family owned company, although there were many technical problems, the work was extremely interesting and I soon learnt all about the foundry business. The foundry workers were mostly older men and were a closely knit team. Many of them were related and had been in the foundry for several years. Therefore, they felt that they knew the business in and out and that a technical education had no value. In fact, Mr. Vishwanath had mentioned to me even at the time of my joining, that I was the only engineer ever to be employed in the foundry. He also let me know that the foundry workers, although a good group, were very clannish, since they had been working together for several years. Therefore, it would probably take them some time to accept me. I introduced myself to the group of foundry workers, a few days after my joining. As I went around in turn, I felt them eyeing me coldly. As I went down the main aisle of the foundry, I heard them talking to each other in low voices and laughing. I found their behavior to be very childish and felt that it was best to ignore these signs of hostility. I thought that if I ignored them, they would automatically stop these antics. A few weeks after this incident, I happened to visit the enamel shop. As I entered, I noticed a worker cleaning the floor with a hose, from which water flowed at high pressure. I was aware that it was the practice to clean the shop at least once a week. I turned my back on the worker and was busy near a dipping tank, when I suddenly felt the force of a stream of water hitting me. I was almost knocked down by the pressure and slipped on the wet floor. When I turned around, the worker looked away in the other direction, as if he had not noticed this happening. However, I was pretty sure that he had intentionally turned the hose on me.

Question 1 – What message did the foundry workers and the new engineer convey to each other through their non-verbal behavior?

Question 2 – Mr. Vishwanath, the General Manager and President, was not often present at the foundry. What could this non-verbal behavior mean to the workers and the new engineer?

Question 3. How could the engineer, the foundry workers and Mr. Vishwanath be more effective, both verbally and nonverbally?

Question 4. What do you suggest that the engineer should do, after the hosing incident?

Case Study 3

BS GETS A D-PLUS ON DIVERSITY FROM MULTIETHNIC COALITOIN

On February 3, 2000, President and CEO of CBS Leslie Moonves signed a pact with Kweisi Mfume, president and CEO of the national association for advancement of colored people (NAACP), who had joined forces with the Hispanic media coalition, and the American Indians in film and television to request the CBS help to increase Indians in film and television to request that CBS help to increase ethnic presence in the television industry. The agreement stipulated the CBS would increase minority participation both on and off screen by June 30.

In April 2000, CBS announced the appointment of Josie Thomas to the newly created position of senior vice president of Diversity at CBS Television. Her job was to improve outreach and recruitment, hiring, promotion, and monitoring practices in all divisions of CBS. That fall Moonves announced that 16 of the 21 CBS shows, including news magazines, would prominently feature minorities. “We think we are a leader in this area,” Moonves said “We think we are ahead of the curves”

Despite Mooves’s Statement that as “broadcasters, we believe strongly that it is our duty to reflect the public that makes up our viewing audience,” there were many who did not feel the company was sincere in its efforts to improve hiring practices. The national Hispanic Foundation for the Arts criticized CBS for not scheduling “American Family,” A pilot drama about middle – class Hispanic family. Moonves said “American Family” simply did not fit in CBS’s schedule, since there were already too many strong dramas planned. He said he took the unusual step of allowing the show’s producer to pitch the CBS-developed networks but no one picked it up. Meanwhile, the June 30 deadline had come and gone without much outward sign of change at CBS television.

Josie Thomas is committed to CBS’s new mandate for multicultural diversity. Twelve of CBS’ prime time series will have minorities in permanent roles and other series will have minority in recurring role. Fore of the network’s shows- C.S.I., the district, the fugitive and welcome to New York have minorities in leading roles.

Since signing the agreement, CBS has established a strong working relationship with national minority supplier council in order to help minority supplier council and women’s businesses. The company has bolstered its internship program to include paid internships on the west coast, pairing up interns with their areas of interest, Such as finance or entertainment. There are 10 minority interns in the program. Moreover, CBS has now made diversity a factor in employee job performance evaluation. “Each area of the network has developed a detailed plan for diversity,” said Thomas. “Manager will be reviewed with respect to their diversity efforts and that will be a factor in compensation decisions.” Ms. Thomas noted that Ghen Maynard, an Asian American Pacific Islander, had just been promoted form director to vice president of alternative programming for the entertainment division.

“Will all believe there is a long way to go,” Thomas said. “What I have found is there are some things that already exist that are positive, such as news magazines having minority anchors. We think ‘city of angels’ renewal was an important step. The ratings were mediocre to low, and we did feel the program was a risk. It says a lot about our commitment”

In June 2001, the coalition gave the Big 4 Broadcast Networks (all of whom had signed an agreement) a report card for their efforts to diversity shows on – air and behind the scenes. CBS got a D-plus.

Mr. Nogales, of the National Hispanic Media Coalition, said he was disappointed “We expect progress; we signed for progress” “The numbers in comparison to last year actually look better” Nogales says. “There have been gains for people of color. There was movement. But it has to be movement across the board, not just for one group.” He is referring to the fact that most of the gains have been made by black actors, writes and producers. Black actors appear as regular in at least 19 of the six major networks’30 new prime-time series. Hispanics shows up in only eight, Asians in five and Native Americans in one.

The pressure being put on the networks- including threats of “boycott” and legal action – is having results. At CBS the number of minority writers and producer has more than tripled, from four to fourteen, including six executive or co executive producer however, obstacles to a fully integrated future remain serious-particularly because of misconceptions about the nature of the television audience and about the way pop culture works. Network executive worry that “ghetto shows” might promote stereotypes. They wonder if shows like The cosby show are “black” enough. Then again, they think that casting too many minorities may drive white viewers away. Some network executives are afraid to cast minority actors in “negative” roles because they may be criticized for it minority writers, who have been getting more work lately, wonder if they are not just “tokens”; and despite some progress it is still almost impossible for Hispanic actor to get non- Hispanic roles.

Both the NAACP and the coalition have been battling discrimination for years. CBS is just finding out that a profound change toward pluralism can take place only with true insight on the part of management. CBS spokesperson Chris Ender says “We have made tremendous strides to increase diversity on screen, behind the camera and in the executive suites. However we certainly recognize that more can be done and more will be done.”

As far as Nogales is concerned. “It’s still a white guy’s world,” and the june 2001 statics for network television prove he is right.

Questions
Question 1:- What advantages would accrue to CBS if it becomes a more diverse workplace?

Question 2:- Where would you have placed CBS on the organizational diversity continuum and where would you place CBS now? Why?

Question 3:- Which approach (es) to pluralism best sums up the diversity policy that is being developed at CBS? Explain

Question 4:- How do the attitudes of management at CBS as depicted in your case study affect the company’s progress toward forming a more diverse workforce? Explain.

Case Study 4

McDonald’s Listening Campaign

At the end of 2002, the world’s largest quick service retailer made its first ever quarterly loss and faced a number of challenges. It responded by launching its Plan to Win program, part of a global strategy to modernize the business, followed by the Listening Campaign in the UK. Here, Ali Carruthers explains how the two initiatives were linked in the UK, and the impact The Listening Campaign has had on communication, culture, image and media perception.

In 2003, things were looking bleak for McDonald’s. Its share price was the lowest it had been in a decade and it faced a series of seemingly insurmountable problems: It was demonized by the UK media in the fierce debate raging over obesity; it faced huge competition on the high street; and it was suffering under a wave of Anti-Americanism in the wake of the wars in Afghanistan and Iraq.
Added to this was the fact that the restaurants themselves were beginning to look dated and UK health lobbyists were determined to push home the message that McDonald’s food was bad for people.
Speaking earlier this year to the BBC, the UK CEO Peter Beresford said: “We had taken our eye off the customer, we were not customer focused, we were not customer driven. And so we reorganized and regrouped. We decided we had to stop and take stock of where we were. We had to be better, but we had to change the way we were running this business.”
The Plan to Win
The senior management put their heads together and devised the Plan to Win program, which went public in the last quarter of 2003. A key part of its focus was a shift to more choice and variety foods, with salads appearing permanently on the menu for the first time in the organization’s history. Key restaurants began to receive make over and a supporting advertising campaign with international stars was planned, all of which were intended to turn the food chain’s image around.
But just as things were beginning to look up for the organization, trouble raised its head again in the shape of the documentary film “Supersize me,” which in turn re-ignited the obesity debate in the media. It was then discovered that one of the salads McDonald’s was marketing contained more calories than one of its hamburgers. The UK press reacted with predictable glee and once again McDonald’s was in the spotlight for all the wrong reasons.
The Listening Campaign. The company responded promptly. Working with agency Blue Rubicon, the in-house communication and media relations team devised the Listening Campaign. It made the most of the arrival of new UK CEO Peter Beresford in July 2004, building on his personal credibility and that of McDonald’s with the Listening Tour. Beresford spoke directly to customers in focus groups, met with franchise holders and with employees in 12 UK cities over the space of six weeks, starting at the end of October.
The key ingredient was listening to customers and staff and then showing the results of this. “Part of the reason [for doing it] was that we had to introduce Peter very quickly to employees, customers and stakeholders,” says head of internal communications AIi Carruthers. “It was also signaling that he’d continue to work to change our culture and lead the drive for a real transparency of approach. We’ve been building on that work ever since.”
Focus groups for stakeholders

The communication team made the most of Beresford’s time by booking ahead so that local franchisees could meet him when he travelled to regional centers for customer focus groups. Next, Listening Groups were created for the company’s regional offices with corporate rather than restaurant-based employees taking part. Initial meetings were centered around three classic focus group questions:
* What works?
* What would you change?
* How would you change it?
In each session, six to 10 employees took part and the sessions lasted around two hours. After the first session, an action plan was drawn up and fed back to the employees in a second round of focus groups. Then the agreed proposed changes were put in place by the organization.
Proposed changes put in place
A range of short, medium and long term actions have been instigated as a result of the focus groups. These include a firm commitment to hold monthly town-hall sessions to regularly address key issues within the organization. “We’ve agreed to use these sessions to feature various departmental heads,” says Carruthers.
“That’s so people can put names to faces, understand the organizational structure better and get an understanding of what goes on outside their own departments.” The company has also committed itself to involving a new group of employees every six months, and to being more transparent about its promotion process and how people are assessed for promotion. It now holds regular Plan to Win meetings, which are related to the global strategy. “We’re using the town-hall sessions to communicate the global strategy to thebroader office group rather than just senior management so there’s a wider understanding of what we’re doing,” says Carruthers.
The company has also committed to a peer-nominated quarterly recognition scheme for the regional and head offices. It’s planned that the town halls will also be used in the recognition scheme. “People need to say well done to each other and be acknowledged by the senior team,” says Carruthers.
A change in company culture
According to Carruthers, the strategy has been recognized globally – a drive for greater face-to-face communication, more transparency, a growth in leadership behavior and accountability. “Basically we’ve been trying to make people feel they’re able to ask questions,” she says. “There’s nothing wrong with challenging the status quo as long as it’s done in a constructive and respectful way. If we can use some of those ideas we can probably make it a more enjoyable place for everyone to work.”
There’s no doubt that the Listening Campaign has had an impact on the senior team and general employees alike. Carruthers has had feedback from both groups and believes the exercise has been an eye-opener for the senior team: “They frequently mention experiences they’ve had in those groups. There’s nothing quite like hearing issues for yourself; the good ones and the more awkward ones.”
The feedback from focus-group participants has been very good; employees say they feel listened to and think their feedback is being taken on board. “They feel confident to ask questions or send e-mails directly to people they thought wouldn’t have listened to their suggestions previously. It’s changing the culture. Anything that builds trust and transparency is good. Now it’s about delivering on the changes that we said we’d make.”
A hotline to the CEO
A hotline to the CEO has made the company’s drive for transparency and commitment to employees even more credible. The “Ask Peter” e-mail address was established when Beresford took up his post and has seen a fair amount of traffic. “It’s word of mouth – people see that it’s well responded to,” says Carruthers. She sees it as important to be straight with employees about how e-mails are dealt with and who sees them. “We’re very up-front about the fact that I see all e-mails as well as Peter, but if we forward them to other departments, they’ll be anonymous.”
A combination of high and low technology adds to the feeling of personal contact: Beresford will often answer e-mails with a hand-written reply. In one famous instance he replied to nearly 100 in one week. “It doesn’t always happen that way, but it’s these things that make a difference. People see it’s coming from him and it’s quite a personal touch.”
Committing to communication, A new round of Listening focus groups with fresh employees is due to kick off in October. The whole cycle of questions, action-planning and feedback will be replayed. “We’re working with a new group of employees because we want to keep changing and avoid having a formalized council of volunteers,” says Carruthers. “They’ll look at what they think has happened so far, whether anything could have been done differently and then we’ll hold a review of the proposals.”
It’s a genuine commitment to keep the focus groups running on an ongoing basis. Carruthers is also expecting that the flexibility and fresh new faces will ensure that new topics arise: “They’re things that inevitably come up along the way and get added to the agenda for change. We just need to follow them through and then tell people the results.”
The results
Since Beresford’s Listening Tour there’s been a turnaround in the media coverage of McDonald’s, which has been much more positive. The Listening Campaign is changing the internal culture of the company and its focus group cycles are becoming permanent two-way communication channels.
Results back in August this year from the last employee survey showed that internal communication is now ranked by employees as number four out of 25 departments. “The communications strategy has helped people become aware of who we are and what we do,” says Carruthers. The Listening Campaign has also helped McDonald’s raise its profile externally, as it was nominated in this year’s UK Chartered Institute of Public Relations Excellence Awards and short-listed for Best Use of Media Relations in the PR Week Awards.

Questions

Question1. Based on this case, develop guidelines for improving communication with each of different stakeholders, through better listening.

Question 2:- What are the essentials for the effective communication?

Question 3:- Write about McDonald marketing plan which they have implemented for the success?

Question 4:- Do the SWOT analysis of following:-

• McDonald
• Food Industry

Production Planning and Control
N. B.: 1) Answer any Five.

1. Discuss the objectives of Production Planning and Control.

2. What do you understand by Control phase? Explain the activities under this phase.

3. What are the different demand patterns on which the sales forecasting is based? Explain.

4. Describe the Delphi method of sales forecasting.

5. What is work study? Explain excess time.

6. Explain pre-production procedures with examples.

7. What is inventory management? Explain the systems of inventory management.

8. What is E.R.P. ? Describe different uses and benefits of E.R.P.

9. What are production control techniques? Explain in detail.

Psychology

Marks: 80 Marks

SECTION A — (4 × 5 = 20 marks)
Answer any Four of the following.
1. Discuss the merits and limitations of naturalistic observation.
2. Discuss the functions of endocrine system.
3. Discuss the role of constancy in perception.
4. Explain the types of memory.
5. Explain the role of reward and punishment in learning.
6. Define stress and its reaction to stress.
7. What are the factors influencing the severity of stress?
8. Explain proactive and retroactive interference.

SECTION B — (4 × 15 = 60 marks)
Answer any FOUR questions.
9. Discuss about the various schools of psychology.
10. Explain the principles of classical conditioning in detail.
11. Evaluate the various techniques of assessing personality.
12. Explain the trait that characterizes a creative person.
13. Explain Fechner’s law in detail.
14. Elucidate the historical development of intelligence testing.
15. Explain about meditative techniques.

Quantitative Techniques

Please attempt any one question out of section A and any 10 questions out of Section B. The section A is for 20 Marks and Section B is for 80 Marks (8 Marks X 10 Questions)
Total Marks – 100
Section A

1. Distinguish between decision making under certainty and decision making under uncertainty. Mention certain methods for solving decision problems under uncertainty. Discuss how these methods can be applied to solve decision problems.

2. Distinguish between probability and non-probability sampling. Elucidate the reasons for the use of non-probability sampling in many situations in spite of its theoretical weaknesses.

3. What are models? Discuss the role of models in decision-making. How can you classify models on the basis of behavior characteristics?

4. What are matrices? How are determinants different from matrices? Discuss few applications of matrices in business.

Section B
Write short notes on any ten of the following:
(a) Concept of Maxima and Minima
(b) Types of classification of data
(c) Pascal Distribution
(d) Multi-stage sampling & Multi-phase sampling
(e) Box-Jenkins Models for Time Series
(f) Determinant of a Square Matrix
(g) Primary and Secondary Data
(h) Bernoulli Process
(i) The Student’s t Distribution
(j) Use of Auto-correlations in identifying Time Series
(K) Absolute value function
(l) Quantiles
(m) Criteria of pessimism in decision theory
(n) Cluster vs. Stratum
(o) Moving average models

(p) Step function
(q) More than type ogive
(r) Subjectivist’s criterion in decision making
(s) Double sampling
(t) Auto regressive models


PRODUCTION PLANNING AND CONTROL XAVIER EXAM ANSWER SHEETS PROVIDED

PRODUCTION PLANNING AND CONTROL XAVIER EXAM ANSWER SHEETS PROVIDED WHATSAPP 91 9924764558
CONTACT;DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com

Production Planning and Control
N. B.: 1) Answer any Five.

1. Discuss the objectives of Production Planning and Control.

2. What do you understand by Control phase? Explain the activities under this phase.

3. What are the different demand patterns on which the sales forecasting is based? Explain.

4. Describe the Delphi method of sales forecasting.

5. What is work study? Explain excess time.

6. Explain pre-production procedures with examples.

7. What is inventory management? Explain the systems of inventory management.

8. What is E.R.P. ? Describe different uses and benefits of E.R.P.

9. What are production control techniques? Explain in detail.

Psychology

Marks: 80 Marks

SECTION A — (4 × 5 = 20 marks)
Answer any Four of the following.
1. Discuss the merits and limitations of naturalistic observation.
2. Discuss the functions of endocrine system.
3. Discuss the role of constancy in perception.
4. Explain the types of memory.
5. Explain the role of reward and punishment in learning.
6. Define stress and its reaction to stress.
7. What are the factors influencing the severity of stress?
8. Explain proactive and retroactive interference.

SECTION B — (4 × 15 = 60 marks)
Answer any FOUR questions.
9. Discuss about the various schools of psychology.
10. Explain the principles of classical conditioning in detail.
11. Evaluate the various techniques of assessing personality.
12. Explain the trait that characterizes a creative person.
13. Explain Fechner’s law in detail.
14. Elucidate the historical development of intelligence testing.
15. Explain about meditative techniques.

Quantitative Techniques

Please attempt any one question out of section A and any 10 questions out of Section B. The section A is for 20 Marks and Section B is for 80 Marks (8 Marks X 10 Questions)
Total Marks – 100
Section A

1. Distinguish between decision making under certainty and decision making under uncertainty. Mention certain methods for solving decision problems under uncertainty. Discuss how these methods can be applied to solve decision problems.

2. Distinguish between probability and non-probability sampling. Elucidate the reasons for the use of non-probability sampling in many situations in spite of its theoretical weaknesses.

3. What are models? Discuss the role of models in decision-making. How can you classify models on the basis of behavior characteristics?

4. What are matrices? How are determinants different from matrices? Discuss few applications of matrices in business.

Section B
Write short notes on any ten of the following:
(a) Concept of Maxima and Minima
(b) Types of classification of data
(c) Pascal Distribution
(d) Multi-stage sampling & Multi-phase sampling
(e) Box-Jenkins Models for Time Series
(f) Determinant of a Square Matrix
(g) Primary and Secondary Data
(h) Bernoulli Process
(i) The Student’s t Distribution
(j) Use of Auto-correlations in identifying Time Series
(K) Absolute value function
(l) Quantiles
(m) Criteria of pessimism in decision theory
(n) Cluster vs. Stratum
(o) Moving average models

(p) Step function
(q) More than type ogive
(r) Subjectivist’s criterion in decision making
(s) Double sampling
(t) Auto regressive models


MBA XAVIER INSTITUTE ONGOING EXAM ANSWER SHEETS PROVIDED

MBA XAVIER INSTITUTE ONGOING EXAM ANSWER SHEETS PROVIDED WHATSAPP 91 9924764558
CONTACT:DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com

Entrepreneurship
Total marks – 100

PART – A
Answer any 5 questions. Each question carries 4 marks.
1. Define the term ‘spontaneous entrepreneur’.
2. Define a tiny industry.
3. What do you mean by seed capital?
4. Who is an entrepreneur?
5. State four functions of SISI.
6. What do you mean by industrial clusters?
7. Define the term project report.
8. What do you mean by network analysis?
9. What is venture capital?
10. What is DIC?
11. What do you mean by job rotation?
12. Explain the term ‘business environment’. (5×4=20 Marks)

PART – B
Answer any eight questions. Each question carries 5 marks.
13. Discuss the need for and importance of project appraisal.
14. What are common errors in project formulation?
15. Discuss the qualities for a successful entrepreneur.
16. Suggest some measures for developing rural entrepreneurship.
17. Explain the different phases of a typical EDP.
18. What factors determine the capital structure of an enterprise?
19. Discuss the role and functions of SIDBI.
20. Discuss the salient features of the new small enterprise Policy.
21. Explain the factors influencing organisational climate.
22. Make a list of the major considerations in the layout of plants.
23. Examine the suitability of small enterprises to the Indian economy.
24. Discuss the specific problems of women entrepreneurs. (8×5=40 Marks)

PART – C
Answer any two questions. Each question carries 20 marks.
25. Briefly discuss the factors affecting entrepreneurial growth in a developing economy.
26. Explain the institutional frame work for the promotion of small enterprises in India.
27. What is a project report? Show its contents by preparing a proforma project
report.
28. Discuss the dimensions of a typical project appraisal proposed for small enterprises.
(2×20=40 Marks)

MANAGEMENT INFORMATION SYSTEMS

Marks: 80

SECTION A

Answer any 4 sub Questions. Each question carries five marks. (4X5= 20)

1.
(a) What is Information system?
(b) What is prototyping?
(c) What is Web Based System?
(d) What is hyperlink?
(e) What is knowledge management system?

SECTION B

Answer any five Questions. Each question carries 6 marks. (5×6= 30)

2. What is EIS? Explain its advantages and disadvantages.
3. What are the major challenges involved in building, operating and maintaining information system?
4. How does an organisation impact in IT? Explain.
5. Explain the four stage model of IT planning.
6. What are the steps involved in implementation and evaluation of a system?
7. What is DSS? What are the models? Explain its components.
8. What are the benefits and application of content management?

SECTION C

Answer any three Questions. Each question carries 10 marks. (3×10= 30)

9. What are the types of IS? Explain each of them.
10. Explain a) ERP b) SCM.
11. What are recent developments in MIS area?
12. How do you manage the multimedia content?
13. What are the ethics in IT?
14. Explain the features and characteristics of objects in object oriented analysis and design.

Managerial Economics
Total Marks – 80
Answer any FIVE Questions. All Questions carry equal marks

1. Managerial Economics is the application of Economic Theory to business management. Discuss. [16]

2. What are the needs for demand forecasting? Explain the various steps involved in demand forecasting. [16]

3. Define production function. How is it helpful while taking output decisions? [16]

4. (a) ‘ The monopolist represents one man industry’? Comment and discuss how equilibrium position can be attained by the monopolist.
(b) Use appropriate diagrams to supplement your answer. [10+6]

5. (a) Define partnership and explain its salient features and limitations.
(b) What are the qualities of a good partner? [8+8]

6. What are the components of working capital? Explain each of them. [16]

7. Give a brief account on the important records of Accounting under Double entry system and discuss briefly the scope of each. [16]

8. (a) From the information (given with attachments), calculate [16]
i. Debt Equity ratio
ii. Current ratio
(b) Calculate Interest Coverage ratio from the information (given with attachments) .
A.

B.

OPERATIONS MANAGEMENT

Maximum Marks: 100

Note: Attempt any five questions. All questions carry equal marks. Assume any missing data suitably.

1. (a) Draw a systems view diagram of any service organization of your choice. Identify its various components. Explain its interdisciplinary nature. 10
(b) What are the major characteristics of a Production system? Discuss some of its upcoming issues that provide economies in production and efficiency in the performance of the system. 10

2. (a) Explain with examples, how the TQM concept can integrate design engineering, manufacturing and service. 10
(b) What are process capability studies ? Explain the process capability index with applications to a real life example. 10

3. (a) Compare traditional process planning with Computer Aided Process Planning (CAPP). Also explain a generative CAPP system. 10
(b) Explain the objectives of Total Productive maintenance. Give its importance. Also comment on the concept of TPM promotion. 10

4. (a) Why is forecasting required in operations management ? Discuss the concept of forecast error as applied to different conditions. 10
(b) How are quantitative models of forecasting different from qualitative models ? Discuss in detail time-series model as used for forecasting. 10

5. (a) What is facility planning ? Explain with examples different types of layouts as used in manufacturing organisations. 10
(b) Discuss work measurement as a process to establish task time. Explain the various techniques for developing time standards. 10

6. (a) Explain just in time manufacturing with the help of examples. Discuss its advantages and disadvantages. 10
(b) For an independent demand inventory model, derive the equation for Economic Order Quantity. List all assumptions. 10

7. Write short notes on any four of the following: 4×5=20
(a) OPT
(b) Break even analysis
(c) Lean manufacturing
(d) Kanban system
(e) Line of Balance for Production Control
(f) Purpose of aggregate plans.

Organizational Behaviour

Max. Marks: 80

Answer any 8 questions. All questions carry equal marks

1. As a manager how do you improve workers perception in the organization?

2. Explain the factors affecting individual differences.

3. Write a short note on Hawthorne studies.

4. Discuss the need for studying OB.

5. Briefly explain defensive mechanisms.

6. Explain the factors influencing individuals’ personality development.

7. Explain two factor theory of motivation.

8. How do you create and sustain organizational culture.

9. Explain the Managerial grid leadership style of Blake and Mouton.

10. Explain the various sources of attitudes formation.

11. What is self concept? How you defend yourself from various environment problems.

•••

Principles and Practice of Management

Communicating in a Crisis

Overview Valley High School, situated in Kodaikanal, was established in 1980 and is owned by a well respected charitable trust. It overlooks a lake and is a modern building equipped with state-of-the-art facilities. The total student enrolment is 2000, out of which more than 50% are girls and the rest boys. The students are all from affluent, educated families. The school has established a good reputation for itself, thanks to the consistently good performance of students in the public examinations. The school is headed by a lady Principal and also has a couple of Supervisors and a team of 25 teachers. The teachers have had extensive experience, are well qualified and are known for their commitment to imparting quality education to students. Due to the recent heavy monsoons, the school was faced with the problem of flooding, with water entering the rooms on the ground floor and water seepage on the terrace. Since repair work had to be done, the school had to be closed for a couple of weeks. The work was carried out by reputed contractors, but the building still looks a little run down.
The crisis the school had just reopened after this two week break. The same morning, a fire suddenly broke out on the third floor and spread to other floors, blocking the stairways. There was widespread panic, as the children started jumping off the balconies, injuring themselves in the process. The Principal and staff had a tough time trying to calm down the children and take control of the situation. Fire engines were called and several of them arrived and began their fire fighting operations. In the meanwhile, many parents also arrived and tried to enter the building to speak to the Principal. The phones were ringing continuously. There was total chaos.

Question 1 :- How communication crises arise?
Question 2 :- What Principal should do to calm down the angry parents?
Question 3 :- How school will regain its reputation? What services school should provide in order to maintain its reputation?

Case Study 2

Case Study on The power of Non-Verbal Communication

The Power of Nonverbal Communication Soon after I graduated from engineering college, I accepted a position with the Sundaram Foundry, a medium-sized firm located in a small town in Tamil Nadu. It was a good position, since I was the assistant to Mr. Vishwanath, the General Manager and president of this family owned company, although there were many technical problems, the work was extremely interesting and I soon learnt all about the foundry business. The foundry workers were mostly older men and were a closely knit team. Many of them were related and had been in the foundry for several years. Therefore, they felt that they knew the business in and out and that a technical education had no value. In fact, Mr. Vishwanath had mentioned to me even at the time of my joining, that I was the only engineer ever to be employed in the foundry. He also let me know that the foundry workers, although a good group, were very clannish, since they had been working together for several years. Therefore, it would probably take them some time to accept me. I introduced myself to the group of foundry workers, a few days after my joining. As I went around in turn, I felt them eyeing me coldly. As I went down the main aisle of the foundry, I heard them talking to each other in low voices and laughing. I found their behavior to be very childish and felt that it was best to ignore these signs of hostility. I thought that if I ignored them, they would automatically stop these antics. A few weeks after this incident, I happened to visit the enamel shop. As I entered, I noticed a worker cleaning the floor with a hose, from which water flowed at high pressure. I was aware that it was the practice to clean the shop at least once a week. I turned my back on the worker and was busy near a dipping tank, when I suddenly felt the force of a stream of water hitting me. I was almost knocked down by the pressure and slipped on the wet floor. When I turned around, the worker looked away in the other direction, as if he had not noticed this happening. However, I was pretty sure that he had intentionally turned the hose on me.

Question 1 – What message did the foundry workers and the new engineer convey to each other through their non-verbal behavior?

Question 2 – Mr. Vishwanath, the General Manager and President, was not often present at the foundry. What could this non-verbal behavior mean to the workers and the new engineer?

Question 3. How could the engineer, the foundry workers and Mr. Vishwanath be more effective, both verbally and nonverbally?

Question 4. What do you suggest that the engineer should do, after the hosing incident?

Case Study 3

BS GETS A D-PLUS ON DIVERSITY FROM MULTIETHNIC COALITOIN

On February 3, 2000, President and CEO of CBS Leslie Moonves signed a pact with Kweisi Mfume, president and CEO of the national association for advancement of colored people (NAACP), who had joined forces with the Hispanic media coalition, and the American Indians in film and television to request the CBS help to increase Indians in film and television to request that CBS help to increase ethnic presence in the television industry. The agreement stipulated the CBS would increase minority participation both on and off screen by June 30.

In April 2000, CBS announced the appointment of Josie Thomas to the newly created position of senior vice president of Diversity at CBS Television. Her job was to improve outreach and recruitment, hiring, promotion, and monitoring practices in all divisions of CBS. That fall Moonves announced that 16 of the 21 CBS shows, including news magazines, would prominently feature minorities. “We think we are a leader in this area,” Moonves said “We think we are ahead of the curves”

Despite Mooves’s Statement that as “broadcasters, we believe strongly that it is our duty to reflect the public that makes up our viewing audience,” there were many who did not feel the company was sincere in its efforts to improve hiring practices. The national Hispanic Foundation for the Arts criticized CBS for not scheduling “American Family,” A pilot drama about middle – class Hispanic family. Moonves said “American Family” simply did not fit in CBS’s schedule, since there were already too many strong dramas planned. He said he took the unusual step of allowing the show’s producer to pitch the CBS-developed networks but no one picked it up. Meanwhile, the June 30 deadline had come and gone without much outward sign of change at CBS television.

Josie Thomas is committed to CBS’s new mandate for multicultural diversity. Twelve of CBS’ prime time series will have minorities in permanent roles and other series will have minority in recurring role. Fore of the network’s shows- C.S.I., the district, the fugitive and welcome to New York have minorities in leading roles.

Since signing the agreement, CBS has established a strong working relationship with national minority supplier council in order to help minority supplier council and women’s businesses. The company has bolstered its internship program to include paid internships on the west coast, pairing up interns with their areas of interest, Such as finance or entertainment. There are 10 minority interns in the program. Moreover, CBS has now made diversity a factor in employee job performance evaluation. “Each area of the network has developed a detailed plan for diversity,” said Thomas. “Manager will be reviewed with respect to their diversity efforts and that will be a factor in compensation decisions.” Ms. Thomas noted that Ghen Maynard, an Asian American Pacific Islander, had just been promoted form director to vice president of alternative programming for the entertainment division.

“Will all believe there is a long way to go,” Thomas said. “What I have found is there are some things that already exist that are positive, such as news magazines having minority anchors. We think ‘city of angels’ renewal was an important step. The ratings were mediocre to low, and we did feel the program was a risk. It says a lot about our commitment”

In June 2001, the coalition gave the Big 4 Broadcast Networks (all of whom had signed an agreement) a report card for their efforts to diversity shows on – air and behind the scenes. CBS got a D-plus.

Mr. Nogales, of the National Hispanic Media Coalition, said he was disappointed “We expect progress; we signed for progress” “The numbers in comparison to last year actually look better” Nogales says. “There have been gains for people of color. There was movement. But it has to be movement across the board, not just for one group.” He is referring to the fact that most of the gains have been made by black actors, writes and producers. Black actors appear as regular in at least 19 of the six major networks’30 new prime-time series. Hispanics shows up in only eight, Asians in five and Native Americans in one.

The pressure being put on the networks- including threats of “boycott” and legal action – is having results. At CBS the number of minority writers and producer has more than tripled, from four to fourteen, including six executive or co executive producer however, obstacles to a fully integrated future remain serious-particularly because of misconceptions about the nature of the television audience and about the way pop culture works. Network executive worry that “ghetto shows” might promote stereotypes. They wonder if shows like The cosby show are “black” enough. Then again, they think that casting too many minorities may drive white viewers away. Some network executives are afraid to cast minority actors in “negative” roles because they may be criticized for it minority writers, who have been getting more work lately, wonder if they are not just “tokens”; and despite some progress it is still almost impossible for Hispanic actor to get non- Hispanic roles.

Both the NAACP and the coalition have been battling discrimination for years. CBS is just finding out that a profound change toward pluralism can take place only with true insight on the part of management. CBS spokesperson Chris Ender says “We have made tremendous strides to increase diversity on screen, behind the camera and in the executive suites. However we certainly recognize that more can be done and more will be done.”

As far as Nogales is concerned. “It’s still a white guy’s world,” and the june 2001 statics for network television prove he is right.

Questions
Question 1:- What advantages would accrue to CBS if it becomes a more diverse workplace?

Question 2:- Where would you have placed CBS on the organizational diversity continuum and where would you place CBS now? Why?

Question 3:- Which approach (es) to pluralism best sums up the diversity policy that is being developed at CBS? Explain

Question 4:- How do the attitudes of management at CBS as depicted in your case study affect the company’s progress toward forming a more diverse workforce? Explain.

Case Study 4

McDonald’s Listening Campaign

At the end of 2002, the world’s largest quick service retailer made its first ever quarterly loss and faced a number of challenges. It responded by launching its Plan to Win program, part of a global strategy to modernize the business, followed by the Listening Campaign in the UK. Here, Ali Carruthers explains how the two initiatives were linked in the UK, and the impact The Listening Campaign has had on communication, culture, image and media perception.

In 2003, things were looking bleak for McDonald’s. Its share price was the lowest it had been in a decade and it faced a series of seemingly insurmountable problems: It was demonized by the UK media in the fierce debate raging over obesity; it faced huge competition on the high street; and it was suffering under a wave of Anti-Americanism in the wake of the wars in Afghanistan and Iraq.
Added to this was the fact that the restaurants themselves were beginning to look dated and UK health lobbyists were determined to push home the message that McDonald’s food was bad for people.
Speaking earlier this year to the BBC, the UK CEO Peter Beresford said: “We had taken our eye off the customer, we were not customer focused, we were not customer driven. And so we reorganized and regrouped. We decided we had to stop and take stock of where we were. We had to be better, but we had to change the way we were running this business.”
The Plan to Win
The senior management put their heads together and devised the Plan to Win program, which went public in the last quarter of 2003. A key part of its focus was a shift to more choice and variety foods, with salads appearing permanently on the menu for the first time in the organization’s history. Key restaurants began to receive make over and a supporting advertising campaign with international stars was planned, all of which were intended to turn the food chain’s image around.
But just as things were beginning to look up for the organization, trouble raised its head again in the shape of the documentary film “Supersize me,” which in turn re-ignited the obesity debate in the media. It was then discovered that one of the salads McDonald’s was marketing contained more calories than one of its hamburgers. The UK press reacted with predictable glee and once again McDonald’s was in the spotlight for all the wrong reasons.
The Listening Campaign. The company responded promptly. Working with agency Blue Rubicon, the in-house communication and media relations team devised the Listening Campaign. It made the most of the arrival of new UK CEO Peter Beresford in July 2004, building on his personal credibility and that of McDonald’s with the Listening Tour. Beresford spoke directly to customers in focus groups, met with franchise holders and with employees in 12 UK cities over the space of six weeks, starting at the end of October.
The key ingredient was listening to customers and staff and then showing the results of this. “Part of the reason [for doing it] was that we had to introduce Peter very quickly to employees, customers and stakeholders,” says head of internal communications AIi Carruthers. “It was also signaling that he’d continue to work to change our culture and lead the drive for a real transparency of approach. We’ve been building on that work ever since.”
Focus groups for stakeholders

The communication team made the most of Beresford’s time by booking ahead so that local franchisees could meet him when he travelled to regional centers for customer focus groups. Next, Listening Groups were created for the company’s regional offices with corporate rather than restaurant-based employees taking part. Initial meetings were centered around three classic focus group questions:
* What works?
* What would you change?
* How would you change it?
In each session, six to 10 employees took part and the sessions lasted around two hours. After the first session, an action plan was drawn up and fed back to the employees in a second round of focus groups. Then the agreed proposed changes were put in place by the organization.
Proposed changes put in place
A range of short, medium and long term actions have been instigated as a result of the focus groups. These include a firm commitment to hold monthly town-hall sessions to regularly address key issues within the organization. “We’ve agreed to use these sessions to feature various departmental heads,” says Carruthers.
“That’s so people can put names to faces, understand the organizational structure better and get an understanding of what goes on outside their own departments.” The company has also committed itself to involving a new group of employees every six months, and to being more transparent about its promotion process and how people are assessed for promotion. It now holds regular Plan to Win meetings, which are related to the global strategy. “We’re using the town-hall sessions to communicate the global strategy to thebroader office group rather than just senior management so there’s a wider understanding of what we’re doing,” says Carruthers.
The company has also committed to a peer-nominated quarterly recognition scheme for the regional and head offices. It’s planned that the town halls will also be used in the recognition scheme. “People need to say well done to each other and be acknowledged by the senior team,” says Carruthers.
A change in company culture
According to Carruthers, the strategy has been recognized globally – a drive for greater face-to-face communication, more transparency, a growth in leadership behavior and accountability. “Basically we’ve been trying to make people feel they’re able to ask questions,” she says. “There’s nothing wrong with challenging the status quo as long as it’s done in a constructive and respectful way. If we can use some of those ideas we can probably make it a more enjoyable place for everyone to work.”
There’s no doubt that the Listening Campaign has had an impact on the senior team and general employees alike. Carruthers has had feedback from both groups and believes the exercise has been an eye-opener for the senior team: “They frequently mention experiences they’ve had in those groups. There’s nothing quite like hearing issues for yourself; the good ones and the more awkward ones.”
The feedback from focus-group participants has been very good; employees say they feel listened to and think their feedback is being taken on board. “They feel confident to ask questions or send e-mails directly to people they thought wouldn’t have listened to their suggestions previously. It’s changing the culture. Anything that builds trust and transparency is good. Now it’s about delivering on the changes that we said we’d make.”
A hotline to the CEO
A hotline to the CEO has made the company’s drive for transparency and commitment to employees even more credible. The “Ask Peter” e-mail address was established when Beresford took up his post and has seen a fair amount of traffic. “It’s word of mouth – people see that it’s well responded to,” says Carruthers. She sees it as important to be straight with employees about how e-mails are dealt with and who sees them. “We’re very up-front about the fact that I see all e-mails as well as Peter, but if we forward them to other departments, they’ll be anonymous.”
A combination of high and low technology adds to the feeling of personal contact: Beresford will often answer e-mails with a hand-written reply. In one famous instance he replied to nearly 100 in one week. “It doesn’t always happen that way, but it’s these things that make a difference. People see it’s coming from him and it’s quite a personal touch.”
Committing to communication, A new round of Listening focus groups with fresh employees is due to kick off in October. The whole cycle of questions, action-planning and feedback will be replayed. “We’re working with a new group of employees because we want to keep changing and avoid having a formalized council of volunteers,” says Carruthers. “They’ll look at what they think has happened so far, whether anything could have been done differently and then we’ll hold a review of the proposals.”
It’s a genuine commitment to keep the focus groups running on an ongoing basis. Carruthers is also expecting that the flexibility and fresh new faces will ensure that new topics arise: “They’re things that inevitably come up along the way and get added to the agenda for change. We just need to follow them through and then tell people the results.”
The results
Since Beresford’s Listening Tour there’s been a turnaround in the media coverage of McDonald’s, which has been much more positive. The Listening Campaign is changing the internal culture of the company and its focus group cycles are becoming permanent two-way communication channels.
Results back in August this year from the last employee survey showed that internal communication is now ranked by employees as number four out of 25 departments. “The communications strategy has helped people become aware of who we are and what we do,” says Carruthers. The Listening Campaign has also helped McDonald’s raise its profile externally, as it was nominated in this year’s UK Chartered Institute of Public Relations Excellence Awards and short-listed for Best Use of Media Relations in the PR Week Awards.

Questions

Question1. Based on this case, develop guidelines for improving communication with each of different stakeholders, through better listening.

Question 2:- What are the essentials for the effective communication?

Question 3:- Write about McDonald marketing plan which they have implemented for the success?

Question 4:- Do the SWOT analysis of following:-

• McDonald
• Food Industry


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Business Strategy
MARKS: 100
Note:

1. Question No.1 carries 20 Marks and is compulsory.
2. Attempt any five questions from question from the rest. Each of these carry 16 marks.

Q.1 Write short notes on any FOUR of the following:-

1.Core Competencies and Distinctive Competencies

2.Real value of SWOT analysis

3.Market Development Strategies

4.Vision and Mission

5.Benefits of Strategic Approach

6. Vertical Integration

Q.2 Describe Porter’s five forces model.

Q.3 What is a differentiation strategy? In which circumstances do you think company should adopt such strategies? Explain with relevant examples.

Q.4 (a)What is benchmarking? To what extent is relevant to industry in decline phase?
(b)”Vertical Integration is an outdated strategic approach” Comment.

Q.5 What are various ways to achieve cost advantage and gain cost leadership position?

Q.6 Between the GE Multifactor Matrix & the BCG Matrix, which one do you think is superior tool and why?

Q.7 What strategic options a firm in a corrugated box manufacturing industry could pursue to be successful. (Hint: A corrugated box manufacturing is typically a highly fragmented industry)

Q.8 Would you agree with the following statement?

“Tata Nano is the best value for money proposition today in the entry level segment of the light passenger vehicles”.

In case you agree or otherwise, please state the reasons.

Q.9 Globalization is the single most important factor, which has affected Cement Industry during the past 3 to 5 years. Do you agree with this statement? Why?

Q.10 Describe Ansoff’s product market expansion matrix and describe various strategic approaches emanating there from.

Corporate Law

Maximum Marks: 100

Note: Answer any Five questions. All questions carry equal marks.

1.”All contracts are agreements but all agreements are not contracts.” Discuss this statement in light of the essential elements of a valid contract. Also mention briefly the different kinds of agreements under the India Contract Act, 1872.

2. Discuss, what are the rights, liabilities and disabilities of a minor as per the Indian Partnership Act, 1932.

3. What do you understand by implied warranties and conditions of sale according to the sale of Goods Act, 1930?

4. Differentiate between lay-off and retrenchment according to the Industrial Disputes Act, 1947.

5. Give the provisions related to safety as given in the Factories Act, 1948.

6. What are the characteristics or essential features of a company and briefly mention the types of companies.

7. What do you understand by electronic governance and what are the attributes of electronic records as mentioned in the Information Technology Act, 2000.

8. Discuss the concept of free consent and misrepresentation as per the Indian Contract Act, 1872.

9. Distinguish between private and public company. What are the special privileges of a private company over public company according to Companies Act, 1956?

10. Write short notes on any two of the following:
(a) Cyber regulation
(b) Industrial Dispute
(c) Breach of Contact
(d) Voidable contracts.

SUB: INTERNATIONAL BUSINESS
N. B.: 1) Attempt any four cases 2) All cases carries equal marks.
No: 1
BPO – BANE OR BOON ?
Several MNCs are increasingly unbundling or vertical disintegrating their activities. Put in simple language, they have begun outsourcing (also called business process outsourcing) activities formerly performed in-house and concentrating their energies on a few functions. Outsourcing involves withdrawing from certain stages/activities and relaying on outside vendors to supply the needed products, support services, or functional activities.
Take Infosys, its 250 engineers develop IT applications for BO/FA (Bank of America). Elsewhere, Infosys staffers process home loans for green point mortgage of Novato, California. At Wipro, five radiologists interpret 30 CT scans a day for Massachusetts General Hospital.
2500 college educated men and women are buzzing at midnight at Wipro Spectramind at Delhi. They are busy processing claims for a major US insurance company and providing help-desk support for a big US Internet service provider-all at a cost upto 60 percent lower than in the US. Seven Wipro Spectramind staff with Ph.Ds in molecular biology sift through scientific research for western pharmaceutical companies.
Another activist in BOP is Evalueserve, headquarterd in Bermuda and having main operations near Delhi. It also has a US subsidiary based in New York and a marketing office in Australia to cover the European market. As Alok Aggarwal (co-founder and chairman) says, his company supplies a range of value-added services to clients that include a dozen Fortune 500 companies and seven global consulting firms, besides market research and venture capital firms. Much of its work involves dealing with CEOs, CFOs, CTOs, CIOs, and other so called C-level executives.
Evaluserve provides services like patent writing, evaluation and assessment of their commercialization potential for law firms and entrepreneurs. Its market research services are aimed at top-rung financial service firms, to which it provides analysis of investment opportunities and business plans. Another major offering is multilingual services. Evalueserve trains and qualifies employees to communicate in Chinese, Spanish, German, Japanese and Italian, among other languages. That skill set has opened market opportunities in Europe and elsewhere, especially with global corporations.
ICICI infotech Services in Edison, New Jersey, is another BOP services provider that is offering marketing software products and diversifying into markets outside the US. The firm has been promoted by $2-billion ICICI Bank, a large financial institution in Mumbai that is listed on the New York Stock Exchange.
In its first year after setting up shop in March 1999, ICICI infotech spent $33 million acquiring two information technology services firms in New Jersy-Object Experts and ivory Consulting – and command Systems in Connecticut. These acquisitions were to help ICICI Infotech hit the ground in the US with a ready book of contracts. But it soon found US companies increasingly outsourcing their requirements to offshore locations, instead of hiring foreign employees to work onsite at their offices. The company found other native modes for growth. It has started marketing its products in banking, insurance and enterprise resource planning among others. It has earmarket $10 million for its next US market offensive, which would go towards R & D and back-end infrastructure support, and creating new versions of its products to comply with US market requirements. It also has a joint venture – Semantik Solutions GmbH in Berlin, Germany with the Fraunhofer Institute for Software and Systems Engineering, which is based in Berlin and Dortmund, Germany – Fraunhofer is a leading institute in applied research and development with 200 experts in software engineering and evolutionary information.
A relatively late entrant to the US market , ICICI Infotech started out with plain vanilla IT services, including operating call centeres. As the market for traditional IT services started wakening around mid-2000, ICICI Infotech repositioned itself as a “Solutions” firm offering both products and services. Today , it offers bundied packages of products and services in corporate and retail banking and include data center and disaster recovery management and value chain management services.
ICICI Infotech’s expansion into new overseas markets has paid off. Its $50 million revenue for its latest financial year ending March 2003 has the US operations generating some $15 million, while the Middle East and Far East markets brought in another $9 million. It new boasts more than 700 customers in 30 countries, including Dow Jones, Glazo-Smithkline, Panasonic and American Insurance Group.
The outsourcing industry is indeed growing form strength. Though technical support and financial services have dominated India’s outsourcing industry, newer fields are emerging which are expected to boost the industry many times over.
Outsourcing of human resource services or HR BPO is emerging as big opportunity for Indian BPOs with global market in this segment estimated at $40-60 billion per annum. HR BPO comes to about 33 percent of the outsourcing revenue and India has immense potential as more than 80 percent of Fortune 1000 companies discuss offshore BOP as a way to cut costs and increase productivity.
Another potential area is ITES/BOP industry. According to A NASSCOM survey, the global ITES/BOP industry was valued at around $773 billion during 2002 and it is expected to grow at a compounded annual growth rate of nine percent during the period 2002 – 06, NASSCOM lists the major indicators of the high growth potential of ITES/BOP industry in India as the following.
During 2003 – 04, The ITES/BPO segment is estimated to have achieved a 54 percent growth in revenues as compared to the previous year. ITES exports accounted for $3.6 billion in revenues, up form $2.5 billion in 2002 – 03. The ITES-BPO segment also proved to be a major opportunity for job seekers, creating employment for around 74,400 additional personnel in India during 2003 – 04. The number of Indians working for this sector jumped to 245,500 by March 2004. By the year 2008, the segment is expected to employ over 1.1 million Indians, according to studies conducted by NASSCOM and McKinsey & Co. Market research shows that in terms of job creation, the ITES-BOP industry is growing at over 50 per cent.
Legal outsourcing sector is another area India can look for. Legal transcription involves conversion of interviews with clients or witnesses by lawyers into documents which can be presented in courts. It is no different from any other transcription work carried out in India. The bottom-line here is again cheap service. There is a strong reason why India can prove to be a big legal outsourcing Industry.
India, like the US, is a common-law jurisdiction rooted in the British legal tradition. Indian legal training is conducted solely in English. Appellate and Supreme Court proceedings in India take place exclusively in English. Due to the time zone differences, night time in the US is daytime in India which means that clients get 24 hour attention, and some projects can be completed overnight. Small and mid – sized business offices can solve staff problems as the outsourced lawyers from India take on the time – consuming labour intensive legal research and writing projects. Large law firms also can solve problems of overstaffing by using the on – call lawyers.
Research firms such as Forrester Research, predict that by 2015 , more than 489,000 US lawyer jobs, nearly eight percent of the field, will shift abroad..
Many more new avenues are opening up for BOP services providers. Patent writing and evaluation services are markets set to boom. Some 200.000 patent applications are written in the western world annually, making for a market size of between $5 billion and $7 billion. Outsourcing patent writing service could significantly lower the cost of each patent application, now anywhere between $12,000 and $15,000 apiece-which would help expand the market.
Offshoring of equity research is another major growth area. Translation services are also becoming a big Indian plus. India produces some 3,000 graduates in German each year, which is more than that in Switzerland.
Though going is good, the Indian BPO services providers cannot afford to be complacent. Phillppines, Maxico and Hungary are emerging as potential offshore locations. Likely competitor is Russia, although the absence of English speaking people there holds the country back. But the dark horse could be South Affrica and even China
BOP is based on sound economic reasons. Outsourcing helps gain cost advantage. If an activity can be performed better or more cheaply by an outside supplier, why not outsource it ? Many PC makers, for example, have shifted from in – house assembly to utilizing contract assemblers to make their PCs. CISCO outsources all productions and assembly of its routers and witching equipment to contract manufactures that operate 37 factories, all linked via the internet.
Secondly, the activity (outsourced) is not crucial to the firm’s ability to gain sustainable competitive advantage and won’t hollow out its core competence, capabilities, or technical know how. Outsourcing of maintenance services, date processing, accounting, and other administrative support activities to companies specializing in these services has become common place. Thirdly, outsourcing reduces the company’s risk exposure to changing technology and / or changing buyer preferences.
Fourthly, BPO streamlines company operations in ways that improve organizational flexibility, cut cycle time, speedup decision making and reduce coordination costs. Finally, outsourcing allows a company to concentrate on its core business and do what it does best. Are Indian companies listening ? If they listen, BPO is a boon to them and not a bane.

Questions:
1. Which of the theories of international trade can help Indian services providers gain competitive edge over their competitors?
2. Pick up some Indian services providers. With the help of Michael Porter’s diamond, analyze their strengths and weaknesses as active players in BPO.
3. Compare this case with the case given at the beginning of this chapter. What similarities and dissimilarities do you notice? Your analysis should be based on the theories explained.

No: 2
PERU
Peru is located on the west coast of South America. It is the third largest nation of the continent (after Brazil and Argentina) , and covers almost 500.000 square miles (about 14 per cent of the size of the United States). The land has enormous contrasts, with a desert (drier than the Sahara), the towering snow – capped Andes mountains, sparkling grass – covered plateaus, and thick rain forests. Peru has approximately 27 million people, of which about 20 per cent live in Lima, the capital. More Indians (one half of the population) live in Peru than in any other country in the western hemisphere. The ancestors of Peru’s Indians were the famous incas, who built a great empire. The rest of the population is mixed and a small percentage is white. The economy depends heavily on agriculture, fishing , mining, and services, GDP is approximately $15 billion and per capita income in recent years has been around $4,3000. In recent years the economy has gained some relative strength and multinationals are now beginning to consider investing in the country.
One of these potential investors is a large New York based bank that is considering a $25 million loan to the owner of a Peruvian fishing fleet. The owner wants to refurbish the fleet and add one more ship.
During the 1970s, the Peruvian government nationalized a number of industries and factories and began running them for the profit of the state in most cases, these state – run ventures became disasters. In the late 1970s the fishing fleet owner was given back his ships and allowed to operate his business as before. Since then, he has managed to remain profitable, but the biggest problem is that his ships are getting old and he needs an influx of capital of make repairs and add new technology. As he explained it to the new York banker. “Fishing is no longer just an art. There is a great deal of technology involved. And to keep costs low and be competitive on the world market, you have to have the latest equipment for both locating as well as catching and then loading and unloading the fish”
Having reviewed the fleet owner’s operation, the large multinational bank believes that the loan is justified. The financial institution is concerned, however, that the Peruvian government might step in during the next couple of years and again take over the business. If this were to happen, it might take an additional decade for the loan to be repaid. If the government were to allow the fleet owner to operate the fleet the way he has over the last decade, the fleet the way he has over the last decade, the loan could be repaid within seven years.
Right now, the bank is deciding on the specific terms of the agreement. Once theses have been worked out, either a loan officer will fly down to Lima and close the deal or the owner will be asked to come to New York for the signing. Whichever approach is used, the bank realizes that final adjustments in the agreement will have to be made on the spot. Therefore, if the bank sends a representative to Lima, the individual will have to have the authority to commit the bank to specific terms. These final matters should be worked out within the next ten days.
Questions:
1. What are some current issues facing Peru? What is the climate for doing business in Peru today?
2. What type of political risks does this fishing company need to evaluate? Identify and describe them.
3. What types of integrative and protective and defensive techniques can the bank use?
4. Would the bank be better off negotiating the loan in New York or in Lima ? Why?

No: 3
RED BECOMING THICKER
The Backdrop
There seems to be no end to the troubles of the coloured – water giant Coca Cola. The cola giant had entered India decades back but left the country in the late 1970s. It staged a comeback in the early 1990s through the acquisitions route. The professional management style of Coca Cola did not jell with the local bottlers. Four CEOs were changed in a span of seven years. Coke could not capitalize on the popularity of Thums Up. Its arch rival Pepsi is well ahead and has been able to penetrate deep into the Indian market. Red in the balance sheet of Coke is becoming thicker and industry observers are of the opinion that it would take at least two decades more before Coke could think of making profits in India.

The Story
It was in the early 1990s that India started liberalizing her economy. Seizing the opportunity, Coca Cola wanted to stage a comeback in India. It chose Ramesh Chauhan of Parle for entry into the market. Coke paid $100 million to Chauhan and acquired his well established brands Thums Up, Goldspot and Limca. Coke also bagged 56 bottlers of Chauhan as a part of the deal. Chauhan was made consultant and was also given the first right of refusal to any large size bottling plants and bottling contracts, the former in the Pune – Bangalore belt and the latter in the Delhi and Mumbai areas.
Jayadeva Raja, the flamboyant management expert was made the first CEO of Coke India. It did not take much time for him to realize that Coke had inherited several weaknesses from Chauhan along with the brands and bottlers. Many bottling plants were small in capacity (200 bottlers per minute as against the world standard of 1600) and used obsolete technology. The bottlers were in no mood to increase their capacities, nor were they willing to upgrade the trucks used for transporting the bottle. Bottlers were more used to the paternalistic approach of Chauhan and the new professional management styles of Coke did not go down well with them. Chauhan also felt that he was alienated and was even suspected to be supplying concentrate unofficially to the bottlers.
Raja was replaced by the hard – nosed Richard Niholas in 1995. The first thing Nicholas did was to give an ultimatum to the bottlers to expand their plants or sell out. Coke also demanded equity stakes in many of the bottling plants. The bottlers had their own difficulties as well. They were running on low profit margins. Nor was Coke willing to finance the bottlers on soft terms. The ultimatum backfired. Many bottlers switched their loyalty and went to Pepsi. Chauhan allegedly supported the bottlers, of course, from the sidelines.
Coke thought it had staged a coup over Pepsi when it (Coke) clamed the status of official drink for the 1996 Cricket World Cup tournament. Pepsi took on Coke mightily with the famous jingle “Nothing official about it”. Coke could have capitalized on the sporty image of Thums Up to counter the campaign, but instead simply caved in.
Donald Short replaced Nicholas as CEO in 1997. Armed with heavy financial powers, Short bought out 38 bottlers for about $700 million. This worked out to about Rs 7 per case, but the cost – effective figure was Rs 3 per case. Short also invested heavily in manpower. By 1997, Coke’s workforce increased to 300. Three years later, the parent company admitted that investment in India was a big mistake.
It is not in the culture of Coke to admit failure. It has decided to fight back. Coke could not only sustain the loss, it could even spend more money on Indian operations. It hiked the ad budget and appointed Chaitra Leo Burnett as its ad agency. During 1998 – 99, Coke’s ad spend was almost three times that of Pepsi.
Coke is taking a look at its human resources and is taking initiatives to re – orient the culture and inject an element of decentralization along with empowerment. Each bottling plant is expected to meet predetermined profit, market share, and sales volumes. For newly hired management trainees, a clearly defined career path has been drawn to enable them to become profit centre heads shortly after completion of their probation. Such a decentralized approach is something of a novelty in the Coke culture worldwide.
But Alezander “Von Behr, who replaced Short as Chef of Indian operations, reiterated Coke’s commitment to decentralization and local responsiveness. Coke has divided India into six regions, each with a business head. Change in the organization structure has disappointed many employees, some of whom even quit the company.
Coke started cutting down its costs. Executives have been asked to shift from farm houses to smaller houses and rentals of Gurgaon headquarters have been renegotiated. Discount rates have been standardized and information systems are being upgraded to enable the Indian headquarters to access online financial status of its outposts down to the depot level.
Coke has great hopes in Indian as the country has a huge population and the current per capita consumption of beverages is just four bottles a year.
Right now, the parent company (head – quartered in the US) has bottle full of problems. The recently appointed CEO-E Neville Isdell needs to struggle to do the things that once made the Cola Company great. The problems include –
Meddling Board
Coke’s star- studded group of directors, many of whom date back to the Goizueta era, has built a reputation for meddling.
Moribund Marketing
Once world class critics say that today the soda giant has become too conservative, with ads that don’t resonate with the teenagers and young adults that made up its most important audience.
Lack of Innovation
In the US market, Coke hasn’t created a best – selling new soda since Diet Coke in 1982. In recent years Coke has been outbid by rival Pepsi Co for faster growing noncarb beverages like SoBe Gatorade.
Friction with Bottlers
Over the past decade, Coke has often made its profit at the expenses of bottlers, pushing aggressive price hikes on the concentrate it sells them. But key bottlers are now fighting back with sharp increases in the price of coke at retail.

International Worries
Coke desperately needs more international growth to offset its flagging US business, but while some markets like Japan remain lucrative, in the large German market Coke has problems so far as bottling contracts go.
When its own house is not in order in the large country, will the company be able to focus enough on the Indian market?

Questions:

1. Why is that Coke has not been able to make profit in its Indian operations?
2. Do you think that Coke should continue to stay in India? If yes, why?
3. What cultural adaptations would you suggest to the US expatriate managers regarding their management style?
4. Using the Hofstede and the value orientations cultural models, how can you explain some of the cultural differences noted in this case?

NO. 4
THE ABB PBS JOINT VENTURE IN OPERATION
ABB Prvni Brnenska Stojirna Brno, Ltd. (ABB-PBS), Czechoslovakia was a joint venture in which ABB has a 67 per cent stake and PBS a.s. has a 33 per cent stake. This PBS share was determined nominally by the value of the land, plant and equipment, employees and goodwill, ABB contributed cash and specified technologies and assumed some of the debt of PBS. The new company started operations on April 15, 1993.
Business for the joint venture in its first two full years was good in most aspects. Orders received in 1994, the first full year of the joint venture’s operation, were higher than ever in the history of PBS. Orders received in 1995 were 2½ times those in 1994. The company was profitable in 1995 and ahead of 1994s results with a rate of return on assets of 2.3 per cent and a rate of return on sales of 4.5 per cent.
The 1995 results showed substantial progress towards meeting the joint venture’s strategic goals adopted in 1994 as part of a five year plan. One of the goals was that exports should account for half of the total orders by 1999. (Exports had accounted for more than a quarter of the PBS business before 1989, but most of this business disappeared when the Soviet Union Collapsed). In 1995 exports increased as a share of total orders to 28 per cent, up from 16 per cent the year before.
The external service business, organized and functioning as a separate business for the first time in 1995, did not meet expectations. It accounted for five per cent of all orders and revenues in 1995, below the 10 per cent goal set for it. The retrofitting business, which was expected to be a major part of the service business, was disappointing for ABB-PBS, partly because many other small companies began to provide this service in 1994, including some started by former PBS employees who took their knowledge of PBS-built power plants with them. However, ABB-PBS managers hoped that as the company introduced new technologies, these former employees would gradually lose their ability to perform these services, and the retrofit and repair service business, would return to ABB-PBS.
ABB-PBS dominated the Czech boiler business with 70 per cent of the Czech market in 1995, but managers expected this share to go down in the future as new domestic and foreign competitors emerged. Furthermore, the west European boiler market was actually declining because environmental laws caused a surge of retrofitting to occur in the mid -1980 s, leaving less business in the 1990 s. Accordingly ABB-PBS boiler orders were flat in 1995.
Top managers at ABB-PBS regarded business results to date as respectable, but they were not satisfied with the company’s performance. Cash flow was not as good as expected. Cost reduction had to go further. The more we succeed, the more we see our shortcomings” said one official.
Restructuring
The first round of restructuring was largely completed in 1995, the last year of the three-year restructuring plan. Plan logistics, information systems, and other physical capital improvements were in place. The restricting included :
• Renovating and reconstructing workshops and engineering facilities.
• Achieving ISO 9001 for all four ABB-PBS divisions. (awarded in 1995)
• Transfer of technology from ABB (this was an ongoing project)
• Intallation of an information system.
• Management training, especially in total quality assurance and English language.
• Implementing a project management approach.
A notable achievement of importance of top management in 1995 was a 50 per cent increase in labour productivity, measured as value added per payroll crown. However, in the future ABB-PBS expected its wage rates to go up faster than west European wage rates (Czech wages were increasing about 15 per cent per year) so it would be difficult to maintain the ABB-PBS unit cost advantage over west European unit cost.
The Technology Role for ABB-PBS
The joint venture was expected from the beginning to play an important role in technology development for part of ABB’s power generation business worldwide. PBS a.s. had engineering capability in coal – fired steam boilers, and that capability was expected to be especially useful to ABB as more countries became concerned about air quality. (When asked if PBS really did have leading technology here, a boiler engineering manager remarked, “Of course we do. We burn so much dirty coal in this country; we have to have better technology”)
However, the envisioned technology leadership role for ABB-PBS had not been realized by mid – 1996. Richard Kuba, the ABB-PBS managing director, realized the slowness with which the technology role was being fulfilled, and he offered his interpretation of events.
“ABB did not promise to make the joint venture its steam technology leader. The main point we wanted to achieve in the joint venture agreement was for ABB-PBS to be recognized as a full-fledged company, not just a factory. We were slowed down on our technology plans because we had a problem keeping our good, young engineers. The annual employee turnover rate for companies in the Czech Republic is 15 or 20 per cent, and the unemployment rate is zero. Our engineers have many other good entrepreneurial opportunities. Now we’ve begun to stabilize our engineering workforce. The restructing helped. We have better equipment and a cleaner and safer work environment. We also had another problem which is a good problem to have. The domestic power plant business turned out to be better than we expected, so just meeting the needs of our regular customers forced some postponement of new technology initiatives.”
ABB-PBS had benefited technologically from its relationship with ABB. One example was the development of a new steam turbine line. This project was a cooperative effort among ABB-PBS and two other ABB companies, one in Sweden and one in Germany. Nevertheless, technology transfer was not the most important early benefit of ABB relationship. Rather, one of the most important gains was the opportunity to benchmark the joint venture’s performance against other established western ABB companies on variables such as productivity, inventory and receivables.

Questions:
1. Where does the joint venture meet the needs of both the partners? Where does it fall short?
2. Why had ABB-PBS failed to realize its technology leadership?
3. What lessons one can draw from this incident for better management of technology transfers?

NO. 5.
CHINESE EVOLVING ACCOUNTING SYSTEM
Attracted by its rapid transformation from a socialist planned economy into a
market economy, economic annual growth rate of around 12 per cent, and a population in excess of 1.2 billion, Western firms over the past 10 years have favored China as a site for foreign direct investment. Most see China as an emerging economic superpower, with an economy that will be as large as that of Japan by 2000 and that of the US before 2010, if current growth projections hold true.
The Chinese government sees foreign direct investment as a primary engine of China’s economic growth. To encourage such investment, the government has offered generous tax incentives to foreign firms that invest in China, either on their own or in a joint venture with a local enterprise. These tax incentives include a two – year exemption from corporate income tax following an investment, plus a further three years during which taxes are paid at only 50 per cent of the standard tax rate. Such incentives when coupled with the promise of China’s vast internal market have made the country a prime site for investment by Western firms. However, once established in China, many Western firms find themselves struggling to comply with the complex and often obtuse nature of China’s rapidly evolving accounting system.
Accounting in China has traditionally been rooted in information gathering and compliance reporting designed to measure the government’s production and tax goals. The Chinese system was based on the old Soviet system, which had little to do with profit or accounting systems created to report financial positions or the results of foreign operations.
Although the system is changing rapidly, many problems associated with the old system still remain.
One problem for investors is a severe shortage of accountants, financial managers, and auditors in China, especially those experienced with market economy transactions and international accounting practices. As of 1995, there were only 25,000 accountants in china, far short of the hundreds of thousands that will be needed if China continues on its path towards becoming a market economy. Chinese enterprises, including equity and cooperative joint ventures with foreign firms, must be audited by Chinese accounting firms, which are regulated by the state. Traditionally, many experienced auditors have audited only state-owned enterprises, working through the local province or city authorities and the state audit bureau to report to the government entity overseeing the audited firm. In response to the shortage of accountants schooled in the principles of private sector accounting, several large international auditing firms have established joint ventures with emerging Chinese accounting and auditing firms to bridge the growing need for international accounting, tax and securities expertise.
A further problem concerns the somewhat halting evolution of China’s emerging accounting standards. Current thinking is that China won’t simply adopt the international accounting standards specified by the IASC, nor will it use the generally accepted accounting principles of any particular country as its mode. Rather, accounting standards in China are expected to evolve in a rather piecemeal fashion, with the Chinese adopting a few standards as they are studied and deemed appropriate for Chinese circumstances.
In the meantime, current Chinese accounting principles present difficult problems for Western firms. For example, the former Chinese accounting system didn’t need to accrue unrealized losses. In an economy where shortages were the norm, if a state-owned company didn’t sell its inventory right away, it could store it and use it for some other purpose later. Similarly, accounting principles assumed the state always paid its debts – eventually. Thus, Chinese enterprises don’t generally provide for lower-of-cost or market inventory adjustments or the creation of allowance for bad debts, both of which are standard practices in the West.
Questions:
1. What factors have shaped the accounting system currently in use in China?
2. What problem does the accounting system, currently in sue in China, present to foreign investors in joint ventures with Chinese companies?
3. If the evolving Chinese system does not adhere to IASC standards, but instead to standards that the Chinese governments deem appropriate to China’s “Special situation”, how might this affect foreign firms with operations in China ?

NO. 6
UNFAIR PROTECTION OR VALID DEFENSE ?
“Mexico Widens Anti – dumping Measure …………. Steel at the Core of US-Japan Trade Tensions …. Competitors in Other Countries Are Destroying an American Success Story … It Must Be Stopped”, scream headlines around the world.
International trade theories argue that nations should open their doors to trade. Conventional free trade wisdom says that by trading with others, a country can offer its citizens a greater volume and selection of goods at cheaper prices than it could in the absence of it. Nevertheless, truly free trade still does not exist because national governments intervene. Despite the efforts of the World Trade Organization (WTO) and smaller groups of nations, governments seem to be crying foul in the trade game now more than ever before.
We see efforts at protectionism in the rising trend in governments charging foreign producers for “dumping” their goods on world markets. Worldwide, the number of antidumping cases that were initiated stood at about 150 in 1995, 225 in 1996, 230 in 1997 , and 300 in 1998.
There is no shortage of similar examples. The Untied States charges Brazil, Japan, and Russia with dumping their products in the US market as a way out of tough economic times. The US steel industry wants the government to slap a 200 per cent tariff on certain types of steel. But car markers in the United States are not complaining, and General Motors even spoke out against the antidumping charge – as it is enjoying the benefits of law – cost steel for use in its auto product ion. Canadian steel makers followed the lead of the United States and are pushing for antidumping actions against four nations.
Emerging markets, too, are jumping into the fray. Mexico recently expanded coverage of its Automatic Import Advice System. The system requires importers (from a select list of countries) to notify Mexican officials of the amount and price of a shipment ten days prior to its expected arrival in Mexico. The ten-day notice gives domestic producers advance warning of incoming low – priced products so they can complain of dumping before the products clear customs and enter the marketplace. India is also getting onboard by setting up a new government agency to handle antidumping cases. Even Argentina, China, Indonesia, South Africa, South Korea, and Thailand are using this recently – popularized tool of protectionism.
Why is dumping on the rise in the first place? The WTO has made major inroads on the use of tariffs, slashing tem across almost every product category in recent years. But the WTO does not have the authority to punish companies, but only governments. Thus, the WTO cannot pass judgments against individual companies that are dumping products in other markets. It can only pass rulings against the government of the country that imposes an antidumping duty. But the WTO allows countries to retaliate against nations whose producers are suspected of dumping when it can be shown that : (1) the alleged offenders are significantly hurting domestic producers, and (2) the export price is lower than the cost of production or lower than the home – market price.
Supporters of antidumping tariffs claim that they prevent dumpers from undercutting the prices charged by producers in a target market and driving them out of business. Another claim in support of antidumping is that it is an excellent way of retaining some protection against potential dangers of totally free trade. Detractors of antidumping tariffs charge that once such tariffs are imposed they are rarely removed. They also claim that it costs companies and governments a great deal of time and money to file and argue their cases. It is also argued that the fear of being charged with dumping causes international competitors to keep their prices higher in a target market than would other wise be the case. This would allow domestic companies to charge higher prices and not lose market share – forcing consumers to pay more for their goods.

Questions
1. “You can’t tell consumers that the low price they are paying for a particular fax machine or automobile is somehow unfair. They’re not concerned with the profits of companies. To them, it’s just a great bargain and they want it to continue.” Do you agree with this statement? Do you think that people from different cultures would respond differently to this statement? Explain your answers.
2. As we’ve seen, the WTO cannot currently get involved in punishing individual companies for dumping – its actions can only be directed toward governments of countries. Do you think this is a wise policy ? Why or why not? Why do you think the WTO was not given the authority to charge individual companies with dumping? Explain.
3. Identify a recent antidumping case that was brought before the WTO. Locate as many articles in the press as you can that discuss the case. Identify the nations, products (s), and potential punitive measures involved. Supposing you were part of the WTO’s Dispute Settlement Body, would you vote in favor of the measures taken by the retailing nation? Why or why not?

Entrepreneurship
Total marks – 100

PART – A
Answer any 5 questions. Each question carries 4 marks.
1. Define the term ‘spontaneous entrepreneur’.
2. Define a tiny industry.
3. What do you mean by seed capital?
4. Who is an entrepreneur?
5. State four functions of SISI.
6. What do you mean by industrial clusters?
7. Define the term project report.
8. What do you mean by network analysis?
9. What is venture capital?
10. What is DIC?
11. What do you mean by job rotation?
12. Explain the term ‘business environment’. (5×4=20 Marks)

PART – B
Answer any eight questions. Each question carries 5 marks.
13. Discuss the need for and importance of project appraisal.
14. What are common errors in project formulation?
15. Discuss the qualities for a successful entrepreneur.
16. Suggest some measures for developing rural entrepreneurship.
17. Explain the different phases of a typical EDP.
18. What factors determine the capital structure of an enterprise?
19. Discuss the role and functions of SIDBI.
20. Discuss the salient features of the new small enterprise Policy.
21. Explain the factors influencing organisational climate.
22. Make a list of the major considerations in the layout of plants.
23. Examine the suitability of small enterprises to the Indian economy.
24. Discuss the specific problems of women entrepreneurs. (8×5=40 Marks)

PART – C
Answer any two questions. Each question carries 20 marks.
25. Briefly discuss the factors affecting entrepreneurial growth in a developing economy.
26. Explain the institutional frame work for the promotion of small enterprises in India.
27. What is a project report? Show its contents by preparing a proforma project
report.
28. Discuss the dimensions of a typical project appraisal proposed for small enterprises.
(2×20=40 Marks)


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Advertising
Max. Marks: 80
Answer any five questions
All questions carry equal marks
– – –
1. What is advertising? Bring out clearly the changing concept of advertising in
modern business world.

2. Explain the objectives and functions of advertisement manager.

3. What is advertisement budget? How do you determine optimal expenditure
through advertisement budget?

4. What are the characteristics of advertising media? Explain..

5. Write a short note on:
a) Visual layout.
b) Production traffic copy.

6. How do you measure the effectiveness of advertisement? Explain.

7. Define sales promotion? Explain the types of sales promotion.

8. Explain the merits and demerits publicity.

Xaviers Institute of Business Management Studies

Business Ethics

Max. Marks: 80

SECTION – A

1. Answer any ten of the following in about 3-4 lines each: (2×10-20)

a) Define Business Ethics.
b) What is morality?
c) How religion and ethics are related?
d) What is ethical dilemma?
e) Define Corporate Governance.
f) Whar are attitudes?
g) What is the psychological egoism?
h) State the two unethical practices in Software Company?
i) What are tax ratios?
j) List four features of utilitarianism?
k) What is whistle blowing?
l) What is software privacy?

SECTION – B

Answer any three of the following. Each question carries 5 marks. (3×5=15)

2. Explain the significance of ethics in business planning and decision making.
3. What are corporate crimes? What are their effects on society?
4. What are the implications of unethical practices on human resource management?
5. What do you mean by classical utilitarianism? Explain its principles.
6. Explain the benefits of good corporate governance.

SECTION – C

Answer any three of the following. Each question carries fifteen marks. (3×15=45)

7. Explain the ethical issues involved in managing finance with an objective
of maximizing shareholders wealth rather than shareholders interests.

8. Describe congnitivism and non-congnitivism ethical theories.

9. Explain the impact of corporate governance of Narayana Murthy Committee.

10. Explain the factors influencing ethical environment a service organization.

11. Explain the corporate social responsibility towards the educational institutions.

Xaviers Institute of Business Management Studies
MARKS : 80

SUB: CONSUMER BEHAVIOUR

N. B. : 1) Attempt all Four Case studies
2) All questions carry equal marks.

CASE STUDY 1

Kellogg India ltd.

Top mangers of Kellogg India ltd received unsettling reports of a gradual drop in sales. Managers realized that it would be tough to get the Indian consumer to accept its products. Kellogg banked heavily on the quality of its crispy flakes. But pouring hot milk on the flakes made them soggy and did not take good and not many Indian consumers like to have them with cold milk.

A typical average middle class Indian family did not have breakfast on regular basis like their wetern counterparts. Those who did have breakfast, consumed parathas, idlis , bread, butter, jam, milk tea and local food preparations. According to analysis, a major reason for kellogg’s failure was the fact that the tastes of its product did not suit Indian breakfast habits. Kellogg sources were however quick to assert that the company was not trying to change these habits; the idea was only to launch its products on the health platform and make consumers see the benefit of this healthier alternative. Another reason for low demand was premium pricing adopted by the company

Disappointed with the poor performance, Kellogg decides to launch two of its highly successful brands- chocos and frosties in India. The success of these variants took even Kellogg by surprise and sales picked up significantly. This was followed by the launch of chocos breakfast cereal biscuits.

The success of chocos and Frosties also led to kellogg’s decision to focus on totally Indiansing its flavors in the future. Kellogg also introduced packs of different sizes to suit Indian consumption patterns and purchasing power.

Kellogg tied up with the Indian diet association to launch a nation wide public service initiative to raise awareness about iron deficiency problems. The company has also modified its product, particularly the addition of iron fortification in breakfast cereals.

However, Kellogg continued to have the image of a premium brand and its consumption is limited to a few well of sections of the Indian market.

Question

Question 1:- How effectively Kellogg has met conditions of marketing concept?

Question 2:- Suggest ways how Kellogg can have more influence on consumption behavior of Indian consumer?

Question 3:- SWOT Analysis of Kellogg?

CASE STUDY 2

Amway’s Relationship with Stakeholders

Amway is one of the largest direct sales companies in the world. It continues to be a family owned business which was founded in 1959. Today, it employs 14,000 people worldwide and markets over 450 product lines. Its vision is to help people lead better lives. Its success is largely due to its three million ABOs (Amway Business Owners) spread across 80 countries. Thanks to Amway, these people have a business of their own.
The only shareholders of Amway are the families that own Amway. The communication channels used by Amway to communicate regularly with its internal and external stakeholders are websites, email, events, publications and membership of trade bodies.

Amway sells directly to consumers, without the presence of retail outlets. It has its own supply chain through the ABOs. Amway seeks regular feedback from the ABOs and customers to find out how well it is doing and to improve service. The ABOs are independent small businesses, but depend on Amway suppliers to produce quality products.

Amway’s involvement with communities is a part of its vision to ‘help people lead better lives’. It promotes its corporate social responsibility (CSR) all over the world. Corporate social responsibility at Amway involves supporting social causes, acting in an ethical manner by making good products and supporting its stakeholders in a number of ways. For example, Amway has partnered with the children’s charity UNICEF. It helps provide vaccinations to fight the world’s six most deadly diseases. It has chosen this charity because of its ABOs’ concern about families.

Ethical businesses get actively involved in improving the communities where they work. Amway’s business ethics not only provides a clear framework within which to work, but also gives it a positive business advantage. Its ‘One by One’ program is good for both the environment and for business. This program supports organic farming, seeks to reduce waste and packaging and to switch to renewable energy sources. There is a cost involved in these practices, but this can be balanced against the benefits derived by both the business and the community.

Amway has to balance the needs of its many different stakeholders. It sets high standards of ethics and codes of conduct, in order to make sure that these are upheld. Its CSR program helps the environment, its own employees and underprivileged children all around the world.

Question

Question 1:- Who are the external stakeholders that Amway communicates with?

Question 2:- What communication channels would you recommend to Amway, apart from what is mentioned in the case and why?

Question 3:- stakeholders are the consumer of Amway. Comment

CASE STUDY 3

A Consumer’s Buying Decision Process

Lalith is a stores manager and head of the distribution centre in an Indian company that’s located in one of the developing cities. His family includes his parents who have retired from their respective banking professions, his wife who is working as a librarian in a college, his twin sons who are now eligible for primary school admissions and an unemployed younger sister whose marriage is fixed. Lalith belongs to a middle class segment but more or less, the income level and family saving is good.
Lalith’s parents are conservative in nature. They prefer to spend on the basic necessities and those essential things that make up a living. However, Lalith likes to have a comfortable lifestyle and spends most of his earnings on furnishings and interior decor. Recently, Lalith had bought two air-conditioners but his parents didn’t let him install it in their room. So, he had to put the second one in the children’s room. Lalith often ignores his parent’s advices and does what he feels like doing. He is also planning to purchase a car within a year. His wife doesn’t mind Lalith’s spending habits but she is very particular to ensure that her salary is spent only on the household expenses and the rest goes to the Fixed Deposit of her Bank.
Now, since Lalith’s sister is getting married soon, his parents have insisted on Lalith to spend less and save more so that the marriage ceremony takes place in a splendid way. Lalith’s marriage was a small event because most of the relatives and friends had already informed that they could not attend the occasion for personal reasons. And so, Laith’s parents wanted to invite all the relatives and friends for their daughter’s wedding and make the occasion a grand success. Due to this reason, there are small fights happening in the house and Lalith feels that his income is not enough to meet the requirements. He is getting irritated over small things and he has lost concentration on his work.
Then, one particular working day when Lalith was carrying out his usual routine work at the warehouse he gets a sudden call from the Vice-President (VP) of the company asking him to meet within the next half an hour. He is surprised and at the same time nervous about the meeting wondering what was the meeting about. He delegates some work to his assistant and then hurries to the adjacent building block. The top authorities of the company had their offices in this block. No sooner he enters the building he is called inside the VP’s chamber and after some time when Lalith comes out of the room he realizes that he has received a cash reward for a record work he had accomplished a long time back. The top management even presented him a Certificate of Excellence and a personal letter asking him to lead by example. When he comes back to his office he also realizes that a copy of his certificate was put across the company’s internal e-mails and notice boards. He is very happy with the recognition he deserved especially with the Cash amount he received and commits himself to solving more complicated tasks at the workplace.
Realising the need for a car before his sister’s marriage, he even decides to purchase a car without wasting much time. He takes a friend along when selecting the type of car, the brand, the features and other attributes. Lalith is not particular about the brand but he prefers to have a big, spacious car which also is convenient for long distance traveling. He has an unclear budget above which he is not willing to pay for the car. His friend tells him that while deciding the features, color and other aspects, he may have to spend additional amount as well. At the end, he and his friend list down the three suitable brands that meets Lalith’s considerations. After thinking for about a week, regarding the three car choices, Lalith finally selects one among them. In the next two days, he completes all the formalities and payments with respect to the purchase. He also tells the showroom executives to deliver the car to his home. He already has a driving license but then he decides to keep a driver till he gets the confidence to drive a big car. 2 His parents are also happy seeing that Lalith, his wife and kids are excited about owning a car. Lalith manages to convince his conservative parents that savings are important but spending on finer things in life is not bad as well especially when you are in a position to do so. His sister’s marriage takes place with grandeur and Lalith gets the opportunity to display his big car in front of the guests.

After recognizing Lalith’s family background, status and situation,

Question 1) What do you think are the factors that influence Lalith’s buying behavior in general? According to Maslow’s need hierarchy theory, what are the needs of Lalith as a consumer and as an individual?

Question 2) Identify and analyze Lalith’s decision-making stages when he purchased the car.

CASE STUDY 4

ABC Electronics Ltd. – A Wrong Analysis of Consumer Behavior

ABC Electronics Ltd. was a company established in 1983 by Mr. Manoj Kumar and over the years had emerged as one of the leaders in the growing segment ofthe electronics and home appliances market in India. Currently it has a market share of 30% of the home appliances market. Its product strategy has been to offer a wide range, right from mono stereo, two in ones and sophisticated music systems to televisions, refrigerators, washing machines, ovens and microwave ovens. ABC’s marketing strategy also included offering the above products so as to match the needs and budget of the middle and upper middle classes.

In 1991, Prasad, son of Mr. Manoj Kumar, took over as the Managing Director of the company. Seeing the intense competition in the post liberalization scenario, Prasad was keen to follow the principle that once you have decided on your target customer, you follow him/her relentlessly with attractive offerings. In 1994, he developed a well focused promotion and distribution strategy. The promotion strategy involved an advertising budget of Rs. 10 crores, a special training program for the sales force and offering freebies and various other sales promotion techniques. In terms of distribution, Prasad selected exclusive showrooms and franchisees to display their wide range of products. The location of the exclusive retail outlets was also selected so as to match the perceptions of the consumers as an “exclusive showroom” for them.
However, even after two years of implementing the new promotion and distribution strategy, the sales of ABC Electronics did not pick up to the extent that the company thought it would. Prasad then directed the marketing manager to conduct a study of other retail outlets to know the trend. The results revealed that there was a change in consumers’ perceptions regarding purchasing consumer durables. There seemed to be a
preference for purchasing goods from multi brand, rather than from single brand outlets.

Questions
1. Where do you think Prasad went wrong in his analysis of consumer behavior?
2. Discuss the change in the role of the consumer today, as compared to the consumer five years ago

Xaviers Institute of Business Management Studies

Human Resource Management

(i) There are three Sections A and B and C.
(ii) Attempt any three questions each from Section A and B. All questions carry 10 marks each.
(iii) Section C is compulsory for all and carries 40 marks.
SECTION A
1. Define and differentiate between Job Analysis, Job Description and Job Evaluation. Select an appropriate job evaluation method and create a plan for evaluating jobs of scientists in different grades.
2. Discuss the role of indoctrination in organizations. How can Performance Appraisal, and Training and Development be made an integral part of Human Resource Planning? Discuss.
3. Discuss the scope of Human Resource Audit. While auditing Reward systems for employees in a manufacturing organization, which factors should be taken into account and why? Explain with suitable examples.
4. Define and discuss the need for Human Resource Planning in an organization. Briefly discuss various approaches to HRP
5. Write short notes on any three of the following:
(a) Training methods
(b) Value determinants of HRP
(c) Human Resource accounting
(d) Labour Market Behavior
(e) Promotion and Reward Policies
SECTION B
1. Define and discuss the objectives of Human Resource Planning at organizational level. How does it help in determining and evaluating future organizational capabilities, needs and anticipated problems? Explain with suitable examples.
2. Define and describe Job Analysis. Briefly discuss several methods in which information about a job is collected and evaluated.
3. What is the purpose and process of recruitment function? Discuss various methods of sourcing manpower.
4. How is monetary value assigned to different dimensions of Human Resources costs, investments, and worth of the employees? Briefly explain Cost and Economic value approaches of measurement.
5. Write short notes on any three of the following :
(a) MBO
(b) Succession Planning
(c) Competency Mapping
(d) Job Evaluation
(e) H.R. Inventory

SECTION C
1. Quality control Department
Read the case given below and answer the questions given at the end.
Mr. Kapil Kumar and Mr. Abbas Ali were working in a scooter manufacturing public sector industry as Senior Quality Control Engineers in 1988. One post of Deputy Chief Quality Controller has fallen vacant due to the retirement of the incumbent and the management decided to recruit a qualified, knowledgeable and experienced professional from outside so that the present quality standard may be improved thus ensuring better marketability of their scooters in the face of stiff competition. Mr. Kapil Kumar, who was a mechanical engineer with about 15 years experience in the Quality Control Department dealing with mopeds and scooters, could have been promoted to fill the post on the basis of seniority. However, the management was looking for a graduate in statistics with experience in latest Quality Control (QC) techniques like statistical quality control, quality assurance and other related areas rather than a mechanical or automobile engineer with the routine experience in quality control. As such instead of promoting Kapil Kumar, the management advertised for the post of Deputy Chief Quality Controller – since as per company rules it was DR (Direct Recruitment) vacancy also.
Selection of Outsider
Out of the applications received in response to the advertisement, six candidates were called for interview including the two internal candidates, Mr. Kapil Kumar and Mr. Abbas Ali. The person selected was an outsider, one Mr. Ratnam, who had over 12 years experience SQC, quality assurance etc., in the two-wheeler private manufacturing industry. Mr. Ratnam joined within 2 months time expecting that in his new position he would be the main controller for quality. However, after joining the organization he came to know that he would be the second senior most person in the hierarchy for controlling the quality and would be reporting to one, Kirpal Sing,. The Chief for Quality Controls. Mr. Kirpal Singh had come up to this post by seniority and was basically a diploma holder in automobile engineering. He had to his credit about 28 years of industrial experience, out of which 20 years were spent in Quality Control Department of two industries. He joined the present organization in its Quality Control Department and had 17 years experience in the organization and was due for retirement within the next 2 or 3 years. On learning about the retirement time of Mr. Kirpal Singh, Mt. Ratnam had the consolation that he would be able to take up the position of ‘Chief Controller of Quality’ very soon.
Interference from Top
Ratnam could not put forth many good suggestions (for quality control) because of the interference and direct supervision of Kirpal Singh. He, however, could pick up a good deal of knowledge about the working of the company, the nature-and tendency of different production department heads particularly with regard to care for quality, organization for ‘QC’ in the company, the various components required for assembly of the company’s two-wheeler scooter and the expected quality standards, drawback in the present system of quality controls. etc.
Right from the time the advertisement for the selection of Deputy Chief Quality Controller appeared, the O.A. (Officers Association) of the organization had been pressing the management to consider the case of Kapil Kumar for promotion to the above post based on his seniority in the organization.
Meanwhile, the management obtained a license in 1989 for producing Three-Wheeler Autos. As a result of this and the pressure from O.A., Ratnam was transferred to look after the Quality Control Department at the company’s new Three-Wheeler plant, whereas Kapil Kumar was promoted as Deputy Chief Quality Controller in the present two-wheeler scooter plant in 1990 (after creating one additional post of Deputy Chief Quality Controller for the new Project).
In 1991, the State Government, which controlled the company in question, changed the Managing Director. During the regime of this new Managing Director, Kapil Kumar was promoted as Chief (Quality Controls) next year, when Kirpal Singh retired. This decision was based on the recommendations of Kirpal Singh and partly attributed to pressure from O.A., for further promotion of Kapil Kumar based on his vast experience in the Quality Control function of this industry. Abbas Ali rose to the position held earlier by Kapil Kumar.
Allotment of Company Quarters
The Company had its own township near the factory. Its quarter allotment scheme was based on the length of service, i.e., date of joining. Ratnam had asked for a suitable quarter at the time of interview and was thus allotted a tile quarter meant for the Senior Engineer’s cadre. He learnt about this, after occupying the quarter. Ratnam asked for a change of Quarter – preferably a RCC-roof quarter, – but his request was turned down, since he had put in only few months of service whereas many others senior to him, on the beds of their longer length of service in the Company (having over 10 years service), were staying in tiled-roof quarters and were awaiting a chance for a RCC-roof quarter. Kapil Kumar and Abbas Ali were residing in RCC-roof quarters. Soon after Kapil Kumar’s promotion to the post of Chief (Quality Controls), he was allotted a bungalow.
The management’s decision in this case must be viewed in the context of the downtrend in the demand for scooters and three-wheeler autos during 1993 following complaints from dealers about the deteriorating quality of components as also their short life. Notably the complaints had risen ten-fold in that year as compared to that in 1988.
Questions
(a) Was the management justified in taking a decision to recruit a qualified and experienced person from outside as Deputy Chief Quality Controller?
(b) Was it in the interest of the organization to transfer Ratnam to the new auto-wheeler plant and promote Kapil Kumar? What could have prompted the management to take this decision?
(c) How do you view the role of O.A.s in supporting only the local and internal candidates and overlooking the interests of direct recruits even when they were family members of the Association, particularly at a time, when the industry needed professionally qualified persons to fill key technical posts?
(d) How would you react to the management’s scheme for quarter allotment and why?

2. Pearl Engineering
Pearl Engineering Company was a large heavy-engineering unit. It attached great importance to the recruitment and training of its senior supervisors. Apart from selecting them from within the organization, the company recruited, every. Alternate year, about ten young engineering graduates and offered them training for a period of two years, before they were appointed as senior supervisors. Such appointments were made to about 40 per cent of the vacancies of senior supervisors that occurred in the organization. This was considered necessary by management as a planned programme of imparting vitality to the organization. Besides, many of the old-timers, who had risen from the ranks, did not possess the necessary academic background with the result that they could not keep pace with the technological changes. Management also believed that in the rapidly changing conditions of industry, a bank of technically competent supervisors played a pivotal role, besides serving as a pool from which to select future departmental managers.
Engineering Graduates were selected from amongst those who applied in response to an all-India advertisement. For the selection of one engineer, on an average, eight applicants were called for interview. A selection committee consisting of the General Manager, the Production Manager, the Personnel Manager and the Training Officer interviewed and selected the candidates. The selection interview was preceded by a written test and only those who secured 40 per cent marks qualified for interview.
The engineers thus selected had to undergo a two year intensive theoretical and practical training. A well-staffed and equipped Training Institute was directly responsible for the training of the graduate engineers, besides training trade apprentices and operatives required by the company. Lectures on theoretical subjects were given at the Training Institute and practical training was imparted in all the works departments under the guidance of qualified and experienced instructors. A few lectures by senior officers of the company were also arranged to acquaint them with the company policies on different matters. During the last quarter of their two-year training programme they were deputed to work fulltime to familiarize themselves with the conditions in departments where they were to be absorbed eventually.
On successful completion of training, the graduate engineers were offered appointments, depending on their performance and aptitude as revealed during training. On placement in the work departments, however, most of them faced some difficulty or the other.
According to management, some of the heads of departments, who were themselves not qualified engineers, did not have sufficient confidence in these younger men. They preferred the subordinates who came up from the ranks to hold positions of responsibility. A few discredited them saying that it would take years before these youngsters could pick up the job. Besides, some of the employees, whose promotional opportunities were adversely affected by the placement of graduate engineers, tried their best to run down the latter as a class, sometimes working on the group feelings of the workers. Some of the supervisors who were not graduate engineers also spoke derisively of them as “the blue-eyed boys” of the organization. Management knew that many of the graduate engineers were not utilized according to their capacity or training, nor was any attempt made to test or develop their potentialities. They also knew that many of the graduate engineers were, therefore, dissatisfied with their work life. Some of them who did not get equal promotional opportunities as their colleagues placed in other departments, were looking for better jobs elsewhere.
On the other hand, according to management, the young graduate engineers were themselves partly responsible for the hostile attitude of others in the organization. Some of them failed to appreciate that a newcomer invited hostility in the beginning and it took time before he was accepted as a member of the work-group. They did not realize that they would be fully productive only after gaining about five to seven years experience in the organization. A few thought that they belonged to a superior cadre and threw their weight around. They did not bother to understand and appreciate the problems of the rank-and-file of employees who worked under them.
In spite of these drawback, the General Manager of the company felt that these men were a set of disciplined supervisors. They had a sense of pride in their profession, and with the extensive training they had received, they would be able to take up any responsible position in the organization in course of time.
The General Manager could not allow the situation to continue especially when it was a difficult and costly process to recruit and train young engineering graduates of the requisite type and caliber. He knew that the prosperity of the company, to a large extent, depended on these young men. In addition, a large number of lucrative employment opportunities were available to these young engineers elsewhere and there was a systematic raid on them, He, therefore, called a meeting of all heads of departments to review the situation.
Questions:
(i) Identify the issues related to manpower planning as evident in the case.
(ii) Discuss the strategies to tackle the percentage of internal promotion at the organizational level.
(iii)What type of additional training programmes should be imparted for direct entrants?
(iv) Suppose you are the head of the personnel division. What would be your suggestions in the meeting – Which has been called by the General Manager?

Xaviers Institute of Business Management Studies
MARKS: 100 .
SUB: International Business.

International Business
Section A (8 Marks Each Question) ( Attempt any 5 )

1. What are basic differences between domestic and international business?

2. While some see globalization as the avenue to the development of poor nations, others see it intensifying misery and inequalities. Critically examine the above statement in today’s context?

3. Explain – Localisation of global strategy

4. Explain – Technology contracting (licensing) as an alternative to FDI or ownership strategy.

5. Explain – Major factors contributing to the success of international strategic alliances.

6. Explain the role of “Power Distance” in understanding Hofsted’s work on cross-cultural prospective. How does this help in managing international environment?

7. Discuss the relationship between an MNE and its subsidiaries in the context of the “make or buy” decision. What are the implications so far as the organization structure/design is concerned?

8. Explain the role of bargaining power” in managing negotiations in international business.

9. Briefly discuss the direct and indirect impacts of FDI on LDCs

SECTION B (20 Marks Each Case)

6. Please read the following case study carefully and answer the questions given at the end.
SEN-SCHWITZ

To the Florid-faced German at Frankfurt Airport’s immigration-counter, he appeared to be just another business traveller. True, but a bit of an understatement. The man under scrutiny was Binoy Sen, whom the Indian media referred to as the Boom-Box king.
At 14, he had assembled, from parts scavenged from the local dump, a spool-recorder that had fitted nicely into a suitcase. By the time he time he was 37, in 1979, Sen & Sen (S&S), a company he had promoted with his elder brother, Sanjoy — who made up for his lack of technical expertise with a razor sharp business brain — was Asia’s largest manufacturer of radios and cassette-recorders. Now, at 56, he presided over India’s largest audio-Products Company. Sen-Schwitz, a joint venture with the Frankfurt-based consumer electronics giant, Schwitz GMBH.
S&S association with Schwitz had actually begun in 1984. Music had become a movement in Europe at that time, with immigrant labour of all colour and teenagers of all sizes constituting market-segments that no company could afford to ignore. But their means were slender, and intensity of output, rather than nuances of pitch and tone, was what they were concerned about. Since assembling was a labour and cost intensive process, at least in Europe, Schwitz could not manufacture low-end boom-boxes cheaply.
So, the company turned to Asia, where it was certain some Chinese or Taiwanese company could meet its requirements. None could. However, on a reach of Taiwan, one of the company’s managers had spotted a couple of S&S products at a retail outlet. While this Indo-German relationship had begun as a vendor-buyer one, Helmut Schwitz, 51, the CEO of Schwitz — no relation of Adolf Schwitz, who had founded the company just after the end of World War II — took an instant liking to the Sen brothers. Two years after S&S started supplying it products, in 1986, the German company acquired a 10 per cent stake in its Indian supplier.
IN 1992, when Schwitz released that he could no longer ignore the Indian market and the Sens accepted the fact that they couldn’t survive the threat from global competition without technology and marketing support from their German Partner, they formed a formal joint venture. The Sens and the German company both held 26 per cent stakes in Sen-Schwitz, with the rest being divided between the financial institutions and the investing.
The joint venture did well right from its inception. The transnational’s superior quality standards and S&S strong distribution network worked wonders. Within 2 years, the company had managed to carve out a 45 per cent share of the Rs. 795-crore market. The Sens were happy and so was Schwitz. By 1998, Sen Schwitz’s share had increased to 65 per cent in a market that had grown to Rs. 1,150 crore, And when Sen reached Frankfurt for the annual review of the joint venture that Schwitz GMBH insisted on — the company had 7 joint ventures across Asia and Latin America — he could not but help feeling that all was well with the world of music and money.
Sen’s feelings were only amplified during the review. After the preliminary greetings, Helmut Schwiz took the oais. The room darkened, and a series of PowerPoint images flashed on the screen behind Schwiz as he spoke. Sen caught only fragments of the German’s heavily accented voice, his attention was focused on the images and the bullets of text they contained. Sen scrawled a few of them on his notepad
* A turnover of $ 100 billion by 2005
* AQ growth – rate of 20 per cent a year.
* 35 per cent of the growth coming from India and China Then. Schwiz started speaking about India and Sen’s attention moved from the screen to the man. What he heard pleased him. “Sen-Schwiz has a marketshare of 65 per cent in a market that is growing at the rate of 30 per cent a year. As far as our targets for 2005 go, we believe that it is our most promising joint venture.”
The blow fell later, during the break for lunch. Sen and Chris Liu who headed the company’s joint venture in Taiwan, were exchanging notes when Schwiz butted in and, in his characteristic overbearing fashion, quickly monoeuvrec Sen to one corner of the room.
“India is, clearly, the market of the future, Binoy,” he said, biting into a roll. “You’re doing a great job, and can expect support from me for all your endeavours. But I’m worried about your margins.” Here it comes, thought Sen, the twist in the tall. “A post tax margin of 8 per cent doesn’t look too good,” continued Schwiz, “especially when seen in the light of rising volumes. We should take a fresh look at our Indian operations, Why don’t you meet with Andrew?”
Suddenly, Sen was on guard. The 55 year old Andrew Fotheringay was Schwiz’s President (International Operations). Sen liked him; they had worked together when the joint venture was being set up, and had been impressed by his eye for detail. But he also knew that Fotheringay was Schwiz’s hatchetman. “What’s on your mind, Helmut ?” he asked point-blank “oh, nothing yet,” replied Schwiz, “but we have to find a way to introduce more products into the Indian market without stretching Sen-Schwitz, Talk to Andrew.”
That wasn’t to be Fotheringay, whose wife was 9 months pregnant, had to suddenly leave for London, but promised to fly down to Calcutta, where Sen-Schwitz was based as soon as the baby was born. Now, Sen was sure that something was up : Fotheringay wasn’t the kind of manager to do something like that for nothing. Sen voiced his fears at a meeting of the Sen-Schwitz board, which had been scheduled on the day of his return. One of the board members, R. Raghavan, 53 a professor of corporate strategy at the Indian Institute of Management, Gauhati, felt that Sen was over reaching I don’t think it is quite what you think, Sanjoy he started although Sen hadn’t put any specifics to his fears. “Sen-Schwitz is, as BUSINESS TODAY keeps reminding us, evidence that there is, indeed, scope for a win-win joint venture even in the Indian context.”
He was wrong. Sure, the joint venture has benefited from the German parent’s technical expertise. In turn Schwitz GMBH had profited substantially from Sen Schwitz’s dividend pay-outs : more than 25 per cent every year. Werner Kohl, 48 Sen Schwitz’s Technical Director, seemed to agree with the professor. Kohl was a Schwitz nominee on the board, and had been a Vice-president (Operations) at the transnational’s Hamburg plant before being seconded to Sen-Schwitz for a 5 year period. But Kohl Sen knew was not likely to know what was happening back home.
The one person who agred with Sen was Rajesh Jain 44, the IDBI nominee on the board, who expressed the opinion that Schwiz GMBH could possiibly, be planning another joint venture with some other company. That sounded far-fetched even to Sen. Sen-Schwitz’s closest per cent. Besides, no company could match Sen-Schwitz;’s distribution network. So, he decided to let his fears abate till Fotneringay could either dispet them — or make them come alive.
True to his word, Fotheringay, now the proud father of his first daughter landed up in Calcutta a week later. He first met the company’s functional heads, and gave them a pep talk: ” Sen-Schwitz’s volumes-thrust should be backed by a profitability focus. Once we ensure margins of 13 to 15 per cent, we will be on our way.”
Alone with Sen, though, Fotheringay quickly laid his cards on the table. Schwitz, he informed Sen, wished to set up a 100 per cent subsidiary in the country. Sen’s mind was, suddenly, clear. He had been a fool not to see it coming. All that talk about restructuring the joint venture, introducing newer models, and the need for higher margins led up to just one thing: a fully-owned Schwiz subsidiary.” So what does this mean for us, Andrew,” he asked, “Is this advance warning about a parting of ways?”
Fotheringay was quick to dispel this notion. “The subsidiary will not compromise the interests of the joint venture. Schwitz has a long-term commitment to the India market, and this subsidiary is just a step in that director.”
All this talk-about commitment, realized Sen, was taking them nowhere. He sounded just a little imitated when he spoke: “I just can’t understand why you people are even considering a subsidiary when the joint venture has been so successful. We have a great brand, good products, the finest distribution network in the business, and an excellent supply chain Together, we have created a matrix that has delivered. Why does Schwitz want to reinvent the wheel?”
Fotheringay’s answers didn’t satisfy him. He made some noises about the subsidiary taking upon itself a large portion of the expenses involved in building the Sen-Schwitz brand, thereby reducing its operational expenses, and improving its margins. Sen was quick to point out that the Government of India did not view proposals for fully-owned marketing subsidiaries favourably. “Besides, does this mean that we transfer our marketing and distribution network to the subsidiary?” he asked incredulously.
Fotheringay side-stepped the issue: “No, no, the subsidiary will only manufacturer products.” Reading the look on Sen’s face, he hastened to enumerate Schwitz’s gameplan: ‘Of course, none of our offerings will complete directly with Sen-Schwitz As you are aware,the audio systems market is fairly segmented, so there is a great deal of potential for new offerings. We want to set up a committee from Sen-Schwitz and Schwitz to decide on the respective roadmaps of the joint venture and the subsidiary so as to avoid any conflict.”
“That apart,” he smiled, here comes the carrot, thought Sen and he wasn’t wrong,”the Sens will have the option to buy upto 49 per cent of the subsidiary’s equity when it goes in for an
IPO.” The subsidiary is not even off the ground, thought Sen and Andrew is already speaking in terms of US and THEM
Fotheringay took Sen’s silence to mean acceptance.”The other reason,” he continued, “is that we cam use the subsidiary to introduce our premium brands into the country. There is evidence that the market for premium audio-systems is all set to boom. Think about it, Binoy. The subsidiary will only strengthen the strategic relationship between the Sens and Schwitz GMBH.”
The Sens aren’t involved, thought Sen; this is an issue that concern Sen-Schwiz andSchqitz. But he didn’t want to split hairs, and promised, instead, to think about it.
Sen-Schwitz’s Executive Committee thought about it for 3 months. And it still didn’t make sense to them. Schwitz GMBH operated through joint ventures in every part of the developing world. Only in the US, UK, and France did it have fully-owned subsidiaries, using the subsidiary as a sink that would absorb the joint venture’s marketing expenses didn’t make sense too.
“It sounds altruistic,” said V.K. Kapur, 44, the company’s head of marketing. “If launching more products is the only behind the subsidiary, there is no reason why the joint venture cannot serve that purpose.” Sen and the rest of the Committee had to agree. “There’s also no reason why we cannot improve our margins by focusing on our operational efficiencies,” argued Ajay Singh, 46, Sen Schwitz Director, operations, and Sen had to agree.
He decided to discuss the matter with Sanjoy, who had retired from the business, and was involved in managing a charity. But Sen didn’t get a chance. News-agency had picked up a report that had appeared in the Financial Times Schwitz’s decision to set up a 100 per cent subsidiary in India. The report created a major stir in the Bombay stock Exchange, with the price of Sen-Schwitz’s stock falling by 30 per cent a day.
It was evident to Sen that no matter what Fotheringay and Schwitz thought, the stock-market perceived the subsidiary as a threat to the joint venture. It was also evident that the stock-market viewed Schwitz as the more valuable brand.”I understand,”Sanjoy told Binoy, when the situation had been explained to him. The technology is Schwitz’s. The brand, at least the more powerful one, is theirs. And they have access to our distribution network. Face it, we don’t have a plank to fight on.”
Questions:
(a) Identify the sequence of events that has led to the current problem. (b) Analyse the problem in the context of the process of globalization that has been increasingly witnesses over the past decade or so. (c) Examine the “fairness” of establishing a 100% subsidiary by Schwitz GMBH when the alliance is on. (d) What future course of action would you suggest to S&S? Give reasons for your answer.

7. Please read the following case study carefully and answer the questions given at the end.
Sunlight Chemicals
Starting at the vast expanse of the Arabian Sea from his comer office at Bombay’s Nariman Point, Ramcharan Shukla the 53-year old executive vice-chairman and managing Director of the 500-crore Sunlight Chemicals. (Sunlight felt both adventurous and apprehensive. He knew he had to quicken the global strides Sunlight had made in the last four years if the company was to benefit from its early gains in the world markets. However, he was also shaken by a doubt: would his strategy of prising open international markets by leveraging the talents of a breed of managers with transnational competencies succeed? Globalisation had been an integral part of Sunlight’s business plans ever since Shukla took over as managing director in 1990 with the aim of making it the country’s first international chemicals major Since then Sunlight — the country’s third-largest chemicals maker — had developed export markets in as many as 40 markets, with international revenues contributing 40 per cent of its Rs. 500 crore turnover in 1994-95. The company also set up manufacturing bases in eight countries — most recently in China’s Shenzhen free trade zone — manned by a mix of local and Indian employees.
These efforts at going global first took shape in December 1991 when Shukla, after months of deliberations with his senior management team, outlined Sunlight’s Vision 2001 statement. It read ” “We will achieve a turnover of $ 1 billion by 2001 by tapping global markets and developing new products.” The statement was well-received both within and outside the company. The former CEO of a competitor had said in a newspaper report: “Shukla has nearly sensed the pressures of operating in a new trade with a tough patents regime.”
But Shukla also realised that global expertise could not be developed overnight. Accordingly, to force the company out of an India-centric mindset, he started a process of business restructuring. So, the company’s business earlier divided into domestic and export divisions, was now split into five areas: Are I (India and China), Area 2 (Europe and Russia), Area 3 (Asia Pacific), Area 4 (US) and Area 5 (Africa and South America). Initially managers were incredulous, with one senior manager saying: “This is crazy. It lacks a sense of proportion.”
The Cynicism was not misplaced. After all, the domestic market — which then contributed over 90 per cent of the company’s turnover — had not only been dubbed with the Chinese market, but had also been brought at par with the areas whose collective contributions to the turnover was below 10 per cent Shukla’s explanation, presented in an interview to a business magazine: “Actually, the rationale is quite simple and logical. We took a look at how the market mix would evolve a decade from now and then created a matrix to suit that mix. Of course, we will also set up manufacturing facilities in each of these areas to change the sales-mix altogether.”
He wasn’t wrong. Two years later, even as the first manufacturing facility in Vietnam was about to go on stream, the overseas areas’ contribution to revenues rose to 20 per cent. And the mood of the management changed with the growing conviction that export income would spoon surpass domestic turnover. Almost simultaneously, Shukla told his senior managers that the process of building global markets could materialise only if the organisation became fat flexible, and fleet-footed. Avinash Dwivedi, am management
consultant brought in to oversee Sunlight’s restructuring exercise, told the board of directors: “Hierachies built up over the years have blunted the company’s reflexes, and this is a disadvantage while working in the competitive global markets.”
The selection of vice-president for the newly-constituted regions posed no immediate problem. For Sunlight had several general managers — from both arms of marketing and manufacturing — whose thinking had been shaped by the company’s long exposure to the export markets. For obvicus reasons, the ability to build markets was the primary criterion for selection. The second criterion was a broad business perspective with a multi-functional, multi-market exposure. That was because Shukla felt it did not make good business sense to send a battalion of functional managers to foreign markets when two or three business managers could suffice.
But Specific markets also needed specific competencies. That was how Sunlight chose to appoint a South African national to head Area 5. The logic” only a local CEO could keep track of changes in regulations and gauge the potential of the booming chemicals market in the US. However, the effort was always focused on using in-house talent. Shukla put it to his management team: “We should groom managerial talent — whether local or expatriate — for all our overseas operations from within the company and should rotate this expertise worldwide. In essence, we should develop global managers within the company.”
While doing the personnel planning for each area and fixing the compensation packages for overseas Assignment. Sunlight realised the importance of human resource (HR) initiatives. The HR division headed by vice president Hoseph Negi, had been hobbled for years with industrial relations problems caused by the unionisation of the salesforce, ” You have to move in step with the company’s global strategy.” Shukla had told his HR managers at a training session organised by Dwivedi who was spearheading the task of grooming global managers.
Four years down the line, Shukla felt that Sunlight was still finding its way around the task Sure, a system was in place. Depending on the requirements of each of the four areas, Sunlight had started recruiting between 25 and 30 MBAs every year from the country’s leading management institutes. During the first six months, these young managers were given cross-functional training, including classroom and on-the-job inputs. The training was then followed by a placement dialogue to determine the manager -area fit. If a candidate were to land, for instance, on the Asia-Pacific desk at the head office, he would be assigned a small region, say, Singapore, and would be responsible for the entire gamut of brand-building for a period of one year in coordination with the regional vice-president. The success with which he would complete his task would decide his next job: the first full-time overseas posting. He could be appointed as the area head of, say, Vietnam, which was equivalent to an area sales manager in the home market. After a couple of years, he would return to base for a placement in brand management or finance. A couple of years later, the same manager could well be in charge of a region in a particular area. Over the past four years. Sunlight had developed 30 odd potential global managers in the company spanning various regions using this system.
But, considering that the grooming programme was only three years old, Shukla felt that it would take some time for the company’s homespun managers to handle larger markets like China on their own. The real problem in this programme was in matching the manager to the market. Dwivedi suggested a triangular approach to get the right fit: define the business target for a market in an area. Look at the candidiate’s past Performance in the market, And identify the key individual characteristics for that market. Dwivedi also identified another criterion: a good performance rating at home during the previous two years. Once selected for an overseas posting, the candidate would be given cross-cultural training: a course in foreign languages, interactive programmes with repatriated managers on the nature of the assignment and, often, personality development programmes on the nuances of country business etiquette.
Further, an overseas manager would be appraised on two factors: the degree to which he had met his business plan targets for the market, and the extent to which he had developed his team. After all, he had to cachet the posting within three years to make place for his replacement. Achievements were weighed quarterly and annually against sales targets set at the beginning of the year by the vice-president of the region. The appraisal would then be sent to the corporate headquarters in Bombay for review by the senior management committee. Shukla had often heard his senior managers talk appreciatively of the benefits of transrepatriation. “The first batch of returnees are more patient tolerant and manure than when they left home,” said Manohar Vishwas, vice-president (finance),”and they handle people better.”
But the litmus test for the company, Shukla felt would be in managing a foreign workforce — across diverse cultures — at the manufacturing facilities in six countries outside India. The Shenzhen unit, for instance had 220 employees, out of which only 10 were expatriate Indians. Further, the six-member top management team had only two Indians. Of course, the mix had been dictated by the country’s laws and language considerations.
Some of the African markets had their own peculiarities. The entire team of medical representatives, for example, comprised fully-quilifies, professional doctors. Sharad Saxena, vice-president, Area 5, told Shukla: “As there is heavy unemployment in Africa doctors are attracted to field sales work for higher earnings.” There were other problems too: as both Chinese and Russian had been brought up on a diet of socialism, they were not used to displaying initiative at the workplace. Dwivedi had suggested that regular training was one of the ways of transforming the workforce. So, Shukla hired a training group from Delhi’s Institute of Human Resource Management
training to spend a month at Shenzhen. This was later incorporated as an annual exercise.
Observing that interpersonal conflicts were common in situation where with single-country background were working together, a new organisational structure was introduced. Here, Sunlight positioned local managers was introduced. Here, Sunlight positioned local managers between an Indian boss and subordinate. Similarly, some Indian managers were positioned between a local boss and subordinate. Says Avishek Acharya vice-president, Area 3: “There were some uncomfortable moments, but it led to a better integration or management principles, work practices, and ethics.”
Obviously, reflected Shukla, Dwivedi was doing a great job. As he watched the setting sun, however, he found his thoughts turning to a more fundamental question. However immaculate his HR planning had been, had he made a mistake by not developing his strategies first? Was he mixing up his priorities by putting people management” ahead of issues like marketing, technology, and global trade? Even the HR strategy he had chosen worried Shukla. Should he have opted for more locals in each country? If expatriate managers failed more often than they succeeded in India wasn’t the same true for other countries?
Questions:
1. Is Sunlight on the right track in going global without trying to consolidate its position further in the home market? 2. Can Sunlight realise its global vision with its current mix of strategies? However fine the company’s HR planning had been, had Shukla made a mistake by not developing his strategies first? 3. Are there any gaps in Shukla’s game plan to conquer the globe? 4. What are the learnings that you can derive from the “Sunlight” case so far as the internationalization of business is concerned?
8) Please read the following case study carefully and answer the questions given at the end:

Electrolux
Electrolux is Sweden’s largest manufacturer of electrical household appliances and was one of the world’s pioneers in the marketing of vacuum cleaners. However, not all the products the Electrolux name are controlled by the Swedish firm. Electrolux vacuum cleaner sold and manufacturer in the United States, for example, have not been connected with the Swedish Firm since the U.S subsidiaries were sold in the 1960s. The Swedish Firm reentered the U.S. market in 1974 by purchasing National Union Electric, which manufacturers Eureka vacuum cleaners.
Electrolux pursued its early international expansion largely to gain economies of scale through additional sales. The Swedish market was simply too small to absorb fixed costs as much as the home markets for competitive firms from larger countries. When additional sales were not possible by exporting, Electrolux was still able to gain certain scale economies through the establishment of foreign production. Research and development expenditures and certain administrative costs could thus be spread out over the additional sales made possible by foreign operations. Additionally, Electrolux concentrated on standardized production to achieve further scale economies and rationalization of parts.
Until the late 1960s, Electrolux concentrated primarily on vacuum cleaners and the building of its own facilities in order to effect expansion. Throughout the 1970s, though, the firm expanded largely by acquiring existing firms whose product lines differed from those of Electrolux. The compelling force was to add appliances lines to complement those developed internally. Its recent profits ($220 million in 1983) have enabled Electrolux to go an acquisitions binge. Electrolux acquired two Swedish firms that made home appliances and washing machines. Electrolux management felt that it could use its existing foreign sales networks to increase the sales of those firms in 1973, Electrolux acquired another Swedish firm, Facit, which already had extensive foreign sales and facilities. Vacuum cleaner producers were acquired in the United States and in France; and to gain captive sales for vacuum cleaner. Electrolux acquired commercial cleaning service firms in Sweden and in the United States. A French Kitchen equipment producer, Arthur Martin, was bought, as was a Swiss home appliance firm. Therma, and a U.S. cooking equipment manufacturer, Tappan.
Except the Facit purchase, the above acquisitions all involved firms that produced complementary lines that would enable the new parent to gain certain scale economies, However, not all the products of acquired firms were related, and Electrolux sought to sell off unrelated businesses. In 1978 for example, a Swedish firm, Husgvarna, was bought because of its kitchen equipment lines. Electrolux was able to sell Husqvarna’s motorcycle line but could not get a good price for the chain saw facility. Reconciled to being in the chain saw business. Electrolux then acquired chain saw manufacturers in Canada and Norway, thus becoming one of the world’s largest chain saw producers. The above are merely the most significant. Electrolux acquisitions: the firm made approximately fifty acquisitions in the 1970s.
In 1980, Electrolux announced a takeover that was very different from those of the 1970s. It offered $175 million, the biggest Electrolux acquisition, for Granges Sweden’s leading metal producer and fabrication Granges was itself a multinational firm (1979 sales of $ 1.2 billion) and made about 50 percent of its sales outside of Sweden. The managing Directors of the two firms indicated that the major advantage of the takeover would be the integration of Granges aluminum, copper plastic, and other materials into Electrolux production of appliances. Many analysts felt that the timing of Electrolux’s bid was based on indications that Baijerinvest, a large Swedish conglomerate, wished to acquire a non–ferrous matels mining company. Other analysis felt that Elctrolux would be better off to continue international horizontal expansion as it had in the 1970s. The analysts pointed to large appliance makers such as AEG Telefunken of West Germany that were likely candidates for takeover because of recent poor performance.
Questions:
1. What are Electrlox’s reasons for direct investment? 2. How has Electrolux’s strategy changed over time? How has this affected its direct investment activities? 3. Which of Electrolux’s foreign investments would be horizontal and which would be vertical? What are the advantages of each? 4. What do you see as the main advantages and possible problems of expanding internationally primarily through acquisitions as opposed to building one’s own facilities? 5. Should Electrolux take over Granges?

Xaviers Institute of Business Management Studies
MARKS : 80

SUB: Marketing Management

N. B. : 1) Attempt all Four Case studies
2) All questions carry equal marks.

Case study 1

Case Study on Segmentation, Targeting & Positioning

Profiles Group is a leading interior decorator and designer in the country. Mr. Neerav Gupta, one of the partners in the group has invested a good amount of money in the business. The other two partners namely Mr. Pratham Gupta who is a distant cousin of Neerav and Mr. Dev Suri are mainly into managing the firm’s country wide operations. Mr. Stanley Pereira, who is more of a sleeping partner, looks after the administrative and financial aspects of the firm.
Profiles Group has around 44 service centers in the country including state capitals and several developing cities. Since the firm’s inception in 1998, its progress has been unstoppable. The clients include many reputed companies, hotel chains, popular celebrities and even hospitals and commercial banks.

A brief background of the Partners:
Neerav Gupta had a family owned business that was into manufacturing wooden furniture but Neerav‟s interest was more into decorating. So, after completing a Master’s course in interior designing from a reputed college abroad, he decided to start his own interior design services. Meanwhile, the furniture manufacturing business was handed over to Pratham Gupta due to property and family settlement issues. But, Pratham decided to join Neerav and they both started a partnership firm.
Dev Suri, a friend of Neerav who had been living abroad, sold out his real estate business and had decided to settle on the Indian soil itself. He offered help by providing additional capital and his knowledge of real estates did help the firm although in a small way. Stanley Pereira, an experienced teacher and consultant, had worked previously in leading interior designing colleges and was instrumental in making required changes in syllabus structure and interior designing courses. He has also written many books and articles on the topic. He had retired early due to family commitments but landed up in Profiles Group as a Partner through mutual contacts.

The conversation:
All the four partners are comfortably sitting face to face on a peach colored cushioned sofa which is situated near the window corner inside Neerav’s well-structured office.
Pratham Gupta feels that since their firm has invested large funds, they must enter into more market segments especially the smaller ones. And, regarding this issue, a professional conversation takes place among the partners. The talks are as follows:
Pratham: “So, what do you think about expanding our market segments to smaller more ordinary markets?”
Stanley: “What are you exactly trying to say, Pratham? Will you explain it?”
Pratham: “Listen guys, right now, we have 44 centers and competent people to work under us, but when we see our customer base, it looks small and limited. What I mean to say is that we also need to have those individual household customers who are looking for service expertise in this field. Most household customers don’t get the necessary information as to how to go about the interiors or how to decorate their home/offices etc.”
Neerav: “I agree with your points Pratham, but don‟t you think if we have to reach the smaller segments of the market, we need a different approach to cater to their needs. We would have to advertise and communicate to these segments in a customised way. This will increase the promotion budget and our focus on the existing customers may be compromised.” Dev: “I think we need to get a balance here. Pratham‟s points are valid enough and it will make Profiles group more productive. If need be, we may have to take help of a service consultancy in order to penetrate deeper markets.”
Stanley: “Okay… so, even if we allocate these segments, we need to target them in a way where we will know the immediate impact of these segments. We have to position in such manner that we get this customer base to keep moving towards us… however, the problem lies in the demand for our product in these segments!”
Pratham: “What is that problem you are talking about, Stanley?”
Stanley: “I will tell the problem, we know our product… but these individual customer segments will see our product as a one time purchase… Interiors and designing is done by a household customer at one point… very rarely, he will seek for a change or improvement. So, is it acceptable that we cater to their one time need and then let go?”
Neerav: “I do understand that point… But, that’s always the case in our business. Interior decorations and designs are usually considered one-time expenditure by household customers…. and as a matter of fact, that has not affected the way we do our business or on our returns.”
Pratham: “See, even otherwise it should not affect our firm because individual customer segments are willing to pay or spend on interiors. If they need a good, comfortable home along with a neat set of furniture then why don’t we cater to that need, even if it’s a one time demand from a particular customer? This is exactly what I meant earlier when I said, given the expertise we have, why don’t we use it to expand our customer base? Of course, we may have to develop suitable pricing strategies, promotion strategies for these market segments which is according to me, not a big thing to do.”
Dev: “Let’s first consult with our marketing hero and ask their opinion or suggestions as well”
Dev takes out his cell phone to dial Mr. Sunil’s number and he immediately gets the connection. Sunil is the head of the marketing section and he is very efficient in his job. He also has an acceptable humour quotient. Dev asks Sunil to come over to Neerav’s office.

Sunil enters the office:
Sunil: “What’s up, Bosses?”
Dev gives a brief explanation to Sunil about the potential market.
Sunil: “that’s a welcome sign actually… we have the necessary resources and we are available to any customer at any given point… So, I think it‟s a good idea that we update our customer profiles also… Only thing is we have to make sure we are targeting and positioning our customer segment in the way they feel comfortable to approach us…”
Pratham: “Nicely said Sunil… You are our man in this task…. We rely on you to make our markets bigger and customer segments broader…”
Sunil: “Always thinking in the interests of Profiles Group, Mr. Gupta… Not to worry… You tell me the confirmed plans and leave the execution on me…”
Neerav: “Well, what can I say? If we are sure about managing the newer segments which is existing out there, then our work is just to target them and position our product as per the given requirements”
Dev: “There is one important suggestion I would like to present here…. We need to ensure that we properly differentiate our existing customers from the newer ones so that we are not overriding one another or our customers don’t feel compromised at any point.”
Stanley: “That’s a really valuable suggestion, Dev… I completely agree with this point”
Sunil: “Me too… Mr. Suri has stated an absolute theory… But, it’s not that we can’t take the benefits from the two and use it for our purpose… Somewhere, we can link the newer segments with the existing ones and gradually Profiles Group will mean the same to every one. That is however applicable in the long term… For now, we need to attend our customer base on a one-to-one basis… So, we do it slow and steady”
Neerav: “Sunil, I don’t understand, but whenever you speak you visualize the big picture as well… I admire your quality and also that you are very loyal to Profiles Group”
Sunil: “Anytime Mr. Gupta, I am at your service….Just give the command and it will be done”
All of them laugh at that comment and decide to have an official meeting regarding the Segmenting, Targeting and Positioning strategies for the potential market. Within a month, the scheduled meeting is done with the involvement of key people and various points are noted down for implementation.
The marketing team after a brainstorming session also comes up with a collective idea about introducing Re-decorating and re-designing to be offered as a part of Profile’s group’s services. This meant that clients or customers can think about re-designing or re-decorating their homes/offices with the already available possessions and existing furniture. This also meant less cost to the clients. This idea was taken up seriously and plans to implement such services were already underway.

The Progress:
The next six months in the Profiles Group has made everyone busy with different tasks and agendas to be accomplished. Sunil is the busiest person around and he is actively engaged in marketing activities related to the targeting and positioning of their product to the new customer base.
Very soon, the results are noticeable in the Profiles Group. After a considerable amount of planning and hard work, the subsequent months showed positive results as given below:
 The markets are segmented based on the income level of the household customers
 Their needs, wants and demands are analyzed
 These markets are targeted based on their desire, willingness and capabilities to attain the required interiors and furnishings.
 Sunil headed a separate section namely Re-designing and Re-decorating Services at the firm’s main office. Sunil was immediately involved in making special centers for Re-designing and re-decorating services in different parts of the country.
 Marketing section was taken over by a competent person – Ms. Sneha Agarwal who has over 8 years of experience in interior designing. She was chosen on the recommendation of Stanley Pereira as Sneha had been a merit student previously and Stanley had been her teacher.
 Neerav had even managed to get some MNC‟s as the firm’s clients.
 Positioning of Profiles Group’s product and services was done in three ways –
 For the already existing customer base which include the corporate and business houses, film industry and celebrities and other big units who spend huge amounts on the interior decorations.
 For the newer segments also termed as the individual household segments who have limited spending abilities but have a desire for elegant interiors at reasonable rates.
 For the collective market – re-design and re-decor services were offered.
 The structure of the firm’s web-site was made more user-friendly and included several videos showing how proper layout and interiors increased efficiency, easy movement, allowed more lighting and ventilation and created a feeling of well-being and comfort.
 A CD was also launched which included these videos and the necessary information of the Profile’s firm with the contact addresses and numbers. The CD also included interview with certain well-known clients who were highly satisfied with the firm’s services. This established trust and good communication in the market.
 Soon enough, the firm launches into environmental friendly interiors and develops „Go Green‟ initiatives that uses more re-cycled and renewable substances.
 There was a plan to begin annual contests and games which involved household customer segments to give their ideas or suggestions for a well laid out interiors using eco-friendly materials and “Go-Green‟ initiatives.

The Partners and the interview:
It’s been two years now since Profile’s Group had moved into individual household segments.
All four partners are seated on the sofa inside Neerav‟s office except this time the sofa is of cream shade and a press reporter namely Namitha Goel is sitting on a single sofa across them. Namitha Goel had scheduled this interview and later will be published in the “Living Designs”, a new monthly magazine that deals with interiors. She begins with a direct question to Neerav –
Namitha: “Mr. Neerav Gupta, do you think the reason for the substantial increase in your customer base is due to the Redesign and re-decoration services?
Neerav: “Well, to a considerable extent, I believe it is so. Re-design is not about my taste or your taste. It’s about working with what the client owns and making them happy. Most people are good in re-arranging their stuff but they don’t have time or energy to do it. So, we offer them this assistance.”
Namitha: “How come you got this thought about making these household segments as your customers? I mean, your firm is associated with the influential clientele base and considering that, why did you feel that these household segments would prove to be a lucrative market for you?”
Neerav: “The entire credit for making individual household segments as our customers goes to my business partners here, my workforce and their efforts. Around two and a half years back, we had just got into a conversation in this very same office and Pratham suggested about tapping these markets with our available resources. Let me clarify that we decided to target this segment not for profits but we felt they too would benefit from our expertise in this field.”
Namitha: “According to the market survey, it seems that there is no close competitor for you in this business. So, your firm stands at the top like it’s been from a long time. What do you say in this matter?”
Neerav is about to answer but his cell phone rings and he attends to it quickly.
Neerav: “Excuse me, Ms. Namitha.., I have urgent business call that can’t wait…, Carry on with your questions and my team mates will answer. I have to go now.” He addresses his partners and leaves the office in a hurry.
The interview proceeds and remaining partners contribute their views. The interview takes another 45 minutes and Namitha Goel is satisfied with her work as a press reporter. She leaves the Profile’s Group office with a sense of achievement.
The next month’s issue of “Living Designs” carries the cover story of the Profiles Group with the partners‟ exclusive interview placed in the shaded column of the magazine pages.

Questions: 1 Examine the progress of Profile’s Group as a leading interior designer and decorator.
Questions: 2 What kind of change was observed in the STP strategy of the firm and how was it useful?
Questions: 3 Evaluate the working of Profile’s group with respect to the Segmenting, Targeting and Positioning of markets. Do you have any suggestions for the firm?

Case study 2
Determining the Marketing 4 P’s

Any business organization in order to be successful needs to have a clear picture about the 4 P’s of marketing. This forms the basis on which business functioning takes place. What are these 4 P’s and why are they important? Let’s assume that we are interested to start up a small business enterprise and for that we have the necessary capital, skills and people. And now, since we are in the initial stage of enterprise formation, we need to answer the previous question.
Marketing mix comprises of the four basic elements or components which are termed together as 4 P’s of marketing. They are:
Product: what is it that we have to offer to the market? What can it include? In what ways can it be modified, changed, expanded, diversified etc.? Will our products be accepted in the market? If not, how do we create a market for our products?
Price: at what value should the products be offered in the market? What should be the returns? Will it be worth to the buyers? What variations, differences and strategies can we adopt in order to earn a fair margin and also gain customer satisfaction?
Place: where must be our products available? How soon it’s demanded in the market? How quick we can deliver it to the consumption points? Who do we need to involve in the distribution of our products? How much will they charge for their services?
Promotion: why do we need to promote our products? Will people be aware of our products if we don’t do any promotion? If we need to promote our products, what kind of message we should convey to the market? In what ways and methods we can carry out the promotion?
Unless we know the answers to the above questions, we cannot make our business function. Therefore, after considering the strengths and weakness of our likely enterprise and studying the market opportunities, we decide to manufacture wax crayons.

The main reason behind this decision is –
1. We can come up with an effective 4 P’s either by marketing the crayons ourselves and if not, we can take orders by being the suppliers to our clients.
2. We know that our market mainly comprises of educational institutions, drawing and painting classes/centers, artistes, even big companies use crayons extensively.
3. We realize the potential of wax crayons as we can offer variety in sizes, quality, colors, price ranges, wholesale and retail prices etc. We can even venture into related areas such as wax artic rafts, wax candles, oil colors, paint etc.
4. We can have direct contact with our clients and in the long term we can even engage an agency to market the crayons.
5. We know that promotion strategies can be based on the type of our customer segment and we could easily do it through advertising on Television, newspapers, children’s comics, notebooks, school notice boards, etc. We can even sponsor or conduct drawing competitions, art exhibitions or we can have contractual agreements with the stationery outlets, art schools etc. However, we are still apprehensive about our marketing mix. We are yet to confirm about our marketing mix and until then we are unable to finalize on our decisions or start with the implementation process.

Question 1.How will you determine the marketing mix for our enterprise?
Question 2.Do you have any ideas to make our enterprise successful particularly by enhancing or improving the marketing mix?
Question 3.What do you think will be the challenges in making an effective marketing mix since our enterprise is a new one?

Case study 3

Good Publicity vs. Bad Publicity

Roger Twain walked as usual with a pleasant aura and at a leisurely pace to his office. Roger is a PR Manager in one of the top FMCG companies of the world. His office along with the PR staff was recently shifted from sixth floor to the second floor of the building. The reason was simple enough. Top management did not want external parties to wander around the whole building in the excuse of meeting PR staff or the PR manager. Roger Twain in fact, welcomed this shift and was glad that he didn’t have to wait for the lift as he could now very well use the staircase. Roger has around 15 years of experience in PR and handling Publicity related issues. He had worked with several companies as well as non-business organisations and institutes.
Roger currently in his 53rd year has achieved lot of success in his career as a professional expert in the field of PR and Publicity handling. Although his plans to start his own PR Consultancy firm didn’t work out the way he wanted, he was actively involved in several worldwide workshops, seminars and presentations. He even wrote articles on PR strategies and published some books on PR. Roger’s ideologies as a PR professional was –

 “No News is not good news… You have to be in the news – good or bad. And, the objective should
be to convert bad news into good news.”
 “You cannot create bad news about your company. At the same time, you cannot create a good one. You can only communicate it in good or bad way.”
 “PR is about being in the news – time and date don’t matter much.”
 “It’s not about being right or wrong – it’s about being clear and sticking to the truth and using it positively.”
 “Everyone has a right to express… But, a PR person should consider it as a righteous Duty”
 “Your Company can show only performance. PR has to talk about it.”

A few of his career achievements in the different organizations that he worked for are as follows:

Problem Situation 1: Some of the cosmetic products of Jasper Ltd. were selling in the market beyond its expiry date. A media report exposed and presented this story to the public that Jasper Ltd. was desperate to increase its sales and did not consider consumers’ interests or their well-being. This led to decrease in sales volume even in the other product categories of the company. Due to incorrect operations of some channel members and retail outlets, old stock was sold to the consumers after the expiry dates. The outcome was Jasper Ltd.’s low profit margins.
Challenge: Roger’s challenge was to make consumers more aware and responsible while purchasing the company’s products without ruining the distribution channel relations and at the same time making the company socially responsible.

Solution: Roger suggested to the advertising department to create a public awareness ad regarding the importance of checking product expiry dates before buying. He advised the management to take back old stock from the retail outlets and distributors by offering a reasonable price and also prescribing the time limit within which those products should reach the company. Roger’s view was that distributors will mostly see their benefit and continue to sell the old stock. If they sell it back to the company itself for a price, they would definitely make an effort to get the new stock and sell those to the consumers. Roger’s logic was “it is better to spend some money on getting back the old stock than let it sell in the market at the risk of company’s reputation.” Meanwhile, consumers will also be aware about expiry dates of cosmetics when they buy it.

Problem situation 2: Acorn Seeds Company’s assistant finance manager was involved in some fraudulent activity and was accused of misappropriation of funds. This news became public and soon enough, company’s investors and stakeholders began to question the integrity and trustworthiness of the company. Company found it difficult to convince people that one person’s immoral intentions does not mean that everyone in the company is beyond trust and moral obligations. Furthermore, company’s products and services got severely affected and consumers started opting for competing products. There was bad publicity all around. Sales declined and situation got worse when finance manager unable to handle pressure resigned. Even though finance manager was not involved with his assistant, he was linked with him and given a bad treatment from outsiders even including some of the employees. Media accelerated this issue and created more hype than was necessary.
Challenge: Roger’s challenges in this situation was handling bad press, dealing with media people with patience and uplift the company’s integrity with good reputation. He also needed to make the financial department integrated with other departments and boost the employee morale. At the same time he had to take care that company’s products do not suffer in the situation.
Solution: Roger suggested to the top management to issue a public message in the newspapers/magazines and also at the end of the Company’s product ads on TV. The message was – “We value your trust in us as you value our commitment towards you.” Roger’s view was that once the fraud was committed and was out in the open, there was nothing much to be done but to move on accepting that such incident occurred and will not happen again. Roger also advised for just one press conference regarding this issue to put an end to this matter. The assistant finance manager had confessed and was told to resign instead of being fired. Soon enough, people forgave and forgot this issue, sales improved and company was on the track once again.

Problem Situation 3: One of the women’s facial creams produced by Jasper Ltd. was severely criticised by media and women. The belief was that the product contained acidic substance causing harmful chemical reactions on the skin. This belief was created when some women claimed that their skin discoloured/scalded after using this facial cream. Media reports provided some facts related to the product that made women who were using this cream more alert. As a result sales dropped drastically.

Challenge: First of all, Roger had to study the product and know its constituents. Secondly, he discussed with product research team as to why such claims could be targeted towards the product. Next, he had to face the media and women consumers addressing the claims and product’s safety.

Solution: Roger collected those facts provided in the media reports and sent them for verification with the skin specialists, research team and for laboratory testing. It was verified and proved that facts provided were immaterial in causing damaged skin. It was also proved that the cream contained no acidic substance or any sort of harmful chemical. Secondly, those women who claimed skin damage were questioned about their application of the skin cream. Two women confessed that they combined several other beauty products along with cream’s application. Others confessed that they were interested in making some quick money if company provided any compensation. Roger arranged a special press meet and provided all the relevant facts and information regarding this issue.

Problem Situation 4: Homely Anchor, a charitable organisation that mainly looked after elderly people in several old age homes was having a problem with its donations. There were anonymous donations coming from several places that it was difficult to track the funds and its allocation. The members of the organisation were themselves confused with the amount collected and amount spent since proper records were not maintained. There were gaps in the accuracy of the information and its updates. Somehow, a magazine columnist/writer got to know about this state of affairs and without much investigation published a small article in the magazine. The article stated how Homely Anchor was unable to manage funds and money received through anonymous donations remained anonymous. Although the article was not accusing of fraud, it hinted the readers in that direction. Within a few months of the article publication, some social activist groups and media started questioning Homely Anchor. There were questions raised on who were the anonymous fund raisers, amount of donations and what and how much was being spent where.

Challenge: Since Roger was working as a part-time Public Relations officer in Homely Anchor, he had to face the social activists and media on behalf of the organisation. He had to protect the privacy of anonymous donation givers and assure them as well as old age homes that funds are raised, managed and used for good intentions.

Solution: He merely gave open statements telling that a proper system will soon be in place that would ensure the accuracy and safety of records related to donations and fund raising. Shortly, he arranged for a small conference consisting of prominent social activists, charitable workers and media representatives to discuss and debate on the implementation of proper systems in charitable organisations. This conference gained lot of popularity and free publicity for Homely Anchor which resulted in more donations. An appropriate system was also implemented to record the transactions.

Problem Situation 5: The research and production team at Sparkly Company had designed a new and innovative technology of purifying water in their product – “Sparkler water purifiers”. This system was tested and proved that it was safe and that it purified water without destroying its minerals. Once it was approved, production plants were ready to manufacture water purifiers in the newly designed way. But, information had leaked to the rival competitor “Visor” Ltd. who immediately took advantage of the opportunity. Visor Ltd. issued statements in the press about this new technology of purifying water and that soon they will be marketing these products. There was a commotion in Sparkly Company due to this. Research and production teams began to accuse each other on the information leakage. Somehow, management was not able to control the situation. News spread about the rivalry issues and information leakage. Media was too interested in finding out which company would come out with the product first.
Challenge: Roger too found this situation difficult to handle. There was definitely an information leakage regarding the new method implemented in water purifiers. Roger’s immediate tasks were to find how information was leaked out and who would have done it. He knew the commitment levels of the company’s employees were not questionable. Second, he had to ensure that Sparkling Company was the first to introduce this technique and at the same time he could not accuse Visor Ltd. openly in public.

Solution: Since acquiring patents (exclusive rights) to the new technique in water purifiers was in process, Roger decided not to talk about it. He then released a statement in the press as “Sparkly Company’s dedicated effort towards manufacturing Sparkler Water purifiers with new technology was a long time process. It involved continuous research and lab experiments by the team. This technology shows our expertise and we will never compromise on our products.” After an internal investigation, Roger found that company’s certain e-mails were hacked and through that, information had leaked to Visor Ltd. So, systems and networks were made more secure. Roger made it clear in his public appearance in the media that crucial information did leak out due to the insecure network and computer systems. But, he was careful not to mention names or make any accusations. Media turned their attention to Visor Ltd. questioning its integrity, ethical and business values.

Questions:
1) Identify the qualities of Roger as a PR professional and analyse his role in the companies that he worked for.

2) In the above problem situations, was there any other approach that Roger could have adopted? If yes, suggest some approaches. If no, why do you agree with Roger’s approach?

3) List the PR tools and strategies that were adopted by Roger in dealing with the problem situations.

Case study 4

Personal Selling – Professional approach

Background Information:

“Keep Fit” is a medium-sized outlet exclusively dealing in exercising equipments/machines and fitness accessories and sometimes in sports equipments also. It has 27 sales persons employed under it. Owners of the outlet – an active middle-aged couple have several contacts abroad through which they place orders for the necessary and required equipments. Once an order is placed for particular equipment, it takes atleast 2 weeks for the equipment to reach the outlet. Secondly, the sales force is involved in cold calls, constantly checking upon new orders from the existing customers and getting new customers to place orders for these equipments from in and around the city. Sometimes, they travel to other nearby cities seeking orders and new customers.
Some of the equipments that Keep Fit sells are –

 Cardio equipments such as Treadmills, Stair climbers, Steppers, Bikes, Ellipticals, Rowers, so on.
 Strength equipments such as Weight benches, Power racks and varieties, different kinds of Weight machines which is supplied as per customer’s requirements, lifting accessories, home gym systems, and other machines.
 Fitness accessories such as pedometers, ankle and wrist weights, jump ropes, stretch mats, hand grips, exercise balls, pull and push up bars, so on.
 Sports accessories such as soccer balls, volleyballs, basketballs, poles, boxing gloves, track pants and such other stuff if at all there is customer demand or they have placed such orders.

The owners have already realized the growth potential of these equipments/machines after analyzing the following:

a) Since most people are becoming health and fitness conscious, there is lot of demand but supply is comparatively low.
b) Due to heavy work pressures and IT related jobs that require people to sit in front of their computer systems for long, it has resulted into high demand for creating and maintenance of gyms in the companies and at the workplaces.
c) The affluent class or groups especially celebrities and sports stars don’t mind purchasing and owning these equipments in their homes, the objective being creation of a personal gym at home.
d) Fitness centers, gymnasiums and sports clubs are increasing in number and so is the demand for the exercising equipments and machines.
e) Encouragement given to different sports requires the sports men and women to use such equipments and therefore, they have to be provided with such resources so as to participate in national or international sports events like Olympics.

Two more salespersons were recently recruited and selected by the owners. After the training and several exposures to the sales practices adopted by experienced salespersons, these two salespersons were ready for the actual job.

The first salesperson namely Mr. Jagan Das is hard-working and efficient in his work. It was observed in the training programme that he was alert to the situations and environment around him. But, at the same time he had a weakness of listening a lot to other people’s opinions and not contributing his thoughts or ideas. However, he was enrolled in a short-term communication course to improve his language skills and expressing his thoughts. The second salesperson namely Mr. Tarun Mehra is an enthusiastic and determined chap. He likes to share ideas and given the time, he would talk his way out. In the training programme, he asked lot of questions and after receiving answers would again question about why and how of things. His only weakness was his tendency to get over-enthusiastic about things and situations that he would forget about existing situation or problem.
In the first few months, Jagan and Tarun were getting along fine as they were assigned the same sales territory. Sometimes, they would go together to collect orders and even dispatch orders to the customers. Together, they were able to deal with complicated clients and achieve higher sales targets than what was assigned to them.
Lately, the owners observed small fights happening between Jagan and Tarun. They were not sure as to what caused the disagreements that led to fights but eventually, the couple decided that the salesmen needed to sort it out by themselves. On Jagan’s request, their sales territories were separated and now, Jagan and Tarun had to deal with different customers at different locations.

After Reading the Background Information, analyse the following two situations and answer the questions given at the end:-

Situation 1:
Jagan is at the outlet’s veranda listening to how another sales person handled a customer’s complaint. He receives a call from one of the old customers of the outlet. The telephonic conversation goes as follows:
Customer: “From “Shape-up” Gym, I am Raghav speaking… Two months back, I purchased this treadmill from you for our gymnasium located at the city’s east and now it is causing some problem… till now whatever gym equipments we purchased from you had no problems of any kind”
Jagan: “Please tell me your problem Sir…”
Customer: “See, actually I can fix the problem… I know some people who can do it very easily… but that’s not my point… I need to know why the machine caused problem.”
Jagan: “You tell me your problem Sir, and then we will fix it for free…”
Customer: “I am not having a problem; your machine has a problem”
Jagan: “I will come at your place Sir, tell me your exact problem so I can note it down and solve it as soon as possible”
Customer: “I can solve the problem… I need to know whether the treadmill comes with a guarantee period and why a brand new machine is causing this problem”
Jagan: “I will come over there Sir and if it’s possible, I will bring a technical member from my team along with me…”
Customer: “No Thanks for your help… I will speak to your Boss about the treadmill’s inefficiency!”
Jagan: “Wait… let me know what I can do for… …”
The call is dropped and Jagan is unclear as to what he must do next. Should he call back the customer on the same number as appearing on his mobile or should he find out if he can trace the customer information from the sales records of the last two months or should his superior know about this incident? The customer appeared to be in a hurry and didn’t even tell about the problem. Jagan also wondered about how Tarun would react to this kind of call.

Situation 2:
Tarun is busy entering some information into the sales records. He is asked to pick up a call from the superior’s office and following conversation takes place:
Customer: “Is this Keep Fit?”
Tarun: “Good evening Sir, yes it is… May I know your name Sir?”
Customer: “Who am I speaking to? … I am Jonathan from Lance Sports Club”
Tarun: “Mr. Jonathan, this is Tarun and I am a sales executive at Keep Fit… you can tell me your concern Sir,”
Customer: “I had placed an order for 7 pairs of weight plates, 6 pairs of dumbbells, and 2 exercising bikes – one upright and also 2 treadmills and volleyball”
Tarun: “I am listening Mr. Jonathan”
Customer: “Yes, good, now according to price-list, it says 3 treadmills, 3 exercising bikes, 6 pairs or weight plates, 6 pairs of dumbbells…. the thing is number of items mentioned in the bill are completely wrong”
Tarun: “Just tell me the Bill Number and I will get back to you Jonathan… But, how many items have you received in actual numbers?”
Jonathan: “Well, that’s the problem… I have received the same numbers as I placed in the order… but, the bill and the list says wrong numbers… and only that volleyball is not received”
Tarun: “Okay…. Just see on the top left of your list… you will find the Bill Number… please tell me that…”
Jonathan: “There is no Bill number in this…”
Tarun: “Please check it once again… there is a bill number mentioned at the top left or top right or somewhere at the top… Okay… tell me the date of the bill and your order placement date atleast”
Jonathan: “No, it’s alright, there must be a mistake… we will sort it out during the payment”
Tarun: “Mr. Jonathan… Please co-operate and tell me the bill number or the date so that I can verify it in the sales records and check the invoices also”
Jonathan: “No, that’s okay… do not bother about it… we will confirm later…”
Tarun: “Listen Mr. Jonathan, I can just…. …” But, before Tarun tells anything more, the customer has cut off the call. Tarun feels uneasy about the conversation. He was being so helpful and wanted to clarify the figures but it looked like the customer was not interested to do so. Should he follow up on the customer after finding out the necessary details or should he just keep quiet till the customer raises the issue once again? Should he tell this to his superior? He tried to imagine Jagan’s way of tackling these types of customers.

Note:
In both the situations, the salespersons have not met the customers personally. In Situation 1, Jagan is dealing for the first time with one of the old customers of the outlet. In Situation 2, Tarun had spoken to some other member of the sports club previously.

Questions:

Question 1:- Identify the approach (plus points and negative points) of the two salespersons in the above situations and make a comparative analysis.

Question 2:- In both the situations, were the customers satisfied with how the salespersons handled their queries? Analyse the sales person’s and customer’s interactions in the above situations.

Question 3:- If you were a salesperson, how would you have handled the above two situations? Do you have any suggestions for Jagan and Tarun?

Operations Management

Total Marks – 80
Section A: 5 Marks Each (Attempt any 3)
1. Discuss the nature and scope of operations management in terms of production decisions.
2. Explain the product selection and stages involved therein.
3. What are the various kinds of production systems? Discuss the nature of Mass Production.
4. Discuss in brief how do you organise value engineering function in an electronic industry?
5. Define .Purchase Systems. What are the common objectives of the purchasing function?
Section B: 5 Marks Each (Attempt any 3)
1. Design an assembly line for a cycle time of 10 minutes for the following 10 work elements:

Elements : 1 2 3 4 5 6 7 8 9 10
Immediate predecessor : 0 1 2 2.3 4 5 6 5 7.9 9
Duration in minutes : 5 10 5 2 10 7 5 2 5 7
2. Discuss how a quality-management program can affect productivity.
3. Select three service companies or organizations you are familiar with and indicate how
process control charts could be used in each.
4. Explain the various factors that are to be taken into account for plant location. Discuss
in connection with setting up an Automobile industry.
5. Explain the term ‘Break-even analysis’. Draw imaginary BEP chart and briefly describe
its merits and demerits.
Section C: 10 Marks Each (Attempt any 3)
1. (a) Explain what you understand by the term “Total Quality Management”, paying particular attention to the following terms :
quality, supplier-customer interfaces, and process.
(b) Define Productivity. List some factors that can affect productivity and some ways in which productivity can be improved.
2. (a) Give two examples (with supporting details) of the impact of technology in product and service design, in the context of service and manufacturing firms.
(b) A firm uses simple exponential smoothing with α = 0.1 to forecast demand. The forecast for the first week of February was 500 units, whereas actual demand turned out to be 450 units.
(i) Forecast the demand for the second week of February.
(ii) Assume that the actual demand during the second week of February turned out to be 505 units. Forecast the demand for the third week of February.
3. (a) Bloomsday Outfitters produces T-shirts for road races. They need to acquire some new stamping machines to produce 30,000 good T-shirts per month. Their plant operates 200 hours per month, but the new machines will be used for T-shirts only 60 percent of the time and the output usually includes 5 percent that are “seconds” and unusable. The stamping operation takes 1 minute per T-shirt, and the stamping machines are expected to have 90 percent efficiency considering adjustments, changeover of patterns, and unavoidable downtime. How many stamping machines are required ?
(b) Give an example of a business that would use a push and one that would use a pull operations control system. Explain your choice and briefly describe how the system works.
4. (a) What are the various methods of judgemental forecasting ? Comment on possible errors that are associated with judgemental forecasting.
(b) A time study of a restaurant activity yielded a cycle time of 2.00 minutes, and the waitress was rated at PR = 96 percent. The restaurant chain has a 20 percent allowance factor, Find the standard time.
5. (a) What are the advantages of having a company-wide data-bank ? Show how different functions e.g. cost accounting, sales, inventory, manufacturing can be integrated with a data-bank.
(b) A contractor has to supply 10,000 bearings per day to an automobile manufacturer. He finds that, when he starts a production run, he can produce 25,000 bearings per day. The cost of holding a bearing in stock for one year is Rs. 2 and the set-up cost of a production run is Rs. 1,800. How frequently should production runs be made ? (Assume 300 working days in a gear)

Section D: 20 Marks
1. Write short notes on any five of the following:
(a) Cellular manufacturing
(b) ISO 9000
(c) Fish-bone Diagram
(d) AGVS
(e) Cross Impact Matrix
(f) Benchmarking
(g) CIM
(h) Job Enlargement

Xaviers Institute of Business Management Studies

Principles & Practice of Management

Marks – 80

(Please attempt any 4 of the below mentioned case studies. Each Case study is for 20 marks)

Read the following case and answer the questions given at the end of the case.
LOSING A GOOD MAN
Sundar Steel Limited was a medium-sized steel company manufacturing special steels of various types and grades. It employed 5,000 workers and 450 executives.
Under the General Manager operation, maintenance, and headed by a chief. The Chief of and under him Mukherjee Maintenance Engineer. The total was 500 workers, 25 executives, (Production), there were services groups, each Maintenance was Shukla was working as the strength of Maintenance and 50 supervisors.
Chatterjee was working in Maintenance as a worker for three years. He was efficient. He had initiative and drive. He performed his duties in a near perfect manner. He was a man of proven technical ability with utmost drive and dash. He was promoted as Supervisor. Chattejee, now a Supervisor, was one day passing through the Maintenance Shop on his routine inspection. He found a certain worker sitting idle. He pulled him up for this. The worker retaliated by abusing him with filthy words. With a grim face and utter frustration, Chatterjee reported the matter to Mukherjee. The worker who insulted Chatterjee was a “notorious character” , and no supervisor dared to confront him. Mukherjee took a serious view of the incident and served a strong warning letter to the worker. Nothing very particular about Chatterjee or from him came to the knowledge of Mukherjee. Things were moving smoothly. Chatterjee was getting along well with others But after about three years, another serious incident took place. A worker came drunk to duty, began playing cards, and using very filthy language. When Chatterjee strongly objected to this, the worker got up and slapped Chatterjee. Later, the worker went to his union – and reported that Chatterjee had assaulted him while he was performing his duties.
Chatterjee had no idea that the situation would take such a turn. He, therefore, never bothered to report the matter to his boss or collect evidence in support of his case.
The union took the case to Shukla and prevailed over him to take stern action against Chatterjee. Shukla instructed Mukherjee to demote Chatterjee to the rank of a worker. Mukherjee expressed his apprehension that in such a case Chatterjee will be of no use to the department, and. the demotion would adversely affect the morale of all sincere and efficient supervisors. But Chatterjee was demoted.
Chatterjee continued working in the organisation with all his efficiency, competence, and ability for two months. Then he resigned stating that he had secured better employment elsewhere. Mukherjee was perturbed at this turn of events. While placing Chatterjee’s resignation letter before Shukla, he expressed deep concern at this development.
Shukla called Chief of Personnel for advice on this delicate issue. The Chief of Personnel said, “l think the incident should help us to appreciate the essential qualification required for a successful supervisor. An honest and hardworking man need not necessarily prove to be an effective supervisor. Something more is required for this as he has to get things done rather than do himself.” Mukherjee said, “l have a high opinion of Chatterjee. He proved his technical competence and was sincere at his work. Given some guidance on how to deal, with the type of persons he had to work with, the sad situation could h.ave been avoided.” Shukla said, “l am really sorry to lose Chatterjee, He was very honest and painstaking in his work. But I do not know how I could have helped him; I wonder how he always managed to get into trouble with workers. we know they are illiterates and some of them are tough. But a supervisor must have the ability and presence of mind to deal with such men. I have numerous supervisors, but I never had to teach anybody how to supervise his men.”
Questions:
(a) Identify the problems in this case.
(b) Do you think the decision taken by shukla is in keeping with the faith, trust and creating developmental climate in the organisation? Critically evaluate
(c) How would you help in improving rough and tough behavior of employees?

Read the following case and answer the questions given at the end.
ABC manufacturing
The ABC Manufacturing Company is a metal working plant under the direction of a plant manager who is known as a strict disciplinarian. One day a foreman noticed Bhola, one of the workers, at the time-clock punching out two cards his own and the card of Nathu, a fellow worker. Since it was the rule of the company that each man must punch out his own card, the foreman asked Bhola to accompany him to the Personnel Director, who interpreted the incident as a direct violation of a rule and gave immediate notice of discharge to both workers. The two workers came to see the Personnel Director on the following day. Nathu claimed innocence on the ground that he had not asked for his card to be punched and did not know at the time that it was being punched. He had been offered a ride by a friend who had already punched out and who could not wait for him to go through the punch-out procedure. Nathu was worried about his wife who was ill at home and was anxious to reach home as quickly as possible. He planned to take his card to the foreman the next morning for reinstatement, a provision sometimes exercised in such cases. These circumstances were verified by Bhola. He claimed that he had punched Nathu’s card the same time he punched his own, not being conscious of any wrongdoing.
The Personnel Director was inclined to believe the story of the two men but did not feel he could reverse the action taken. He recognized that these men were good workers and had good records prior to this incident. Nevertheless, they had violated a rule for which the penalty was immediate discharge. He also reminded them that it was the policy of the company to enforce the rules without exception.
A few days later the Personnel Director, the Plant Manager, and the Sales Manager sat together at lunch. The Sales Manager reported that he was faced with the necessity of notifying one of their best customers that his order must be delayed because of the liability of one department to conform to schedule. The department in question was the one from which the two workers had been discharged. Not only had it been impossible to replace these men to date, but disgruntlement over the incident had led to significant decline in the cooperation of the other workers. The Personnel Director and the Sales Manager took the position that the discha rge of these two valuable men could have been avoided if there had been provision for onsidering the circumstances of the case. They pointed out that the incident was costly to the company in the possible loss of a customer, in the dissatisfaction within the employee group, and in the time and money that would be involved in recruiting and training replacements. The Plant Manager could not agree with this point of view. “We must have rules if we are to have efficiency; and the rules are no god unless we enforce them. Furthermore, if we start considering all these variations in circumstances, we will find ourselves loaded down with everybody thinking he is an exception.” He admitted that the grievances were frequent but countered with the point that they could be of little consequence if the contract agreed to by the union was followed to the letter.
Questions
(a) Identify the core issues in the case
(b) Place yourself in the position of the Personnel Director. Which of the following courses of action would you have chosen and why?
(i) Would you have discharged both men?
(ii) Would you have discharged Bhola only?
(iii) Would you have discharged Nathu only?
(iv) Would you have discharged neither of them? Justify your choice of decision.
(c) What policy and procedural changes would you recommend for handling such cases in future?

Read the case and answer the questions given at the end of the case.
PK Mills

PK Mills manufactures woolen clothes. Over the years, it has earned an envious reputation in the market. People associate PK Mills with high quality woolen garments. Most of the existing employees have joined the company long back and are nearing retirement stage. The process of replacing these old employees with younger ones, drawn from the nearby areas, has already begun. Recently, the quality of the garments has deteriorated considerably. Though the company employs the best material that is available, the workmanship has gone down. Consequently, the company has lost its customers in the surrounding areas to a great extent. The company stands, in the eyes of general public, depreciated and devalued. The production manager, in a frantic bid to recover lost ground, held several meetings with his staff but all in vain. The problem, of course, has its roots in the production department itself. The young workers have started resisting the bureaucratic rules and regulations vehemently. The hatred against regimentation and tight control is total. The old workers, on the verge of retirement, say that conditions have changed considerably in recent years. In. The days gone by, they say, they were guided by a process of self-control in place of bureaucratic control. Each worker did his work diligently and honestly under the old set-up. In an attempt to restructure the organizational set-up, the managers who have been appointed afterwards brought about radical changes. Workers under the new contract had very little freedom in the workplace. They are expected to bend their will to rules and regulations. Witnessing the difference between the two ‘cultures’ the young workers, naturally, began to oppose the regulatory mechanism devised by top management. The pent-up feelings of frustration and resentment against management, like a gathering storm, have resulted in volcanic eruptions leading to violent arguments between young workers and foremen on the shop-floor. In the process production has suffered, both quantitatively and qualitatively. The production manager in an attempt to weather out the storm, is seriously thinking of bringing about a radical change in the control process that is prevailing now in the organization.
Questions:
(a) What are the core issues the case?
(b) Do you agree with the statement “The problem, of course, has its roots in the production department itself”? Reason out your stand.
(c) Critically evaluate the finding that old supervisors complain and new workers to resist any type of control.
(d) What type of control system would you suggest to the company to improve the production?

The AB Steel Plant

The Vice President for Production at the AB Steel Plant was giving the Production Department Manager, Mr. Singh, a hard time for not doing anything about his work group which was perpetually coming late to work and was behind schedule in the performance quotas for several months now. The vice President’s contention was that if the production’ crew was consistently tardy, the production process was delayed by about 15 minutes on an average per member per day, and this was no way for the department to meet the assigned quotas. “They are losing about 6 to 8 hours of production time per member per month, and you don’t seem one bit concerned about it,” he yelled at the manager. He added that he was pretty upset about the ‘lax management style’ of the manager and very clearly stated that unless the manager did something about the tardiness problem, another manager who can manage the crew effectively’ will have to be found.
Mr. Singh knows that he has an able and good group of workers but he also realizes that they are bored with their work and do not have enough incentives to meet the production quotas. Hence, they seem to respond to the situation by taking it easy and coming late to work by a few minutes every day. Mr. Singh has also noticed that they were taking turns leaving the workplace a few minutes early in the evenings. Even though Singh was aware of this, entire he pretended not to notice the irregularities and was satisfied that once the workers started their work, they were pretty good at their jobs and often helped to meet rush orders whenever they knew that Mr. Singh was in a bind.
Questions:
(a) What do you think is the real, problem in this case?
(b) How do you perceive the stand of Mr. Singh? Analyze critically.
(c) What intervention should Mr. Singh use to rectify the type, of situation he is presently confronted with? Discuss giving the reasons.
(d) Discuss the implications of effecting them with your recommendations.

Dealing with an Employee’s Problem

Ms. Renu had graduated with a degree in foreign languages. As the child of a military family, she had visited many parts of the world and had travelled extensively in Europe. Despite these broadening experiences, she had never given much thought to a career until her recent divorce.
Needing to provide her own income, Ms. Renu began to look for work. After a fairly intense but unsuccessful search for a job related to her foreign language degree, she began to evaluate her other skills. She had become a proficient typist in college and decided to look into secretarial work. Although she still wanted a career utilizing her foreign language skills, she felt that the immediate financial pressures would be eased in a temporary secretarial position.
Within a short period fo time, she was hired as a clerk/typist in a typical pool at Life Insurance Company. Six months later, she became the top typist in the pool and and was assigned as secretary to Mrs. Khan’ manager of marketing research. She was pleased to get out of the pool and to get a job that had more variety in the tasks to perform. Besides, she also got a nice raise in pay.
Everything seemed to proceed well for the next nine months. Mrs. Khan was pleased with Renu’s work, and she seemed happy with her work. Renu applied for a few other more professional jobs in other areas during this time. However, each time her application was rejected for lack of related education and/or experience in the area.
Over the next few months, Khan noticed changes in Renu. She did not always dress as neatly as she had in the past, she was occasionally late for work, some of her lunches extended to two hours, and most of her productive work was done in the morning hours. Khan did not wish to say anything because Renu had been doing an excellent job and her job tasks still were being accomplished on time. However, Renu’s job behavior continued to worsen. She began to be absent frequently on Mondays or Fridays. The two-hour lunch periods became standard, and her work performance began to deteriorate. In addition, Khan began to suspect that Renu was drinking heavily, due to her appearance some mornings and behavior after two-hour lunches.
Khan decided that she must confront Renu with the problem. However, she wanted to find a way to held her without losing a valuable employee. Before she could set up a meeting, Renu burst through her floor after lunch one day and said:
“I want to talk to you Mrs. Khan”
“That’s fine,” Khan replied. “Shall we set a convenient time?”
“No! I want to talk now.”
“OK, why don’t you sit down and let’s talk?”
Khan noticed that Renu was slurring her words slightly and she was not too steady.
“Mrs. Khan, I need some vacation time.”
“I’m sure we can work that out. You’ve been with company for over a year and have two weeks’ vacation coming.”
“No, you don’t understand. I want to start it tomorrow.”
“But, Renu, we need to plan to get a temporary replacement. We can’t just let your job go for two weeks”.
“Why not? Anyway anyone with an IQ above 50 can do my job. Besides, I need the time off. ”
“Renu, are you sure you are all right ?”
“Yes, I just need some time away from the job.”
Khan decided to let Renu have the vacation, which would allow her some time to decide what to do about the situation.
Khan thought about the situation the next couple of days. It was possible that Renu was an alcoholic.
However, she also seemed to have a negative reaction to her job. Maybe Renu was bored with her job. She did not have the experience or job skills to move to a different type of job at present. Khan decided to meet with the Personnel Manager and get some help developing her options to deal with Renu’s problem.
Questions:
(a) What is the problem in your opinion? Elaborate.
(b) How would you explain the behavior of Renu and Mrs. Khan? Did Mrs. Khan handle the situation timely and properly?
(c) Assume that you are the Personnel Manager. What are the alternatives available with Mrs. Khan?
(d) What do you consider the best alternative? Why?


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Human Resource Management

(i) There are three Sections A and B and C.
(ii) Attempt any three questions each from Section A and B. All questions carry 10 marks each.
(iii) Section C is compulsory for all and carries 40 marks.
SECTION A
1. Define and differentiate between Job Analysis, Job Description and Job Evaluation. Select an appropriate job evaluation method and create a plan for evaluating jobs of scientists in different grades.
2. Discuss the role of indoctrination in organizations. How can Performance Appraisal, and Training and Development be made an integral part of Human Resource Planning? Discuss.
3. Discuss the scope of Human Resource Audit. While auditing Reward systems for employees in a manufacturing organization, which factors should be taken into account and why? Explain with suitable examples.
4. Define and discuss the need for Human Resource Planning in an organization. Briefly discuss various approaches to HRP
5. Write short notes on any three of the following:
(a) Training methods
(b) Value determinants of HRP
(c) Human Resource accounting
(d) Labour Market Behavior
(e) Promotion and Reward Policies
SECTION B
1. Define and discuss the objectives of Human Resource Planning at organizational level. How does it help in determining and evaluating future organizational capabilities, needs and anticipated problems? Explain with suitable examples.
2. Define and describe Job Analysis. Briefly discuss several methods in which information about a job is collected and evaluated.
3. What is the purpose and process of recruitment function? Discuss various methods of sourcing manpower.
4. How is monetary value assigned to different dimensions of Human Resources costs, investments, and worth of the employees? Briefly explain Cost and Economic value approaches of measurement.
5. Write short notes on any three of the following :
(a) MBO
(b) Succession Planning
(c) Competency Mapping
(d) Job Evaluation
(e) H.R. Inventory

SECTION C
1. Quality control Department
Read the case given below and answer the questions given at the end.
Mr. Kapil Kumar and Mr. Abbas Ali were working in a scooter manufacturing public sector industry as Senior Quality Control Engineers in 1988. One post of Deputy Chief Quality Controller has fallen vacant due to the retirement of the incumbent and the management decided to recruit a qualified, knowledgeable and experienced professional from outside so that the present quality standard may be improved thus ensuring better marketability of their scooters in the face of stiff competition. Mr. Kapil Kumar, who was a mechanical engineer with about 15 years experience in the Quality Control Department dealing with mopeds and scooters, could have been promoted to fill the post on the basis of seniority. However, the management was looking for a graduate in statistics with experience in latest Quality Control (QC) techniques like statistical quality control, quality assurance and other related areas rather than a mechanical or automobile engineer with the routine experience in quality control. As such instead of promoting Kapil Kumar, the management advertised for the post of Deputy Chief Quality Controller – since as per company rules it was DR (Direct Recruitment) vacancy also.
Selection of Outsider
Out of the applications received in response to the advertisement, six candidates were called for interview including the two internal candidates, Mr. Kapil Kumar and Mr. Abbas Ali. The person selected was an outsider, one Mr. Ratnam, who had over 12 years experience SQC, quality assurance etc., in the two-wheeler private manufacturing industry. Mr. Ratnam joined within 2 months time expecting that in his new position he would be the main controller for quality. However, after joining the organization he came to know that he would be the second senior most person in the hierarchy for controlling the quality and would be reporting to one, Kirpal Sing,. The Chief for Quality Controls. Mr. Kirpal Singh had come up to this post by seniority and was basically a diploma holder in automobile engineering. He had to his credit about 28 years of industrial experience, out of which 20 years were spent in Quality Control Department of two industries. He joined the present organization in its Quality Control Department and had 17 years experience in the organization and was due for retirement within the next 2 or 3 years. On learning about the retirement time of Mr. Kirpal Singh, Mt. Ratnam had the consolation that he would be able to take up the position of ‘Chief Controller of Quality’ very soon.
Interference from Top
Ratnam could not put forth many good suggestions (for quality control) because of the interference and direct supervision of Kirpal Singh. He, however, could pick up a good deal of knowledge about the working of the company, the nature-and tendency of different production department heads particularly with regard to care for quality, organization for ‘QC’ in the company, the various components required for assembly of the company’s two-wheeler scooter and the expected quality standards, drawback in the present system of quality controls. etc.
Right from the time the advertisement for the selection of Deputy Chief Quality Controller appeared, the O.A. (Officers Association) of the organization had been pressing the management to consider the case of Kapil Kumar for promotion to the above post based on his seniority in the organization.
Meanwhile, the management obtained a license in 1989 for producing Three-Wheeler Autos. As a result of this and the pressure from O.A., Ratnam was transferred to look after the Quality Control Department at the company’s new Three-Wheeler plant, whereas Kapil Kumar was promoted as Deputy Chief Quality Controller in the present two-wheeler scooter plant in 1990 (after creating one additional post of Deputy Chief Quality Controller for the new Project).
In 1991, the State Government, which controlled the company in question, changed the Managing Director. During the regime of this new Managing Director, Kapil Kumar was promoted as Chief (Quality Controls) next year, when Kirpal Singh retired. This decision was based on the recommendations of Kirpal Singh and partly attributed to pressure from O.A., for further promotion of Kapil Kumar based on his vast experience in the Quality Control function of this industry. Abbas Ali rose to the position held earlier by Kapil Kumar.
Allotment of Company Quarters
The Company had its own township near the factory. Its quarter allotment scheme was based on the length of service, i.e., date of joining. Ratnam had asked for a suitable quarter at the time of interview and was thus allotted a tile quarter meant for the Senior Engineer’s cadre. He learnt about this, after occupying the quarter. Ratnam asked for a change of Quarter – preferably a RCC-roof quarter, – but his request was turned down, since he had put in only few months of service whereas many others senior to him, on the beds of their longer length of service in the Company (having over 10 years service), were staying in tiled-roof quarters and were awaiting a chance for a RCC-roof quarter. Kapil Kumar and Abbas Ali were residing in RCC-roof quarters. Soon after Kapil Kumar’s promotion to the post of Chief (Quality Controls), he was allotted a bungalow.
The management’s decision in this case must be viewed in the context of the downtrend in the demand for scooters and three-wheeler autos during 1993 following complaints from dealers about the deteriorating quality of components as also their short life. Notably the complaints had risen ten-fold in that year as compared to that in 1988.
Questions
(a) Was the management justified in taking a decision to recruit a qualified and experienced person from outside as Deputy Chief Quality Controller?
(b) Was it in the interest of the organization to transfer Ratnam to the new auto-wheeler plant and promote Kapil Kumar? What could have prompted the management to take this decision?
(c) How do you view the role of O.A.s in supporting only the local and internal candidates and overlooking the interests of direct recruits even when they were family members of the Association, particularly at a time, when the industry needed professionally qualified persons to fill key technical posts?
(d) How would you react to the management’s scheme for quarter allotment and why?

2. Pearl Engineering
Pearl Engineering Company was a large heavy-engineering unit. It attached great importance to the recruitment and training of its senior supervisors. Apart from selecting them from within the organization, the company recruited, every. Alternate year, about ten young engineering graduates and offered them training for a period of two years, before they were appointed as senior supervisors. Such appointments were made to about 40 per cent of the vacancies of senior supervisors that occurred in the organization. This was considered necessary by management as a planned programme of imparting vitality to the organization. Besides, many of the old-timers, who had risen from the ranks, did not possess the necessary academic background with the result that they could not keep pace with the technological changes. Management also believed that in the rapidly changing conditions of industry, a bank of technically competent supervisors played a pivotal role, besides serving as a pool from which to select future departmental managers.
Engineering Graduates were selected from amongst those who applied in response to an all-India advertisement. For the selection of one engineer, on an average, eight applicants were called for interview. A selection committee consisting of the General Manager, the Production Manager, the Personnel Manager and the Training Officer interviewed and selected the candidates. The selection interview was preceded by a written test and only those who secured 40 per cent marks qualified for interview.
The engineers thus selected had to undergo a two year intensive theoretical and practical training. A well-staffed and equipped Training Institute was directly responsible for the training of the graduate engineers, besides training trade apprentices and operatives required by the company. Lectures on theoretical subjects were given at the Training Institute and practical training was imparted in all the works departments under the guidance of qualified and experienced instructors. A few lectures by senior officers of the company were also arranged to acquaint them with the company policies on different matters. During the last quarter of their two-year training programme they were deputed to work fulltime to familiarize themselves with the conditions in departments where they were to be absorbed eventually.
On successful completion of training, the graduate engineers were offered appointments, depending on their performance and aptitude as revealed during training. On placement in the work departments, however, most of them faced some difficulty or the other.
According to management, some of the heads of departments, who were themselves not qualified engineers, did not have sufficient confidence in these younger men. They preferred the subordinates who came up from the ranks to hold positions of responsibility. A few discredited them saying that it would take years before these youngsters could pick up the job. Besides, some of the employees, whose promotional opportunities were adversely affected by the placement of graduate engineers, tried their best to run down the latter as a class, sometimes working on the group feelings of the workers. Some of the supervisors who were not graduate engineers also spoke derisively of them as “the blue-eyed boys” of the organization. Management knew that many of the graduate engineers were not utilized according to their capacity or training, nor was any attempt made to test or develop their potentialities. They also knew that many of the graduate engineers were, therefore, dissatisfied with their work life. Some of them who did not get equal promotional opportunities as their colleagues placed in other departments, were looking for better jobs elsewhere.
On the other hand, according to management, the young graduate engineers were themselves partly responsible for the hostile attitude of others in the organization. Some of them failed to appreciate that a newcomer invited hostility in the beginning and it took time before he was accepted as a member of the work-group. They did not realize that they would be fully productive only after gaining about five to seven years experience in the organization. A few thought that they belonged to a superior cadre and threw their weight around. They did not bother to understand and appreciate the problems of the rank-and-file of employees who worked under them.
In spite of these drawback, the General Manager of the company felt that these men were a set of disciplined supervisors. They had a sense of pride in their profession, and with the extensive training they had received, they would be able to take up any responsible position in the organization in course of time.
The General Manager could not allow the situation to continue especially when it was a difficult and costly process to recruit and train young engineering graduates of the requisite type and caliber. He knew that the prosperity of the company, to a large extent, depended on these young men. In addition, a large number of lucrative employment opportunities were available to these young engineers elsewhere and there was a systematic raid on them, He, therefore, called a meeting of all heads of departments to review the situation.
Questions:
(i) Identify the issues related to manpower planning as evident in the case.
(ii) Discuss the strategies to tackle the percentage of internal promotion at the organizational level.
(iii)What type of additional training programmes should be imparted for direct entrants?
(iv) Suppose you are the head of the personnel division. What would be your suggestions in the meeting – Which has been called by the General Manager?

INTERNATIONAL BUSINESS
N. B.: 1) Attempt any four cases 2) All cases carries equal marks.
No: 1
BPO – BANE OR BOON ?
Several MNCs are increasingly unbundling or vertical disintegrating their activities. Put in simple language, they have begun outsourcing (also called business process outsourcing) activities formerly performed in-house and concentrating their energies on a few functions. Outsourcing involves withdrawing from certain stages/activities and relaying on outside vendors to supply the needed products, support services, or functional activities.
Take Infosys, its 250 engineers develop IT applications for BO/FA (Bank of America). Elsewhere, Infosys staffers process home loans for green point mortgage of Novato, California. At Wipro, five radiologists interpret 30 CT scans a day for Massachusetts General Hospital.
2500 college educated men and women are buzzing at midnight at Wipro Spectramind at Delhi. They are busy processing claims for a major US insurance company and providing help-desk support for a big US Internet service provider-all at a cost upto 60 percent lower than in the US. Seven Wipro Spectramind staff with Ph.Ds in molecular biology sift through scientific research for western pharmaceutical companies.
Another activist in BOP is Evalueserve, headquarterd in Bermuda and having main operations near Delhi. It also has a US subsidiary based in New York and a marketing office in Australia to cover the European market. As Alok Aggarwal (co-founder and chairman) says, his company supplies a range of value-added services to clients that include a dozen Fortune 500 companies and seven global consulting firms, besides market research and venture capital firms. Much of its work involves dealing with CEOs, CFOs, CTOs, CIOs, and other so called C-level executives.
Evaluserve provides services like patent writing, evaluation and assessment of their commercialization potential for law firms and entrepreneurs. Its market research services are aimed at top-rung financial service firms, to which it provides analysis of investment opportunities and business plans. Another major offering is multilingual services. Evalueserve trains and qualifies employees to communicate in Chinese, Spanish, German, Japanese and Italian, among other languages. That skill set has opened market opportunities in Europe and elsewhere, especially with global corporations.
ICICI infotech Services in Edison, New Jersey, is another BOP services provider that is offering marketing software products and diversifying into markets outside the US. The firm has been promoted by $2-billion ICICI Bank, a large financial institution in Mumbai that is listed on the New York Stock Exchange.
In its first year after setting up shop in March 1999, ICICI infotech spent $33 million acquiring two information technology services firms in New Jersy-Object Experts and ivory Consulting – and command Systems in Connecticut. These acquisitions were to help ICICI Infotech hit the ground in the US with a ready book of contracts. But it soon found US companies increasingly outsourcing their requirements to offshore locations, instead of hiring foreign employees to work onsite at their offices. The company found other native modes for growth. It has started marketing its products in banking, insurance and enterprise resource planning among others. It has earmarket $10 million for its next US market offensive, which would go towards R & D and back-end infrastructure support, and creating new versions of its products to comply with US market requirements. It also has a joint venture – Semantik Solutions GmbH in Berlin, Germany with the Fraunhofer Institute for Software and Systems Engineering, which is based in Berlin and Dortmund, Germany – Fraunhofer is a leading institute in applied research and development with 200 experts in software engineering and evolutionary information.
A relatively late entrant to the US market , ICICI Infotech started out with plain vanilla IT services, including operating call centeres. As the market for traditional IT services started wakening around mid-2000, ICICI Infotech repositioned itself as a “Solutions” firm offering both products and services. Today , it offers bundied packages of products and services in corporate and retail banking and include data center and disaster recovery management and value chain management services.
ICICI Infotech’s expansion into new overseas markets has paid off. Its $50 million revenue for its latest financial year ending March 2003 has the US operations generating some $15 million, while the Middle East and Far East markets brought in another $9 million. It new boasts more than 700 customers in 30 countries, including Dow Jones, Glazo-Smithkline, Panasonic and American Insurance Group.
The outsourcing industry is indeed growing form strength. Though technical support and financial services have dominated India’s outsourcing industry, newer fields are emerging which are expected to boost the industry many times over.
Outsourcing of human resource services or HR BPO is emerging as big opportunity for Indian BPOs with global market in this segment estimated at $40-60 billion per annum. HR BPO comes to about 33 percent of the outsourcing revenue and India has immense potential as more than 80 percent of Fortune 1000 companies discuss offshore BOP as a way to cut costs and increase productivity.
Another potential area is ITES/BOP industry. According to A NASSCOM survey, the global ITES/BOP industry was valued at around $773 billion during 2002 and it is expected to grow at a compounded annual growth rate of nine percent during the period 2002 – 06, NASSCOM lists the major indicators of the high growth potential of ITES/BOP industry in India as the following.
During 2003 – 04, The ITES/BPO segment is estimated to have achieved a 54 percent growth in revenues as compared to the previous year. ITES exports accounted for $3.6 billion in revenues, up form $2.5 billion in 2002 – 03. The ITES-BPO segment also proved to be a major opportunity for job seekers, creating employment for around 74,400 additional personnel in India during 2003 – 04. The number of Indians working for this sector jumped to 245,500 by March 2004. By the year 2008, the segment is expected to employ over 1.1 million Indians, according to studies conducted by NASSCOM and McKinsey & Co. Market research shows that in terms of job creation, the ITES-BOP industry is growing at over 50 per cent.
Legal outsourcing sector is another area India can look for. Legal transcription involves conversion of interviews with clients or witnesses by lawyers into documents which can be presented in courts. It is no different from any other transcription work carried out in India. The bottom-line here is again cheap service. There is a strong reason why India can prove to be a big legal outsourcing Industry.
India, like the US, is a common-law jurisdiction rooted in the British legal tradition. Indian legal training is conducted solely in English. Appellate and Supreme Court proceedings in India take place exclusively in English. Due to the time zone differences, night time in the US is daytime in India which means that clients get 24 hour attention, and some projects can be completed overnight. Small and mid – sized business offices can solve staff problems as the outsourced lawyers from India take on the time – consuming labour intensive legal research and writing projects. Large law firms also can solve problems of overstaffing by using the on – call lawyers.
Research firms such as Forrester Research, predict that by 2015 , more than 489,000 US lawyer jobs, nearly eight percent of the field, will shift abroad..
Many more new avenues are opening up for BOP services providers. Patent writing and evaluation services are markets set to boom. Some 200.000 patent applications are written in the western world annually, making for a market size of between $5 billion and $7 billion. Outsourcing patent writing service could significantly lower the cost of each patent application, now anywhere between $12,000 and $15,000 apiece-which would help expand the market.
Offshoring of equity research is another major growth area. Translation services are also becoming a big Indian plus. India produces some 3,000 graduates in German each year, which is more than that in Switzerland.
Though going is good, the Indian BPO services providers cannot afford to be complacent. Phillppines, Maxico and Hungary are emerging as potential offshore locations. Likely competitor is Russia, although the absence of English speaking people there holds the country back. But the dark horse could be South Affrica and even China
BOP is based on sound economic reasons. Outsourcing helps gain cost advantage. If an activity can be performed better or more cheaply by an outside supplier, why not outsource it ? Many PC makers, for example, have shifted from in – house assembly to utilizing contract assemblers to make their PCs. CISCO outsources all productions and assembly of its routers and witching equipment to contract manufactures that operate 37 factories, all linked via the internet.
Secondly, the activity (outsourced) is not crucial to the firm’s ability to gain sustainable competitive advantage and won’t hollow out its core competence, capabilities, or technical know how. Outsourcing of maintenance services, date processing, accounting, and other administrative support activities to companies specializing in these services has become common place. Thirdly, outsourcing reduces the company’s risk exposure to changing technology and / or changing buyer preferences.
Fourthly, BPO streamlines company operations in ways that improve organizational flexibility, cut cycle time, speedup decision making and reduce coordination costs. Finally, outsourcing allows a company to concentrate on its core business and do what it does best. Are Indian companies listening ? If they listen, BPO is a boon to them and not a bane.

Questions:
1. Which of the theories of international trade can help Indian services providers gain competitive edge over their competitors?
2. Pick up some Indian services providers. With the help of Michael Porter’s diamond, analyze their strengths and weaknesses as active players in BPO.
3. Compare this case with the case given at the beginning of this chapter. What similarities and dissimilarities do you notice? Your analysis should be based on the theories explained.

No: 2
PERU
Peru is located on the west coast of South America. It is the third largest nation of the continent (after Brazil and Argentina) , and covers almost 500.000 square miles (about 14 per cent of the size of the United States). The land has enormous contrasts, with a desert (drier than the Sahara), the towering snow – capped Andes mountains, sparkling grass – covered plateaus, and thick rain forests. Peru has approximately 27 million people, of which about 20 per cent live in Lima, the capital. More Indians (one half of the population) live in Peru than in any other country in the western hemisphere. The ancestors of Peru’s Indians were the famous incas, who built a great empire. The rest of the population is mixed and a small percentage is white. The economy depends heavily on agriculture, fishing , mining, and services, GDP is approximately $15 billion and per capita income in recent years has been around $4,3000. In recent years the economy has gained some relative strength and multinationals are now beginning to consider investing in the country.
One of these potential investors is a large New York based bank that is considering a $25 million loan to the owner of a Peruvian fishing fleet. The owner wants to refurbish the fleet and add one more ship.
During the 1970s, the Peruvian government nationalized a number of industries and factories and began running them for the profit of the state in most cases, these state – run ventures became disasters. In the late 1970s the fishing fleet owner was given back his ships and allowed to operate his business as before. Since then, he has managed to remain profitable, but the biggest problem is that his ships are getting old and he needs an influx of capital of make repairs and add new technology. As he explained it to the new York banker. “Fishing is no longer just an art. There is a great deal of technology involved. And to keep costs low and be competitive on the world market, you have to have the latest equipment for both locating as well as catching and then loading and unloading the fish”
Having reviewed the fleet owner’s operation, the large multinational bank believes that the loan is justified. The financial institution is concerned, however, that the Peruvian government might step in during the next couple of years and again take over the business. If this were to happen, it might take an additional decade for the loan to be repaid. If the government were to allow the fleet owner to operate the fleet the way he has over the last decade, the fleet the way he has over the last decade, the loan could be repaid within seven years.
Right now, the bank is deciding on the specific terms of the agreement. Once theses have been worked out, either a loan officer will fly down to Lima and close the deal or the owner will be asked to come to New York for the signing. Whichever approach is used, the bank realizes that final adjustments in the agreement will have to be made on the spot. Therefore, if the bank sends a representative to Lima, the individual will have to have the authority to commit the bank to specific terms. These final matters should be worked out within the next ten days.
Questions:
1. What are some current issues facing Peru? What is the climate for doing business in Peru today?
2. What type of political risks does this fishing company need to evaluate? Identify and describe them.
3. What types of integrative and protective and defensive techniques can the bank use?
4. Would the bank be better off negotiating the loan in New York or in Lima ? Why

MANAGEMENT CONTROL SYSTEMS

Marks: 80

Note: Attempt any five questions. All questions carry equal marks.
1. Explain the various components of control systems.
2. Explain the following models and highlight their usefulness in formulating business unit strategies:
(a) The BCG Model
(b) General Electric (GE) Planning Model
3. Explain the boundary conditions in the context of profit centre. Also explain the process of performance measurement of profit centers.
4. What do you understand by Investment Centres? Explain the methods used for measuring investment centre performance.
5. What do you mean by budgetary control system? Explain the process of budgetary control in an organization.
6. Describe the criteria on which the incentives of business unit managers are decided.
7. What are the various special control issues faced by Multi National Corporations?
8. What are the characteristics of a project organization? Explain how these characteristics affect the control system design of a project.

Marketing Management

N. B. : 1) Attempt all Four Case studies
2) All questions carry equal marks.

Case study 1

Case Study on Segmentation, Targeting & Positioning

Profiles Group is a leading interior decorator and designer in the country. Mr. Neerav Gupta, one of the partners in the group has invested a good amount of money in the business. The other two partners namely Mr. Pratham Gupta who is a distant cousin of Neerav and Mr. Dev Suri are mainly into managing the firm’s country wide operations. Mr. Stanley Pereira, who is more of a sleeping partner, looks after the administrative and financial aspects of the firm.
Profiles Group has around 44 service centers in the country including state capitals and several developing cities. Since the firm’s inception in 1998, its progress has been unstoppable. The clients include many reputed companies, hotel chains, popular celebrities and even hospitals and commercial banks.

A brief background of the Partners:
Neerav Gupta had a family owned business that was into manufacturing wooden furniture but Neerav‟s interest was more into decorating. So, after completing a Master’s course in interior designing from a reputed college abroad, he decided to start his own interior design services. Meanwhile, the furniture manufacturing business was handed over to Pratham Gupta due to property and family settlement issues. But, Pratham decided to join Neerav and they both started a partnership firm.
Dev Suri, a friend of Neerav who had been living abroad, sold out his real estate business and had decided to settle on the Indian soil itself. He offered help by providing additional capital and his knowledge of real estates did help the firm although in a small way. Stanley Pereira, an experienced teacher and consultant, had worked previously in leading interior designing colleges and was instrumental in making required changes in syllabus structure and interior designing courses. He has also written many books and articles on the topic. He had retired early due to family commitments but landed up in Profiles Group as a Partner through mutual contacts.

The conversation:
All the four partners are comfortably sitting face to face on a peach colored cushioned sofa which is situated near the window corner inside Neerav’s well-structured office.
Pratham Gupta feels that since their firm has invested large funds, they must enter into more market segments especially the smaller ones. And, regarding this issue, a professional conversation takes place among the partners. The talks are as follows:
Pratham: “So, what do you think about expanding our market segments to smaller more ordinary markets?”
Stanley: “What are you exactly trying to say, Pratham? Will you explain it?”
Pratham: “Listen guys, right now, we have 44 centers and competent people to work under us, but when we see our customer base, it looks small and limited. What I mean to say is that we also need to have those individual household customers who are looking for service expertise in this field. Most household customers don’t get the necessary information as to how to go about the interiors or how to decorate their home/offices etc.”
Neerav: “I agree with your points Pratham, but don‟t you think if we have to reach the smaller segments of the market, we need a different approach to cater to their needs. We would have to advertise and communicate to these segments in a customised way. This will increase the promotion budget and our focus on the existing customers may be compromised.” Dev: “I think we need to get a balance here. Pratham‟s points are valid enough and it will make Profiles group more productive. If need be, we may have to take help of a service consultancy in order to penetrate deeper markets.”
Stanley: “Okay… so, even if we allocate these segments, we need to target them in a way where we will know the immediate impact of these segments. We have to position in such manner that we get this customer base to keep moving towards us… however, the problem lies in the demand for our product in these segments!”
Pratham: “What is that problem you are talking about, Stanley?”
Stanley: “I will tell the problem, we know our product… but these individual customer segments will see our product as a one time purchase… Interiors and designing is done by a household customer at one point… very rarely, he will seek for a change or improvement. So, is it acceptable that we cater to their one time need and then let go?”
Neerav: “I do understand that point… But, that’s always the case in our business. Interior decorations and designs are usually considered one-time expenditure by household customers…. and as a matter of fact, that has not affected the way we do our business or on our returns.”
Pratham: “See, even otherwise it should not affect our firm because individual customer segments are willing to pay or spend on interiors. If they need a good, comfortable home along with a neat set of furniture then why don’t we cater to that need, even if it’s a one time demand from a particular customer? This is exactly what I meant earlier when I said, given the expertise we have, why don’t we use it to expand our customer base? Of course, we may have to develop suitable pricing strategies, promotion strategies for these market segments which is according to me, not a big thing to do.”
Dev: “Let’s first consult with our marketing hero and ask their opinion or suggestions as well”
Dev takes out his cell phone to dial Mr. Sunil’s number and he immediately gets the connection. Sunil is the head of the marketing section and he is very efficient in his job. He also has an acceptable humour quotient. Dev asks Sunil to come over to Neerav’s office.

Sunil enters the office:
Sunil: “What’s up, Bosses?”
Dev gives a brief explanation to Sunil about the potential market.
Sunil: “that’s a welcome sign actually… we have the necessary resources and we are available to any customer at any given point… So, I think it‟s a good idea that we update our customer profiles also… Only thing is we have to make sure we are targeting and positioning our customer segment in the way they feel comfortable to approach us…”
Pratham: “Nicely said Sunil… You are our man in this task…. We rely on you to make our markets bigger and customer segments broader…”
Sunil: “Always thinking in the interests of Profiles Group, Mr. Gupta… Not to worry… You tell me the confirmed plans and leave the execution on me…”
Neerav: “Well, what can I say? If we are sure about managing the newer segments which is existing out there, then our work is just to target them and position our product as per the given requirements”
Dev: “There is one important suggestion I would like to present here…. We need to ensure that we properly differentiate our existing customers from the newer ones so that we are not overriding one another or our customers don’t feel compromised at any point.”
Stanley: “That’s a really valuable suggestion, Dev… I completely agree with this point”
Sunil: “Me too… Mr. Suri has stated an absolute theory… But, it’s not that we can’t take the benefits from the two and use it for our purpose… Somewhere, we can link the newer segments with the existing ones and gradually Profiles Group will mean the same to every one. That is however applicable in the long term… For now, we need to attend our customer base on a one-to-one basis… So, we do it slow and steady”
Neerav: “Sunil, I don’t understand, but whenever you speak you visualize the big picture as well… I admire your quality and also that you are very loyal to Profiles Group”
Sunil: “Anytime Mr. Gupta, I am at your service….Just give the command and it will be done”
All of them laugh at that comment and decide to have an official meeting regarding the Segmenting, Targeting and Positioning strategies for the potential market. Within a month, the scheduled meeting is done with the involvement of key people and various points are noted down for implementation.
The marketing team after a brainstorming session also comes up with a collective idea about introducing Re-decorating and re-designing to be offered as a part of Profile’s group’s services. This meant that clients or customers can think about re-designing or re-decorating their homes/offices with the already available possessions and existing furniture. This also meant less cost to the clients. This idea was taken up seriously and plans to implement such services were already underway.

The Progress:
The next six months in the Profiles Group has made everyone busy with different tasks and agendas to be accomplished. Sunil is the busiest person around and he is actively engaged in marketing activities related to the targeting and positioning of their product to the new customer base.
Very soon, the results are noticeable in the Profiles Group. After a considerable amount of planning and hard work, the subsequent months showed positive results as given below:
 The markets are segmented based on the income level of the household customers
 Their needs, wants and demands are analyzed
 These markets are targeted based on their desire, willingness and capabilities to attain the required interiors and furnishings.
 Sunil headed a separate section namely Re-designing and Re-decorating Services at the firm’s main office. Sunil was immediately involved in making special centers for Re-designing and re-decorating services in different parts of the country.
 Marketing section was taken over by a competent person – Ms. Sneha Agarwal who has over 8 years of experience in interior designing. She was chosen on the recommendation of Stanley Pereira as Sneha had been a merit student previously and Stanley had been her teacher.
 Neerav had even managed to get some MNC‟s as the firm’s clients.
 Positioning of Profiles Group’s product and services was done in three ways –
 For the already existing customer base which include the corporate and business houses, film industry and celebrities and other big units who spend huge amounts on the interior decorations.
 For the newer segments also termed as the individual household segments who have limited spending abilities but have a desire for elegant interiors at reasonable rates.
 For the collective market – re-design and re-decor services were offered.
 The structure of the firm’s web-site was made more user-friendly and included several videos showing how proper layout and interiors increased efficiency, easy movement, allowed more lighting and ventilation and created a feeling of well-being and comfort.
 A CD was also launched which included these videos and the necessary information of the Profile’s firm with the contact addresses and numbers. The CD also included interview with certain well-known clients who were highly satisfied with the firm’s services. This established trust and good communication in the market.
 Soon enough, the firm launches into environmental friendly interiors and develops „Go Green‟ initiatives that uses more re-cycled and renewable substances.
 There was a plan to begin annual contests and games which involved household customer segments to give their ideas or suggestions for a well laid out interiors using eco-friendly materials and “Go-Green‟ initiatives.

The Partners and the interview:
It’s been two years now since Profile’s Group had moved into individual household segments.
All four partners are seated on the sofa inside Neerav‟s office except this time the sofa is of cream shade and a press reporter namely Namitha Goel is sitting on a single sofa across them. Namitha Goel had scheduled this interview and later will be published in the “Living Designs”, a new monthly magazine that deals with interiors. She begins with a direct question to Neerav –
Namitha: “Mr. Neerav Gupta, do you think the reason for the substantial increase in your customer base is due to the Redesign and re-decoration services?
Neerav: “Well, to a considerable extent, I believe it is so. Re-design is not about my taste or your taste. It’s about working with what the client owns and making them happy. Most people are good in re-arranging their stuff but they don’t have time or energy to do it. So, we offer them this assistance.”
Namitha: “How come you got this thought about making these household segments as your customers? I mean, your firm is associated with the influential clientele base and considering that, why did you feel that these household segments would prove to be a lucrative market for you?”
Neerav: “The entire credit for making individual household segments as our customers goes to my business partners here, my workforce and their efforts. Around two and a half years back, we had just got into a conversation in this very same office and Pratham suggested about tapping these markets with our available resources. Let me clarify that we decided to target this segment not for profits but we felt they too would benefit from our expertise in this field.”
Namitha: “According to the market survey, it seems that there is no close competitor for you in this business. So, your firm stands at the top like it’s been from a long time. What do you say in this matter?”
Neerav is about to answer but his cell phone rings and he attends to it quickly.
Neerav: “Excuse me, Ms. Namitha.., I have urgent business call that can’t wait…, Carry on with your questions and my team mates will answer. I have to go now.” He addresses his partners and leaves the office in a hurry.
The interview proceeds and remaining partners contribute their views. The interview takes another 45 minutes and Namitha Goel is satisfied with her work as a press reporter. She leaves the Profile’s Group office with a sense of achievement.
The next month’s issue of “Living Designs” carries the cover story of the Profiles Group with the partners‟ exclusive interview placed in the shaded column of the magazine pages.

Questions: 1 Examine the progress of Profile’s Group as a leading interior designer and decorator.
Questions: 2 What kind of change was observed in the STP strategy of the firm and how was it useful?
Questions: 3 Evaluate the working of Profile’s group with respect to the Segmenting, Targeting and Positioning of markets. Do you have any suggestions for the firm?

Case study 2
Determining the Marketing 4 P’s

Any business organization in order to be successful needs to have a clear picture about the 4 P’s of marketing. This forms the basis on which business functioning takes place. What are these 4 P’s and why are they important? Let’s assume that we are interested to start up a small business enterprise and for that we have the necessary capital, skills and people. And now, since we are in the initial stage of enterprise formation, we need to answer the previous question.
Marketing mix comprises of the four basic elements or components which are termed together as 4 P’s of marketing. They are:
Product: what is it that we have to offer to the market? What can it include? In what ways can it be modified, changed, expanded, diversified etc.? Will our products be accepted in the market? If not, how do we create a market for our products?
Price: at what value should the products be offered in the market? What should be the returns? Will it be worth to the buyers? What variations, differences and strategies can we adopt in order to earn a fair margin and also gain customer satisfaction?
Place: where must be our products available? How soon it’s demanded in the market? How quick we can deliver it to the consumption points? Who do we need to involve in the distribution of our products? How much will they charge for their services?
Promotion: why do we need to promote our products? Will people be aware of our products if we don’t do any promotion? If we need to promote our products, what kind of message we should convey to the market? In what ways and methods we can carry out the promotion?
Unless we know the answers to the above questions, we cannot make our business function. Therefore, after considering the strengths and weakness of our likely enterprise and studying the market opportunities, we decide to manufacture wax crayons.

The main reason behind this decision is –
1. We can come up with an effective 4 P’s either by marketing the crayons ourselves and if not, we can take orders by being the suppliers to our clients.
2. We know that our market mainly comprises of educational institutions, drawing and painting classes/centers, artistes, even big companies use crayons extensively.
3. We realize the potential of wax crayons as we can offer variety in sizes, quality, colors, price ranges, wholesale and retail prices etc. We can even venture into related areas such as wax artic rafts, wax candles, oil colors, paint etc.
4. We can have direct contact with our clients and in the long term we can even engage an agency to market the crayons.
5. We know that promotion strategies can be based on the type of our customer segment and we could easily do it through advertising on Television, newspapers, children’s comics, notebooks, school notice boards, etc. We can even sponsor or conduct drawing competitions, art exhibitions or we can have contractual agreements with the stationery outlets, art schools etc. However, we are still apprehensive about our marketing mix. We are yet to confirm about our marketing mix and until then we are unable to finalize on our decisions or start with the implementation process.

Question 1.How will you determine the marketing mix for our enterprise?
Question 2.Do you have any ideas to make our enterprise successful particularly by enhancing or improving the marketing mix?
Question 3.What do you think will be the challenges in making an effective marketing mix since our enterprise is a new one?

Marketing Management

Max. Marks : 80

Instructions :
(1) Attempt any five questions.
(2) All questions carry equal marks.

Q.1) Define Marketing Management. Discuss its importance and scope in today’s
dynamic Competitive Environment.

Q.2) What is ‘Product Life Cycle’ ? How Marketing Mix Decisions have to
be adjusted at different stages of PLC (Product Life Cycle) ?

Q.3) Explain various pricing strategies a firm can adopt.

Q.4) What is Product Mix ? Explain various Product Mix Strategies with suitable
examples.

Q.5) Discuss various cultural issues involved in International Marketing.

Q.6)
(A) What is Consumer Buying Behaviour ?
(B) Explain various steps involved in Buying Consumer Goods.

Q.7) Write short notes : (Any Two)
(a) Promotion through International Exhibitions and Trade Fares
(b) Use of Internet as a Marketing Tool
(c) Channel Conflicts

Principles and Practice of Management

Communicating in a Crisis

Overview Valley High School, situated in Kodaikanal, was established in 1980 and is owned by a well respected charitable trust. It overlooks a lake and is a modern building equipped with state-of-the-art facilities. The total student enrolment is 2000, out of which more than 50% are girls and the rest boys. The students are all from affluent, educated families. The school has established a good reputation for itself, thanks to the consistently good performance of students in the public examinations. The school is headed by a lady Principal and also has a couple of Supervisors and a team of 25 teachers. The teachers have had extensive experience, are well qualified and are known for their commitment to imparting quality education to students. Due to the recent heavy monsoons, the school was faced with the problem of flooding, with water entering the rooms on the ground floor and water seepage on the terrace. Since repair work had to be done, the school had to be closed for a couple of weeks. The work was carried out by reputed contractors, but the building still looks a little run down.
The crisis the school had just reopened after this two week break. The same morning, a fire suddenly broke out on the third floor and spread to other floors, blocking the stairways. There was widespread panic, as the children started jumping off the balconies, injuring themselves in the process. The Principal and staff had a tough time trying to calm down the children and take control of the situation. Fire engines were called and several of them arrived and began their fire fighting operations. In the meanwhile, many parents also arrived and tried to enter the building to speak to the Principal. The phones were ringing continuously. There was total chaos.

Question 1 :- How communication crises arise?
Question 2 :- What Principal should do to calm down the angry parents?
Question 3 :- How school will regain its reputation? What services school should provide in order to maintain its reputation?

Case Study 2

Case Study on The power of Non-Verbal Communication

The Power of Nonverbal Communication Soon after I graduated from engineering college, I accepted a position with the Sundaram Foundry, a medium-sized firm located in a small town in Tamil Nadu. It was a good position, since I was the assistant to Mr. Vishwanath, the General Manager and president of this family owned company, although there were many technical problems, the work was extremely interesting and I soon learnt all about the foundry business. The foundry workers were mostly older men and were a closely knit team. Many of them were related and had been in the foundry for several years. Therefore, they felt that they knew the business in and out and that a technical education had no value. In fact, Mr. Vishwanath had mentioned to me even at the time of my joining, that I was the only engineer ever to be employed in the foundry. He also let me know that the foundry workers, although a good group, were very clannish, since they had been working together for several years. Therefore, it would probably take them some time to accept me. I introduced myself to the group of foundry workers, a few days after my joining. As I went around in turn, I felt them eyeing me coldly. As I went down the main aisle of the foundry, I heard them talking to each other in low voices and laughing. I found their behavior to be very childish and felt that it was best to ignore these signs of hostility. I thought that if I ignored them, they would automatically stop these antics. A few weeks after this incident, I happened to visit the enamel shop. As I entered, I noticed a worker cleaning the floor with a hose, from which water flowed at high pressure. I was aware that it was the practice to clean the shop at least once a week. I turned my back on the worker and was busy near a dipping tank, when I suddenly felt the force of a stream of water hitting me. I was almost knocked down by the pressure and slipped on the wet floor. When I turned around, the worker looked away in the other direction, as if he had not noticed this happening. However, I was pretty sure that he had intentionally turned the hose on me.

Question 1 – What message did the foundry workers and the new engineer convey to each other through their non-verbal behavior?

Question 2 – Mr. Vishwanath, the General Manager and President, was not often present at the foundry. What could this non-verbal behavior mean to the workers and the new engineer?

Question 3. How could the engineer, the foundry workers and Mr. Vishwanath be more effective, both verbally and nonverbally?

Question 4. What do you suggest that the engineer should do, after the hosing incident?

Quantitative Techniques

Please attempt any one question out of section A and any 10 questions out of Section B. The section A is for 20 Marks and Section B is for 80 Marks (8 Marks X 10 Questions)
Total Marks – 100
Section A

1. Distinguish between decision making under certainty and decision making under uncertainty. Mention certain methods for solving decision problems under uncertainty. Discuss how these methods can be applied to solve decision problems.

2. Distinguish between probability and non-probability sampling. Elucidate the reasons for the use of non-probability sampling in many situations in spite of its theoretical weaknesses.

3. What are models? Discuss the role of models in decision-making. How can you classify models on the basis of behavior characteristics?

4. What are matrices? How are determinants different from matrices? Discuss few applications of matrices in business.

Section B
Write short notes on any ten of the following:
(a) Concept of Maxima and Minima
(b) Types of classification of data
(c) Pascal Distribution
(d) Multi-stage sampling & Multi-phase sampling
(e) Box-Jenkins Models for Time Series
(f) Determinant of a Square Matrix
(g) Primary and Secondary Data
(h) Bernoulli Process
(i) The Student’s t Distribution
(j) Use of Auto-correlations in identifying Time Series
(K) Absolute value function
(l) Quantiles
(m) Criteria of pessimism in decision theory
(n) Cluster vs. Stratum
(o) Moving average models

(p) Step function
(q) More than type ogive
(r) Subjectivist’s criterion in decision making
(s) Double sampling
(t) Auto regressive models


BUSINESS ENVIRONMENT XIBMS EXAM ANSWER PROVIDED WHATSAPP 91 9924764558

BUSINESS ENVIRONMENT XIBMS EXAM ANSWER PROVIDED

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Business Environment

Note: Attempt any five questions (question no. 1. is compulsory)
1. Attempt any four of the following questions:
(a) Explain the relevance of ecological issues to business environment.
(b) Analyze the social responsibility of business towards employees.
(c) State the basic objectives of regulating business.
(d) Describe the basic instruments of fiscal policy in lndia
(e) State various measures for the prevention and settlement of the industrial disputes.
(f) Explain the thrust areas of the new economic policy.
2. Discuss how does the environment acts as a stimulant to business.Analyse why business often does little for physical environment preservation despite the fact that it is significant for business activity.
3. Analyze the fourfold role of the government in business. Also explain in what respects the role of government has been redefined in lndia during the 1990s.
4. “The Industrial Policy of 1991 makes a clear departure from the Industrial Policy of 1956″ Comment.
5. Discuss the various forms of foreign capital flows. Do you think entering o{ MNC’s in less developed countries is risky ?
6. Describe the recent export promotion measures of the Government of India.
7. Write short notes on any two of the following:
(a) Political and legal environment of business
(b) Nehru – Mahalanobis strategy of development
(c) Financial reforms in India
(d) Merits of globalisation from the point of view of India’s s economic development

Business Strategy
MARKS: 100
Note:

1. Question No.1 carries 20 Marks and is compulsory.
2. Attempt any five questions from question from the rest. Each of these carry 16 marks.

Q.1 Write short notes on any FOUR of the following:-

1.Core Competencies and Distinctive Competencies

2.Real value of SWOT analysis

3.Market Development Strategies

4.Vision and Mission

5.Benefits of Strategic Approach

6. Vertical Integration

Q.2 Describe Porter’s five forces model.

Q.3 What is a differentiation strategy? In which circumstances do you think company should adopt such strategies? Explain with relevant examples.

Q.4 (a)What is benchmarking? To what extent is relevant to industry in decline phase?
(b)”Vertical Integration is an outdated strategic approach” Comment.

Q.5 What are various ways to achieve cost advantage and gain cost leadership position?

Q.6 Between the GE Multifactor Matrix & the BCG Matrix, which one do you think is superior tool and why?

Q.7 What strategic options a firm in a corrugated box manufacturing industry could pursue to be successful. (Hint: A corrugated box manufacturing is typically a highly fragmented industry)

Q.8 Would you agree with the following statement?

“Tata Nano is the best value for money proposition today in the entry level segment of the light passenger vehicles”.

In case you agree or otherwise, please state the reasons.

Q.9 Globalization is the single most important factor, which has affected Cement Industry during the past 3 to 5 years. Do you agree with this statement? Why?

Q.10 Describe Ansoff’s product market expansion matrix and describe various strategic approaches emanating there from.

Corporate Law

Maximum Marks: 100

Note: Answer any Five questions. All questions carry equal marks.

1.”All contracts are agreements but all agreements are not contracts.” Discuss this statement in light of the essential elements of a valid contract. Also mention briefly the different kinds of agreements under the India Contract Act, 1872.

2. Discuss, what are the rights, liabilities and disabilities of a minor as per the Indian Partnership Act, 1932.

3. What do you understand by implied warranties and conditions of sale according to the sale of Goods Act, 1930?

4. Differentiate between lay-off and retrenchment according to the Industrial Disputes Act, 1947.

5. Give the provisions related to safety as given in the Factories Act, 1948.

6. What are the characteristics or essential features of a company and briefly mention the types of companies.

7. What do you understand by electronic governance and what are the attributes of electronic records as mentioned in the Information Technology Act, 2000.

8. Discuss the concept of free consent and misrepresentation as per the Indian Contract Act, 1872.

9. Distinguish between private and public company. What are the special privileges of a private company over public company according to Companies Act, 1956?

10. Write short notes on any two of the following:
(a) Cyber regulation
(b) Industrial Dispute
(c) Breach of Contact
(d) Voidable contracts.

Financial Management

Total Marks- 80

1. This paper contains 8 questions divided in two parts.
2. Part A is compulsory.
3. In Part B (Questions 2 to 8), attempt any 5 questions out of 7. Attempt all parts of the questions chosen.
4. The marks assigned to each question are shown at the end of each question in square brackets.
5. Answer all questions in serial order.
6. The student is required to attempt the question paper in English medium only.

PART – A Q1.
a. Define Accounting.
b. Define Journal.
c. Define Ledger.
d. What is meant by Fund flow statement?
e. What is Standard Costing?
f. What is meant by Zero Based Budgeting?
g. What is Decision –making?
h. Define CVP Analysis.
i. What is meant by Product pricing Method?
j. What is Transfer Pricing? (10×3=30)

PART – B ( 5 X 10 =50)

Q2. What is Trial Balance? Explain in detail the errors which cannot be located by Trial Balance.

Q3. What is Cash book? Explain the Kinds of Cash book in detail.

Q4. What is Variance Analysis? Explain briefly various Material Variances.

Q5. Explain the following
(a) P/V Ration
(b) Break Even Analysis
(c) Marginal Cost

Q6. What is meant by Cash Flow statement? How cash flow statement will be prepared As per AS-3?

Q7. What is meant by budgetary control? What are the limitations of Budgetary Control?

Q8. What is Responsibility Accounting? Explain the different Centers of Responsibility Accounting.

Xaviers Institute of Business Management Studies

Human Resource Management

(i) There are three Sections A and B and C.
(ii) Attempt any three questions each from Section A and B. All questions carry 10 marks each.
(iii) Section C is compulsory for all and carries 40 marks.
SECTION A
1. Define and differentiate between Job Analysis, Job Description and Job Evaluation. Select an appropriate job evaluation method and create a plan for evaluating jobs of scientists in different grades.
2. Discuss the role of indoctrination in organizations. How can Performance Appraisal, and Training and Development be made an integral part of Human Resource Planning? Discuss.
3. Discuss the scope of Human Resource Audit. While auditing Reward systems for employees in a manufacturing organization, which factors should be taken into account and why? Explain with suitable examples.
4. Define and discuss the need for Human Resource Planning in an organization. Briefly discuss various approaches to HRP
5. Write short notes on any three of the following:
(a) Training methods
(b) Value determinants of HRP
(c) Human Resource accounting
(d) Labour Market Behavior
(e) Promotion and Reward Policies
SECTION B
1. Define and discuss the objectives of Human Resource Planning at organizational level. How does it help in determining and evaluating future organizational capabilities, needs and anticipated problems? Explain with suitable examples.
2. Define and describe Job Analysis. Briefly discuss several methods in which information about a job is collected and evaluated.
3. What is the purpose and process of recruitment function? Discuss various methods of sourcing manpower.
4. How is monetary value assigned to different dimensions of Human Resources costs, investments, and worth of the employees? Briefly explain Cost and Economic value approaches of measurement.
5. Write short notes on any three of the following :
(a) MBO
(b) Succession Planning
(c) Competency Mapping
(d) Job Evaluation
(e) H.R. Inventory

SECTION C
1. Quality control Department
Read the case given below and answer the questions given at the end.
Mr. Kapil Kumar and Mr. Abbas Ali were working in a scooter manufacturing public sector industry as Senior Quality Control Engineers in 1988. One post of Deputy Chief Quality Controller has fallen vacant due to the retirement of the incumbent and the management decided to recruit a qualified, knowledgeable and experienced professional from outside so that the present quality standard may be improved thus ensuring better marketability of their scooters in the face of stiff competition. Mr. Kapil Kumar, who was a mechanical engineer with about 15 years experience in the Quality Control Department dealing with mopeds and scooters, could have been promoted to fill the post on the basis of seniority. However, the management was looking for a graduate in statistics with experience in latest Quality Control (QC) techniques like statistical quality control, quality assurance and other related areas rather than a mechanical or automobile engineer with the routine experience in quality control. As such instead of promoting Kapil Kumar, the management advertised for the post of Deputy Chief Quality Controller – since as per company rules it was DR (Direct Recruitment) vacancy also.
Selection of Outsider
Out of the applications received in response to the advertisement, six candidates were called for interview including the two internal candidates, Mr. Kapil Kumar and Mr. Abbas Ali. The person selected was an outsider, one Mr. Ratnam, who had over 12 years experience SQC, quality assurance etc., in the two-wheeler private manufacturing industry. Mr. Ratnam joined within 2 months time expecting that in his new position he would be the main controller for quality. However, after joining the organization he came to know that he would be the second senior most person in the hierarchy for controlling the quality and would be reporting to one, Kirpal Sing,. The Chief for Quality Controls. Mr. Kirpal Singh had come up to this post by seniority and was basically a diploma holder in automobile engineering. He had to his credit about 28 years of industrial experience, out of which 20 years were spent in Quality Control Department of two industries. He joined the present organization in its Quality Control Department and had 17 years experience in the organization and was due for retirement within the next 2 or 3 years. On learning about the retirement time of Mr. Kirpal Singh, Mt. Ratnam had the consolation that he would be able to take up the position of ‘Chief Controller of Quality’ very soon.
Interference from Top
Ratnam could not put forth many good suggestions (for quality control) because of the interference and direct supervision of Kirpal Singh. He, however, could pick up a good deal of knowledge about the working of the company, the nature-and tendency of different production department heads particularly with regard to care for quality, organization for ‘QC’ in the company, the various components required for assembly of the company’s two-wheeler scooter and the expected quality standards, drawback in the present system of quality controls. etc.
Right from the time the advertisement for the selection of Deputy Chief Quality Controller appeared, the O.A. (Officers Association) of the organization had been pressing the management to consider the case of Kapil Kumar for promotion to the above post based on his seniority in the organization.
Meanwhile, the management obtained a license in 1989 for producing Three-Wheeler Autos. As a result of this and the pressure from O.A., Ratnam was transferred to look after the Quality Control Department at the company’s new Three-Wheeler plant, whereas Kapil Kumar was promoted as Deputy Chief Quality Controller in the present two-wheeler scooter plant in 1990 (after creating one additional post of Deputy Chief Quality Controller for the new Project).
In 1991, the State Government, which controlled the company in question, changed the Managing Director. During the regime of this new Managing Director, Kapil Kumar was promoted as Chief (Quality Controls) next year, when Kirpal Singh retired. This decision was based on the recommendations of Kirpal Singh and partly attributed to pressure from O.A., for further promotion of Kapil Kumar based on his vast experience in the Quality Control function of this industry. Abbas Ali rose to the position held earlier by Kapil Kumar.
Allotment of Company Quarters
The Company had its own township near the factory. Its quarter allotment scheme was based on the length of service, i.e., date of joining. Ratnam had asked for a suitable quarter at the time of interview and was thus allotted a tile quarter meant for the Senior Engineer’s cadre. He learnt about this, after occupying the quarter. Ratnam asked for a change of Quarter – preferably a RCC-roof quarter, – but his request was turned down, since he had put in only few months of service whereas many others senior to him, on the beds of their longer length of service in the Company (having over 10 years service), were staying in tiled-roof quarters and were awaiting a chance for a RCC-roof quarter. Kapil Kumar and Abbas Ali were residing in RCC-roof quarters. Soon after Kapil Kumar’s promotion to the post of Chief (Quality Controls), he was allotted a bungalow.
The management’s decision in this case must be viewed in the context of the downtrend in the demand for scooters and three-wheeler autos during 1993 following complaints from dealers about the deteriorating quality of components as also their short life. Notably the complaints had risen ten-fold in that year as compared to that in 1988.
Questions
(a) Was the management justified in taking a decision to recruit a qualified and experienced person from outside as Deputy Chief Quality Controller?
(b) Was it in the interest of the organization to transfer Ratnam to the new auto-wheeler plant and promote Kapil Kumar? What could have prompted the management to take this decision?
(c) How do you view the role of O.A.s in supporting only the local and internal candidates and overlooking the interests of direct recruits even when they were family members of the Association, particularly at a time, when the industry needed professionally qualified persons to fill key technical posts?
(d) How would you react to the management’s scheme for quarter allotment and why?

2. Pearl Engineering
Pearl Engineering Company was a large heavy-engineering unit. It attached great importance to the recruitment and training of its senior supervisors. Apart from selecting them from within the organization, the company recruited, every. Alternate year, about ten young engineering graduates and offered them training for a period of two years, before they were appointed as senior supervisors. Such appointments were made to about 40 per cent of the vacancies of senior supervisors that occurred in the organization. This was considered necessary by management as a planned programme of imparting vitality to the organization. Besides, many of the old-timers, who had risen from the ranks, did not possess the necessary academic background with the result that they could not keep pace with the technological changes. Management also believed that in the rapidly changing conditions of industry, a bank of technically competent supervisors played a pivotal role, besides serving as a pool from which to select future departmental managers.
Engineering Graduates were selected from amongst those who applied in response to an all-India advertisement. For the selection of one engineer, on an average, eight applicants were called for interview. A selection committee consisting of the General Manager, the Production Manager, the Personnel Manager and the Training Officer interviewed and selected the candidates. The selection interview was preceded by a written test and only those who secured 40 per cent marks qualified for interview.
The engineers thus selected had to undergo a two year intensive theoretical and practical training. A well-staffed and equipped Training Institute was directly responsible for the training of the graduate engineers, besides training trade apprentices and operatives required by the company. Lectures on theoretical subjects were given at the Training Institute and practical training was imparted in all the works departments under the guidance of qualified and experienced instructors. A few lectures by senior officers of the company were also arranged to acquaint them with the company policies on different matters. During the last quarter of their two-year training programme they were deputed to work fulltime to familiarize themselves with the conditions in departments where they were to be absorbed eventually.
On successful completion of training, the graduate engineers were offered appointments, depending on their performance and aptitude as revealed during training. On placement in the work departments, however, most of them faced some difficulty or the other.
According to management, some of the heads of departments, who were themselves not qualified engineers, did not have sufficient confidence in these younger men. They preferred the subordinates who came up from the ranks to hold positions of responsibility. A few discredited them saying that it would take years before these youngsters could pick up the job. Besides, some of the employees, whose promotional opportunities were adversely affected by the placement of graduate engineers, tried their best to run down the latter as a class, sometimes working on the group feelings of the workers. Some of the supervisors who were not graduate engineers also spoke derisively of them as “the blue-eyed boys” of the organization. Management knew that many of the graduate engineers were not utilized according to their capacity or training, nor was any attempt made to test or develop their potentialities. They also knew that many of the graduate engineers were, therefore, dissatisfied with their work life. Some of them who did not get equal promotional opportunities as their colleagues placed in other departments, were looking for better jobs elsewhere.
On the other hand, according to management, the young graduate engineers were themselves partly responsible for the hostile attitude of others in the organization. Some of them failed to appreciate that a newcomer invited hostility in the beginning and it took time before he was accepted as a member of the work-group. They did not realize that they would be fully productive only after gaining about five to seven years experience in the organization. A few thought that they belonged to a superior cadre and threw their weight around. They did not bother to understand and appreciate the problems of the rank-and-file of employees who worked under them.
In spite of these drawback, the General Manager of the company felt that these men were a set of disciplined supervisors. They had a sense of pride in their profession, and with the extensive training they had received, they would be able to take up any responsible position in the organization in course of time.
The General Manager could not allow the situation to continue especially when it was a difficult and costly process to recruit and train young engineering graduates of the requisite type and caliber. He knew that the prosperity of the company, to a large extent, depended on these young men. In addition, a large number of lucrative employment opportunities were available to these young engineers elsewhere and there was a systematic raid on them, He, therefore, called a meeting of all heads of departments to review the situation.
Questions:
(i) Identify the issues related to manpower planning as evident in the case.
(ii) Discuss the strategies to tackle the percentage of internal promotion at the organizational level.
(iii)What type of additional training programmes should be imparted for direct entrants?
(iv) Suppose you are the head of the personnel division. What would be your suggestions in the meeting – Which has been called by the General Manager?

Information Technology

SECTION – A ( 5 × 3 = 15)
Answer any FIVE questions.
All questions carry equal marks.
1. Describe B2B.
2. What do you mean by services?
3. Need for ERP.
4. Describe B2C.
5. What is E.RC Diagram?
6. What do you mean by system specification?
7. Describe database.
8. Define knowledge management.
SECTION – B (3 × 5 = 15)
Answer any THREE questions.
All questions carry equal marks.
1. What a note on operating systems.
2. Describe system specification with example.
3. How to choose a right package of ERP?
4. Write a note on business process re-engineering.
SECTION – C (2 × 5 = 10)
Answer any TWO questions.
All questions carry equal marks.
1. Explain database management with example.
2. Explain the phases of moving the company from products to services.
3. Explain business process re-engineering and design.
4. Explain the implications of on-line shopping in new economy.

SECTION – D (12 × 5 = 60)
Answer any FIVE questions.
1. (a) Write short notes on Communication System.
(b) Explain the elements of a computer and communication System.

2. (a) Discuss application software.
(b) What is the use of interface and other basic features? Explain.

3. (a) Write short notes on internet web browsers.
(b) Explain in detail about desktop accessories.

4. (a) Explain in detail about cable modems.
(b) Write short notes on cyberethics.

5. (a) How to use a micro computer for Communication? Explain.
(b) Discuss about the facilities of multimedia.

6. (a) What are the types of database organization? Explain.
(b) Explain secondary storage devices.

7. (a) Write short notes on accuracy and privacy of using database.
(b) List out the different phases of system analysis and design and explain.

8. (a) Explain object oriented and visual programming.
(b) Write the features of HTML and XML.
9.(a) Explain the characteristics of information.
(b) Explain the issues of IT management.

10.(a) Explain the role of corporate strategy in IT.
(b) Explain the role of IT in international business.

11.(a) Explain the working of processor in detail.
(b) Differentiate CISC versus RISC.

12.(a) What is an operating system? Explain the function of OS.
(b) Give the objectives of programming languages.

13.(a) Discuss in detail any one processing package.
(b) What is a Data base management system? Explain.

14.(a) Explain client server model in detail.
(b) Explain the strategies for acquiring systems and services.

15.(a) Explain transmission modes and transmission protocols.
(b) Discuss various types of networks with examples.

16.(a) Discuss LAN Architecture model.
(b) Explain the concept of E-Com. Give some applications of E-Com in Business.
(c) Write short note on www.

MANAGEMENT INFORMATION SYSTEMS

Marks: 80

SECTION A

Answer any 4 sub Questions. Each question carries five marks. (4X5= 20)

1.
(a) What is Information system?
(b) What is prototyping?
(c) What is Web Based System?
(d) What is hyperlink?
(e) What is knowledge management system?

SECTION B

Answer any five Questions. Each question carries 6 marks. (5×6= 30)

2. What is EIS? Explain its advantages and disadvantages.
3. What are the major challenges involved in building, operating and maintaining information system?
4. How does an organisation impact in IT? Explain.
5. Explain the four stage model of IT planning.
6. What are the steps involved in implementation and evaluation of a system?
7. What is DSS? What are the models? Explain its components.
8. What are the benefits and application of content management?

SECTION C

Answer any three Questions. Each question carries 10 marks. (3×10= 30)

9. What are the types of IS? Explain each of them.
10. Explain a) ERP b) SCM.
11. What are recent developments in MIS area?
12. How do you manage the multimedia content?
13. What are the ethics in IT?
14. Explain the features and characteristics of objects in object oriented analysis and design.

Managerial Economics
Total Marks – 80
Answer any FIVE Questions. All Questions carry equal marks

1. Managerial Economics is the application of Economic Theory to business management. Discuss. [16]

2. What are the needs for demand forecasting? Explain the various steps involved in demand forecasting. [16]

3. Define production function. How is it helpful while taking output decisions? [16]

4. (a) ‘ The monopolist represents one man industry’? Comment and discuss how equilibrium position can be attained by the monopolist.
(b) Use appropriate diagrams to supplement your answer. [10+6]

5. (a) Define partnership and explain its salient features and limitations.
(b) What are the qualities of a good partner? [8+8]

6. What are the components of working capital? Explain each of them. [16]

7. Give a brief account on the important records of Accounting under Double entry system and discuss briefly the scope of each. [16]

8. (a) From the information (given with attachments), calculate [16]
i. Debt Equity ratio
ii. Current ratio
(b) Calculate Interest Coverage ratio from the information (given with attachments) .
A.

B.

OPERATIONS MANAGEMENT

Maximum Marks: 100

Note: Attempt any five questions. All questions carry equal marks. Assume any missing data suitably.

1. (a) Draw a systems view diagram of any service organization of your choice. Identify its various components. Explain its interdisciplinary nature. 10
(b) What are the major characteristics of a Production system? Discuss some of its upcoming issues that provide economies in production and efficiency in the performance of the system. 10

2. (a) Explain with examples, how the TQM concept can integrate design engineering, manufacturing and service. 10
(b) What are process capability studies ? Explain the process capability index with applications to a real life example. 10

3. (a) Compare traditional process planning with Computer Aided Process Planning (CAPP). Also explain a generative CAPP system. 10
(b) Explain the objectives of Total Productive maintenance. Give its importance. Also comment on the concept of TPM promotion. 10

4. (a) Why is forecasting required in operations management ? Discuss the concept of forecast error as applied to different conditions. 10
(b) How are quantitative models of forecasting different from qualitative models ? Discuss in detail time-series model as used for forecasting. 10

5. (a) What is facility planning ? Explain with examples different types of layouts as used in manufacturing organisations. 10
(b) Discuss work measurement as a process to establish task time. Explain the various techniques for developing time standards. 10

6. (a) Explain just in time manufacturing with the help of examples. Discuss its advantages and disadvantages. 10
(b) For an independent demand inventory model, derive the equation for Economic Order Quantity. List all assumptions. 10

7. Write short notes on any four of the following: 4×5=20
(a) OPT
(b) Break even analysis
(c) Lean manufacturing
(d) Kanban system
(e) Line of Balance for Production Control
(f) Purpose of aggregate plans.

Xaviers Institute of Business Management Studies

Organizational Behaviour

Max. Marks: 80

Answer any 8 questions. All questions carry equal marks

1. As a manager how do you improve workers perception in the organization?

2. Explain the factors affecting individual differences.

3. Write a short note on Hawthorne studies.

4. Discuss the need for studying OB.

5. Briefly explain defensive mechanisms.

6. Explain the factors influencing individuals’ personality development.

7. Explain two factor theory of motivation.

8. How do you create and sustain organizational culture.

9. Explain the Managerial grid leadership style of Blake and Mouton.

10. Explain the various sources of attitudes formation.

11. What is self concept? How you defend yourself from various environment problems.

•••


XIBMS EXAM CASE STUDY ANSWER PROVIDED WHATSAPP 91 9924764558

XIBMS EXAM CASE STUDY ANSWER PROVIDED

CONTACT:
DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com

SUB: Business Communication

N. B. : 1) Attempt any Four Case studies
2) All case studies carry equal marks.
No: 1
A REPLY SENT TO AN ERRING CUSTOMER
Dear Sir,
Your letter of the 23rd, with a cheque for Rs. 25,000/- on account, is to hand.
We note what you say as to the difficulty you experience in collecting your outstanding accounts, but we are compelled to remark that we do not think you are treating us with the consideration we have a right to expect.
It is true that small remittances have been forwarded from time to time, but the debit balance against you has been steadily increasing during the past twelve months until it now stands at the considerable total of Rs. 85,000/-
Having regard to the many years during which you have been a customer of this house and the, generally speaking, satisfactory character of your account, we are reluctant to resort to harsh measures.
We must, however, insist that the existing balance should be cleared off by regular installments of say Rs. 10,000/- per month, the first installment to reach us by the 7th. In the meantime you shall pay cash for all further goods; we are allowing you an extra 3% discount in lieu of credit.
We shall be glad to hear from you about this arrangement, as otherwise we shall have no alternative but definitely to close your account and place the matter in other hands.
Yours truly,
Questions:
1. Comment on the appropriateness of the sender’s tone to a customer.
2. Point out the old – fashioned phrases and expressions.
3. Rewrite the reply according to the principles of effective writing in business.
NO. 2
WAVE
(ATV : Advertising Radio FM Brand)
A young, gorgeous woman is standing in front of her apartment window dancing to the 1970s tune, “All Right Now” by the one – hit band free. Across the street a young man looks out of his apartment window and notices her. He moves closer to the window, taking interest. She cranks up the volume and continues dancing, looking out the window at the fellow, who smiles hopefully and waves meekly. He holds up a bottle of wine and waves it, apparently inviting her over for a drink. The lady waves back. He kisses the bottle and excitedly says, “Yesss.” Then, he gazes around his apartment and realizes that it is a mess. “No !” he exclaims in a worried tone of voice. Frantically, he does his best to quickly clean up the place, stuffing papers under the sofa and putting old food back in the refrigerator, He slips on a black shirt, slicks back his hair, sniffs his armpit, and lets out an excited , “Yeahhh!” in eager anticipation of entertaining the young lady. He goes back to the window and sees the woman still dancing away. He points to his watch, as if to say “ Come on. It is getting late.” As she just continues dancing, he looks confused. Then a look of sudden insight appears on his face, “Five,” he says to himself. He turns on his radio, and it too is playing “All Right Now.” The man goes to his window and starts dancing as he watches his lady friend continue stepping. “Five, yeah,” he says as he makes the “okay” sign with his thumb and forefinger. He waves again. Everyone in the apartment building is dancing by their window to “All Right Now.” A super appears on the screen: “Are you on the right wavelength ?”
Questions :
1. What is non – verbal communication ? Why do you suppose that this commercial relies primarily on non-verbal communication between a young man and a gorgeous woman ? What types of non – verbal communication are being used in this case ?
2. Would any of the non-verbal communications in this spot (ad) not work well in another culture ?
3. What role does music play in this spot ? Who is the target market ?
4. Is the music at all distracting from the message ?
5. How else are radio stations advertised on TV ?

NO. 3
ARVIND PANDEY CAUGHT IN BUSINESS WEB
Arvind Pandey is a project manager at Al Saba Construction Company in Muscat. It s a flourishing company with several construction projects in Muscat and abroad. It is known for completing projects on time and with high quantity construction. The company’s Chairman is a rich and a highly educated Omani. A German engineer is Arvind’s Vice – President for urban and foreign construction projects.
Three months ago, Al Saba had submitted a tender for a major construction project in Kuwait. Its quotation was for $ 25 million. In Kuwait the project was sponsored and announced by a US – based construction company called Fuma. According to Al Saba, their bid of $ 25 million was modest but had included a high margin of profit.
On 25 April, Arvind was asked to go to Kuwait to find out from the Fuma project manager the status of their construction proposal. Arvind was delighted to know that Fuma had decided to give his company. (Al Saba) the construction project work. The project meant a lot of effort and money in planning the proposed construction in Kuwait.
But before Arvind could tank the Fuma project manager, he was told that their bird should be raised to $ 28 million. Arvind was surprised. He tried to convince the Fuma project manager that his (Arvind company had the bast reputation for doing construction work in a cost effective way . However, he could always raise the bid by $ 3 million. But he wanted to know why he was required to do so.
The Fuma manager’s reply was, “That’s the way we do our business in this part of the world, $ 1 million will go to our Managing Director in the US, I shall get $ 1 million, you, Mr. Pandey, will get $ 1 million in a specified account in Swiss Bank.
Arvind asked, “ But why me ?”
“ So that you never talk about it to any one.” The Fuma Project Manager said.
Arvind promised never to leak it out to any one else. And he tried to bargain to raise the bid by $ 2 million. For. Arvind was familiar with the practice of “ pay – offs” involved in any such thing. He thought it was against his loyalty to his company and his personal ethics.
Arvind promised the Fuma project manager that the bid would be raised to $ 28 million and fresh papers would be put in. He did not want to lose the job.
He came back to Muscat and kept trying to figure out how he should place the whole thing before his German Vice President. He obviously was at a loss.
Questions :
1. Analyse the reasons for Arvind Pandey’s dilemma.
2. Does Arvind Pandey really face a dilemma ?
3. In your view what should Arvind Pandey do ? Should he disclose it to his German Vice President ?

NO. 4.
COMPANY ACCEPTING A CONTRACT
A computer company was negotiating a very large order with a large size corporation. They had a very good track record with this client.
In this corporation, five different departments had pooled their requirements and budgets. A committee was formed which had representation from all the departments. The corporation wanted the equipment on a long lease and not outright purchase. Further, they wanted all the hardware and software form one supplier. This meant that there should be bought – out items from many suppliers since no one supplier could meet all the requirements of supply from its range of products.
The corporation provided an exhaustive list of very difficult terms and conditions and pressurized the vendors to accept. The computer company who was finally awarded the contract had agreed to overall terms that were fine as far as their own products were concerned but had also accepted the same terms for the brought – out items. In this case, the bought – out items were to be imported through a letter of credit. The percentage of the bought – out items versus their own manufacture was also very high. One of the terms accepted was that the “system” would be accepted over a period of 10 days after all the hardware had been linked up and software loaded.
The computer company started facing trouble immediately on supply. There were over 100 computers over a distance connected with one another with software on it. For the acceptance tests, it had been agreed that the computer company would demonstrate as a pre-requisite the features they had claimed during technical discussions.
Now, as you are aware, if a Hero Honda motorcycle claims 80 km to a litre of petrol, it is under ideal test conditions and if a motorcycle from the showroom were to be tried for this test before being accepted, it would never pass the test. In corporation’s case, due to internal politics, the corporation persons from one department – who insisted on going exactly by the contract – did not sign acceptance since the “ system” could not meet the ideal test conditions.
Further, in a classic case of, “ for want of a horse – shoe, payment for the horse was held up”, the computer company tried to get the system accepted and payment released. The system was so large that at any point of time over a period of 10 days something small or the other always gave problems. But the corporation took the stand that as far as they were concerned the contract clearly were concerned the contract clearly mentioned that the “system” had to be tested as a whole and not module by module.
Questions :
1. Comment on the terms and conditions placed by the corporation.
2. What factors influenced the computer company’s decision to accept the contract ?
3. Was it a win – win agreement ? Discuss ?

NO. 5
EMPLOYMENT INTERVIEW OF R P SINHA
Mr. R P Sinha is a MBA. He is being interviewed for the position of Management Trainee at a reputed company. The selection committee’s is chaired by a lady Vice – President. Mr. Sinha’s interview was as follows :
Committee : Good morning !
Mr. Sinha : Good morning to Sirs and Madam !
Chairperson : Please, sit down.
Mr. Sinha : Thank you (sits down at the edge of the chair, keeps his portfolio on the table)
Q. Chairperson : You are Mr. R. P. Sinha
A Sinha : Yes, Madam. This is how I am called.
Q. Chairperson : You have passed MBA with 1st Division.
A. Sinha : Yes, Madam.
Q. Chairperson : Why do you want to work in our organization ?
A Sinha : It is just like that. Also, because it has good reputation.
Q. Member A : This job is considered to be quite stressful. Do you think you can manage the stress involved.
A. Sinha : I think there is too much talk about stress these days. Sir, would you tell clearly what you mean by stress ? I am very strong for any stress.
Q. Member B : What are your strengths ?
A. Sinha : Sir, who am I talk boastfully about my strengths. You should tell me my strengths.
Q. Member C : What are your weaknesses ?
A. Sinha : I become angry very fast.
Q. Member A : Do you want to ask us any questions ?
A Sinha : Yes Sir ! What are the future chances for one who starts as a management trainee ?
The member tells M. Sinha the typical career path for those starting as Management Trainee. The Chairperson thanks Mr. Sinha. Mr. Sinha promptly says in reply, “you are welcome,” and comes out.

Questions :
1. Do you find Mr. Sinha’s responses to various questions effective ? Give reasons for your view on each answer given by Mr. Sinha.
2. Rewrite the responses that you consider most effective to the above questions in a job interview.
3. Mr. Sinha has observed the norm of respectful behaviour and polite conversation. But, do you think there is something gone wrong in his case ? Account for your general impression of Mr. Sinha’s performance at the interview.

NO. 6
Comment on the form and structure of the Report.

Xaviers Institute of Business Management Studies

MARKS : 80

SUB : BUSINESS ETHICS

N. B. : 1) Attempt any Four Cases
2) All cases carries equal marks.
No : 1
PUBLIUS
Although many people believe that the World Wide Web is anonymous and secure from censorship, the reality is very different. Governments, law courts, and other officials who want to censor, examine, or trace a file of materials on the Web need merely go to the server (the online computer) where they think the file is stored. Using their subpoena power, they can comb through the server’s drives to find the files they are looking for and the identify of the person who created the files.
On Friday June 30, 2000, however, researches at AT & T Labs announced the creation of Publius, a software program that enables Web users to encrypt (translate into a secret code) their files – text, pictures, or music – break them up like the pieces of a jigsaw puzzle, and store the encrypted pieces on many different servers scattered all over the globe on the World Wide Web. As a result, any one wanting to examine or censor the files or wanting to trace the original transaction that produced the file would find it impossible to succeed because they would have to examine the contents of dozens of different servers all over the world, and the files in the servers would be encrypted and fragmented in a way that would make the pieces impossible to identify without the help of the person who created the file. A person authorized to retrieve the file, however, would look through a directory of his files posted on a Publius – affiliated website, and the Publius network would reassemble the file for him at his request. Researchers published a description of Publius at www.cs.nyu.edu/waldman/publius.

Although many people welcomed the way that the new software would enhance freedom of speech on the Web, many others were dismayed. Bruce Taylor, an antipornography activist for the National Law Center for Children and Families, stated : “It’s nice to be anonymous, but who wants to be more anonymous than criminals, terrorists, child molesters, child pornographers, hackers and e-mail virus punks.” Aviel Rubin and Lorrie Cranor, the creators of Publius, however, hoped that their program would help people in countries where freedom of speech was repressed and individuals were punished for speaking out. The ideal user of Publius, they stated, was “a person in China observing abuses of human rights on a day – to – day basis.”
Questions :
1. Analyze the ethics of marketing Publius using utilitarianism, rights, justice, and caring. In your judgement, is it ethical to market Publius ? Explain.
2. Are the creators of Publius in any way morally responsible for any criminal acts that criminals are able to carry out and keep secret by relying on Publius ? Is AT & T in any way morally responsible for these ? Explain your answers.
3. In your judgment, should governments allow the implementation of Publius ? Why or why not ?

NO. 2
A JAPANESE BRIBE
In July 1976, Kukeo Tanaka, former prime minister of Japan, was arrested on charges of taking bribes ($ 1.8 million) from Locjheed Aircraft Company to secure the purchase of several Lockheed jets. Tanaka’s secretary and serial other government officials were arrested with him. The Japanese public reacted with angry demands for a complete disclosure of Tanaka’s dealings. By the end of the year, they had ousted Tanaka’s successor, Takeo Miki, who was widely believed to have been trying to conceal Tanaka’s actions.
In Holland that same year, Prince Bernhard, husband of Queen Juliana, resigned from 300 hundred positions he held in government, military, and private organizations. The reason : He was alleged to have accepted $ 1.1 million in bribes from Lockheed in connection with the sale of 138 F – 104 Starfighter jets.
In Italy, Giovani Leone, president in 1970, and Aldo Moro and Mariano Rumor, both prime ministers, were accused of accepting bribes from Lockheed in connection with the purchase of $ 100 million worth of aircraft in the late 1960s. All were excluded from government.
Scandinavia, South Africa, Turkey, Greece, and Nigeria were also among the 15 countries in which Lockheed admitted to having handed out payments and at least $ 202 million in commissions since 1970.
Lockheed Aircraft’s involvement in the Japanese bribes was revealed to have begun in 1958 when Lockheed and Grumman Aircraft (also an American firm) were competing for a Japanese Air Force jet aircraft contract. According to the testimony of Mr. William Findley, a partner in Arthur Young & Co. (auditors for Lockheed), in 1958 Lockheed engaged the services of Yoshio Kodama, an ultra right – wing war criminal and reputed underworld figure with strong political ties to officials in the ruling Liberal Democratic Party. With Kodama’s help, Lockheed secured the Government contract. Seventeen years later, it was revealed that the CIA had been informed at the time (by an American embassy employee) that Lockheed had made several bribes while negotiating the contract.

In 1972, Lockheed again hired Kodama as a consultant to help secure the sale of its aircraft in Japan. Lockheed was desperate to sell planes to any major Japanese airline because it was scrambling to recover from a series of financial disasters. Cost overruns on a government contract had pushed Lockheed to the brink of bankruptcy in 1970. Only through a controversial emergency government loan guarantee of $ 250 million in 1971 did the company narrowly avert disaster. Mr. A. Carl Kotchian, president of Lockheed from 1967 to 1975, was especially anxious to make the sales because the company had been unable to get as many contracts in other parts of the world as it had wanted.
This bleak situation all but dictated a strong push for sales in the biggest untapped market left-Japan. This push, if successful, might well bring in revenues upward of $ 400 million. Such a cash inflow would go a long way towards helping to restore Lockheed’s fiscal health, and it would, of course, save the jobs of thousands of firm’s employees. (Statement of Carl Kotchian)
Kodama eventually succeeded in engineering a contract for Lockhed with All – Nippon Airways, even beating out McDonnell Douglas, which was actively competing with Lockheed for the same sales. To ensure the sale, Kodama asked for and received from Lockheed about $9 million during the period from 1972 to 1975. Much of money allegedly went to then – prime minister Kukeo Tanaka and other government officials, who were supposed to intercede with All – Nippon Airlines on behalf of Lockheed.
According to Mr. Carl Kotchian, “ I knew from the beginning that this money was going to the office of the Prime Minister.” He was, however, persuaded that, by paying the money, he was sure to get the contract from All-Nippon Airways. The negotiations eventually netted over $1.3 billion in contracts for Lockheed.
In addition to Kodama, Lockheed had also been advised by Toshiharu Okubo, an official of the private trading company, Marubeni, which acted as Lockheed’s official representative. Mr. A. Carl Kotchian later defended the payments, which he saw as one of many “Japanese business practices” that he had accepted on the advice of his local consultants. The payments, the company was convinced, were in keeping with local “ business practices.”
Further, as I’ve noted, such disbursements did not violate American laws. I should also like to stress that my decision to make such payments stemmed from my judgment that the (contracts) …… would provided Lockheed workers with jobs and thus redound to the benefit of their dependents, their communities, and stockholders of the corporation. I should like to emphasize that the payments to the so-called “ high Japanese government officials” were all requested y Okubo and were not brought up from my side. When he told me “ five hundred million yen is necessary for such sales,” from a purely ethical and moral standpoint I would have declined such a request. However, in that case, I would most certainly have sacrificed commercial success….. (If) Lockheed had not remained competitive by the rules of the game as then played, we would not have sold (our planes) ……… I knew that if we wanted our product to have a chance to win on its own merits, we had to follow the functioning system. (Statement of A. Carl Kotchian)
In August, 1975, investigations by the U.S. government led Lockheed to admit it had made $ 22 million in secret payoffs. Subsequent senate investigations in February 1976 made Lockheed’s involvement with Japanese government officials public. Japan subsequently canceled their billion dollar contract with Lockheed.
In June 1979, Lockheed pleaded guilty to concealing the Japanese bribes from the government by falsely writing them off as “marketing costs”. The Internal Revenue Code states, in part. “ No deduction shall be allowed….. for any payment made, directly or indirectly, to an official or employee of any government …. If the payment constitutes an illegal bribe or kickback.’ Lockheed was not charged specifically with bribery because the U.S. law forbidding bribery was not enacted until 1978. Lockheed pleaded guilty to four counts of fraud and four counts of making false statements to the government. Mr. Kotchian was not indicated, but under pressure from the board of directors, he was forced to resign from Lockheed. In Japan, Kodama was arrested along with Tanaka.

Questions :
1. Fully explain the effects that payment like those which Lockheed made to the Japanese have on the structure of a market.
2. In your view, were Lockheed’s payments to the various Japanese parties “bribes” or “extortions” ? Explain your response fully.
3. In your judgment, did Mr. A. Carl Kotchian act rightly from a moral point of view ? (Your answer should take into account the effects of the payments on the welfare of the societies affected, on the right and duties of the various parties involved, and on the distribution of benefits and burdens among the groups involved.) In your judgment, was Mr. Kotchian morally responsible for his actions ? Was he, in the end, treated fairly ?
4. In its October 27, 1980, issue, Business Week argued that every corporation has a corporate culture – that is, values that set a pattern for its employee’s activities, opinions and actions and that are instilled in succeeding generations of employees (pp.148-60) Describe, if you can, the corporate culture of Lockheed and relate that culture to Mr. Kotchian’s actions. Describe some strategies for changing that culture in ways that might make foreign payments less likely.

NO. 3
THE NEW MARKET OPPORTUNITY
In 1994, anxious to show off the benefits of a communist regime, the government of China invited leading auto manufacturers from around the world to submit plans for a car designed to meet the needs of its massive population. A wave of rising affluence had suddenly created a large middle class of Chinese families with enough money to buy and maintain a private automobile. China was now eager to enter joint ventures with foreign companies to construct and operate automobile manufacturing plants inside China. The plants would not only manufacture cars to supply China’s new internal market, but could also make cars that could be exported for sale abroad and would be sure to generate thousands of new jobs. The Chinese government specified that the new car had to be priced at less than $5000, be small enough to suit families with a single child (couples in China are prohibited from having more than one child), rugged enough to endure the poorly maintained roads that criss-crossed the nation, generate a minimum of pollution, be composed of parts that were predominantly made within China, and be manufactured through joint – venture agreements between Chinese and foreign companies. Experts anticipated that the plants manufacturing the new cars would use a minimum of automation and wuld instead rely on labor – intensive technologies that could capitalize on China’s cheap labor. China saw the development of a new auto industry as a key step in its drive to industrialize its economy.
The Chinese market was an irresistible opportunity for General Motors, Ford and Chrysler, as well as for the leading Japanese, European and Korean automobile companies. With a population of 1.2 billion people and almost double digit annual economic growth rates, China estimated that in the next 40 years between 200 and 300 million of the new vehicles would be purchased by Chinese citizens. Already cars had become a symbol of affluence for China’s new rising middle class, and a craze for cars had led more than 30 million Chinese to take driving lessons despite that the nation had only 10 million vehicles, most of them government – owned trucks.

Environmentalists, however, were opposed to the auto manufactures’ eager rush to respond to the call of the Chinese government. The world market for energy, particularly oil, they pointed out, was based in part on the fact that China, with its large population, was using relatively low levels of energy. In 1994, the per-person consumption of oil in China was only one sixth of Japan’s and only a quarter of Taiwan’s. If China were to reach even the modes per person consumption level of South Korea, China would be consuming twice the amount of oil the United States currently uses. At the present time, the United States consumes one forth of the world’s total annual oil supplies, about half of which it must import from foreign countries.
Critics pointed out that if China were to eventually have as many cars on the road per person as Germany does, the world would contain twice as many cars as it currently does. No matter how “ pollution – free” the new car design was, the cumulative environmental effects of that many more automobiles in the world would be formidable. Even clean cars would have to generate large amounts of carbon dioxide as they burned fuel, thus significantly worsening the greenhouse effect. Engineers pointed out that it would be difficult, if not impossible, to build a clean car for under $5000. Catalytic converters, which diminished pollution, alone cost over $200 per car to manufacture. In addition, China’s oil refineries were designed to produce only gasoline with high levels of lead. Upgrading all its refineries so they could make low-lead gasoline would require an investment China seemed unwilling to make.
Some of the car companies were considering submitting plans for an electric car because China had immense coal reserves which it could burn to produce electricity. This would diminish the need for China to rely on oil, which it would have to import. However, China did not have sufficient coal burning electric plants nor an electrical power distribution system that could provide adequate electrical power to a large number of vehicles. Building such an electrical power system also would require a huge investment that the Chinese government did not seem particularly interested in making. Moreover, because coal is a fossil fuel, switching from an oil – based auto to a coal – based electric auto would still result in adding substantial quantities of carbon dioxide to the atmosphere.
Many government officials were also worried by the political implications of having China become a major consumer of oil. If China were to increase its oil consumption, would have to import all its oil from the same countries that other nations relied on, which would create large political, economic and military risks. Although the United States imported some of its oil from Venezuela and Mexico, most of its imports came from the Middle East – an oil source that China would have to turn to also. Rising demand for Middle East oil would push oil prices sharply upward, which would send major shocks reverberating through the economics of the United States and those of other nations that relied heavily on oil. State Department officials worried that China would begin to trade weapons for oil with Iran or Iraq, heightening the risks of major military confrontations in the region. If China were to become a major trading partner with Iran or Iraq, this would also create closer ties between these two major power centres of the non-Western world – a possibility that was also laden with risk. Of course, China might also turn to tapping the large reserves of oil that were thought to be lying under Taiwan and other areas neighboring its coast. However, this would bring it into competition with Japan, South Korea, Thailand, Singapore, Taiwan, the Phillippines, and other nations that were already drawing on these sources to supply their own booming economies. Many of these nations, anticipating heightened tensions, were already puring money into their military forces, particularly their navies. In short, because world supplies of oil were limited, increasing demand seemed likely to increase the potential for conflict.
Questions :
1. In your judgment, is it wrong, from an ethical point of view, for the auto companies to submit plans for an automobile to China ? Explain your answer ?
2. Of the various approaches to environmental ethics outlined in this chapter, which approach sheds most light on the ethical issues raised by this case ? Explain your answer.
3. Should the U.S. government intervene in any way in the negotiations between U.S. auto companies and the Chinese government ? Explain.
NO. 4
WAGE DIFFERENCES AT ROBERT HALL
Robert Hall Clothes, Inc., owned a chain of retail stores that specialized in clothing for the family. One of the Chain’s stores was located in Wilmington, Delaware. The Robert Hall store in Wilmington had a department for men’s and boy’s clothing and another department for women’s and girl’s clothing. The departments were physically separated and were staffed by different personnel : Only men were allowed to work in the men’s department and only women in the women’s department. The personnel of the store were sexually segregated because years of experience had taught the store’s managers that, unless clerks and customers were of the same sex, the frequent physical contact between clerks and customers would embarrass both and would inhibit sales.
The clothing in the men’s department was generally of a higher and more expensive quality than the clothing in the women’s department. Competitive factors accounted for this : There were few other men’s stores in Wilmington so the store could stock expensive men’s clothes and still do a thriving business, whereas women’s clothing had to be lower priced to compete with the many other women’s stores in Wilmington. Because of these differences in merchandise, the store’s profit margins on the men’s clothing was higher than its margins on the women’s clothing. As a result, the men’s department consistently showed a larger dollar volume in gross sales and a greater gross profit, as is indicated in Table 7.11.
Because of the differences shown in Table 7.11 women personnel brought in lower sales and profits per hour. In fact male salespersons brought in substantially more than the females did (see Tables 7.12 and 7.13)
Men’s Department Women’s Department

Year
Sales
($) Gross Profit
($) Percent Profit
($)
Sales
($) Gross Profit
($) Percent Profit
($)
1963 210,639 85,328 40.5 177,742 58,547 32.9
1964 178,867 73,608 41.2 142,788 44,612 31.2
1965 206,472 89,930 43.6 148,252 49,608 33.5
1966 217,765 97,447 44.7 166,479 55,463 33.5
1967 244,922 111,498 45.5 206,680 69,190 33.5
1968 263,663 123,681 46.9 230,156 79,846 34.7
1969 316,242 248,001 46.8 254,379 91,687 36.4
TABLE 7. 12

Year Male Sales per Hour
($) Female Sales Per Hour
($) Excess M Over F (%)
1963
1964
1965
1966
1967
1968
1969 38.31
40.22
54.77
59.58
63.18
62.27
73.00 27.31
30.36
33.30
34.31
36.92
37.20
41.26 40
32
64
73
71
70
77

As a result of these differences in the income produced by the two departments, the management of Robert Hall paid their male salespersons more than their female personnel. Management learned after a Supreme Court ruiling in their favor in 1973 that it was entirely legal for them to do this if they wanted. Wages in the store were set on the basis of profits per hour per department, with some slight adjustments upward to ensure wages were comparable and competitive to what other stores in the area were paying. Over the years, Robert Hall set the wages given in Table 7.14. Although the wage differences between males and females were substantial, they were not as large as the percentage differences between male and female sales and profits. The management of Robert Hall argued that their female clerks were paid less because the commodities they sold could not bear the same selling costs that the commodities sold in the men’s department could bear. However, the female clerks argued, the skills, sales efforts, and responsibilities required of male and female clerks were “substantially” the same.
TABLE 7. 13

Year Male Gross Profits per Hour
($) Female Gross Profits Per Hour
($) Excess M Over F (%)
1963
1964
1965
1966
1967
1968
1969 15.52
16.55
23.85
26.66
28.74
29.21
34.16 9.00
9.49
11.14
1143
12.36
12.91
15.03 72
74
114
134
133
127
127

TABLE 7. 14

Year Male Earnings per Hour
($) Female Earnings Per Hour
($) Excess M Over F (%)
1963
1964
1965
1966
1967
1968
1969 2.18
2.46
2.67
2.92
2.88
2.97
3.13 1.75
1.86
1.80
1.95
1.98
2.02
2.16 25
32
48
50
45
47
45

Questions :
1. In your judgment, do the managers of the Robert Hall store have any ethical obligations to change their salary policies ? If you do not think they should change, then explain why they have an obligation to change and describe the kinds of changes they should make. Would it make any difference to your analysis if, instead of two departments in the same store, it involved two different Robert Hall Stores, one for men and one for women ? Would it make a difference if two stores (one for men and one for women) owned by different companies were involved ? Explain each of your answers in terms of the relevant ethical principles upon which you are relying.
2. Suppose that there were very few males applying for clerks’ jobs in Wilmington while females were flooding the clerking job market. Would this competitive factor justify paying males more than females ? Why ? Suppose that 95 percent of the women in Wilmington who were applying for clerks’ jobs were single women with children who were on welfare while 95 percent of the men were single with no families to support. Would this need factor justify paying females more than males ? Why ? Suppose for the sake of argument that men were better at selling than women; would this justify different salaries ?

3. If you think the managers of the Robert Hall store should pay their male and female clerks equal wages because they do “substantially the same work” then do you also think that ideally each worker’s salary should be pegged to the work he or she individually performs (such as by having each worker sell on commission) ? Why ? Would a commission system be preferable from a utilitarian point of view considering the substantial book keeping expenses it would involve ? From the point of view of justice ? What does the phrase substantially the same mean to you ?

NO. 5
NAPSTER’S REVOLUTION
Eighteen – year old Shawn “NAPSTER” Fanning, then a freshman at Northeastern University, dropped out of school and founded Napster Inc. (website was at w.w.w.napster.com) in San Mateo, California in May 1999. Two months earlier, working in his college dorm room, he had developed both a website that let users locate other users who were willing to share whatever music files they had in MP3 format on the hard drives of their computers and a software program (called “Napster) that let users copy these music files from each other over the Internet. When an early free version of the program he posted on Download.com received more than 300,000 hits and was named “Download of the week,” he decided to devote himself full time to developing his program and website. The final version of his version of his program was officially released August 1999, and in May 2000, with more than 10 million people – most of them students on college campuses where Napster was especially popular – signed up at its website, Shawn’s company received $ 15 million of start – up funds from venture capital firms in California’s “Silicon Valley.”
Fanning grew up in Brockton, Massauchettes, the son of a nurse’s aid and the stepson of a truck driver, in a family of four half-brothers and half-sisters. He got the nickname “Napster” during a basketball game when a player commented on his closely cropped sweaty head of hair. Fanning had taught himself programming and had held several summer programming jobs.
The company Shawn helped establish gave the Napster program away for free and charged users nothing to use its website to post the URL addresses where personal copies of music could be downloaded. Nevertheless, a month later, Shawn found himself embroiled in a legal and ethical controversy when two record tables, two musicians (Metallica and Dr. Dre), and two industry trade groups of music companies (the National Music Publishers Association and the Recording Industry Association of America) filed suits against his young company claiming that Napster’s software was enabling other to make and distribute copies of copyrighted music that the musicians and companies owned.

On June 12, the two industry trade groups filed preliminary injunctions against the company demanding that it remove all the songs owned by their member companies from Napster’s song directories. According to the two groups, a survey of 2555 college students showed a correlation between Napster use and decreased CD purchases. College students were outraged, especially fans of Metallica and Dr. Dre. Supporters of Napster argued that Napster allowed people to hear music that they then went out and purchased, so Napster actually helped the music companies. Music sales had increased by over $500 million a year since Napster had started to operate, but the music companies claimed that this was a result of a booming economy. Supporters of Napster also argued that individuals had a moral and legal right to lend other individuals a copy of the music on the CDs that they had purchased. After all, they argued, the law explicitly stated that an individual could make a copy of copyrighted music he or she had purchased to hear the music on another player. Moreover, according to Fanning, Napster was not doing anything illegal, and the company was not responsible if other people used its software and website to copy music in violation of copyright law any more than a car company was responsible when its autos were used by thieves to rob banks. Much of the music that was downloaded using Napster, they claimed, was in the public domain (i.e.not legally owned by anyone) and was being legally copied. The music companies countered that an individual had no right to give multiple copies of their music to others even if the individual had paid for the original CD. If everyone was allowed to copy music without paying for it, they charged, eventually the music companies would stop producing music and musicians would stop creating it. Other musicians claimed, however, that Napster and the Web gave them a way to put their music before millions of potential fans without having to beg the music companies to sponser them.
In March 2000, the band Metallica hired consultant PDNet to electronically “evesdrop” on users who assumed they were anonymously accessing Napster’s website. The following week the band’s lawyers handed Napster a list with the names of 300, 000 people that Metallica claimed had violated its copyrights using Napster’s service and that Metallica now wanted removed from Napster’s services. Fanning complied with the demand of Metallica, whose drummer, Lars Ulrich, was one of his musical heros. “If they want to steal our music,” said Ulrich, “ why don’t they just go down to Tower Records and grab them off the shelves ?” Many young people protested that the bands should not be alienating their own fans in this way. One fan posted a note on an MP3 chat room : “Give me a break ! I have been dropping 16 bucks an album for Metallica’s music since I was a teenager. They made a fortune off us and now they accuse us of stealing from them. What nerve !” Howard King, a Los Angeles lawyer for Metallica and Dr. Dre, stated that “I don’t know Shawn Fanning but he seems to be a pretty good kid who came up with a sensational program. But this sensational program has allowed people to take music without paying ………. Shawn probably had no idea of the legal ramifications of what he created. I’m sure the though never crossed his mind.”
In August 2000, a federal judge in San Francisco, Marilyn Patel, responded to the suit against Napster. Judge Patel called Shawn’s company a “monster” and charged that the only purpose of Napster was to copy pirated music without paying for it. The judge ordered Napster to remove all URLS from its website that referenced material that was copyrighted.
Judge Patel’s ruling would have shut down the company’s website immediately. But a few days later, an appeals court reversed Judge Patel and allowed the company to continue operating. The reprieve was only temporary. On Monday February 12, 2001, the Ninth Circuit Court of Appeals in San Francisco affirmed Judge Patel’s ruling. The company attempted to circumvent the ruling by negotiating agreements with the music companies that would pay them certain annual fees in return for withdrawing the suit.
Napster was not the only software that allowed individuals to swap files from
One personal computer to another over the Internet. The software program named “Gnutella” let individuals swap any kind of files – music, text, or visuals – over the Internet, but Gnutella did not operate a centralized index like the website that Napster had established. Observers predicated that if Napster was put out of business, numerous underground websites would be created providing the kind of listing service that the company had earlier provided on its website. Already a website named zeropaid.com provided free copies of Gnutella and many other Napster clones that users could download and use to share digital music files with each other. Unlike Napster, these software products did not require a central website to connect users to each other, making it impossible for music companies to find and target single entity whom they could sue. Many observers predicated that Napster was only the beginning of an upheaval that would revolutionize the music industry, forcing music companies to lower their prices, make their music easily available on the Internet, and completely change their business models.
Questions :
1. What are the legal issues involved in this case, and what are the moral issues ? How are the two different kinds of issues different from each other, and how are they related to each other ? Identify and distinguish the “systemic, corporate and individual issues” involved in this case.

2. In your judgment, was it morally wrong for Shawn Fanning to develop and release his technology to the world given its possible consequences ? Was it morally wrong for an individual to use Napster’s website and software to copy for free the copy righted music on another person’s hard drive ? If you believe it was wrong, then explain exactly why it was wrong. If you believe it was not morally wrong, then how would you defend your views against t he claim that such copying is stealing ? Assume that it was not I illegal for an individual to copy music using Napster. Would there be anything immoral with doing so ? Explain ?

3. Assume that it is morally wrong for a person to use Napster’s website and software to make a copy of copyrighted music. Who, then, would be morally responsible for this person’s wrong doing ? Would only the person himself be morally responsible ? Was Napster, the company, morally responsible ? Wash shawn Fanning morally responsible ? Was any employee of Napster, the company, morally responsible ? Was the operator of the server or that portion of the Internet that the person used morally responsible ? What if the person did not know that the music was copyrighted or did not think that it was illegal to copy copyrighted music ?

4. Do the music companies share any of the moral responsibility for what has happened ? How do you think technology like Napster is likely to change the music industry ? In your judgment, are these changes ethically good or ethically bad ?

NO. 6
WORKING FOR ELI LILLY & COMPANY
Eli Lilly, the discoverer of Erythromycin, Darvon, Ceclor, and Prozac, is a major pharmaceutical company that sold $6.8 billion of drugs all over the world in 1995, giving it profits of $2.3 billion. Headquartered in Indianpolis, Minnesota, the company also provides food, housing, and compensation to numerous homeless alcoholics who perform short-term work for the company. The work these street people perform, however, is a bit unusual.
Before approving the sale of a newly discovered drug, the U.S. Food and Drug Administration requires that the drug be put through three phases of tests after being tested on animals. In phase I, the drug is taken by healthy human individuals to determine whether it has any dangerous side effects. In Phase II, the drug is given to a small number of sick patients to determine dosage levels. In Phase III, the drug is given to large numbers of sick patients by doctors and hospitals to determine its efficacy.
Phase I testing is often the most difficult to carry out because most healthy individuals are reluctant to take a new and untested medication that is not intended to cure them of anything and that may have potentially crippling or deadly side effects. To secure test subjects, companies must advertise widely and offer to pay them as such as $250 a day. Eli Lilly, however, does not advertise as widely and pays its volunteers only $85 a day plus free from and board, the lowest in the industry. One of the reasons that Lily’s rates are so low is because, as a long time nurse at the Lily Clinic is reported to have indicated, “ the majority of its subjects are homeless alcoholics” recruited through word of mouth that is spread in soup kitchens, shelters, and prisons all over the United States. Because they are alcoholics, they are fairly desperate for money. Because they alcoholics, they are fairly desperate for money. Because phase I testes can run several months, test subjects can make as $4500 – an enormous sum to people who are otherwise unemployable and surviving on handouts. Interviews with several homeless men who have participated in Lily’s drug tests and who describe themselves as alcoholics who drink daily suggest that they are, by and large, quite happy to participate in an arrangement that provides them with “easy money”. When asked, one homeless drinker hired to participate in a Phase I trail said he had no idea what kind of drug was being tested on him even though he had signed an informed – consent form. An advantage for Lilly is that this kind of test subject is less likely to sue if severely injured by the drug. The tests run on the homeless men, moreover, provide enormous benefits for society. It has been suggested, in fact, that in light of the difficulty of securing test subjects, some tests might be delayed or not performed at all if it were not for the large pool of homeless men willing and eager to participate in the tests.
The Federal Drug Administration requires that people who agree to participate in Phase I tests must give their “ informed consent” and must take a “ truly voluntary and a uncoerced decision.” Some have questioned whether the desperate circumstances of alcoholic and homeless men allow them to make a truly voluntary and uncoerced decision when they agree to take an untested potentially dangerous drug for $ 85 a day. Some doctors claim that alcoholics run a higher risk because they may carry diseases that are undetectable by standard blood screening and that make them vulnerable to being severely named by certain drugs. One former test subject indicated in an interview that the drug he had been given in a test several years before had arrested his heart and “ they had to put things on my chest to start my heart up again.” The same thing happened to another subject in the same test. Another man indicated that the drug he was given had made him unconscious for 2 days while others told of excruciating headaches.
In earlier years, drug companies used prisoners to test drugs in Phase I tests. During the 1970s, drug companies stopped using prisoners when critics complained that their poverty and the promise of early parole in effect were coercing the prisoners into “Volunteering”. When Lilly first turned to using homeless people during the 1980s, a doctor at the company is quoted as saying, “ We were constantly talking about whether we were exploiting the homeless. But there were a lot of them who were willing to stay in the hospital for four weeks.” Moreover, he adds. “Providing them with a nice warm bed and good medical care and sending them out drug – and alcohol – free was a positive thing to do.”
A homeless alcoholic indicated in an interview that when the test he was participating in was completed, he would rent a cheap motel room where I’ll get a case of Miller and an escort girl have sex. The girl will cost me $ 200 an hour.” He estimated that it would take him about two weeks to spend the $ 4650 Lily would pay him for his services. The manager at another cheap motel said that when test subjects completed their stints at Lily, they generally arrived at his motel with about $ 2500 in cash : “ The guinea pigs go to the lounge next door, get drunk and buy the house a round. The idea is, they can party for a couple of weeks and go back to Lily and do the next one.”
Questions :
1. Discuss this case from the perspective of utilitarianism, rights, justice and caring. What insight does virtue theory shed on the ethics of the events described in this case ?
2. “ In a free enterprise society all adults should be allowed to make their own decisions about how they choose to earn their living.” Discuss the statement in light of the Lily case.
3. In your judgment, is the policy of using homeless alcoholics for test subjects morally appropriate ? Explain the reasons for your judgment. What does your judgment imply about the moral legitimacy of a free market in labor ?
4. How should the managers of Lily handle this issue ?

Xaviers Institute of Business Management Studies

MARKS : 80

SUB: INTERNATIONAL BUSINESS
N. B.: 1) Attempt any four cases 2) All cases carries equal marks.
No: 1
BPO – BANE OR BOON ?
Several MNCs are increasingly unbundling or vertical disintegrating their activities. Put in simple language, they have begun outsourcing (also called business process outsourcing) activities formerly performed in-house and concentrating their energies on a few functions. Outsourcing involves withdrawing from certain stages/activities and relaying on outside vendors to supply the needed products, support services, or functional activities.
Take Infosys, its 250 engineers develop IT applications for BO/FA (Bank of America). Elsewhere, Infosys staffers process home loans for green point mortgage of Novato, California. At Wipro, five radiologists interpret 30 CT scans a day for Massachusetts General Hospital.
2500 college educated men and women are buzzing at midnight at Wipro Spectramind at Delhi. They are busy processing claims for a major US insurance company and providing help-desk support for a big US Internet service provider-all at a cost upto 60 percent lower than in the US. Seven Wipro Spectramind staff with Ph.Ds in molecular biology sift through scientific research for western pharmaceutical companies.
Another activist in BOP is Evalueserve, headquarterd in Bermuda and having main operations near Delhi. It also has a US subsidiary based in New York and a marketing office in Australia to cover the European market. As Alok Aggarwal (co-founder and chairman) says, his company supplies a range of value-added services to clients that include a dozen Fortune 500 companies and seven global consulting firms, besides market research and venture capital firms. Much of its work involves dealing with CEOs, CFOs, CTOs, CIOs, and other so called C-level executives.
Evaluserve provides services like patent writing, evaluation and assessment of their commercialization potential for law firms and entrepreneurs. Its market research services are aimed at top-rung financial service firms, to which it provides analysis of investment opportunities and business plans. Another major offering is multilingual services. Evalueserve trains and qualifies employees to communicate in Chinese, Spanish, German, Japanese and Italian, among other languages. That skill set has opened market opportunities in Europe and elsewhere, especially with global corporations.
ICICI infotech Services in Edison, New Jersey, is another BOP services provider that is offering marketing software products and diversifying into markets outside the US. The firm has been promoted by $2-billion ICICI Bank, a large financial institution in Mumbai that is listed on the New York Stock Exchange.
In its first year after setting up shop in March 1999, ICICI infotech spent $33 million acquiring two information technology services firms in New Jersy-Object Experts and ivory Consulting – and command Systems in Connecticut. These acquisitions were to help ICICI Infotech hit the ground in the US with a ready book of contracts. But it soon found US companies increasingly outsourcing their requirements to offshore locations, instead of hiring foreign employees to work onsite at their offices. The company found other native modes for growth. It has started marketing its products in banking, insurance and enterprise resource planning among others. It has earmarket $10 million for its next US market offensive, which would go towards R & D and back-end infrastructure support, and creating new versions of its products to comply with US market requirements. It also has a joint venture – Semantik Solutions GmbH in Berlin, Germany with the Fraunhofer Institute for Software and Systems Engineering, which is based in Berlin and Dortmund, Germany – Fraunhofer is a leading institute in applied research and development with 200 experts in software engineering and evolutionary information.
A relatively late entrant to the US market , ICICI Infotech started out with plain vanilla IT services, including operating call centeres. As the market for traditional IT services started wakening around mid-2000, ICICI Infotech repositioned itself as a “Solutions” firm offering both products and services. Today , it offers bundied packages of products and services in corporate and retail banking and include data center and disaster recovery management and value chain management services.
ICICI Infotech’s expansion into new overseas markets has paid off. Its $50 million revenue for its latest financial year ending March 2003 has the US operations generating some $15 million, while the Middle East and Far East markets brought in another $9 million. It new boasts more than 700 customers in 30 countries, including Dow Jones, Glazo-Smithkline, Panasonic and American Insurance Group.
The outsourcing industry is indeed growing form strength. Though technical support and financial services have dominated India’s outsourcing industry, newer fields are emerging which are expected to boost the industry many times over.
Outsourcing of human resource services or HR BPO is emerging as big opportunity for Indian BPOs with global market in this segment estimated at $40-60 billion per annum. HR BPO comes to about 33 percent of the outsourcing revenue and India has immense potential as more than 80 percent of Fortune 1000 companies discuss offshore BOP as a way to cut costs and increase productivity.
Another potential area is ITES/BOP industry. According to A NASSCOM survey, the global ITES/BOP industry was valued at around $773 billion during 2002 and it is expected to grow at a compounded annual growth rate of nine percent during the period 2002 – 06, NASSCOM lists the major indicators of the high growth potential of ITES/BOP industry in India as the following.
During 2003 – 04, The ITES/BPO segment is estimated to have achieved a 54 percent growth in revenues as compared to the previous year. ITES exports accounted for $3.6 billion in revenues, up form $2.5 billion in 2002 – 03. The ITES-BPO segment also proved to be a major opportunity for job seekers, creating employment for around 74,400 additional personnel in India during 2003 – 04. The number of Indians working for this sector jumped to 245,500 by March 2004. By the year 2008, the segment is expected to employ over 1.1 million Indians, according to studies conducted by NASSCOM and McKinsey & Co. Market research shows that in terms of job creation, the ITES-BOP industry is growing at over 50 per cent.
Legal outsourcing sector is another area India can look for. Legal transcription involves conversion of interviews with clients or witnesses by lawyers into documents which can be presented in courts. It is no different from any other transcription work carried out in India. The bottom-line here is again cheap service. There is a strong reason why India can prove to be a big legal outsourcing Industry.
India, like the US, is a common-law jurisdiction rooted in the British legal tradition. Indian legal training is conducted solely in English. Appellate and Supreme Court proceedings in India take place exclusively in English. Due to the time zone differences, night time in the US is daytime in India which means that clients get 24 hour attention, and some projects can be completed overnight. Small and mid – sized business offices can solve staff problems as the outsourced lawyers from India take on the time – consuming labour intensive legal research and writing projects. Large law firms also can solve problems of overstaffing by using the on – call lawyers.
Research firms such as Forrester Research, predict that by 2015 , more than 489,000 US lawyer jobs, nearly eight percent of the field, will shift abroad..
Many more new avenues are opening up for BOP services providers. Patent writing and evaluation services are markets set to boom. Some 200.000 patent applications are written in the western world annually, making for a market size of between $5 billion and $7 billion. Outsourcing patent writing service could significantly lower the cost of each patent application, now anywhere between $12,000 and $15,000 apiece-which would help expand the market.
Offshoring of equity research is another major growth area. Translation services are also becoming a big Indian plus. India produces some 3,000 graduates in German each year, which is more than that in Switzerland.
Though going is good, the Indian BPO services providers cannot afford to be complacent. Phillppines, Maxico and Hungary are emerging as potential offshore locations. Likely competitor is Russia, although the absence of English speaking people there holds the country back. But the dark horse could be South Affrica and even China
BOP is based on sound economic reasons. Outsourcing helps gain cost advantage. If an activity can be performed better or more cheaply by an outside supplier, why not outsource it ? Many PC makers, for example, have shifted from in – house assembly to utilizing contract assemblers to make their PCs. CISCO outsources all productions and assembly of its routers and witching equipment to contract manufactures that operate 37 factories, all linked via the internet.
Secondly, the activity (outsourced) is not crucial to the firm’s ability to gain sustainable competitive advantage and won’t hollow out its core competence, capabilities, or technical know how. Outsourcing of maintenance services, date processing, accounting, and other administrative support activities to companies specializing in these services has become common place. Thirdly, outsourcing reduces the company’s risk exposure to changing technology and / or changing buyer preferences.
Fourthly, BPO streamlines company operations in ways that improve organizational flexibility, cut cycle time, speedup decision making and reduce coordination costs. Finally, outsourcing allows a company to concentrate on its core business and do what it does best. Are Indian companies listening ? If they listen, BPO is a boon to them and not a bane.

Questions:
1. Which of the theories of international trade can help Indian services providers gain competitive edge over their competitors?
2. Pick up some Indian services providers. With the help of Michael Porter’s diamond, analyze their strengths and weaknesses as active players in BPO.
3. Compare this case with the case given at the beginning of this chapter. What similarities and dissimilarities do you notice? Your analysis should be based on the theories explained.

No: 2
PERU
Peru is located on the west coast of South America. It is the third largest nation of the continent (after Brazil and Argentina) , and covers almost 500.000 square miles (about 14 per cent of the size of the United States). The land has enormous contrasts, with a desert (drier than the Sahara), the towering snow – capped Andes mountains, sparkling grass – covered plateaus, and thick rain forests. Peru has approximately 27 million people, of which about 20 per cent live in Lima, the capital. More Indians (one half of the population) live in Peru than in any other country in the western hemisphere. The ancestors of Peru’s Indians were the famous incas, who built a great empire. The rest of the population is mixed and a small percentage is white. The economy depends heavily on agriculture, fishing , mining, and services, GDP is approximately $15 billion and per capita income in recent years has been around $4,3000. In recent years the economy has gained some relative strength and multinationals are now beginning to consider investing in the country.
One of these potential investors is a large New York based bank that is considering a $25 million loan to the owner of a Peruvian fishing fleet. The owner wants to refurbish the fleet and add one more ship.
During the 1970s, the Peruvian government nationalized a number of industries and factories and began running them for the profit of the state in most cases, these state – run ventures became disasters. In the late 1970s the fishing fleet owner was given back his ships and allowed to operate his business as before. Since then, he has managed to remain profitable, but the biggest problem is that his ships are getting old and he needs an influx of capital of make repairs and add new technology. As he explained it to the new York banker. “Fishing is no longer just an art. There is a great deal of technology involved. And to keep costs low and be competitive on the world market, you have to have the latest equipment for both locating as well as catching and then loading and unloading the fish”
Having reviewed the fleet owner’s operation, the large multinational bank believes that the loan is justified. The financial institution is concerned, however, that the Peruvian government might step in during the next couple of years and again take over the business. If this were to happen, it might take an additional decade for the loan to be repaid. If the government were to allow the fleet owner to operate the fleet the way he has over the last decade, the fleet the way he has over the last decade, the loan could be repaid within seven years.
Right now, the bank is deciding on the specific terms of the agreement. Once theses have been worked out, either a loan officer will fly down to Lima and close the deal or the owner will be asked to come to New York for the signing. Whichever approach is used, the bank realizes that final adjustments in the agreement will have to be made on the spot. Therefore, if the bank sends a representative to Lima, the individual will have to have the authority to commit the bank to specific terms. These final matters should be worked out within the next ten days.
Questions:
1. What are some current issues facing Peru? What is the climate for doing business in Peru today?
2. What type of political risks does this fishing company need to evaluate? Identify and describe them.
3. What types of integrative and protective and defensive techniques can the bank use?
4. Would the bank be better off negotiating the loan in New York or in Lima ? Why?

No: 3
RED BECOMING THICKER
The Backdrop
There seems to be no end to the troubles of the coloured – water giant Coca Cola. The cola giant had entered India decades back but left the country in the late 1970s. It staged a comeback in the early 1990s through the acquisitions route. The professional management style of Coca Cola did not jell with the local bottlers. Four CEOs were changed in a span of seven years. Coke could not capitalize on the popularity of Thums Up. Its arch rival Pepsi is well ahead and has been able to penetrate deep into the Indian market. Red in the balance sheet of Coke is becoming thicker and industry observers are of the opinion that it would take at least two decades more before Coke could think of making profits in India.

The Story
It was in the early 1990s that India started liberalizing her economy. Seizing the opportunity, Coca Cola wanted to stage a comeback in India. It chose Ramesh Chauhan of Parle for entry into the market. Coke paid $100 million to Chauhan and acquired his well established brands Thums Up, Goldspot and Limca. Coke also bagged 56 bottlers of Chauhan as a part of the deal. Chauhan was made consultant and was also given the first right of refusal to any large size bottling plants and bottling contracts, the former in the Pune – Bangalore belt and the latter in the Delhi and Mumbai areas.
Jayadeva Raja, the flamboyant management expert was made the first CEO of Coke India. It did not take much time for him to realize that Coke had inherited several weaknesses from Chauhan along with the brands and bottlers. Many bottling plants were small in capacity (200 bottlers per minute as against the world standard of 1600) and used obsolete technology. The bottlers were in no mood to increase their capacities, nor were they willing to upgrade the trucks used for transporting the bottle. Bottlers were more used to the paternalistic approach of Chauhan and the new professional management styles of Coke did not go down well with them. Chauhan also felt that he was alienated and was even suspected to be supplying concentrate unofficially to the bottlers.
Raja was replaced by the hard – nosed Richard Niholas in 1995. The first thing Nicholas did was to give an ultimatum to the bottlers to expand their plants or sell out. Coke also demanded equity stakes in many of the bottling plants. The bottlers had their own difficulties as well. They were running on low profit margins. Nor was Coke willing to finance the bottlers on soft terms. The ultimatum backfired. Many bottlers switched their loyalty and went to Pepsi. Chauhan allegedly supported the bottlers, of course, from the sidelines.
Coke thought it had staged a coup over Pepsi when it (Coke) clamed the status of official drink for the 1996 Cricket World Cup tournament. Pepsi took on Coke mightily with the famous jingle “Nothing official about it”. Coke could have capitalized on the sporty image of Thums Up to counter the campaign, but instead simply caved in.
Donald Short replaced Nicholas as CEO in 1997. Armed with heavy financial powers, Short bought out 38 bottlers for about $700 million. This worked out to about Rs 7 per case, but the cost – effective figure was Rs 3 per case. Short also invested heavily in manpower. By 1997, Coke’s workforce increased to 300. Three years later, the parent company admitted that investment in India was a big mistake.
It is not in the culture of Coke to admit failure. It has decided to fight back. Coke could not only sustain the loss, it could even spend more money on Indian operations. It hiked the ad budget and appointed Chaitra Leo Burnett as its ad agency. During 1998 – 99, Coke’s ad spend was almost three times that of Pepsi.
Coke is taking a look at its human resources and is taking initiatives to re – orient the culture and inject an element of decentralization along with empowerment. Each bottling plant is expected to meet predetermined profit, market share, and sales volumes. For newly hired management trainees, a clearly defined career path has been drawn to enable them to become profit centre heads shortly after completion of their probation. Such a decentralized approach is something of a novelty in the Coke culture worldwide.
But Alezander “Von Behr, who replaced Short as Chef of Indian operations, reiterated Coke’s commitment to decentralization and local responsiveness. Coke has divided India into six regions, each with a business head. Change in the organization structure has disappointed many employees, some of whom even quit the company.
Coke started cutting down its costs. Executives have been asked to shift from farm houses to smaller houses and rentals of Gurgaon headquarters have been renegotiated. Discount rates have been standardized and information systems are being upgraded to enable the Indian headquarters to access online financial status of its outposts down to the depot level.
Coke has great hopes in Indian as the country has a huge population and the current per capita consumption of beverages is just four bottles a year.
Right now, the parent company (head – quartered in the US) has bottle full of problems. The recently appointed CEO-E Neville Isdell needs to struggle to do the things that once made the Cola Company great. The problems include –
Meddling Board
Coke’s star- studded group of directors, many of whom date back to the Goizueta era, has built a reputation for meddling.
Moribund Marketing
Once world class critics say that today the soda giant has become too conservative, with ads that don’t resonate with the teenagers and young adults that made up its most important audience.
Lack of Innovation
In the US market, Coke hasn’t created a best – selling new soda since Diet Coke in 1982. In recent years Coke has been outbid by rival Pepsi Co for faster growing noncarb beverages like SoBe Gatorade.
Friction with Bottlers
Over the past decade, Coke has often made its profit at the expenses of bottlers, pushing aggressive price hikes on the concentrate it sells them. But key bottlers are now fighting back with sharp increases in the price of coke at retail.

International Worries
Coke desperately needs more international growth to offset its flagging US business, but while some markets like Japan remain lucrative, in the large German market Coke has problems so far as bottling contracts go.
When its own house is not in order in the large country, will the company be able to focus enough on the Indian market?

Questions:

1. Why is that Coke has not been able to make profit in its Indian operations?
2. Do you think that Coke should continue to stay in India? If yes, why?
3. What cultural adaptations would you suggest to the US expatriate managers regarding their management style?
4. Using the Hofstede and the value orientations cultural models, how can you explain some of the cultural differences noted in this case?

NO. 4
THE ABB PBS JOINT VENTURE IN OPERATION
ABB Prvni Brnenska Stojirna Brno, Ltd. (ABB-PBS), Czechoslovakia was a joint venture in which ABB has a 67 per cent stake and PBS a.s. has a 33 per cent stake. This PBS share was determined nominally by the value of the land, plant and equipment, employees and goodwill, ABB contributed cash and specified technologies and assumed some of the debt of PBS. The new company started operations on April 15, 1993.
Business for the joint venture in its first two full years was good in most aspects. Orders received in 1994, the first full year of the joint venture’s operation, were higher than ever in the history of PBS. Orders received in 1995 were 2½ times those in 1994. The company was profitable in 1995 and ahead of 1994s results with a rate of return on assets of 2.3 per cent and a rate of return on sales of 4.5 per cent.
The 1995 results showed substantial progress towards meeting the joint venture’s strategic goals adopted in 1994 as part of a five year plan. One of the goals was that exports should account for half of the total orders by 1999. (Exports had accounted for more than a quarter of the PBS business before 1989, but most of this business disappeared when the Soviet Union Collapsed). In 1995 exports increased as a share of total orders to 28 per cent, up from 16 per cent the year before.
The external service business, organized and functioning as a separate business for the first time in 1995, did not meet expectations. It accounted for five per cent of all orders and revenues in 1995, below the 10 per cent goal set for it. The retrofitting business, which was expected to be a major part of the service business, was disappointing for ABB-PBS, partly because many other small companies began to provide this service in 1994, including some started by former PBS employees who took their knowledge of PBS-built power plants with them. However, ABB-PBS managers hoped that as the company introduced new technologies, these former employees would gradually lose their ability to perform these services, and the retrofit and repair service business, would return to ABB-PBS.
ABB-PBS dominated the Czech boiler business with 70 per cent of the Czech market in 1995, but managers expected this share to go down in the future as new domestic and foreign competitors emerged. Furthermore, the west European boiler market was actually declining because environmental laws caused a surge of retrofitting to occur in the mid -1980 s, leaving less business in the 1990 s. Accordingly ABB-PBS boiler orders were flat in 1995.
Top managers at ABB-PBS regarded business results to date as respectable, but they were not satisfied with the company’s performance. Cash flow was not as good as expected. Cost reduction had to go further. The more we succeed, the more we see our shortcomings” said one official.
Restructuring
The first round of restructuring was largely completed in 1995, the last year of the three-year restructuring plan. Plan logistics, information systems, and other physical capital improvements were in place. The restricting included :
• Renovating and reconstructing workshops and engineering facilities.
• Achieving ISO 9001 for all four ABB-PBS divisions. (awarded in 1995)
• Transfer of technology from ABB (this was an ongoing project)
• Intallation of an information system.
• Management training, especially in total quality assurance and English language.
• Implementing a project management approach.
A notable achievement of importance of top management in 1995 was a 50 per cent increase in labour productivity, measured as value added per payroll crown. However, in the future ABB-PBS expected its wage rates to go up faster than west European wage rates (Czech wages were increasing about 15 per cent per year) so it would be difficult to maintain the ABB-PBS unit cost advantage over west European unit cost.
The Technology Role for ABB-PBS
The joint venture was expected from the beginning to play an important role in technology development for part of ABB’s power generation business worldwide. PBS a.s. had engineering capability in coal – fired steam boilers, and that capability was expected to be especially useful to ABB as more countries became concerned about air quality. (When asked if PBS really did have leading technology here, a boiler engineering manager remarked, “Of course we do. We burn so much dirty coal in this country; we have to have better technology”)
However, the envisioned technology leadership role for ABB-PBS had not been realized by mid – 1996. Richard Kuba, the ABB-PBS managing director, realized the slowness with which the technology role was being fulfilled, and he offered his interpretation of events.
“ABB did not promise to make the joint venture its steam technology leader. The main point we wanted to achieve in the joint venture agreement was for ABB-PBS to be recognized as a full-fledged company, not just a factory. We were slowed down on our technology plans because we had a problem keeping our good, young engineers. The annual employee turnover rate for companies in the Czech Republic is 15 or 20 per cent, and the unemployment rate is zero. Our engineers have many other good entrepreneurial opportunities. Now we’ve begun to stabilize our engineering workforce. The restructing helped. We have better equipment and a cleaner and safer work environment. We also had another problem which is a good problem to have. The domestic power plant business turned out to be better than we expected, so just meeting the needs of our regular customers forced some postponement of new technology initiatives.”
ABB-PBS had benefited technologically from its relationship with ABB. One example was the development of a new steam turbine line. This project was a cooperative effort among ABB-PBS and two other ABB companies, one in Sweden and one in Germany. Nevertheless, technology transfer was not the most important early benefit of ABB relationship. Rather, one of the most important gains was the opportunity to benchmark the joint venture’s performance against other established western ABB companies on variables such as productivity, inventory and receivables.

Questions:
1. Where does the joint venture meet the needs of both the partners? Where does it fall short?
2. Why had ABB-PBS failed to realize its technology leadership?
3. What lessons one can draw from this incident for better management of technology transfers?

NO. 5.
CHINESE EVOLVING ACCOUNTING SYSTEM
Attracted by its rapid transformation from a socialist planned economy into a
market economy, economic annual growth rate of around 12 per cent, and a population in excess of 1.2 billion, Western firms over the past 10 years have favored China as a site for foreign direct investment. Most see China as an emerging economic superpower, with an economy that will be as large as that of Japan by 2000 and that of the US before 2010, if current growth projections hold true.
The Chinese government sees foreign direct investment as a primary engine of China’s economic growth. To encourage such investment, the government has offered generous tax incentives to foreign firms that invest in China, either on their own or in a joint venture with a local enterprise. These tax incentives include a two – year exemption from corporate income tax following an investment, plus a further three years during which taxes are paid at only 50 per cent of the standard tax rate. Such incentives when coupled with the promise of China’s vast internal market have made the country a prime site for investment by Western firms. However, once established in China, many Western firms find themselves struggling to comply with the complex and often obtuse nature of China’s rapidly evolving accounting system.
Accounting in China has traditionally been rooted in information gathering and compliance reporting designed to measure the government’s production and tax goals. The Chinese system was based on the old Soviet system, which had little to do with profit or accounting systems created to report financial positions or the results of foreign operations.
Although the system is changing rapidly, many problems associated with the old system still remain.
One problem for investors is a severe shortage of accountants, financial managers, and auditors in China, especially those experienced with market economy transactions and international accounting practices. As of 1995, there were only 25,000 accountants in china, far short of the hundreds of thousands that will be needed if China continues on its path towards becoming a market economy. Chinese enterprises, including equity and cooperative joint ventures with foreign firms, must be audited by Chinese accounting firms, which are regulated by the state. Traditionally, many experienced auditors have audited only state-owned enterprises, working through the local province or city authorities and the state audit bureau to report to the government entity overseeing the audited firm. In response to the shortage of accountants schooled in the principles of private sector accounting, several large international auditing firms have established joint ventures with emerging Chinese accounting and auditing firms to bridge the growing need for international accounting, tax and securities expertise.
A further problem concerns the somewhat halting evolution of China’s emerging accounting standards. Current thinking is that China won’t simply adopt the international accounting standards specified by the IASC, nor will it use the generally accepted accounting principles of any particular country as its mode. Rather, accounting standards in China are expected to evolve in a rather piecemeal fashion, with the Chinese adopting a few standards as they are studied and deemed appropriate for Chinese circumstances.
In the meantime, current Chinese accounting principles present difficult problems for Western firms. For example, the former Chinese accounting system didn’t need to accrue unrealized losses. In an economy where shortages were the norm, if a state-owned company didn’t sell its inventory right away, it could store it and use it for some other purpose later. Similarly, accounting principles assumed the state always paid its debts – eventually. Thus, Chinese enterprises don’t generally provide for lower-of-cost or market inventory adjustments or the creation of allowance for bad debts, both of which are standard practices in the West.
Questions:
1. What factors have shaped the accounting system currently in use in China?
2. What problem does the accounting system, currently in sue in China, present to foreign investors in joint ventures with Chinese companies?
3. If the evolving Chinese system does not adhere to IASC standards, but instead to standards that the Chinese governments deem appropriate to China’s “Special situation”, how might this affect foreign firms with operations in China ?

NO. 6
UNFAIR PROTECTION OR VALID DEFENSE ?
“Mexico Widens Anti – dumping Measure …………. Steel at the Core of US-Japan Trade Tensions …. Competitors in Other Countries Are Destroying an American Success Story … It Must Be Stopped”, scream headlines around the world.
International trade theories argue that nations should open their doors to trade. Conventional free trade wisdom says that by trading with others, a country can offer its citizens a greater volume and selection of goods at cheaper prices than it could in the absence of it. Nevertheless, truly free trade still does not exist because national governments intervene. Despite the efforts of the World Trade Organization (WTO) and smaller groups of nations, governments seem to be crying foul in the trade game now more than ever before.
We see efforts at protectionism in the rising trend in governments charging foreign producers for “dumping” their goods on world markets. Worldwide, the number of antidumping cases that were initiated stood at about 150 in 1995, 225 in 1996, 230 in 1997 , and 300 in 1998.
There is no shortage of similar examples. The Untied States charges Brazil, Japan, and Russia with dumping their products in the US market as a way out of tough economic times. The US steel industry wants the government to slap a 200 per cent tariff on certain types of steel. But car markers in the United States are not complaining, and General Motors even spoke out against the antidumping charge – as it is enjoying the benefits of law – cost steel for use in its auto product ion. Canadian steel makers followed the lead of the United States and are pushing for antidumping actions against four nations.
Emerging markets, too, are jumping into the fray. Mexico recently expanded coverage of its Automatic Import Advice System. The system requires importers (from a select list of countries) to notify Mexican officials of the amount and price of a shipment ten days prior to its expected arrival in Mexico. The ten-day notice gives domestic producers advance warning of incoming low – priced products so they can complain of dumping before the products clear customs and enter the marketplace. India is also getting onboard by setting up a new government agency to handle antidumping cases. Even Argentina, China, Indonesia, South Africa, South Korea, and Thailand are using this recently – popularized tool of protectionism.
Why is dumping on the rise in the first place? The WTO has made major inroads on the use of tariffs, slashing tem across almost every product category in recent years. But the WTO does not have the authority to punish companies, but only governments. Thus, the WTO cannot pass judgments against individual companies that are dumping products in other markets. It can only pass rulings against the government of the country that imposes an antidumping duty. But the WTO allows countries to retaliate against nations whose producers are suspected of dumping when it can be shown that : (1) the alleged offenders are significantly hurting domestic producers, and (2) the export price is lower than the cost of production or lower than the home – market price.
Supporters of antidumping tariffs claim that they prevent dumpers from undercutting the prices charged by producers in a target market and driving them out of business. Another claim in support of antidumping is that it is an excellent way of retaining some protection against potential dangers of totally free trade. Detractors of antidumping tariffs charge that once such tariffs are imposed they are rarely removed. They also claim that it costs companies and governments a great deal of time and money to file and argue their cases. It is also argued that the fear of being charged with dumping causes international competitors to keep their prices higher in a target market than would other wise be the case. This would allow domestic companies to charge higher prices and not lose market share – forcing consumers to pay more for their goods.

Questions
1. “You can’t tell consumers that the low price they are paying for a particular fax machine or automobile is somehow unfair. They’re not concerned with the profits of companies. To them, it’s just a great bargain and they want it to continue.” Do you agree with this statement? Do you think that people from different cultures would respond differently to this statement? Explain your answers.
2. As we’ve seen, the WTO cannot currently get involved in punishing individual companies for dumping – its actions can only be directed toward governments of countries. Do you think this is a wise policy ? Why or why not? Why do you think the WTO was not given the authority to charge individual companies with dumping? Explain.
3. Identify a recent antidumping case that was brought before the WTO. Locate as many articles in the press as you can that discuss the case. Identify the nations, products (s), and potential punitive measures involved. Supposing you were part of the WTO’s Dispute Settlement Body, would you vote in favor of the measures taken by the retailing nation? Why or why not?

Xaviers Institute of Business Management Studies
MARKS : 80

SUB: Marketing Management

N. B. : 1) Attempt all Four Case studies
2) All questions carry equal marks.

Case study 1

Case Study on Segmentation, Targeting & Positioning

Profiles Group is a leading interior decorator and designer in the country. Mr. Neerav Gupta, one of the partners in the group has invested a good amount of money in the business. The other two partners namely Mr. Pratham Gupta who is a distant cousin of Neerav and Mr. Dev Suri are mainly into managing the firm’s country wide operations. Mr. Stanley Pereira, who is more of a sleeping partner, looks after the administrative and financial aspects of the firm.
Profiles Group has around 44 service centers in the country including state capitals and several developing cities. Since the firm’s inception in 1998, its progress has been unstoppable. The clients include many reputed companies, hotel chains, popular celebrities and even hospitals and commercial banks.

A brief background of the Partners:
Neerav Gupta had a family owned business that was into manufacturing wooden furniture but Neerav‟s interest was more into decorating. So, after completing a Master’s course in interior designing from a reputed college abroad, he decided to start his own interior design services. Meanwhile, the furniture manufacturing business was handed over to Pratham Gupta due to property and family settlement issues. But, Pratham decided to join Neerav and they both started a partnership firm.
Dev Suri, a friend of Neerav who had been living abroad, sold out his real estate business and had decided to settle on the Indian soil itself. He offered help by providing additional capital and his knowledge of real estates did help the firm although in a small way. Stanley Pereira, an experienced teacher and consultant, had worked previously in leading interior designing colleges and was instrumental in making required changes in syllabus structure and interior designing courses. He has also written many books and articles on the topic. He had retired early due to family commitments but landed up in Profiles Group as a Partner through mutual contacts.

The conversation:
All the four partners are comfortably sitting face to face on a peach colored cushioned sofa which is situated near the window corner inside Neerav’s well-structured office.
Pratham Gupta feels that since their firm has invested large funds, they must enter into more market segments especially the smaller ones. And, regarding this issue, a professional conversation takes place among the partners. The talks are as follows:
Pratham: “So, what do you think about expanding our market segments to smaller more ordinary markets?”
Stanley: “What are you exactly trying to say, Pratham? Will you explain it?”
Pratham: “Listen guys, right now, we have 44 centers and competent people to work under us, but when we see our customer base, it looks small and limited. What I mean to say is that we also need to have those individual household customers who are looking for service expertise in this field. Most household customers don’t get the necessary information as to how to go about the interiors or how to decorate their home/offices etc.”
Neerav: “I agree with your points Pratham, but don‟t you think if we have to reach the smaller segments of the market, we need a different approach to cater to their needs. We would have to advertise and communicate to these segments in a customised way. This will increase the promotion budget and our focus on the existing customers may be compromised.” Dev: “I think we need to get a balance here. Pratham‟s points are valid enough and it will make Profiles group more productive. If need be, we may have to take help of a service consultancy in order to penetrate deeper markets.”
Stanley: “Okay… so, even if we allocate these segments, we need to target them in a way where we will know the immediate impact of these segments. We have to position in such manner that we get this customer base to keep moving towards us… however, the problem lies in the demand for our product in these segments!”
Pratham: “What is that problem you are talking about, Stanley?”
Stanley: “I will tell the problem, we know our product… but these individual customer segments will see our product as a one time purchase… Interiors and designing is done by a household customer at one point… very rarely, he will seek for a change or improvement. So, is it acceptable that we cater to their one time need and then let go?”
Neerav: “I do understand that point… But, that’s always the case in our business. Interior decorations and designs are usually considered one-time expenditure by household customers…. and as a matter of fact, that has not affected the way we do our business or on our returns.”
Pratham: “See, even otherwise it should not affect our firm because individual customer segments are willing to pay or spend on interiors. If they need a good, comfortable home along with a neat set of furniture then why don’t we cater to that need, even if it’s a one time demand from a particular customer? This is exactly what I meant earlier when I said, given the expertise we have, why don’t we use it to expand our customer base? Of course, we may have to develop suitable pricing strategies, promotion strategies for these market segments which is according to me, not a big thing to do.”
Dev: “Let’s first consult with our marketing hero and ask their opinion or suggestions as well”
Dev takes out his cell phone to dial Mr. Sunil’s number and he immediately gets the connection. Sunil is the head of the marketing section and he is very efficient in his job. He also has an acceptable humour quotient. Dev asks Sunil to come over to Neerav’s office.

Sunil enters the office:
Sunil: “What’s up, Bosses?”
Dev gives a brief explanation to Sunil about the potential market.
Sunil: “that’s a welcome sign actually… we have the necessary resources and we are available to any customer at any given point… So, I think it‟s a good idea that we update our customer profiles also… Only thing is we have to make sure we are targeting and positioning our customer segment in the way they feel comfortable to approach us…”
Pratham: “Nicely said Sunil… You are our man in this task…. We rely on you to make our markets bigger and customer segments broader…”
Sunil: “Always thinking in the interests of Profiles Group, Mr. Gupta… Not to worry… You tell me the confirmed plans and leave the execution on me…”
Neerav: “Well, what can I say? If we are sure about managing the newer segments which is existing out there, then our work is just to target them and position our product as per the given requirements”
Dev: “There is one important suggestion I would like to present here…. We need to ensure that we properly differentiate our existing customers from the newer ones so that we are not overriding one another or our customers don’t feel compromised at any point.”
Stanley: “That’s a really valuable suggestion, Dev… I completely agree with this point”
Sunil: “Me too… Mr. Suri has stated an absolute theory… But, it’s not that we can’t take the benefits from the two and use it for our purpose… Somewhere, we can link the newer segments with the existing ones and gradually Profiles Group will mean the same to every one. That is however applicable in the long term… For now, we need to attend our customer base on a one-to-one basis… So, we do it slow and steady”
Neerav: “Sunil, I don’t understand, but whenever you speak you visualize the big picture as well… I admire your quality and also that you are very loyal to Profiles Group”
Sunil: “Anytime Mr. Gupta, I am at your service….Just give the command and it will be done”
All of them laugh at that comment and decide to have an official meeting regarding the Segmenting, Targeting and Positioning strategies for the potential market. Within a month, the scheduled meeting is done with the involvement of key people and various points are noted down for implementation.
The marketing team after a brainstorming session also comes up with a collective idea about introducing Re-decorating and re-designing to be offered as a part of Profile’s group’s services. This meant that clients or customers can think about re-designing or re-decorating their homes/offices with the already available possessions and existing furniture. This also meant less cost to the clients. This idea was taken up seriously and plans to implement such services were already underway.

The Progress:
The next six months in the Profiles Group has made everyone busy with different tasks and agendas to be accomplished. Sunil is the busiest person around and he is actively engaged in marketing activities related to the targeting and positioning of their product to the new customer base.
Very soon, the results are noticeable in the Profiles Group. After a considerable amount of planning and hard work, the subsequent months showed positive results as given below:
 The markets are segmented based on the income level of the household customers
 Their needs, wants and demands are analyzed
 These markets are targeted based on their desire, willingness and capabilities to attain the required interiors and furnishings.
 Sunil headed a separate section namely Re-designing and Re-decorating Services at the firm’s main office. Sunil was immediately involved in making special centers for Re-designing and re-decorating services in different parts of the country.
 Marketing section was taken over by a competent person – Ms. Sneha Agarwal who has over 8 years of experience in interior designing. She was chosen on the recommendation of Stanley Pereira as Sneha had been a merit student previously and Stanley had been her teacher.
 Neerav had even managed to get some MNC‟s as the firm’s clients.
 Positioning of Profiles Group’s product and services was done in three ways –
 For the already existing customer base which include the corporate and business houses, film industry and celebrities and other big units who spend huge amounts on the interior decorations.
 For the newer segments also termed as the individual household segments who have limited spending abilities but have a desire for elegant interiors at reasonable rates.
 For the collective market – re-design and re-decor services were offered.
 The structure of the firm’s web-site was made more user-friendly and included several videos showing how proper layout and interiors increased efficiency, easy movement, allowed more lighting and ventilation and created a feeling of well-being and comfort.
 A CD was also launched which included these videos and the necessary information of the Profile’s firm with the contact addresses and numbers. The CD also included interview with certain well-known clients who were highly satisfied with the firm’s services. This established trust and good communication in the market.
 Soon enough, the firm launches into environmental friendly interiors and develops „Go Green‟ initiatives that uses more re-cycled and renewable substances.
 There was a plan to begin annual contests and games which involved household customer segments to give their ideas or suggestions for a well laid out interiors using eco-friendly materials and “Go-Green‟ initiatives.

The Partners and the interview:
It’s been two years now since Profile’s Group had moved into individual household segments.
All four partners are seated on the sofa inside Neerav‟s office except this time the sofa is of cream shade and a press reporter namely Namitha Goel is sitting on a single sofa across them. Namitha Goel had scheduled this interview and later will be published in the “Living Designs”, a new monthly magazine that deals with interiors. She begins with a direct question to Neerav –
Namitha: “Mr. Neerav Gupta, do you think the reason for the substantial increase in your customer base is due to the Redesign and re-decoration services?
Neerav: “Well, to a considerable extent, I believe it is so. Re-design is not about my taste or your taste. It’s about working with what the client owns and making them happy. Most people are good in re-arranging their stuff but they don’t have time or energy to do it. So, we offer them this assistance.”
Namitha: “How come you got this thought about making these household segments as your customers? I mean, your firm is associated with the influential clientele base and considering that, why did you feel that these household segments would prove to be a lucrative market for you?”
Neerav: “The entire credit for making individual household segments as our customers goes to my business partners here, my workforce and their efforts. Around two and a half years back, we had just got into a conversation in this very same office and Pratham suggested about tapping these markets with our available resources. Let me clarify that we decided to target this segment not for profits but we felt they too would benefit from our expertise in this field.”
Namitha: “According to the market survey, it seems that there is no close competitor for you in this business. So, your firm stands at the top like it’s been from a long time. What do you say in this matter?”
Neerav is about to answer but his cell phone rings and he attends to it quickly.
Neerav: “Excuse me, Ms. Namitha.., I have urgent business call that can’t wait…, Carry on with your questions and my team mates will answer. I have to go now.” He addresses his partners and leaves the office in a hurry.
The interview proceeds and remaining partners contribute their views. The interview takes another 45 minutes and Namitha Goel is satisfied with her work as a press reporter. She leaves the Profile’s Group office with a sense of achievement.
The next month’s issue of “Living Designs” carries the cover story of the Profiles Group with the partners‟ exclusive interview placed in the shaded column of the magazine pages.

Questions: 1 Examine the progress of Profile’s Group as a leading interior designer and decorator.
Questions: 2 What kind of change was observed in the STP strategy of the firm and how was it useful?
Questions: 3 Evaluate the working of Profile’s group with respect to the Segmenting, Targeting and Positioning of markets. Do you have any suggestions for the firm?

Case study 2
Determining the Marketing 4 P’s

Any business organization in order to be successful needs to have a clear picture about the 4 P’s of marketing. This forms the basis on which business functioning takes place. What are these 4 P’s and why are they important? Let’s assume that we are interested to start up a small business enterprise and for that we have the necessary capital, skills and people. And now, since we are in the initial stage of enterprise formation, we need to answer the previous question.
Marketing mix comprises of the four basic elements or components which are termed together as 4 P’s of marketing. They are:
Product: what is it that we have to offer to the market? What can it include? In what ways can it be modified, changed, expanded, diversified etc.? Will our products be accepted in the market? If not, how do we create a market for our products?
Price: at what value should the products be offered in the market? What should be the returns? Will it be worth to the buyers? What variations, differences and strategies can we adopt in order to earn a fair margin and also gain customer satisfaction?
Place: where must be our products available? How soon it’s demanded in the market? How quick we can deliver it to the consumption points? Who do we need to involve in the distribution of our products? How much will they charge for their services?
Promotion: why do we need to promote our products? Will people be aware of our products if we don’t do any promotion? If we need to promote our products, what kind of message we should convey to the market? In what ways and methods we can carry out the promotion?
Unless we know the answers to the above questions, we cannot make our business function. Therefore, after considering the strengths and weakness of our likely enterprise and studying the market opportunities, we decide to manufacture wax crayons.

The main reason behind this decision is –
1. We can come up with an effective 4 P’s either by marketing the crayons ourselves and if not, we can take orders by being the suppliers to our clients.
2. We know that our market mainly comprises of educational institutions, drawing and painting classes/centers, artistes, even big companies use crayons extensively.
3. We realize the potential of wax crayons as we can offer variety in sizes, quality, colors, price ranges, wholesale and retail prices etc. We can even venture into related areas such as wax artic rafts, wax candles, oil colors, paint etc.
4. We can have direct contact with our clients and in the long term we can even engage an agency to market the crayons.
5. We know that promotion strategies can be based on the type of our customer segment and we could easily do it through advertising on Television, newspapers, children’s comics, notebooks, school notice boards, etc. We can even sponsor or conduct drawing competitions, art exhibitions or we can have contractual agreements with the stationery outlets, art schools etc. However, we are still apprehensive about our marketing mix. We are yet to confirm about our marketing mix and until then we are unable to finalize on our decisions or start with the implementation process.

Question 1.How will you determine the marketing mix for our enterprise?
Question 2.Do you have any ideas to make our enterprise successful particularly by enhancing or improving the marketing mix?
Question 3.What do you think will be the challenges in making an effective marketing mix since our enterprise is a new one?

Case study 3

Good Publicity vs. Bad Publicity

Roger Twain walked as usual with a pleasant aura and at a leisurely pace to his office. Roger is a PR Manager in one of the top FMCG companies of the world. His office along with the PR staff was recently shifted from sixth floor to the second floor of the building. The reason was simple enough. Top management did not want external parties to wander around the whole building in the excuse of meeting PR staff or the PR manager. Roger Twain in fact, welcomed this shift and was glad that he didn’t have to wait for the lift as he could now very well use the staircase. Roger has around 15 years of experience in PR and handling Publicity related issues. He had worked with several companies as well as non-business organisations and institutes.
Roger currently in his 53rd year has achieved lot of success in his career as a professional expert in the field of PR and Publicity handling. Although his plans to start his own PR Consultancy firm didn’t work out the way he wanted, he was actively involved in several worldwide workshops, seminars and presentations. He even wrote articles on PR strategies and published some books on PR. Roger’s ideologies as a PR professional was –

 “No News is not good news… You have to be in the news – good or bad. And, the objective should
be to convert bad news into good news.”
 “You cannot create bad news about your company. At the same time, you cannot create a good one. You can only communicate it in good or bad way.”
 “PR is about being in the news – time and date don’t matter much.”
 “It’s not about being right or wrong – it’s about being clear and sticking to the truth and using it positively.”
 “Everyone has a right to express… But, a PR person should consider it as a righteous Duty”
 “Your Company can show only performance. PR has to talk about it.”

A few of his career achievements in the different organizations that he worked for are as follows:

Problem Situation 1: Some of the cosmetic products of Jasper Ltd. were selling in the market beyond its expiry date. A media report exposed and presented this story to the public that Jasper Ltd. was desperate to increase its sales and did not consider consumers’ interests or their well-being. This led to decrease in sales volume even in the other product categories of the company. Due to incorrect operations of some channel members and retail outlets, old stock was sold to the consumers after the expiry dates. The outcome was Jasper Ltd.’s low profit margins.
Challenge: Roger’s challenge was to make consumers more aware and responsible while purchasing the company’s products without ruining the distribution channel relations and at the same time making the company socially responsible.

Solution: Roger suggested to the advertising department to create a public awareness ad regarding the importance of checking product expiry dates before buying. He advised the management to take back old stock from the retail outlets and distributors by offering a reasonable price and also prescribing the time limit within which those products should reach the company. Roger’s view was that distributors will mostly see their benefit and continue to sell the old stock. If they sell it back to the company itself for a price, they would definitely make an effort to get the new stock and sell those to the consumers. Roger’s logic was “it is better to spend some money on getting back the old stock than let it sell in the market at the risk of company’s reputation.” Meanwhile, consumers will also be aware about expiry dates of cosmetics when they buy it.

Problem situation 2: Acorn Seeds Company’s assistant finance manager was involved in some fraudulent activity and was accused of misappropriation of funds. This news became public and soon enough, company’s investors and stakeholders began to question the integrity and trustworthiness of the company. Company found it difficult to convince people that one person’s immoral intentions does not mean that everyone in the company is beyond trust and moral obligations. Furthermore, company’s products and services got severely affected and consumers started opting for competing products. There was bad publicity all around. Sales declined and situation got worse when finance manager unable to handle pressure resigned. Even though finance manager was not involved with his assistant, he was linked with him and given a bad treatment from outsiders even including some of the employees. Media accelerated this issue and created more hype than was necessary.
Challenge: Roger’s challenges in this situation was handling bad press, dealing with media people with patience and uplift the company’s integrity with good reputation. He also needed to make the financial department integrated with other departments and boost the employee morale. At the same time he had to take care that company’s products do not suffer in the situation.
Solution: Roger suggested to the top management to issue a public message in the newspapers/magazines and also at the end of the Company’s product ads on TV. The message was – “We value your trust in us as you value our commitment towards you.” Roger’s view was that once the fraud was committed and was out in the open, there was nothing much to be done but to move on accepting that such incident occurred and will not happen again. Roger also advised for just one press conference regarding this issue to put an end to this matter. The assistant finance manager had confessed and was told to resign instead of being fired. Soon enough, people forgave and forgot this issue, sales improved and company was on the track once again.

Problem Situation 3: One of the women’s facial creams produced by Jasper Ltd. was severely criticised by media and women. The belief was that the product contained acidic substance causing harmful chemical reactions on the skin. This belief was created when some women claimed that their skin discoloured/scalded after using this facial cream. Media reports provided some facts related to the product that made women who were using this cream more alert. As a result sales dropped drastically.

Challenge: First of all, Roger had to study the product and know its constituents. Secondly, he discussed with product research team as to why such claims could be targeted towards the product. Next, he had to face the media and women consumers addressing the claims and product’s safety.

Solution: Roger collected those facts provided in the media reports and sent them for verification with the skin specialists, research team and for laboratory testing. It was verified and proved that facts provided were immaterial in causing damaged skin. It was also proved that the cream contained no acidic substance or any sort of harmful chemical. Secondly, those women who claimed skin damage were questioned about their application of the skin cream. Two women confessed that they combined several other beauty products along with cream’s application. Others confessed that they were interested in making some quick money if company provided any compensation. Roger arranged a special press meet and provided all the relevant facts and information regarding this issue.

Problem Situation 4: Homely Anchor, a charitable organisation that mainly looked after elderly people in several old age homes was having a problem with its donations. There were anonymous donations coming from several places that it was difficult to track the funds and its allocation. The members of the organisation were themselves confused with the amount collected and amount spent since proper records were not maintained. There were gaps in the accuracy of the information and its updates. Somehow, a magazine columnist/writer got to know about this state of affairs and without much investigation published a small article in the magazine. The article stated how Homely Anchor was unable to manage funds and money received through anonymous donations remained anonymous. Although the article was not accusing of fraud, it hinted the readers in that direction. Within a few months of the article publication, some social activist groups and media started questioning Homely Anchor. There were questions raised on who were the anonymous fund raisers, amount of donations and what and how much was being spent where.

Challenge: Since Roger was working as a part-time Public Relations officer in Homely Anchor, he had to face the social activists and media on behalf of the organisation. He had to protect the privacy of anonymous donation givers and assure them as well as old age homes that funds are raised, managed and used for good intentions.

Solution: He merely gave open statements telling that a proper system will soon be in place that would ensure the accuracy and safety of records related to donations and fund raising. Shortly, he arranged for a small conference consisting of prominent social activists, charitable workers and media representatives to discuss and debate on the implementation of proper systems in charitable organisations. This conference gained lot of popularity and free publicity for Homely Anchor which resulted in more donations. An appropriate system was also implemented to record the transactions.

Problem Situation 5: The research and production team at Sparkly Company had designed a new and innovative technology of purifying water in their product – “Sparkler water purifiers”. This system was tested and proved that it was safe and that it purified water without destroying its minerals. Once it was approved, production plants were ready to manufacture water purifiers in the newly designed way. But, information had leaked to the rival competitor “Visor” Ltd. who immediately took advantage of the opportunity. Visor Ltd. issued statements in the press about this new technology of purifying water and that soon they will be marketing these products. There was a commotion in Sparkly Company due to this. Research and production teams began to accuse each other on the information leakage. Somehow, management was not able to control the situation. News spread about the rivalry issues and information leakage. Media was too interested in finding out which company would come out with the product first.
Challenge: Roger too found this situation difficult to handle. There was definitely an information leakage regarding the new method implemented in water purifiers. Roger’s immediate tasks were to find how information was leaked out and who would have done it. He knew the commitment levels of the company’s employees were not questionable. Second, he had to ensure that Sparkling Company was the first to introduce this technique and at the same time he could not accuse Visor Ltd. openly in public.

Solution: Since acquiring patents (exclusive rights) to the new technique in water purifiers was in process, Roger decided not to talk about it. He then released a statement in the press as “Sparkly Company’s dedicated effort towards manufacturing Sparkler Water purifiers with new technology was a long time process. It involved continuous research and lab experiments by the team. This technology shows our expertise and we will never compromise on our products.” After an internal investigation, Roger found that company’s certain e-mails were hacked and through that, information had leaked to Visor Ltd. So, systems and networks were made more secure. Roger made it clear in his public appearance in the media that crucial information did leak out due to the insecure network and computer systems. But, he was careful not to mention names or make any accusations. Media turned their attention to Visor Ltd. questioning its integrity, ethical and business values.

Questions:
1) Identify the qualities of Roger as a PR professional and analyse his role in the companies that he worked for.

2) In the above problem situations, was there any other approach that Roger could have adopted? If yes, suggest some approaches. If no, why do you agree with Roger’s approach?

3) List the PR tools and strategies that were adopted by Roger in dealing with the problem situations.

Case study 4

Personal Selling – Professional approach

Background Information:

“Keep Fit” is a medium-sized outlet exclusively dealing in exercising equipments/machines and fitness accessories and sometimes in sports equipments also. It has 27 sales persons employed under it. Owners of the outlet – an active middle-aged couple have several contacts abroad through which they place orders for the necessary and required equipments. Once an order is placed for particular equipment, it takes atleast 2 weeks for the equipment to reach the outlet. Secondly, the sales force is involved in cold calls, constantly checking upon new orders from the existing customers and getting new customers to place orders for these equipments from in and around the city. Sometimes, they travel to other nearby cities seeking orders and new customers.
Some of the equipments that Keep Fit sells are –

 Cardio equipments such as Treadmills, Stair climbers, Steppers, Bikes, Ellipticals, Rowers, so on.
 Strength equipments such as Weight benches, Power racks and varieties, different kinds of Weight machines which is supplied as per customer’s requirements, lifting accessories, home gym systems, and other machines.
 Fitness accessories such as pedometers, ankle and wrist weights, jump ropes, stretch mats, hand grips, exercise balls, pull and push up bars, so on.
 Sports accessories such as soccer balls, volleyballs, basketballs, poles, boxing gloves, track pants and such other stuff if at all there is customer demand or they have placed such orders.

The owners have already realized the growth potential of these equipments/machines after analyzing the following:

a) Since most people are becoming health and fitness conscious, there is lot of demand but supply is comparatively low.
b) Due to heavy work pressures and IT related jobs that require people to sit in front of their computer systems for long, it has resulted into high demand for creating and maintenance of gyms in the companies and at the workplaces.
c) The affluent class or groups especially celebrities and sports stars don’t mind purchasing and owning these equipments in their homes, the objective being creation of a personal gym at home.
d) Fitness centers, gymnasiums and sports clubs are increasing in number and so is the demand for the exercising equipments and machines.
e) Encouragement given to different sports requires the sports men and women to use such equipments and therefore, they have to be provided with such resources so as to participate in national or international sports events like Olympics.

Two more salespersons were recently recruited and selected by the owners. After the training and several exposures to the sales practices adopted by experienced salespersons, these two salespersons were ready for the actual job.

The first salesperson namely Mr. Jagan Das is hard-working and efficient in his work. It was observed in the training programme that he was alert to the situations and environment around him. But, at the same time he had a weakness of listening a lot to other people’s opinions and not contributing his thoughts or ideas. However, he was enrolled in a short-term communication course to improve his language skills and expressing his thoughts. The second salesperson namely Mr. Tarun Mehra is an enthusiastic and determined chap. He likes to share ideas and given the time, he would talk his way out. In the training programme, he asked lot of questions and after receiving answers would again question about why and how of things. His only weakness was his tendency to get over-enthusiastic about things and situations that he would forget about existing situation or problem.
In the first few months, Jagan and Tarun were getting along fine as they were assigned the same sales territory. Sometimes, they would go together to collect orders and even dispatch orders to the customers. Together, they were able to deal with complicated clients and achieve higher sales targets than what was assigned to them.
Lately, the owners observed small fights happening between Jagan and Tarun. They were not sure as to what caused the disagreements that led to fights but eventually, the couple decided that the salesmen needed to sort it out by themselves. On Jagan’s request, their sales territories were separated and now, Jagan and Tarun had to deal with different customers at different locations.

After Reading the Background Information, analyse the following two situations and answer the questions given at the end:-

Situation 1:
Jagan is at the outlet’s veranda listening to how another sales person handled a customer’s complaint. He receives a call from one of the old customers of the outlet. The telephonic conversation goes as follows:
Customer: “From “Shape-up” Gym, I am Raghav speaking… Two months back, I purchased this treadmill from you for our gymnasium located at the city’s east and now it is causing some problem… till now whatever gym equipments we purchased from you had no problems of any kind”
Jagan: “Please tell me your problem Sir…”
Customer: “See, actually I can fix the problem… I know some people who can do it very easily… but that’s not my point… I need to know why the machine caused problem.”
Jagan: “You tell me your problem Sir, and then we will fix it for free…”
Customer: “I am not having a problem; your machine has a problem”
Jagan: “I will come at your place Sir, tell me your exact problem so I can note it down and solve it as soon as possible”
Customer: “I can solve the problem… I need to know whether the treadmill comes with a guarantee period and why a brand new machine is causing this problem”
Jagan: “I will come over there Sir and if it’s possible, I will bring a technical member from my team along with me…”
Customer: “No Thanks for your help… I will speak to your Boss about the treadmill’s inefficiency!”
Jagan: “Wait… let me know what I can do for… …”
The call is dropped and Jagan is unclear as to what he must do next. Should he call back the customer on the same number as appearing on his mobile or should he find out if he can trace the customer information from the sales records of the last two months or should his superior know about this incident? The customer appeared to be in a hurry and didn’t even tell about the problem. Jagan also wondered about how Tarun would react to this kind of call.

Situation 2:
Tarun is busy entering some information into the sales records. He is asked to pick up a call from the superior’s office and following conversation takes place:
Customer: “Is this Keep Fit?”
Tarun: “Good evening Sir, yes it is… May I know your name Sir?”
Customer: “Who am I speaking to? … I am Jonathan from Lance Sports Club”
Tarun: “Mr. Jonathan, this is Tarun and I am a sales executive at Keep Fit… you can tell me your concern Sir,”
Customer: “I had placed an order for 7 pairs of weight plates, 6 pairs of dumbbells, and 2 exercising bikes – one upright and also 2 treadmills and volleyball”
Tarun: “I am listening Mr. Jonathan”
Customer: “Yes, good, now according to price-list, it says 3 treadmills, 3 exercising bikes, 6 pairs or weight plates, 6 pairs of dumbbells…. the thing is number of items mentioned in the bill are completely wrong”
Tarun: “Just tell me the Bill Number and I will get back to you Jonathan… But, how many items have you received in actual numbers?”
Jonathan: “Well, that’s the problem… I have received the same numbers as I placed in the order… but, the bill and the list says wrong numbers… and only that volleyball is not received”
Tarun: “Okay…. Just see on the top left of your list… you will find the Bill Number… please tell me that…”
Jonathan: “There is no Bill number in this…”
Tarun: “Please check it once again… there is a bill number mentioned at the top left or top right or somewhere at the top… Okay… tell me the date of the bill and your order placement date atleast”
Jonathan: “No, it’s alright, there must be a mistake… we will sort it out during the payment”
Tarun: “Mr. Jonathan… Please co-operate and tell me the bill number or the date so that I can verify it in the sales records and check the invoices also”
Jonathan: “No, that’s okay… do not bother about it… we will confirm later…”
Tarun: “Listen Mr. Jonathan, I can just…. …” But, before Tarun tells anything more, the customer has cut off the call. Tarun feels uneasy about the conversation. He was being so helpful and wanted to clarify the figures but it looked like the customer was not interested to do so. Should he follow up on the customer after finding out the necessary details or should he just keep quiet till the customer raises the issue once again? Should he tell this to his superior? He tried to imagine Jagan’s way of tackling these types of customers.

Note:
In both the situations, the salespersons have not met the customers personally. In Situation 1, Jagan is dealing for the first time with one of the old customers of the outlet. In Situation 2, Tarun had spoken to some other member of the sports club previously.

Questions:

Question 1:- Identify the approach (plus points and negative points) of the two salespersons in the above situations and make a comparative analysis.

Question 2:- In both the situations, were the customers satisfied with how the salespersons handled their queries? Analyse the sales person’s and customer’s interactions in the above situations.

Question 3:- If you were a salesperson, how would you have handled the above two situations? Do you have any suggestions for Jagan and Tarun?

Xaviers Institute of Business Management Studies

Principles & Practice of Management

Marks – 80

(Please attempt any 4 of the below mentioned case studies. Each Case study is for 20 marks)

Read the following case and answer the questions given at the end of the case.
LOSING A GOOD MAN
Sundar Steel Limited was a medium-sized steel company manufacturing special steels of various types and grades. It employed 5,000 workers and 450 executives.
Under the General Manager operation, maintenance, and headed by a chief. The Chief of and under him Mukherjee Maintenance Engineer. The total was 500 workers, 25 executives, (Production), there were services groups, each Maintenance was Shukla was working as the strength of Maintenance and 50 supervisors.
Chatterjee was working in Maintenance as a worker for three years. He was efficient. He had initiative and drive. He performed his duties in a near perfect manner. He was a man of proven technical ability with utmost drive and dash. He was promoted as Supervisor. Chattejee, now a Supervisor, was one day passing through the Maintenance Shop on his routine inspection. He found a certain worker sitting idle. He pulled him up for this. The worker retaliated by abusing him with filthy words. With a grim face and utter frustration, Chatterjee reported the matter to Mukherjee. The worker who insulted Chatterjee was a “notorious character” , and no supervisor dared to confront him. Mukherjee took a serious view of the incident and served a strong warning letter to the worker. Nothing very particular about Chatterjee or from him came to the knowledge of Mukherjee. Things were moving smoothly. Chatterjee was getting along well with others But after about three years, another serious incident took place. A worker came drunk to duty, began playing cards, and using very filthy language. When Chatterjee strongly objected to this, the worker got up and slapped Chatterjee. Later, the worker went to his union – and reported that Chatterjee had assaulted him while he was performing his duties.
Chatterjee had no idea that the situation would take such a turn. He, therefore, never bothered to report the matter to his boss or collect evidence in support of his case.
The union took the case to Shukla and prevailed over him to take stern action against Chatterjee. Shukla instructed Mukherjee to demote Chatterjee to the rank of a worker. Mukherjee expressed his apprehension that in such a case Chatterjee will be of no use to the department, and. the demotion would adversely affect the morale of all sincere and efficient supervisors. But Chatterjee was demoted.
Chatterjee continued working in the organisation with all his efficiency, competence, and ability for two months. Then he resigned stating that he had secured better employment elsewhere. Mukherjee was perturbed at this turn of events. While placing Chatterjee’s resignation letter before Shukla, he expressed deep concern at this development.
Shukla called Chief of Personnel for advice on this delicate issue. The Chief of Personnel said, “l think the incident should help us to appreciate the essential qualification required for a successful supervisor. An honest and hardworking man need not necessarily prove to be an effective supervisor. Something more is required for this as he has to get things done rather than do himself.” Mukherjee said, “l have a high opinion of Chatterjee. He proved his technical competence and was sincere at his work. Given some guidance on how to deal, with the type of persons he had to work with, the sad situation could h.ave been avoided.” Shukla said, “l am really sorry to lose Chatterjee, He was very honest and painstaking in his work. But I do not know how I could have helped him; I wonder how he always managed to get into trouble with workers. we know they are illiterates and some of them are tough. But a supervisor must have the ability and presence of mind to deal with such men. I have numerous supervisors, but I never had to teach anybody how to supervise his men.”
Questions:
(a) Identify the problems in this case.
(b) Do you think the decision taken by shukla is in keeping with the faith, trust and creating developmental climate in the organisation? Critically evaluate
(c) How would you help in improving rough and tough behavior of employees?

Read the following case and answer the questions given at the end.
ABC manufacturing
The ABC Manufacturing Company is a metal working plant under the direction of a plant manager who is known as a strict disciplinarian. One day a foreman noticed Bhola, one of the workers, at the time-clock punching out two cards his own and the card of Nathu, a fellow worker. Since it was the rule of the company that each man must punch out his own card, the foreman asked Bhola to accompany him to the Personnel Director, who interpreted the incident as a direct violation of a rule and gave immediate notice of discharge to both workers. The two workers came to see the Personnel Director on the following day. Nathu claimed innocence on the ground that he had not asked for his card to be punched and did not know at the time that it was being punched. He had been offered a ride by a friend who had already punched out and who could not wait for him to go through the punch-out procedure. Nathu was worried about his wife who was ill at home and was anxious to reach home as quickly as possible. He planned to take his card to the foreman the next morning for reinstatement, a provision sometimes exercised in such cases. These circumstances were verified by Bhola. He claimed that he had punched Nathu’s card the same time he punched his own, not being conscious of any wrongdoing.
The Personnel Director was inclined to believe the story of the two men but did not feel he could reverse the action taken. He recognized that these men were good workers and had good records prior to this incident. Nevertheless, they had violated a rule for which the penalty was immediate discharge. He also reminded them that it was the policy of the company to enforce the rules without exception.
A few days later the Personnel Director, the Plant Manager, and the Sales Manager sat together at lunch. The Sales Manager reported that he was faced with the necessity of notifying one of their best customers that his order must be delayed because of the liability of one department to conform to schedule. The department in question was the one from which the two workers had been discharged. Not only had it been impossible to replace these men to date, but disgruntlement over the incident had led to significant decline in the cooperation of the other workers. The Personnel Director and the Sales Manager took the position that the discha rge of these two valuable men could have been avoided if there had been provision for onsidering the circumstances of the case. They pointed out that the incident was costly to the company in the possible loss of a customer, in the dissatisfaction within the employee group, and in the time and money that would be involved in recruiting and training replacements. The Plant Manager could not agree with this point of view. “We must have rules if we are to have efficiency; and the rules are no god unless we enforce them. Furthermore, if we start considering all these variations in circumstances, we will find ourselves loaded down with everybody thinking he is an exception.” He admitted that the grievances were frequent but countered with the point that they could be of little consequence if the contract agreed to by the union was followed to the letter.
Questions
(a) Identify the core issues in the case
(b) Place yourself in the position of the Personnel Director. Which of the following courses of action would you have chosen and why?
(i) Would you have discharged both men?
(ii) Would you have discharged Bhola only?
(iii) Would you have discharged Nathu only?
(iv) Would you have discharged neither of them? Justify your choice of decision.
(c) What policy and procedural changes would you recommend for handling such cases in future?

Read the case and answer the questions given at the end of the case.
PK Mills

PK Mills manufactures woolen clothes. Over the years, it has earned an envious reputation in the market. People associate PK Mills with high quality woolen garments. Most of the existing employees have joined the company long back and are nearing retirement stage. The process of replacing these old employees with younger ones, drawn from the nearby areas, has already begun. Recently, the quality of the garments has deteriorated considerably. Though the company employs the best material that is available, the workmanship has gone down. Consequently, the company has lost its customers in the surrounding areas to a great extent. The company stands, in the eyes of general public, depreciated and devalued. The production manager, in a frantic bid to recover lost ground, held several meetings with his staff but all in vain. The problem, of course, has its roots in the production department itself. The young workers have started resisting the bureaucratic rules and regulations vehemently. The hatred against regimentation and tight control is total. The old workers, on the verge of retirement, say that conditions have changed considerably in recent years. In. The days gone by, they say, they were guided by a process of self-control in place of bureaucratic control. Each worker did his work diligently and honestly under the old set-up. In an attempt to restructure the organizational set-up, the managers who have been appointed afterwards brought about radical changes. Workers under the new contract had very little freedom in the workplace. They are expected to bend their will to rules and regulations. Witnessing the difference between the two ‘cultures’ the young workers, naturally, began to oppose the regulatory mechanism devised by top management. The pent-up feelings of frustration and resentment against management, like a gathering storm, have resulted in volcanic eruptions leading to violent arguments between young workers and foremen on the shop-floor. In the process production has suffered, both quantitatively and qualitatively. The production manager in an attempt to weather out the storm, is seriously thinking of bringing about a radical change in the control process that is prevailing now in the organization.
Questions:
(a) What are the core issues the case?
(b) Do you agree with the statement “The problem, of course, has its roots in the production department itself”? Reason out your stand.
(c) Critically evaluate the finding that old supervisors complain and new workers to resist any type of control.
(d) What type of control system would you suggest to the company to improve the production?

The AB Steel Plant

The Vice President for Production at the AB Steel Plant was giving the Production Department Manager, Mr. Singh, a hard time for not doing anything about his work group which was perpetually coming late to work and was behind schedule in the performance quotas for several months now. The vice President’s contention was that if the production’ crew was consistently tardy, the production process was delayed by about 15 minutes on an average per member per day, and this was no way for the department to meet the assigned quotas. “They are losing about 6 to 8 hours of production time per member per month, and you don’t seem one bit concerned about it,” he yelled at the manager. He added that he was pretty upset about the ‘lax management style’ of the manager and very clearly stated that unless the manager did something about the tardiness problem, another manager who can manage the crew effectively’ will have to be found.
Mr. Singh knows that he has an able and good group of workers but he also realizes that they are bored with their work and do not have enough incentives to meet the production quotas. Hence, they seem to respond to the situation by taking it easy and coming late to work by a few minutes every day. Mr. Singh has also noticed that they were taking turns leaving the workplace a few minutes early in the evenings. Even though Singh was aware of this, entire he pretended not to notice the irregularities and was satisfied that once the workers started their work, they were pretty good at their jobs and often helped to meet rush orders whenever they knew that Mr. Singh was in a bind.
Questions:
(a) What do you think is the real, problem in this case?
(b) How do you perceive the stand of Mr. Singh? Analyze critically.
(c) What intervention should Mr. Singh use to rectify the type, of situation he is presently confronted with? Discuss giving the reasons.
(d) Discuss the implications of effecting them with your recommendations.

Dealing with an Employee’s Problem

Ms. Renu had graduated with a degree in foreign languages. As the child of a military family, she had visited many parts of the world and had travelled extensively in Europe. Despite these broadening experiences, she had never given much thought to a career until her recent divorce.
Needing to provide her own income, Ms. Renu began to look for work. After a fairly intense but unsuccessful search for a job related to her foreign language degree, she began to evaluate her other skills. She had become a proficient typist in college and decided to look into secretarial work. Although she still wanted a career utilizing her foreign language skills, she felt that the immediate financial pressures would be eased in a temporary secretarial position.
Within a short period fo time, she was hired as a clerk/typist in a typical pool at Life Insurance Company. Six months later, she became the top typist in the pool and and was assigned as secretary to Mrs. Khan’ manager of marketing research. She was pleased to get out of the pool and to get a job that had more variety in the tasks to perform. Besides, she also got a nice raise in pay.
Everything seemed to proceed well for the next nine months. Mrs. Khan was pleased with Renu’s work, and she seemed happy with her work. Renu applied for a few other more professional jobs in other areas during this time. However, each time her application was rejected for lack of related education and/or experience in the area.
Over the next few months, Khan noticed changes in Renu. She did not always dress as neatly as she had in the past, she was occasionally late for work, some of her lunches extended to two hours, and most of her productive work was done in the morning hours. Khan did not wish to say anything because Renu had been doing an excellent job and her job tasks still were being accomplished on time. However, Renu’s job behavior continued to worsen. She began to be absent frequently on Mondays or Fridays. The two-hour lunch periods became standard, and her work performance began to deteriorate. In addition, Khan began to suspect that Renu was drinking heavily, due to her appearance some mornings and behavior after two-hour lunches.
Khan decided that she must confront Renu with the problem. However, she wanted to find a way to held her without losing a valuable employee. Before she could set up a meeting, Renu burst through her floor after lunch one day and said:
“I want to talk to you Mrs. Khan”
“That’s fine,” Khan replied. “Shall we set a convenient time?”
“No! I want to talk now.”
“OK, why don’t you sit down and let’s talk?”
Khan noticed that Renu was slurring her words slightly and she was not too steady.
“Mrs. Khan, I need some vacation time.”
“I’m sure we can work that out. You’ve been with company for over a year and have two weeks’ vacation coming.”
“No, you don’t understand. I want to start it tomorrow.”
“But, Renu, we need to plan to get a temporary replacement. We can’t just let your job go for two weeks”.
“Why not? Anyway anyone with an IQ above 50 can do my job. Besides, I need the time off. ”
“Renu, are you sure you are all right ?”
“Yes, I just need some time away from the job.”
Khan decided to let Renu have the vacation, which would allow her some time to decide what to do about the situation.
Khan thought about the situation the next couple of days. It was possible that Renu was an alcoholic.
However, she also seemed to have a negative reaction to her job. Maybe Renu was bored with her job. She did not have the experience or job skills to move to a different type of job at present. Khan decided to meet with the Personnel Manager and get some help developing her options to deal with Renu’s problem.
Questions:
(a) What is the problem in your opinion? Elaborate.
(b) How would you explain the behavior of Renu and Mrs. Khan? Did Mrs. Khan handle the situation timely and properly?
(c) Assume that you are the Personnel Manager. What are the alternatives available with Mrs. Khan?
(d) What do you consider the best alternative? Why?


BUSINESS ETHICS XIBMS EXAM ANSWER

BUSINESS ETHICS XIBMS EXAM ANSWER

BUSINESS ETHICS Xaviers Institute EXAM ANSWER SHEETS PROVIDED

CONTACT DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com

BUSINESS ETHICS

Marks – 80
SECTON-A

ANSWER ALL QUESTIONS (5X3=15)

1. Define business ethics?
2. What is kick-back in business?
3. What is unfair discrimination?
4. What is acid rain?
5. Define the term social responsibility in business?

SECTION-B

ANSWER any 5 QUESTIONS (5X5=25)

6. Difference between transactional & transformational leadership?
7. Business & ethics are contradictory?
8. Explain the term ‘stealing trade secrets’
9. Explain whistle blowing
10. Mention 3 unethical practices in marketing?
11. What are the primary reasons for resources depletion?
12. Explain the objectives of social audit?

SECTION-C

ANSWER any 4 questions (10 X 4=40)

13.discuss the role & import of ethics in business
14.explain the types of ethical issues in business
15.discuss about the qualities & features of CEO in business
16.analyses the various causes of pollution in developing countries
explain the principle obligations of a business firm
17.discuss in detail about unfair trade discrimination?

Xaviers Institute of Business Management Studies

MARKS: 80
COURSE: MBA
SUB: CORPORATE LAW

N.B.: 1 Attempt any Twelve Questions
2) Last two Questions are compulsory
Q.1. In the following statements only one is correct statement. Explain Briefly? (5 Marks)
i) An invitation to negotiate is a good offer.
ii) A quasi-contract is not a contract at all.
iii) An agreement to agree is a valid contract.

Q.2. A ship-owner agreed to carry to cargo of sugar belonging to A from Constanza to Busrah. He knew that there was a sugar market in Busrah and that A was a sugar merchant, but did not know that he intended to sell the cargo, immediately on its arrival. Owning to Shipment’s default, the voyage was delayed and sugar fetched a lower price than it would have done had it arrived on time. A claimed compensation for the full loss suffered by him because of the delay. Give your decision. Explain Briefly? (5 Marks)

Q.3. The proprietors of a medical preparation called the “Carbolic Smoke Ball” published in several newspapers the following advertisement:-
“£ 1000 reward will be paid by the Carbolic Smoke Ball Co. to any person who contracts the increasing epidemic influenza after having used the Smoke Ball three times daily for two weeks according to printed directions supplied with each ball. £ 1000 is deposited with the Alliance Bank showing our sincerity in the matter.
On the faith in this advertisement, the plaintiff bought a Smoke Ball and used it as directed. She was attacked by influenza. She sued the company for the reward. Will she succeed? Explain Briefly (5 Marks)
Q.4. Fazal consigned four cases of Chinese crackers at Kanpur to be carried to Allahabad on the 30th May, 1987. He intended to sell them at the Shabarat festival of 5th June 1987. The railway discovered that the consignment could not be sent by passenger train and asked Fazal either to remove them or authorize their dispatch by goods train. He took no action and the goods arrived at Allahabad a month after they were booked.
Fazal filed a suit against Railways for damages due to late delivery of the goods which deprived him of the special profits at the festival sale. Decide & explain briefly ? (5 Marks)

Q.5. ‘Lifeoy’ Soap company advertised that it would give a reward of Rs. 2000 who contracted skin disease after using the ‘Lifeoy’ soap of the company for a certain period according to the printed directions. Mrs. Jacob purchased the advertised ‘Lifeboy’ and contracted skin disease inspite of using this soap according to the printed instructions. She claimed reward of Rs. 2000. The claim is resisted by the company on the ground that offer was not made to her and that in any case she had not communicated her acceptance of the offer. Decide whether Mrs. Jacob can claim the reward or not. Give reasons. Explain briefly? (5 Marks)

Q.6. In each set of statements, only one is correct. State the correct statements & Explain briefly?
a) i) A bailee has a general lien on the goods bailed.
ii) The ownership of goods pawned passes to the pawnee.
iii) A gratuitous bailment can be terminated by the bailor even
before the stated time.
b) i) A substituted agent is as good an agent of the agent as a sub-
agent.
ii) An ostensible agency is as effective as an express agency.
iii) A principal can always revoke an agent’s authority. (5 Marks)
Q.7. A, an unpaid seller, sends goods to B by railway. B becomes insolvent
And A sends a telegram to Railway authorities not to deliver the goods to B. B. goes to the Parcel office of Railway Yard and by presenting R. R. (Railway Receipt) takes delivery of the goods and starts putting them in the cart. Meanwhile the Station Master comes running with the telegram in hand and takes possession of the goods from B. Discuss the rights of A and B to the goods in possession of Railway authorities. (5 Marks)

Q.8. X needs Rs. 10,000 but cannot raise this amount because his credit is not good enough. Y whose credit is good accommodates. X by giving him a pronote made out in favour of X, though Y owes no money to X. X endorses the pronote to Z for value received. Z who is holder in due course demands payment from Y. Can Y refuse and plead the arrangement between him and X Explain briefly? (5 Marks)

Q.9. Will C has the right of further negotiation in the following cases: (B signs the endorsements) Explain briefly? (5 Marks)
i) ‘Pay C for my use’
ii) ‘Pay C’)

iii) ‘Pay C or order for the account of B’

Q.10. A promissory note was made without mentioning any time for payment. The holder added the words’ on demand on the face of the instrument. State whether it amounted to material alteration and explain the effect of such alteration. Explain briefly? (5 Marks)
Q.11. State whether the following instruments are valid promissory notes:
i) I promise to pay Rs. 5000 to B on the dearth of ‘B’s uncle provided that D in his will gives me a legacy sufficient for the promise of payment of the said sum.
ii) I hereby acknowledge that I owe X Rs. 5,000 on account of rent due and I agree that the said sum will be paid be me in regular installments.
iii) I acknowledge myself indebted to B in Rs. 5000 to be paid on demand for value received. (5 Marks)

Q.12. A Payee holder of a bill of exchange. He endorses it in blank and delivers it to B. B endorses in full to C or order. C without endorsement transfers the bill to D. State giving reasons whether D as bearer of the bill of exchange is entitled to recover the payment from A or B or C. Explain briefly? (5 Marks)

Q.13. Write a short note on the Doctrine of Indoor Management? Explain briefly? (5 Marks)

Q.14. The shareholders at an annual general meeting passed a resolution for the payment of dividend at a rate higher than that recommended by the Board of Directors. Examine the validity of the resolution. Explain briefly? (5 Marks)

Q.15. In a prospectus issued by a company the Managing Director stated that the company had paid dividend every year during 1921 – 27, which was a fact. However, the company had sustained losses during the relevant period and had paid dividends out of secret reserves accumulated in the past. Examine the consequences of the observation made by the Managing Director. Explain briefly? (5 Marks)

Q.16. In a prospectus issued by a company the Managing Director stated that the company had paid dividend every year during 1921-27, which was a fact. However, the company had sustained losses during the relevant period and had dividends out of secret reserves accumulated in the past. Examine the consequences of the observation made by the Managing Director. Explain briefly? (5 Marks)

Q.17. A buys from B 400 shares in a company on the faith of a share certificate issued by the company. A tender to the company a transfer deed duly executed together with B’s share certificate. The company discovers that the certificate in the name of B has been fraudulently obtained and refuses to register the transfer. Advise A. Explain briefly? (5 Marks)

Q.18. A insured his house against fire. Later while insure, A killed his wife, severely injured his only son, set fire to the house and died in the fire. The son survived and sued the insurer for the fire loss, advice the insurer. Explain briefly? (5 Marks)

Q.19. a) Satrang Singh admitted his only infant son in a private nursing home. As a result of strong dose of medicine administered by the nursing attendant, the child has become mentally retarded. Satrang Singh wants to make a complaint to the District Forum under the Consumer Protection Act, 1986 seeking relief by way of compensation on the ground that there was deficiency in service by the nursing home. Does his complaint give rise to a consumer dispute? Who is the consumer in the instant case? Explain briefly?
b) Smart booked a motor vehicle through one of the dealers. He was informed subsequently that the procedure for purchasing the motor vehicle had changed and was called upon to make further payment to continue the booking before delivery. On being aggrieved, Smart filed a complaint with the State Commission under the Consumer Protection Act, 1986. Will he succeed? Explain briefly?
c) Brittle and Company, a small-scale industry, sought nursing and financing facilities from its bankers by means of grant of further advances and adequate margin money in anticipation of good demand for its products. In failing to obtain this and having become sick, it proceeds against its bankers under the Consumer Protection Act, 1986, Will it succeed? Explain briefly? (5 Marks)

Q.20. X who was working as a truck driver had taken a general insurance policy to cover the risk of injuries for a period from 1.11.1998 to 30.11.1999. He renewed the policy for a further period of one year on 10.11.1999. On the same day, he met with an accident and suffered multiple injuries including fractures. X submitted the claim along with documents to the insurance company. The insurance company repudiated the claim on the ground that the premium for the renewed policy was received in the office only at 2.30 p.m. on 10.11.1999, while the accident had taken place at 10.00 a.m. on that day and hence there was no policy at the time of accident. Will X succeed if he files a complaint against the insurance company for this claim? Explain briefly? (5 Marks)

Q.21. Avinash booked his goods with Superfast Freight Carriers at Delhi for being carried to Ferozabad. The goods receipt note mentioned that all the disputes would be subject to jurisdiction of the Mumbai Court. Avinash lodged a complaint for certain deficiency in service against the transporter in the District Forum at Delhi. Superfast Carriers contested that District Forum at Delhi had no jurisdiction to entertain the complaint as the head office of the transporter was at Mumbai and the jurisdiction has been clearly stated in the goods receipt not. Is the contention of the transporter tenable? Explain briefly? (5 Marks)

Q.22. With reference to the provisions of the Consumer Protection Act, 1986, decide the following giving reasons in support of your answer.
i) Sukh Dukh Ltd. dispatched certain consignments of goods by road through Fastrack Roadways Ltd. The goods were unloaded and stored in a godown enroute on the suggestion of consignee. A fire broke out in the neighbouring godown spread to the godown and goods were destroyed. The Fastrack Roadways Ltd. claimed that there was neither negligence nor deficiency in service on their part and goods were being carried at “Owner risk” and since no special premium was paid, they were not responsible for the loss caused by fire. Whether Fastrack Roadways Ltd. is liable to pay damages to consignor?
ii) Life Insurance Corporation (LIC) formulated a scheme called ‘salary saving scheme’ under which employees of an organisation could buy an insurance policy. Premium due on each policy was collected by the employer from the salary of the employees nor did it issue any premium notice. When the widow of the deceased employee made a claim to LIC on the death of her husband, the LIC repudiated the claim on the ground that four installments of premium had not been paid. The widow was approached the consumer forum for redressal. Is the LIC liable for deficiency in service? Explain?
iii) Raman booked a ticket from Delhi to New York by Lufthansa Airlines. The airport authorities in New Delhi did not find any fault in his visa and other documents. However, at Frankfurt airport authorities instituted proceedings of verification because of which Raman missed his flight to New York. After necessary verification, Raman was able to reach New York by the next flight. The airline authorities’ tendered apology to Raman for the inconvenience caused to him and also paid as goodwill gesture a sum of Rs. 5,000. Raman intends to institute proceedings under the Consumer Protection Act, 1986 against Lufthansa Airlines for deficiency in service. Will he succeed? (10 Marks )

Q.23. With reference to the provisions of the Consumer Protection Act, 1986, decide the following giving reasons in support of your answer.
i) Sohn sent all relevant documents in an envelope regarding consignment of goods to a buyer in the USA through Fast Service Couriers. The documents did not reach the buyer as a consequence of which the buyer could not take delivery of the goods. By the time the duplicate copies of the document had been received by the buyer, the season of the goods was over. He claimed that he had suffered a loss of US $ 5,000 as a result of the negligence of the courier. The State Commission ordered the payment to be made by the Fast Service Couriers, but the National Commission in appeal reversed the order and ordered payment of US $ 100 only as per the receipt issued by the Fast Service Courier to the consignor at the time of the dispatch of the latter. Advise Sohan.
ii) Mahesh purchased a machine from Astute Ltd. to operate it himself for earning his liverhood. He took the assistance of a person to assist him in operating the machine. The machine developed fault during the warranty period. He filed a claim in the consumer forum against the company for deficiency in service. Astute Ltd. alleged that Mahesh did not operate the machine himself but had appointed a person exclusively to operate the machine. Will Mahesh succeed?
iii) Pillai purchased a car by taking a loan from Kerala cooperative Bank Ltd. and gave post-dated cheques to the bank not only in respect of repayment of loan instalments but also of premium of insurance policy for two succeeding years. On the expiry of the policy. Pillai’s car met with an accident. Will Pillai succeed in getting a claim against the
Bank ? (10 Marks)

Xaviers Institute of Business Management Studies

Subject Title: Finance Management
Maximum Marks: 80

Note : Attempt any five questions. All questions carry equal marks.

Q1. What do you understand by Internal Audit ? How do the functions of an internal auditor differ from that of External Auditor ?

Q2. Explain the consistency concept and Accrual Concept of Accounting. How is the Accrual Concept adhered to while preparing the final accounts of a company ?

Q3. What are intangible assets of a firm ? Why are they shown in the Balance Sheet ? What
is meant by amortisation of such assets ? Give reason for the same.

Q4. What do you understand by Appropriation of profit of a company? How are the profits
appropriated ? How will the profits to be appropriated, affected, if the company issues debentures, instead of equity shares to finance its activities ? Discuss how?

Q5. Distinguish between:
a. FIFO and LIFO methods of Inventory valuation.
b. Rights Shares and Bonus Shares
c. Direct Material Price Variance and Direct Material Usage Variance
d. Imputed Costs and Opportunity Costs.

Q6. What do you understand by Break-even analysis ? Discuss the assumptions underlying the break-even analysis. How do these assumptions make the break-even analysis unrealistic ? Explain and prepare a Break-even chart assuming relevant figures.

Q7. What do you understand by Flexible Budget ? How does it differ from a Fixed Budget ?
Explain its utility to a business organisation.

Q8. What do you mean by Control Ratios ? Explain the three important control ratios
and discuss their significance.

Q9. Explain fully the following statements :
a. Operating cycle plays a decisive role in estimating the working capital requirement
of a firm.
b. As there is no explicit cost of retained earnings, they are free of cost.
c. Depreciation acts as a tax shield
d. An investor in shares considers not only its E.P.S. but also P.E. ratio.

Xaviers Institute of Business Management Studies

MARKS : 80
COURSE : MBA

SUB: INTERNATIONAL BUSINESS
N. B.: 1) Attempt any four cases 2) All cases carries equal marks.
No: 1
BPO – BANE OR BOON ?
Several MNCs are increasingly unbundling or vertical disintegrating their activities. Put in simple language, they have begun outsourcing (also called business process outsourcing) activities formerly performed in-house and concentrating their energies on a few functions. Outsourcing involves withdrawing from certain stages/activities and relaying on outside vendors to supply the needed products, support services, or functional activities.
Take Infosys, its 250 engineers develop IT applications for BO/FA (Bank of America). Elsewhere, Infosys staffers process home loans for green point mortgage of Novato, California. At Wipro, five radiologists interpret 30 CT scans a day for Massachusetts General Hospital.
2500 college educated men and women are buzzing at midnight at Wipro Spectramind at Delhi. They are busy processing claims for a major US insurance company and providing help-desk support for a big US Internet service provider-all at a cost upto 60 percent lower than in the US. Seven Wipro Spectramind staff with Ph.Ds in molecular biology sift through scientific research for western pharmaceutical companies.
Another activist in BOP is Evalueserve, headquarterd in Bermuda and having main operations near Delhi. It also has a US subsidiary based in New York and a marketing office in Australia to cover the European market. As Alok Aggarwal (co-founder and chairman) says, his company supplies a range of value-added services to clients that include a dozen Fortune 500 companies and seven global consulting firms, besides market research and venture capital firms. Much of its work involves dealing with CEOs, CFOs, CTOs, CIOs, and other so called C-level executives.
Evaluserve provides services like patent writing, evaluation and assessment of their commercialization potential for law firms and entrepreneurs. Its market research services are aimed at top-rung financial service firms, to which it provides analysis of investment opportunities and business plans. Another major offering is multilingual services. Evalueserve trains and qualifies employees to communicate in Chinese, Spanish, German, Japanese and Italian, among other languages. That skill set has opened market opportunities in Europe and elsewhere, especially with global corporations.
ICICI infotech Services in Edison, New Jersey, is another BOP services provider that is offering marketing software products and diversifying into markets outside the US. The firm has been promoted by $2-billion ICICI Bank, a large financial institution in Mumbai that is listed on the New York Stock Exchange.
In its first year after setting up shop in March 1999, ICICI infotech spent $33 million acquiring two information technology services firms in New Jersy-Object Experts and ivory Consulting – and command Systems in Connecticut. These acquisitions were to help ICICI Infotech hit the ground in the US with a ready book of contracts. But it soon found US companies increasingly outsourcing their requirements to offshore locations, instead of hiring foreign employees to work onsite at their offices. The company found other native modes for growth. It has started marketing its products in banking, insurance and enterprise resource planning among others. It has earmarket $10 million for its next US market offensive, which would go towards R & D and back-end infrastructure support, and creating new versions of its products to comply with US market requirements. It also has a joint venture – Semantik Solutions GmbH in Berlin, Germany with the Fraunhofer Institute for Software and Systems Engineering, which is based in Berlin and Dortmund, Germany – Fraunhofer is a leading institute in applied research and development with 200 experts in software engineering and evolutionary information.
A relatively late entrant to the US market , ICICI Infotech started out with plain vanilla IT services, including operating call centeres. As the market for traditional IT services started wakening around mid-2000, ICICI Infotech repositioned itself as a “Solutions” firm offering both products and services. Today , it offers bundied packages of products and services in corporate and retail banking and include data center and disaster recovery management and value chain management services.
ICICI Infotech’s expansion into new overseas markets has paid off. Its $50 million revenue for its latest financial year ending March 2003 has the US operations generating some $15 million, while the Middle East and Far East markets brought in another $9 million. It new boasts more than 700 customers in 30 countries, including Dow Jones, Glazo-Smithkline, Panasonic and American Insurance Group.
The outsourcing industry is indeed growing form strength. Though technical support and financial services have dominated India’s outsourcing industry, newer fields are emerging which are expected to boost the industry many times over.
Outsourcing of human resource services or HR BPO is emerging as big opportunity for Indian BPOs with global market in this segment estimated at $40-60 billion per annum. HR BPO comes to about 33 percent of the outsourcing revenue and India has immense potential as more than 80 percent of Fortune 1000 companies discuss offshore BOP as a way to cut costs and increase productivity.
Another potential area is ITES/BOP industry. According to A NASSCOM survey, the global ITES/BOP industry was valued at around $773 billion during 2002 and it is expected to grow at a compounded annual growth rate of nine percent during the period 2002 – 06, NASSCOM lists the major indicators of the high growth potential of ITES/BOP industry in India as the following.
During 2003 – 04, The ITES/BPO segment is estimated to have achieved a 54 percent growth in revenues as compared to the previous year. ITES exports accounted for $3.6 billion in revenues, up form $2.5 billion in 2002 – 03. The ITES-BPO segment also proved to be a major opportunity for job seekers, creating employment for around 74,400 additional personnel in India during 2003 – 04. The number of Indians working for this sector jumped to 245,500 by March 2004. By the year 2008, the segment is expected to employ over 1.1 million Indians, according to studies conducted by NASSCOM and McKinsey & Co. Market research shows that in terms of job creation, the ITES-BOP industry is growing at over 50 per cent.
Legal outsourcing sector is another area India can look for. Legal transcription involves conversion of interviews with clients or witnesses by lawyers into documents which can be presented in courts. It is no different from any other transcription work carried out in India. The bottom-line here is again cheap service. There is a strong reason why India can prove to be a big legal outsourcing Industry.
India, like the US, is a common-law jurisdiction rooted in the British legal tradition. Indian legal training is conducted solely in English. Appellate and Supreme Court proceedings in India take place exclusively in English. Due to the time zone differences, night time in the US is daytime in India which means that clients get 24 hour attention, and some projects can be completed overnight. Small and mid – sized business offices can solve staff problems as the outsourced lawyers from India take on the time – consuming labour intensive legal research and writing projects. Large law firms also can solve problems of overstaffing by using the on – call lawyers.
Research firms such as Forrester Research, predict that by 2015 , more than 489,000 US lawyer jobs, nearly eight percent of the field, will shift abroad..
Many more new avenues are opening up for BOP services providers. Patent writing and evaluation services are markets set to boom. Some 200.000 patent applications are written in the western world annually, making for a market size of between $5 billion and $7 billion. Outsourcing patent writing service could significantly lower the cost of each patent application, now anywhere between $12,000 and $15,000 apiece-which would help expand the market.
Offshoring of equity research is another major growth area. Translation services are also becoming a big Indian plus. India produces some 3,000 graduates in German each year, which is more than that in Switzerland.
Though going is good, the Indian BPO services providers cannot afford to be complacent. Phillppines, Maxico and Hungary are emerging as potential offshore locations. Likely competitor is Russia, although the absence of English speaking people there holds the country back. But the dark horse could be South Affrica and even China
BOP is based on sound economic reasons. Outsourcing helps gain cost advantage. If an activity can be performed better or more cheaply by an outside supplier, why not outsource it ? Many PC makers, for example, have shifted from in – house assembly to utilizing contract assemblers to make their PCs. CISCO outsources all productions and assembly of its routers and witching equipment to contract manufactures that operate 37 factories, all linked via the internet.
Secondly, the activity (outsourced) is not crucial to the firm’s ability to gain sustainable competitive advantage and won’t hollow out its core competence, capabilities, or technical know how. Outsourcing of maintenance services, date processing, accounting, and other administrative support activities to companies specializing in these services has become common place. Thirdly, outsourcing reduces the company’s risk exposure to changing technology and / or changing buyer preferences.
Fourthly, BPO streamlines company operations in ways that improve organizational flexibility, cut cycle time, speedup decision making and reduce coordination costs. Finally, outsourcing allows a company to concentrate on its core business and do what it does best. Are Indian companies listening ? If they listen, BPO is a boon to them and not a bane.

Questions:
1. Which of the theories of international trade can help Indian services providers gain competitive edge over their competitors?
2. Pick up some Indian services providers. With the help of Michael Porter’s diamond, analyze their strengths and weaknesses as active players in BPO.
3. Compare this case with the case given at the beginning of this chapter. What similarities and dissimilarities do you notice? Your analysis should be based on the theories explained.

No: 2
PERU
Peru is located on the west coast of South America. It is the third largest nation of the continent (after Brazil and Argentina) , and covers almost 500.000 square miles (about 14 per cent of the size of the United States). The land has enormous contrasts, with a desert (drier than the Sahara), the towering snow – capped Andes mountains, sparkling grass – covered plateaus, and thick rain forests. Peru has approximately 27 million people, of which about 20 per cent live in Lima, the capital. More Indians (one half of the population) live in Peru than in any other country in the western hemisphere. The ancestors of Peru’s Indians were the famous incas, who built a great empire. The rest of the population is mixed and a small percentage is white. The economy depends heavily on agriculture, fishing , mining, and services, GDP is approximately $15 billion and per capita income in recent years has been around $4,3000. In recent years the economy has gained some relative strength and multinationals are now beginning to consider investing in the country.
One of these potential investors is a large New York based bank that is considering a $25 million loan to the owner of a Peruvian fishing fleet. The owner wants to refurbish the fleet and add one more ship.
During the 1970s, the Peruvian government nationalized a number of industries and factories and began running them for the profit of the state in most cases, these state – run ventures became disasters. In the late 1970s the fishing fleet owner was given back his ships and allowed to operate his business as before. Since then, he has managed to remain profitable, but the biggest problem is that his ships are getting old and he needs an influx of capital of make repairs and add new technology. As he explained it to the new York banker. “Fishing is no longer just an art. There is a great deal of technology involved. And to keep costs low and be competitive on the world market, you have to have the latest equipment for both locating as well as catching and then loading and unloading the fish”
Having reviewed the fleet owner’s operation, the large multinational bank believes that the loan is justified. The financial institution is concerned, however, that the Peruvian government might step in during the next couple of years and again take over the business. If this were to happen, it might take an additional decade for the loan to be repaid. If the government were to allow the fleet owner to operate the fleet the way he has over the last decade, the fleet the way he has over the last decade, the loan could be repaid within seven years.
Right now, the bank is deciding on the specific terms of the agreement. Once theses have been worked out, either a loan officer will fly down to Lima and close the deal or the owner will be asked to come to New York for the signing. Whichever approach is used, the bank realizes that final adjustments in the agreement will have to be made on the spot. Therefore, if the bank sends a representative to Lima, the individual will have to have the authority to commit the bank to specific terms. These final matters should be worked out within the next ten days.
Questions:
1. What are some current issues facing Peru? What is the climate for doing business in Peru today?
2. What type of political risks does this fishing company need to evaluate? Identify and describe them.
3. What types of integrative and protective and defensive techniques can the bank use?
4. Would the bank be better off negotiating the loan in New York or in Lima ? Why?

No: 3
RED BECOMING THICKER
The Backdrop
There seems to be no end to the troubles of the coloured – water giant Coca Cola. The cola giant had entered India decades back but left the country in the late 1970s. It staged a comeback in the early 1990s through the acquisitions route. The professional management style of Coca Cola did not jell with the local bottlers. Four CEOs were changed in a span of seven years. Coke could not capitalize on the popularity of Thums Up. Its arch rival Pepsi is well ahead and has been able to penetrate deep into the Indian market. Red in the balance sheet of Coke is becoming thicker and industry observers are of the opinion that it would take at least two decades more before Coke could think of making profits in India.

The Story
It was in the early 1990s that India started liberalizing her economy. Seizing the opportunity, Coca Cola wanted to stage a comeback in India. It chose Ramesh Chauhan of Parle for entry into the market. Coke paid $100 million to Chauhan and acquired his well established brands Thums Up, Goldspot and Limca. Coke also bagged 56 bottlers of Chauhan as a part of the deal. Chauhan was made consultant and was also given the first right of refusal to any large size bottling plants and bottling contracts, the former in the Pune – Bangalore belt and the latter in the Delhi and Mumbai areas.
Jayadeva Raja, the flamboyant management expert was made the first CEO of Coke India. It did not take much time for him to realize that Coke had inherited several weaknesses from Chauhan along with the brands and bottlers. Many bottling plants were small in capacity (200 bottlers per minute as against the world standard of 1600) and used obsolete technology. The bottlers were in no mood to increase their capacities, nor were they willing to upgrade the trucks used for transporting the bottle. Bottlers were more used to the paternalistic approach of Chauhan and the new professional management styles of Coke did not go down well with them. Chauhan also felt that he was alienated and was even suspected to be supplying concentrate unofficially to the bottlers.
Raja was replaced by the hard – nosed Richard Niholas in 1995. The first thing Nicholas did was to give an ultimatum to the bottlers to expand their plants or sell out. Coke also demanded equity stakes in many of the bottling plants. The bottlers had their own difficulties as well. They were running on low profit margins. Nor was Coke willing to finance the bottlers on soft terms. The ultimatum backfired. Many bottlers switched their loyalty and went to Pepsi. Chauhan allegedly supported the bottlers, of course, from the sidelines.
Coke thought it had staged a coup over Pepsi when it (Coke) clamed the status of official drink for the 1996 Cricket World Cup tournament. Pepsi took on Coke mightily with the famous jingle “Nothing official about it”. Coke could have capitalized on the sporty image of Thums Up to counter the campaign, but instead simply caved in.
Donald Short replaced Nicholas as CEO in 1997. Armed with heavy financial powers, Short bought out 38 bottlers for about $700 million. This worked out to about Rs 7 per case, but the cost – effective figure was Rs 3 per case. Short also invested heavily in manpower. By 1997, Coke’s workforce increased to 300. Three years later, the parent company admitted that investment in India was a big mistake.
It is not in the culture of Coke to admit failure. It has decided to fight back. Coke could not only sustain the loss, it could even spend more money on Indian operations. It hiked the ad budget and appointed Chaitra Leo Burnett as its ad agency. During 1998 – 99, Coke’s ad spend was almost three times that of Pepsi.
Coke is taking a look at its human resources and is taking initiatives to re – orient the culture and inject an element of decentralization along with empowerment. Each bottling plant is expected to meet predetermined profit, market share, and sales volumes. For newly hired management trainees, a clearly defined career path has been drawn to enable them to become profit centre heads shortly after completion of their probation. Such a decentralized approach is something of a novelty in the Coke culture worldwide.
But Alezander “Von Behr, who replaced Short as Chef of Indian operations, reiterated Coke’s commitment to decentralization and local responsiveness. Coke has divided India into six regions, each with a business head. Change in the organization structure has disappointed many employees, some of whom even quit the company.
Coke started cutting down its costs. Executives have been asked to shift from farm houses to smaller houses and rentals of Gurgaon headquarters have been renegotiated. Discount rates have been standardized and information systems are being upgraded to enable the Indian headquarters to access online financial status of its outposts down to the depot level.
Coke has great hopes in Indian as the country has a huge population and the current per capita consumption of beverages is just four bottles a year.
Right now, the parent company (head – quartered in the US) has bottle full of problems. The recently appointed CEO-E Neville Isdell needs to struggle to do the things that once made the Cola Company great. The problems include –
Meddling Board
Coke’s star- studded group of directors, many of whom date back to the Goizueta era, has built a reputation for meddling.
Moribund Marketing
Once world class critics say that today the soda giant has become too conservative, with ads that don’t resonate with the teenagers and young adults that made up its most important audience.
Lack of Innovation
In the US market, Coke hasn’t created a best – selling new soda since Diet Coke in 1982. In recent years Coke has been outbid by rival Pepsi Co for faster growing noncarb beverages like SoBe Gatorade.
Friction with Bottlers
Over the past decade, Coke has often made its profit at the expenses of bottlers, pushing aggressive price hikes on the concentrate it sells them. But key bottlers are now fighting back with sharp increases in the price of coke at retail.

International Worries
Coke desperately needs more international growth to offset its flagging US business, but while some markets like Japan remain lucrative, in the large German market Coke has problems so far as bottling contracts go.
When its own house is not in order in the large country, will the company be able to focus enough on the Indian market?

Questions:

1. Why is that Coke has not been able to make profit in its Indian operations?
2. Do you think that Coke should continue to stay in India? If yes, why?
3. What cultural adaptations would you suggest to the US expatriate managers regarding their management style?
4. Using the Hofstede and the value orientations cultural models, how can you explain some of the cultural differences noted in this case?

NO. 4
THE ABB PBS JOINT VENTURE IN OPERATION
ABB Prvni Brnenska Stojirna Brno, Ltd. (ABB-PBS), Czechoslovakia was a joint venture in which ABB has a 67 per cent stake and PBS a.s. has a 33 per cent stake. This PBS share was determined nominally by the value of the land, plant and equipment, employees and goodwill, ABB contributed cash and specified technologies and assumed some of the debt of PBS. The new company started operations on April 15, 1993.
Business for the joint venture in its first two full years was good in most aspects. Orders received in 1994, the first full year of the joint venture’s operation, were higher than ever in the history of PBS. Orders received in 1995 were 2½ times those in 1994. The company was profitable in 1995 and ahead of 1994s results with a rate of return on assets of 2.3 per cent and a rate of return on sales of 4.5 per cent.
The 1995 results showed substantial progress towards meeting the joint venture’s strategic goals adopted in 1994 as part of a five year plan. One of the goals was that exports should account for half of the total orders by 1999. (Exports had accounted for more than a quarter of the PBS business before 1989, but most of this business disappeared when the Soviet Union Collapsed). In 1995 exports increased as a share of total orders to 28 per cent, up from 16 per cent the year before.
The external service business, organized and functioning as a separate business for the first time in 1995, did not meet expectations. It accounted for five per cent of all orders and revenues in 1995, below the 10 per cent goal set for it. The retrofitting business, which was expected to be a major part of the service business, was disappointing for ABB-PBS, partly because many other small companies began to provide this service in 1994, including some started by former PBS employees who took their knowledge of PBS-built power plants with them. However, ABB-PBS managers hoped that as the company introduced new technologies, these former employees would gradually lose their ability to perform these services, and the retrofit and repair service business, would return to ABB-PBS.
ABB-PBS dominated the Czech boiler business with 70 per cent of the Czech market in 1995, but managers expected this share to go down in the future as new domestic and foreign competitors emerged. Furthermore, the west European boiler market was actually declining because environmental laws caused a surge of retrofitting to occur in the mid -1980 s, leaving less business in the 1990 s. Accordingly ABB-PBS boiler orders were flat in 1995.
Top managers at ABB-PBS regarded business results to date as respectable, but they were not satisfied with the company’s performance. Cash flow was not as good as expected. Cost reduction had to go further. The more we succeed, the more we see our shortcomings” said one official.
Restructuring
The first round of restructuring was largely completed in 1995, the last year of the three-year restructuring plan. Plan logistics, information systems, and other physical capital improvements were in place. The restricting included :
• Renovating and reconstructing workshops and engineering facilities.
• Achieving ISO 9001 for all four ABB-PBS divisions. (awarded in 1995)
• Transfer of technology from ABB (this was an ongoing project)
• Intallation of an information system.
• Management training, especially in total quality assurance and English language.
• Implementing a project management approach.
A notable achievement of importance of top management in 1995 was a 50 per cent increase in labour productivity, measured as value added per payroll crown. However, in the future ABB-PBS expected its wage rates to go up faster than west European wage rates (Czech wages were increasing about 15 per cent per year) so it would be difficult to maintain the ABB-PBS unit cost advantage over west European unit cost.
The Technology Role for ABB-PBS
The joint venture was expected from the beginning to play an important role in technology development for part of ABB’s power generation business worldwide. PBS a.s. had engineering capability in coal – fired steam boilers, and that capability was expected to be especially useful to ABB as more countries became concerned about air quality. (When asked if PBS really did have leading technology here, a boiler engineering manager remarked, “Of course we do. We burn so much dirty coal in this country; we have to have better technology”)
However, the envisioned technology leadership role for ABB-PBS had not been realized by mid – 1996. Richard Kuba, the ABB-PBS managing director, realized the slowness with which the technology role was being fulfilled, and he offered his interpretation of events.
“ABB did not promise to make the joint venture its steam technology leader. The main point we wanted to achieve in the joint venture agreement was for ABB-PBS to be recognized as a full-fledged company, not just a factory. We were slowed down on our technology plans because we had a problem keeping our good, young engineers. The annual employee turnover rate for companies in the Czech Republic is 15 or 20 per cent, and the unemployment rate is zero. Our engineers have many other good entrepreneurial opportunities. Now we’ve begun to stabilize our engineering workforce. The restructing helped. We have better equipment and a cleaner and safer work environment. We also had another problem which is a good problem to have. The domestic power plant business turned out to be better than we expected, so just meeting the needs of our regular customers forced some postponement of new technology initiatives.”
ABB-PBS had benefited technologically from its relationship with ABB. One example was the development of a new steam turbine line. This project was a cooperative effort among ABB-PBS and two other ABB companies, one in Sweden and one in Germany. Nevertheless, technology transfer was not the most important early benefit of ABB relationship. Rather, one of the most important gains was the opportunity to benchmark the joint venture’s performance against other established western ABB companies on variables such as productivity, inventory and receivables.

Questions:
1. Where does the joint venture meet the needs of both the partners? Where does it fall short?
2. Why had ABB-PBS failed to realize its technology leadership?
3. What lessons one can draw from this incident for better management of technology transfers?

NO. 5.
CHINESE EVOLVING ACCOUNTING SYSTEM
Attracted by its rapid transformation from a socialist planned economy into a
market economy, economic annual growth rate of around 12 per cent, and a population in excess of 1.2 billion, Western firms over the past 10 years have favored China as a site for foreign direct investment. Most see China as an emerging economic superpower, with an economy that will be as large as that of Japan by 2000 and that of the US before 2010, if current growth projections hold true.
The Chinese government sees foreign direct investment as a primary engine of China’s economic growth. To encourage such investment, the government has offered generous tax incentives to foreign firms that invest in China, either on their own or in a joint venture with a local enterprise. These tax incentives include a two – year exemption from corporate income tax following an investment, plus a further three years during which taxes are paid at only 50 per cent of the standard tax rate. Such incentives when coupled with the promise of China’s vast internal market have made the country a prime site for investment by Western firms. However, once established in China, many Western firms find themselves struggling to comply with the complex and often obtuse nature of China’s rapidly evolving accounting system.
Accounting in China has traditionally been rooted in information gathering and compliance reporting designed to measure the government’s production and tax goals. The Chinese system was based on the old Soviet system, which had little to do with profit or accounting systems created to report financial positions or the results of foreign operations.
Although the system is changing rapidly, many problems associated with the old system still remain.
One problem for investors is a severe shortage of accountants, financial managers, and auditors in China, especially those experienced with market economy transactions and international accounting practices. As of 1995, there were only 25,000 accountants in china, far short of the hundreds of thousands that will be needed if China continues on its path towards becoming a market economy. Chinese enterprises, including equity and cooperative joint ventures with foreign firms, must be audited by Chinese accounting firms, which are regulated by the state. Traditionally, many experienced auditors have audited only state-owned enterprises, working through the local province or city authorities and the state audit bureau to report to the government entity overseeing the audited firm. In response to the shortage of accountants schooled in the principles of private sector accounting, several large international auditing firms have established joint ventures with emerging Chinese accounting and auditing firms to bridge the growing need for international accounting, tax and securities expertise.
A further problem concerns the somewhat halting evolution of China’s emerging accounting standards. Current thinking is that China won’t simply adopt the international accounting standards specified by the IASC, nor will it use the generally accepted accounting principles of any particular country as its mode. Rather, accounting standards in China are expected to evolve in a rather piecemeal fashion, with the Chinese adopting a few standards as they are studied and deemed appropriate for Chinese circumstances.
In the meantime, current Chinese accounting principles present difficult problems for Western firms. For example, the former Chinese accounting system didn’t need to accrue unrealized losses. In an economy where shortages were the norm, if a state-owned company didn’t sell its inventory right away, it could store it and use it for some other purpose later. Similarly, accounting principles assumed the state always paid its debts – eventually. Thus, Chinese enterprises don’t generally provide for lower-of-cost or market inventory adjustments or the creation of allowance for bad debts, both of which are standard practices in the West.
Questions:
1. What factors have shaped the accounting system currently in use in China?
2. What problem does the accounting system, currently in sue in China, present to foreign investors in joint ventures with Chinese companies?
3. If the evolving Chinese system does not adhere to IASC standards, but instead to standards that the Chinese governments deem appropriate to China’s “Special situation”, how might this affect foreign firms with operations in China ?

NO. 6
UNFAIR PROTECTION OR VALID DEFENSE ?
“Mexico Widens Anti – dumping Measure …………. Steel at the Core of US-Japan Trade Tensions …. Competitors in Other Countries Are Destroying an American Success Story … It Must Be Stopped”, scream headlines around the world.
International trade theories argue that nations should open their doors to trade. Conventional free trade wisdom says that by trading with others, a country can offer its citizens a greater volume and selection of goods at cheaper prices than it could in the absence of it. Nevertheless, truly free trade still does not exist because national governments intervene. Despite the efforts of the World Trade Organization (WTO) and smaller groups of nations, governments seem to be crying foul in the trade game now more than ever before.
We see efforts at protectionism in the rising trend in governments charging foreign producers for “dumping” their goods on world markets. Worldwide, the number of antidumping cases that were initiated stood at about 150 in 1995, 225 in 1996, 230 in 1997 , and 300 in 1998.
There is no shortage of similar examples. The Untied States charges Brazil, Japan, and Russia with dumping their products in the US market as a way out of tough economic times. The US steel industry wants the government to slap a 200 per cent tariff on certain types of steel. But car markers in the United States are not complaining, and General Motors even spoke out against the antidumping charge – as it is enjoying the benefits of law – cost steel for use in its auto product ion. Canadian steel makers followed the lead of the United States and are pushing for antidumping actions against four nations.
Emerging markets, too, are jumping into the fray. Mexico recently expanded coverage of its Automatic Import Advice System. The system requires importers (from a select list of countries) to notify Mexican officials of the amount and price of a shipment ten days prior to its expected arrival in Mexico. The ten-day notice gives domestic producers advance warning of incoming low – priced products so they can complain of dumping before the products clear customs and enter the marketplace. India is also getting onboard by setting up a new government agency to handle antidumping cases. Even Argentina, China, Indonesia, South Africa, South Korea, and Thailand are using this recently – popularized tool of protectionism.
Why is dumping on the rise in the first place? The WTO has made major inroads on the use of tariffs, slashing tem across almost every product category in recent years. But the WTO does not have the authority to punish companies, but only governments. Thus, the WTO cannot pass judgments against individual companies that are dumping products in other markets. It can only pass rulings against the government of the country that imposes an antidumping duty. But the WTO allows countries to retaliate against nations whose producers are suspected of dumping when it can be shown that : (1) the alleged offenders are significantly hurting domestic producers, and (2) the export price is lower than the cost of production or lower than the home – market price.
Supporters of antidumping tariffs claim that they prevent dumpers from undercutting the prices charged by producers in a target market and driving them out of business. Another claim in support of antidumping is that it is an excellent way of retaining some protection against potential dangers of totally free trade. Detractors of antidumping tariffs charge that once such tariffs are imposed they are rarely removed. They also claim that it costs companies and governments a great deal of time and money to file and argue their cases. It is also argued that the fear of being charged with dumping causes international competitors to keep their prices higher in a target market than would other wise be the case. This would allow domestic companies to charge higher prices and not lose market share – forcing consumers to pay more for their goods.

Questions
1. “You can’t tell consumers that the low price they are paying for a particular fax machine or automobile is somehow unfair. They’re not concerned with the profits of companies. To them, it’s just a great bargain and they want it to continue.” Do you agree with this statement? Do you think that people from different cultures would respond differently to this statement? Explain your answers.
2. As we’ve seen, the WTO cannot currently get involved in punishing individual companies for dumping – its actions can only be directed toward governments of countries. Do you think this is a wise policy ? Why or why not? Why do you think the WTO was not given the authority to charge individual companies with dumping? Explain.
3. Identify a recent antidumping case that was brought before the WTO. Locate as many articles in the press as you can that discuss the case. Identify the nations, products (s), and potential punitive measures involved. Supposing you were part of the WTO’s Dispute Settlement Body, would you vote in favor of the measures taken by the retailing nation? Why or why not?


quality control department xaviers

XAVIERS EXAM ANSWER SHEETS PROVIDED. MBA EMBA BMS DMS ANSWERS PROVIDED. DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com
CASE NO. 2
ACTIONS SPEAK LOUDER THAN WORDS ALL AROUND
THE WORLD
“He wouldn’t look me in the eye. I found it disconcerting that he kept looking all over the room but rarely at me,” said Barbara Walters after her interview with Libya’s Colonel Muammar al-Qadhafi. Like many people in the United States, Walters was associating eye contact with trustworthiness, so when Qadhafi withheld eye contact, she felt uncomfortable. In fact Qadhafi was paying Walters a compliment. In Libya, not looking conveys respect, and looking straight at a woman is considered nearly as serious as physical assault.
Nonverbal communication varies widely between cultures, even between subcultures, and the differences strongly affect communication in the workplace. Whether you’re trying to communicate with your new Asian American assistant, the Swedish managers who recently bought out your company, the African American college student who won a summer internship with your firm, or representatives from the French company you hope will buy your firm’s new designs, your efforts will depend as much on physical cues as on verbal ones. Most Americans aren’t usually aware of their own nonverbal behavior, so they have trouble understanding the body language of people from other cultures. The list of differences is endless.
 In Thailand it’s rude to place your arm over the back of a chair in which another person is sitting.
 Finnish female students are horrified by Arab girls who want to walk hand in hand with them.
 Canadian listeners nod to signal agreement.
 Japanese listeners nod to indicate only that they have understood.
 British listeners stare at the speaker, blinking their eyes to indicate understanding.
 People in the United States are taught that it’s impolite to stare.
 Saudis accept foreigners in Western business attire but are offended by tight – fitting clothing and by short sleeves.
 Spaniards indicate a receptive friendly handshake by clasping the other person’s forearm to form a double handshake.
 Canadians consider touching any part of the arm above the hand intrusive, except in intimate relationships.
It may take years to adjust your nonverbal communication to other
cultures, but you can choose from many options to help you prepare. Books and seminars on cultural differences are readily available, as are motion pictures showing a wide range of cultures. You can always rent videos of films and TV shows from other countries. Examining the illustrations in news and business magazines can give you an idea of expected business dress and personal space. Finally, remaining flexible and interacting with people from other cultures who are visiting or living in your country will go a long way toward lowering the barriers presented by nonverbal communication.
Career Applications :
1. Explain how watching a movie from another country might help you prepare to interpret nonverbal behavior from that culture correctly.
2. One of your co-workers is originally from Saudi Arabia. You like him, and the two of you work well together. However, he stands so close when you speak with him that it makes you very uncomfortable. Do you tell him of your discomfort, or do you try to cover it up ?

SECTION C
1. Quality control Department
Read the case given below and answer the questions given at the end.
Mr. Kapil Kumar and Mr. Abbas Ali were working in a scooter manufacturing public sector industry as Senior Quality Control Engineers in 1988. One post of Deputy Chief Quality Controller has fallen vacant due to the retirement of the incumbent and the management decided to recruit a qualified, knowledgeable and experienced professional from outside so that the present quality standard may be improved thus ensuring better marketability of their scooters in the face of stiff competition. Mr. Kapil Kumar, who was a mechanical engineer with about 15 years experience in the Quality Control Department dealing with mopeds and scooters, could have been promoted to fill the post on the basis of seniority. However, the management was looking for a graduate in statistics with experience in latest Quality Control (QC) techniques like statistical quality control, quality assurance and other related areas rather than a mechanical or automobile engineer with the routine experience in quality control. As such instead of promoting Kapil Kumar, the management advertised for the post of Deputy Chief Quality Controller – since as per company rules it was DR (Direct Recruitment) vacancy also.
Selection of Outsider
Out of the applications received in response to the advertisement, six candidates were called for interview including the two internal candidates, Mr. Kapil Kumar and Mr. Abbas Ali. The person selected was an outsider, one Mr. Ratnam, who had over 12 years experience SQC, quality assurance etc., in the two-wheeler private manufacturing industry. Mr. Ratnam joined within 2 months time expecting that in his new position he would be the main controller for quality. However, after joining the organization he came to know that he would be the second senior most person in the hierarchy for controlling the quality and would be reporting to one, Kirpal Sing,. The Chief for Quality Controls. Mr. Kirpal Singh had come up to this post by seniority and was basically a diploma holder in automobile engineering. He had to his credit about 28 years of industrial experience, out of which 20 years were spent in Quality Control Department of two industries. He joined the present organization in its Quality Control Department and had 17 years experience in the organization and was due for retirement within the next 2 or 3 years. On learning about the retirement time of Mr. Kirpal Singh, Mt. Ratnam had the consolation that he would be able to take up the position of ‘Chief Controller of Quality’ very soon.
Interference from Top
Ratnam could not put forth many good suggestions (for quality control) because of the interference and direct supervision of Kirpal Singh. He, however, could pick up a good deal of knowledge about the working of the company, the nature-and tendency of different production department heads particularly with regard to care for quality, organization for ‘QC’ in the company, the various components required for assembly of the company’s two-wheeler scooter and the expected quality standards, drawback in the present system of quality controls. etc.
Right from the time the advertisement for the selection of Deputy Chief Quality Controller appeared, the O.A. (Officers Association) of the organization had been pressing the management to consider the case of Kapil Kumar for promotion to the above post based on his seniority in the organization.
Meanwhile, the management obtained a license in 1989 for producing Three-Wheeler Autos. As a result of this and the pressure from O.A., Ratnam was transferred to look after the Quality Control Department at the company’s new Three-Wheeler plant, whereas Kapil Kumar was promoted as Deputy Chief Quality Controller in the present two-wheeler scooter plant in 1990 (after creating one additional post of Deputy Chief Quality Controller for the new Project).
In 1991, the State Government, which controlled the company in question, changed the Managing Director. During the regime of this new Managing Director, Kapil Kumar was promoted as Chief (Quality Controls) next year, when Kirpal Singh retired. This decision was based on the recommendations of Kirpal Singh and partly attributed to pressure from O.A., for further promotion of Kapil Kumar based on his vast experience in the Quality Control function of this industry. Abbas Ali rose to the position held earlier by Kapil Kumar.
Allotment of Company Quarters
The Company had its own township near the factory. Its quarter allotment scheme was based on the length of service, i.e., date of joining. Ratnam had asked for a suitable quarter at the time of interview and was thus allotted a tile quarter meant for the Senior Engineer’s cadre. He learnt about this, after occupying the quarter. Ratnam asked for a change of Quarter – preferably a RCC-roof quarter, – but his request was turned down, since he had put in only few months of service whereas many others senior to him, on the beds of their longer length of service in the Company (having over 10 years service), were staying in tiled-roof quarters and were awaiting a chance for a RCC-roof quarter. Kapil Kumar and Abbas Ali were residing in RCC-roof quarters. Soon after Kapil Kumar’s promotion to the post of Chief (Quality Controls), he was allotted a bungalow.
The management’s decision in this case must be viewed in the context of the downtrend in the demand for scooters and three-wheeler autos during 1993 following complaints from dealers about the deteriorating quality of components as also their short life. Notably the complaints had risen ten-fold in that year as compared to that in 1988.
Questions
(a) Was the management justified in taking a decision to recruit a qualified and experienced person from outside as Deputy Chief Quality Controller?
(b) Was it in the interest of the organization to transfer Ratnam to the new auto-wheeler plant and promote Kapil Kumar? What could have prompted the management to take this decision?
(c) How do you view the role of O.A.s in supporting only the local and internal candidates and overlooking the interests of direct recruits even when they were family members of the Association, particularly at a time, when the industry needed professionally qualified persons to fill key technical posts?
(d) How would you react to the management’s scheme for quarter allotment and why?

Case Study 2

Case Study on The power of Non-Verbal Communication

The Power of Nonverbal Communication Soon after I graduated from engineering college, I accepted a position with the Sundaram Foundry, a medium-sized firm located in a small town in Tamil Nadu. It was a good position, since I was the assistant to Mr. Vishwanath, the General Manager and president of this family owned company, although there were many technical problems, the work was extremely interesting and I soon learnt all about the foundry business. The foundry workers were mostly older men and were a closely knit team. Many of them were related and had been in the foundry for several years. Therefore, they felt that they knew the business in and out and that a technical education had no value. In fact, Mr. Vishwanath had mentioned to me even at the time of my joining, that I was the only engineer ever to be employed in the foundry. He also let me know that the foundry workers, although a good group, were very clannish, since they had been working together for several years. Therefore, it would probably take them some time to accept me. I introduced myself to the group of foundry workers, a few days after my joining. As I went around in turn, I felt them eyeing me coldly. As I went down the main aisle of the foundry, I heard them talking to each other in low voices and laughing. I found their behavior to be very childish and felt that it was best to ignore these signs of hostility. I thought that if I ignored them, they would automatically stop these antics. A few weeks after this incident, I happened to visit the enamel shop. As I entered, I noticed a worker cleaning the floor with a hose, from which water flowed at high pressure. I was aware that it was the practice to clean the shop at least once a week. I turned my back on the worker and was busy near a dipping tank, when I suddenly felt the force of a stream of water hitting me. I was almost knocked down by the pressure and slipped on the wet floor. When I turned around, the worker looked away in the other direction, as if he had not noticed this happening. However, I was pretty sure that he had intentionally turned the hose on me.

Question 1 – What message did the foundry workers and the new engineer convey to each other through their non-verbal behavior?

Question 2 – Mr. Vishwanath, the General Manager and President, was not often present at the foundry. What could this non-verbal behavior mean to the workers and the new engineer?

Question 3. How could the engineer, the foundry workers and Mr. Vishwanath be more effective, both verbally and nonverbally?

Question 4. What do you suggest that the engineer should do, after the hosing incident?

CORPORATE LAW

N.B.: 1 Attempt any Twelve Questions
2) Last two Questions are compulsory
Q.1. In the following statements only one is correct statement. Explain Briefly? (5 Marks)
i) An invitation to negotiate is a good offer.
ii) A quasi-contract is not a contract at all.
iii) An agreement to agree is a valid contract.

Q.2. A ship-owner agreed to carry to cargo of sugar belonging to A from Constanza to Busrah. He knew that there was a sugar market in Busrah and that A was a sugar merchant, but did not know that he intended to sell the cargo, immediately on its arrival. Owning to Shipment’s default, the voyage was delayed and sugar fetched a lower price than it would have done had it arrived on time. A claimed compensation for the full loss suffered by him because of the delay. Give your decision. Explain Briefly? (5 Marks)

Q.3. The proprietors of a medical preparation called the “Carbolic Smoke Ball” published in several newspapers the following advertisement:-
“£ 1000 reward will be paid by the Carbolic Smoke Ball Co. to any person who contracts the increasing epidemic influenza after having used the Smoke Ball three times daily for two weeks according to printed directions supplied with each ball. £ 1000 is deposited with the Alliance Bank showing our sincerity in the matter.
On the faith in this advertisement, the plaintiff bought a Smoke Ball and used it as directed. She was attacked by influenza. She sued the company for the reward. Will she succeed? Explain Briefly (5 Marks)
Q.4. Fazal consigned four cases of Chinese crackers at Kanpur to be carried to Allahabad on the 30th May, 1987. He intended to sell them at the Shabarat festival of 5th June 1987. The railway discovered that the consignment could not be sent by passenger train and asked Fazal either to remove them or authorize their dispatch by goods train. He took no action and the goods arrived at Allahabad a month after they were booked.
Fazal filed a suit against Railways for damages due to late delivery of the goods which deprived him of the special profits at the festival sale. Decide & explain briefly ? (5 Marks)

Q.5. ‘Lifeoy’ Soap company advertised that it would give a reward of Rs. 2000 who contracted skin disease after using the ‘Lifeoy’ soap of the company for a certain period according to the printed directions. Mrs. Jacob purchased the advertised ‘Lifeboy’ and contracted skin disease inspite of using this soap according to the printed instructions. She claimed reward of Rs. 2000. The claim is resisted by the company on the ground that offer was not made to her and that in any case she had not communicated her acceptance of the offer. Decide whether Mrs. Jacob can claim the reward or not. Give reasons. Explain briefly? (5 Marks)

No: 2
PERU
Peru is located on the west coast of South America. It is the third largest nation of the continent (after Brazil and Argentina) , and covers almost 500.000 square miles (about 14 per cent of the size of the United States). The land has enormous contrasts, with a desert (drier than the Sahara), the towering snow – capped Andes mountains, sparkling grass – covered plateaus, and thick rain forests. Peru has approximately 27 million people, of which about 20 per cent live in Lima, the capital. More Indians (one half of the population) live in Peru than in any other country in the western hemisphere. The ancestors of Peru’s Indians were the famous incas, who built a great empire. The rest of the population is mixed and a small percentage is white. The economy depends heavily on agriculture, fishing , mining, and services, GDP is approximately $15 billion and per capita income in recent years has been around $4,3000. In recent years the economy has gained some relative strength and multinationals are now beginning to consider investing in the country.
One of these potential investors is a large New York based bank that is considering a $25 million loan to the owner of a Peruvian fishing fleet. The owner wants to refurbish the fleet and add one more ship.
During the 1970s, the Peruvian government nationalized a number of industries and factories and began running them for the profit of the state in most cases, these state – run ventures became disasters. In the late 1970s the fishing fleet owner was given back his ships and allowed to operate his business as before. Since then, he has managed to remain profitable, but the biggest problem is that his ships are getting old and he needs an influx of capital of make repairs and add new technology. As he explained it to the new York banker. “Fishing is no longer just an art. There is a great deal of technology involved. And to keep costs low and be competitive on the world market, you have to have the latest equipment for both locating as well as catching and then loading and unloading the fish”
Having reviewed the fleet owner’s operation, the large multinational bank believes that the loan is justified. The financial institution is concerned, however, that the Peruvian government might step in during the next couple of years and again take over the business. If this were to happen, it might take an additional decade for the loan to be repaid. If the government were to allow the fleet owner to operate the fleet the way he has over the last decade, the fleet the way he has over the last decade, the loan could be repaid within seven years.
Right now, the bank is deciding on the specific terms of the agreement. Once theses have been worked out, either a loan officer will fly down to Lima and close the deal or the owner will be asked to come to New York for the signing. Whichever approach is used, the bank realizes that final adjustments in the agreement will have to be made on the spot. Therefore, if the bank sends a representative to Lima, the individual will have to have the authority to commit the bank to specific terms. These final matters should be worked out within the next ten days.
Questions:
1. What are some current issues facing Peru? What is the climate for doing business in Peru today?
2. What type of political risks does this fishing company need to evaluate? Identify and describe them.
3. What types of integrative and protective and defensive techniques can the bank use?
4. Would the bank be better off negotiating the loan in New York or in Lima ? Why?

BUSINESS ENVIRONMENT

Note: Attempt any five questions. All questions carry equal marks
1. Discuss the changing scenario of business environment in India and its principal implications for the business.
2. (a) Explain the dualistic character of Indian economy and the problem of uneven income distribution.
(b) Outline the development of consumer movement in India.
3. (a) Write notes on (i) adjudication machinery for settlement of disputes, and (ii) Employees Pension Scheme, 1995.
(b) Enumerate the powers of the Central Government to control production, supply and distribution of essential commodities under the Essential Commodities Act, 1955.
4. Describe the important amendments proposed under the Companies (Amendment) Bill, 2003 and the additions proposed thereto by lrani Panel.
5. (a) Can SEBI compel a public company to get its securities listed on the stock exchanges while making a public issue? On what grounds can the listed securities be delisted by a stock exchange? State the rules in this regard.

Q.1. Write short notes on ANY TWO of the following
a. Globalization
b. Task and processes in formulating business strategy
c. TQM Philosophy
d. Characteristics of well formulated corporate objectives

Q.2. Describe Vision and Mission statements with suitable illustrations. What is the difference between vision and mission? How does business definition help in articulating the Mission statement?

Q.3. Describe Porter’s five forces model to analyse competition with reference to light commercial vehicle industry.

Q.4. Describe the GE multifactor portfolio matrix and state how the GE matrix is superior tool Vis a Vis the BCG matrix.

Q.5. a) Describe Ansoff’s matrix
b) What is the difference between market penetration and market development? Illustrate with suitable examples.

Q.6. What is “Best cost provider” strategy? What are the risks in pursuing this strategy?

Q.7. What strategic options a firm could follow when the firm is operating in a maturing industry?

Q.8. Describe the role of strategy supportive reward system with suitable illustrations.

MANAGEMENT CONTROL SYSTEMS

Marks: 80

Note: Attempt any five questions. All questions carry equal marks.
1. Explain the various components of control systems.
2. Explain the following models and highlight their usefulness in formulating business unit strategies:
(a) The BCG Model
(b) General Electric (GE) Planning Model
3. Explain the boundary conditions in the context of profit centre. Also explain the process of performance measurement of profit centers.
4. What do you understand by Investment Centres? Explain the methods used for measuring investment centre performance.
5. What do you mean by budgetary control system? Explain the process of budgetary control in an organization.
6. Describe the criteria on which the incentives of business unit managers are decided.
7. What are the various special control issues faced by Multi National Corporations?
8. What are the characteristics of a project organization? Explain how these characteristics affect the control system design of a project.

Marketing Management

Max. Marks : 80

Instructions :
(1) Attempt any five questions.
(2) All questions carry equal marks.

Q.1) Define Marketing Management. Discuss its importance and scope in today’s
dynamic Competitive Environment.

Q.2) What is ‘Product Life Cycle’ ? How Marketing Mix Decisions have to
be adjusted at different stages of PLC (Product Life Cycle) ?

Q.3) Explain various pricing strategies a firm can adopt.

Q.4) What is Product Mix ? Explain various Product Mix Strategies with suitable
examples.

Q.5) Discuss various cultural issues involved in International Marketing.

Q.6)
(A) What is Consumer Buying Behaviour ?
(B) Explain various steps involved in Buying Consumer Goods.

Q.7) Write short notes : (Any Two)
(a) Promotion through International Exhibitions and Trade Fares
(b) Use of Internet as a Marketing Tool
(c) Channel Conflicts


BRAND MANAGEMENT

BRAND MANAGEMENT EXAM ANSWER SHEETS PROVIDED. MBA EXAM ANSWERS PROVIDED. DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com

BRAND MANAGEMENT

Case Study : (Compulsory)
BURNOL

Burnol has been around for six decades as a yellow burns-relief ointment. It has almost become a generic brand. Its yellow colour reminds one of turmeric, the traditional burns-relief remedy.
The brand has been recently acquired by Dr. Morepen (a subsidiary of Morepen Laboratories Ltd.) from Reckit Piramal. The brand has high recall value. Morepen is the brand’s third owner (Boots is the first, Pirmal second).
Burnol’s position in the mind space of the consumer is that of the burns ointment. It is open to marketers to reposition the brand. But sometimes the brand does not budge from its original position. Burnol is a typical example. It is so strong as anti-burn ointment that it has become intractable.
Burnol introduced by Boots started domestic manufacturing in 1948. JWT handled the account. Formerly, it was sold on prescription. In 1960 it became over-the counter (OTC) product.
As Indian housewives depended upon kerosene or wood-fed stoves, Burnol became an integral part of the household. In 1967, Burnol’s application was far widened, to include antiseptic properties against cuts and other wounds. But it did not succeed and Boots reverted to its original anti-burns position. In 1972, Shield was launched by SKF as a competitive brand. It was followed by Medigard by J.L. Morison. But they could not affect Burnol.
In 1980, a commercial on DD showed a daughter entering kitchen and getting burns due to oil splash. The mother uses Burnol and the VO says “Haath jal gaya? Shukar hai ghar mein Burnol jo hai”.
Kitchen became safer in 85s after the switch-over to LPG-based cooking and the use of gas-lighter instead of the match boxes. Burnol started stagnating.
Though the product had high recall, the actual reality was that households did not keep the product handy. Plain water was being recommended to treat burns. Turmeric, as it causes stains, was becoming a liability. The product composition was changed by changing colour from deep yellow to non-staining light yellow. People were coaxed to keep the product within easy reach, Sales showed some improvement.
In 1995, again it was repositioned as antiseptic for multiple usages. The colour was made even lighter. It was given a new perfume. But the brand failed to compete with other antiseptic creams such as Boroline and Dettol. The brand could not be moved from its ‘burns’ spot in the consumer mind. It’s becoming generic as a burns remedy proved to be its cause for stagnation.
In 2000, Burnol was sold to Reckitt Pirmal for 12.5 crore. It became Burnol Plus. It was positioned as ‘first aid cream’. It registered a turnover of ` 6.2 crore in 2002. As Reckit Pirmal joint venture came apart, Burnol was sold to Dr. Morepen in 2003. It is being relaunched in April 2004.

Burns market including dressings stand as ` 39 crore. Antiseptic market stands at ` 210 crore. The old need is passing into history. The strategy should be to retain its original uniqueness, and still broad-base it. There are new dangers such as geysers, irons, ovens and so on. Burnol can become a cream that ensures safety if present. Burnol should be promoted as brand that cares.
Burnol is now marketed by Dr. Morepen Lab as protective cream which should be kept handy always.

Question:
As a Management consultant give your comments on Burnol as a brand.

2. What do you understand by the concept of a Brand? Describe the characteristics of Brands.

3. a. Define the Brand Image. Explain the dimensions of Brand Image.
b. What is meant by Brand Identity? Explain the different elements of Brand Identity.

4. Discuss in detail the different stages of brand building process.

5. a. What is Brand Audit? Explain its importance.
b. Describe the two steps in brand audit.

6. “Positioning is an outcome of our perceptions about the brand relative to the competing brands” – Discuss with examples.

7. How do consumers perceive and choose brands? Discuss.

8. What are the different phases of strategic brand management process?

9. Discuss the “TEN COMMANDMENTS” of Global Branding.

BUSINESS COMMUNICATION
N. B. : All cases are Compulsory.

CASE NO. 1
How to Proofread like a Pro :
Tips for creating the Perfect Document

You’ve carefully revised and polished your document, and it’s been sent off to the word-processing department or a designer to be put into final form. You can breathe a sigh of relief, but only for the moment : You’ll still be proofreading what comes out of the printer. To ensure that any document is error-free, always proofread the final version. Following are some hints to help make your proofreading more effective.
§ Multiple passes – Go through the document several times, focusing on a different aspect each time. The first pass might be to look for omissions and errors in content; the second pass could be for layout, spacing, and other aesthetic features; a final pass might be to check for typographical, grammatical, and spelling errors.
§ Perceptual tricks – Your brain has been trained to ignore transposed letters, improper capitalization, and misplaced punctuation. Try (1) reading each page from the bottom to the top (starting at the last word in each line,) (2) Placing your finger under each word and reading it silently, (3) making a slit in a sheet of paper that reveals only one line of type at a time, and (4) reading the document aloud and pronouncing each word carefully.
§ Impartial reviews – Have a friend or colleague proofread the document for you. Others are likely to catch mistakes that you continually fail to notice. (All of us have blind spots when it comes to reviewing our own work)
§ Typos – Look for the most common typographical errors (typos): transposition (such as teb), substitution (such as economic), and omission (such as productivity)
§ Mechanics – When looking for errors in spelling, grammar, punctuation, and capitalization, if you’re unsure about something, look it up in a dictionary, a usage book, or another reference work.
§ Accuracy – Double –check the spelling of names and the accuracy of dates, addresses, and all numbers (quantities ordered, prices, and so on). It would not do to order 500 staples when you want only 50.
§ Distance – If you have time, set the document aside and proofread it the next day.
§ Vigilance – Avoid reading large amounts of material in one sitting, and try not to proofread when you’re tired.
§ Focus – Concentrate on what you’re doing. Try to block out distractions, and focus as completely as possible on your proofreading task.
§ Caution – Take your time. Quick proofreading is not careful proofreading.
Proofreading may require patience, but it adds creditability to your document.
Career Applications :
1. What qualities does a person need to be a good proofreader ? Are such qualities inborn, or can they be learned ?
2. Proofread the following sentence :

application of these methods in stores in San Deigo nd Cinncinati have resulted in a 30 drop in robberies an a 50 percent decling in violence there, according at the developers if the security system, Hanover brothrs, Inc.

CORPORATE LAW

N.B.: 1 Attempt any Twelve Questions
2) Last two Questions are compulsory
Q.1. In the following statements only one is correct statement. Explain Briefly? (5 Marks)
i) An invitation to negotiate is a good offer.
ii) A quasi-contract is not a contract at all.
iii) An agreement to agree is a valid contract.

Q.2. A ship-owner agreed to carry to cargo of sugar belonging to A from Constanza to Busrah. He knew that there was a sugar market in Busrah and that A was a sugar merchant, but did not know that he intended to sell the cargo, immediately on its arrival. Owning to Shipment’s default, the voyage was delayed and sugar fetched a lower price than it would have done had it arrived on time. A claimed compensation for the full loss suffered by him because of the delay. Give your decision. Explain Briefly? (5 Marks)

Q.3. The proprietors of a medical preparation called the “Carbolic Smoke Ball” published in several newspapers the following advertisement:-
“£ 1000 reward will be paid by the Carbolic Smoke Ball Co. to any person who contracts the increasing epidemic influenza after having used the Smoke Ball three times daily for two weeks according to printed directions supplied with each ball. £ 1000 is deposited with the Alliance Bank showing our sincerity in the matter.
On the faith in this advertisement, the plaintiff bought a Smoke Ball and used it as directed. She was attacked by influenza. She sued the company for the reward. Will she succeed? Explain Briefly (5 Marks)
Q.4. Fazal consigned four cases of Chinese crackers at Kanpur to be carried to Allahabad on the 30th May, 1987. He intended to sell them at the Shabarat festival of 5th June 1987. The railway discovered that the consignment could not be sent by passenger train and asked Fazal either to remove them or authorize their dispatch by goods train. He took no action and the goods arrived at Allahabad a month after they were booked.
Fazal filed a suit against Railways for damages due to late delivery of the goods which deprived him of the special profits at the festival sale. Decide & explain briefly ? (5 Marks)

Q.5. ‘Lifeoy’ Soap company advertised that it would give a reward of Rs. 2000 who contracted skin disease after using the ‘Lifeoy’ soap of the company for a certain period according to the printed directions. Mrs. Jacob purchased the advertised ‘Lifeboy’ and contracted skin disease inspite of using this soap according to the printed instructions. She claimed reward of Rs. 2000. The claim is resisted by the company on the ground that offer was not made to her and that in any case she had not communicated her acceptance of the offer. Decide whether Mrs. Jacob can claim the reward or not. Give reasons. Explain briefly? (5 Marks)

Q.6. In each set of statements, only one is correct. State the correct statements & Explain briefly?
a) i) A bailee has a general lien on the goods bailed.
ii) The ownership of goods pawned passes to the pawnee.
iii) A gratuitous bailment can be terminated by the bailor even
before the stated time.
b) i) A substituted agent is as good an agent of the agent as a sub-
agent.
ii) An ostensible agency is as effective as an express agency.
iii) A principal can always revoke an agent’s authority. (5 Marks)
Q.7. A, an unpaid seller, sends goods to B by railway. B becomes insolvent
And A sends a telegram to Railway authorities not to deliver the goods to B. B. goes to the Parcel office of Railway Yard and by presenting R. R. (Railway Receipt) takes delivery of the goods and starts putting them in the cart. Meanwhile the Station Master comes running with the telegram in hand and takes possession of the goods from B. Discuss the rights of A and B to the goods in possession of Railway authorities. (5 Marks)

Q.8. X needs Rs. 10,000 but cannot raise this amount because his credit is not good enough. Y whose credit is good accommodates. X by giving him a pronote made out in favour of X, though Y owes no money to X. X endorses the pronote to Z for value received. Z who is holder in due course demands payment from Y. Can Y refuse and plead the arrangement between him and X Explain briefly? (5 Marks)

Human Resource Management

(i) There are three Sections A and B and C.
(ii) Attempt any three questions each from Section A and B. All questions carry 10 marks each.
(iii) Section C is compulsory for all and carries 40 marks.
SECTION A
1. Define and differentiate between Job Analysis, Job Description and Job Evaluation. Select an appropriate job evaluation method and create a plan for evaluating jobs of scientists in different grades.

INTERNATIONAL BUSINESS
N. B.: 1) Attempt any four cases 2) All cases carries equal marks.
No: 1
BPO – BANE OR BOON ?
Several MNCs are increasingly unbundling or vertical disintegrating their activities. Put in simple language, they have begun outsourcing (also called business process outsourcing) activities formerly performed in-house and concentrating their energies on a few functions. Outsourcing involves withdrawing from certain stages/activities and relaying on outside vendors to supply the needed products, support services, or functional activities.
Take Infosys, its 250 engineers develop IT applications for BO/FA (Bank of America). Elsewhere, Infosys staffers process home loans for green point mortgage of Novato, California. At Wipro, five radiologists interpret 30 CT scans a day for Massachusetts General Hospital.
2500 college educated men and women are buzzing at midnight at Wipro Spectramind at Delhi. They are busy processing claims for a major US insurance company and providing help-desk support for a big US Internet service provider-all at a cost upto 60 percent lower than in the US. Seven Wipro Spectramind staff with Ph.Ds in molecular biology sift through scientific research for western pharmaceutical companies.
Another activist in BOP is Evalueserve, headquarterd in Bermuda and having main operations near Delhi. It also has a US subsidiary based in New York and a marketing office in Australia to cover the European market. As Alok Aggarwal (co-founder and chairman) says, his company supplies a range of value-added services to clients that include a dozen Fortune 500 companies and seven global consulting firms, besides market research and venture capital firms. Much of its work involves dealing with CEOs, CFOs, CTOs, CIOs, and other so called C-level executives.
Evaluserve provides services like patent writing, evaluation and assessment of their commercialization potential for law firms and entrepreneurs. Its market research services are aimed at top-rung financial service firms, to which it provides analysis of investment opportunities and business plans. Another major offering is multilingual services. Evalueserve trains and qualifies employees to communicate in Chinese, Spanish, German, Japanese and Italian, among other languages. That skill set has opened market opportunities in Europe and elsewhere, especially with global corporations.
ICICI infotech Services in Edison, New Jersey, is another BOP services provider that is offering marketing software products and diversifying into markets outside the US. The firm has been promoted by $2-billion ICICI Bank, a large financial institution in Mumbai that is listed on the New York Stock Exchange.
In its first year after setting up shop in March 1999, ICICI infotech spent $33 million acquiring two information technology services firms in New Jersy-Object Experts and ivory Consulting – and command Systems in Connecticut. These acquisitions were to help ICICI Infotech hit the ground in the US with a ready book of contracts. But it soon found US companies increasingly outsourcing their requirements to offshore locations, instead of hiring foreign employees to work onsite at their offices. The company found other native modes for growth. It has started marketing its products in banking, insurance and enterprise resource planning among others. It has earmarket $10 million for its next US market offensive, which would go towards R & D and back-end infrastructure support, and creating new versions of its products to comply with US market requirements. It also has a joint venture – Semantik Solutions GmbH in Berlin, Germany with the Fraunhofer Institute for Software and Systems Engineering, which is based in Berlin and Dortmund, Germany – Fraunhofer is a leading institute in applied research and development with 200 experts in software engineering and evolutionary information.
A relatively late entrant to the US market , ICICI Infotech started out with plain vanilla IT services, including operating call centeres. As the market for traditional IT services started wakening around mid-2000, ICICI Infotech repositioned itself as a “Solutions” firm offering both products and services. Today , it offers bundied packages of products and services in corporate and retail banking and include data center and disaster recovery management and value chain management services.
ICICI Infotech’s expansion into new overseas markets has paid off. Its $50 million revenue for its latest financial year ending March 2003 has the US operations generating some $15 million, while the Middle East and Far East markets brought in another $9 million. It new boasts more than 700 customers in 30 countries, including Dow Jones, Glazo-Smithkline, Panasonic and American Insurance Group.
The outsourcing industry is indeed growing form strength. Though technical support and financial services have dominated India’s outsourcing industry, newer fields are emerging which are expected to boost the industry many times over.
Outsourcing of human resource services or HR BPO is emerging as big opportunity for Indian BPOs with global market in this segment estimated at $40-60 billion per annum. HR BPO comes to about 33 percent of the outsourcing revenue and India has immense potential as more than 80 percent of Fortune 1000 companies discuss offshore BOP as a way to cut costs and increase productivity.
Another potential area is ITES/BOP industry. According to A NASSCOM survey, the global ITES/BOP industry was valued at around $773 billion during 2002 and it is expected to grow at a compounded annual growth rate of nine percent during the period 2002 – 06, NASSCOM lists the major indicators of the high growth potential of ITES/BOP industry in India as the following.
During 2003 – 04, The ITES/BPO segment is estimated to have achieved a 54 percent growth in revenues as compared to the previous year. ITES exports accounted for $3.6 billion in revenues, up form $2.5 billion in 2002 – 03. The ITES-BPO segment also proved to be a major opportunity for job seekers, creating employment for around 74,400 additional personnel in India during 2003 – 04. The number of Indians working for this sector jumped to 245,500 by March 2004. By the year 2008, the segment is expected to employ over 1.1 million Indians, according to studies conducted by NASSCOM and McKinsey & Co. Market research shows that in terms of job creation, the ITES-BOP industry is growing at over 50 per cent.
Legal outsourcing sector is another area India can look for. Legal transcription involves conversion of interviews with clients or witnesses by lawyers into documents which can be presented in courts. It is no different from any other transcription work carried out in India. The bottom-line here is again cheap service. There is a strong reason why India can prove to be a big legal outsourcing Industry.
India, like the US, is a common-law jurisdiction rooted in the British legal tradition. Indian legal training is conducted solely in English. Appellate and Supreme Court proceedings in India take place exclusively in English. Due to the time zone differences, night time in the US is daytime in India which means that clients get 24 hour attention, and some projects can be completed overnight. Small and mid – sized business offices can solve staff problems as the outsourced lawyers from India take on the time – consuming labour intensive legal research and writing projects. Large law firms also can solve problems of overstaffing by using the on – call lawyers.
Research firms such as Forrester Research, predict that by 2015 , more than 489,000 US lawyer jobs, nearly eight percent of the field, will shift abroad..
Many more new avenues are opening up for BOP services providers. Patent writing and evaluation services are markets set to boom. Some 200.000 patent applications are written in the western world annually, making for a market size of between $5 billion and $7 billion. Outsourcing patent writing service could significantly lower the cost of each patent application, now anywhere between $12,000 and $15,000 apiece-which would help expand the market.
Offshoring of equity research is another major growth area. Translation services are also becoming a big Indian plus. India produces some 3,000 graduates in German each year, which is more than that in Switzerland.
Though going is good, the Indian BPO services providers cannot afford to be complacent. Phillppines, Maxico and Hungary are emerging as potential offshore locations. Likely competitor is Russia, although the absence of English speaking people there holds the country back. But the dark horse could be South Affrica and even China
BOP is based on sound economic reasons. Outsourcing helps gain cost advantage. If an activity can be performed better or more cheaply by an outside supplier, why not outsource it ? Many PC makers, for example, have shifted from in – house assembly to utilizing contract assemblers to make their PCs. CISCO outsources all productions and assembly of its routers and witching equipment to contract manufactures that operate 37 factories, all linked via the internet.
Secondly, the activity (outsourced) is not crucial to the firm’s ability to gain sustainable competitive advantage and won’t hollow out its core competence, capabilities, or technical know how. Outsourcing of maintenance services, date processing, accounting, and other administrative support activities to companies specializing in these services has become common place. Thirdly, outsourcing reduces the company’s risk exposure to changing technology and / or changing buyer preferences.
Fourthly, BPO streamlines company operations in ways that improve organizational flexibility, cut cycle time, speedup decision making and reduce coordination costs. Finally, outsourcing allows a company to concentrate on its core business and do what it does best. Are Indian companies listening ? If they listen, BPO is a boon to them and not a bane.

Questions:
1. Which of the theories of international trade can help Indian services providers gain competitive edge over their competitors?
2. Pick up some Indian services providers. With the help of Michael Porter’s diamond, analyze their strengths and weaknesses as active players in BPO.
3. Compare this case with the case given at the beginning of this chapter. What similarities and dissimilarities do you notice? Your analysis should be based on the theories explained.

Principles and Practice of Management

Communicating in a Crisis

Overview Valley High School, situated in Kodaikanal, was established in 1980 and is owned by a well respected charitable trust. It overlooks a lake and is a modern building equipped with state-of-the-art facilities. The total student enrolment is 2000, out of which more than 50% are girls and the rest boys. The students are all from affluent, educated families. The school has established a good reputation for itself, thanks to the consistently good performance of students in the public examinations. The school is headed by a lady Principal and also has a couple of Supervisors and a team of 25 teachers. The teachers have had extensive experience, are well qualified and are known for their commitment to imparting quality education to students. Due to the recent heavy monsoons, the school was faced with the problem of flooding, with water entering the rooms on the ground floor and water seepage on the terrace. Since repair work had to be done, the school had to be closed for a couple of weeks. The work was carried out by reputed contractors, but the building still looks a little run down.
The crisis the school had just reopened after this two week break. The same morning, a fire suddenly broke out on the third floor and spread to other floors, blocking the stairways. There was widespread panic, as the children started jumping off the balconies, injuring themselves in the process. The Principal and staff had a tough time trying to calm down the children and take control of the situation. Fire engines were called and several of them arrived and began their fire fighting operations. In the meanwhile, many parents also arrived and tried to enter the building to speak to the Principal. The phones were ringing continuously. There was total chaos.

Question 1 :- How communication crises arise?
Question 2 :- What Principal should do to calm down the angry parents?
Question 3 :- How school will regain its reputation? What services school should provide in order to maintain its reputation?

Case Study 2

Case Study on The power of Non-Verbal Communication

The Power of Nonverbal Communication Soon after I graduated from engineering college, I accepted a position with the Sundaram Foundry, a medium-sized firm located in a small town in Tamil Nadu. It was a good position, since I was the assistant to Mr. Vishwanath, the General Manager and president of this family owned company, although there were many technical problems, the work was extremely interesting and I soon learnt all about the foundry business. The foundry workers were mostly older men and were a closely knit team. Many of them were related and had been in the foundry for several years. Therefore, they felt that they knew the business in and out and that a technical education had no value. In fact, Mr. Vishwanath had mentioned to me even at the time of my joining, that I was the only engineer ever to be employed in the foundry. He also let me know that the foundry workers, although a good group, were very clannish, since they had been working together for several years. Therefore, it would probably take them some time to accept me. I introduced myself to the group of foundry workers, a few days after my joining. As I went around in turn, I felt them eyeing me coldly. As I went down the main aisle of the foundry, I heard them talking to each other in low voices and laughing. I found their behavior to be very childish and felt that it was best to ignore these signs of hostility. I thought that if I ignored them, they would automatically stop these antics. A few weeks after this incident, I happened to visit the enamel shop. As I entered, I noticed a worker cleaning the floor with a hose, from which water flowed at high pressure. I was aware that it was the practice to clean the shop at least once a week. I turned my back on the worker and was busy near a dipping tank, when I suddenly felt the force of a stream of water hitting me. I was almost knocked down by the pressure and slipped on the wet floor. When I turned around, the worker looked away in the other direction, as if he had not noticed this happening. However, I was pretty sure that he had intentionally turned the hose on me.

Question 1 – What message did the foundry workers and the new engineer convey to each other through their non-verbal behavior?

Question 2 – Mr. Vishwanath, the General Manager and President, was not often present at the foundry. What could this non-verbal behavior mean to the workers and the new engineer?

Question 3. How could the engineer, the foundry workers and Mr. Vishwanath be more effective, both verbally and nonverbally?

Question 4. What do you suggest that the engineer should do, after the hosing incident?


PRINCIPLES AND PRACTICE OF MANAGEMENT XAVIERS

XAVIERS EXAM ANSWER SHEETS PROVIDED. MBA EMBA BMS DMS ANSWERS PROVIDED. DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com

MARKS: 80 ( Each case study for 20 Marks)
Subject – Principles and Practice of Management

Communicating in a Crisis

Overview Valley High School, situated in Kodaikanal, was established in 1980 and is owned by a well respected charitable trust. It overlooks a lake and is a modern building equipped with state-of-the-art facilities. The total student enrolment is 2000, out of which more than 50% are girls and the rest boys. The students are all from affluent, educated families. The school has established a good reputation for itself, thanks to the consistently good performance of students in the public examinations. The school is headed by a lady Principal and also has a couple of Supervisors and a team of 25 teachers. The teachers have had extensive experience, are well qualified and are known for their commitment to imparting quality education to students. Due to the recent heavy monsoons, the school was faced with the problem of flooding, with water entering the rooms on the ground floor and water seepage on the terrace. Since repair work had to be done, the school had to be closed for a couple of weeks. The work was carried out by reputed contractors, but the building still looks a little run down.
The crisis the school had just reopened after this two week break. The same morning, a fire suddenly broke out on the third floor and spread to other floors, blocking the stairways. There was widespread panic, as the children started jumping off the balconies, injuring themselves in the process. The Principal and staff had a tough time trying to calm down the children and take control of the situation. Fire engines were called and several of them arrived and began their fire fighting operations. In the meanwhile, many parents also arrived and tried to enter the building to speak to the Principal. The phones were ringing continuously. There was total chaos.

Question 1 :- How communication crises arise?
Question 2 :- What Principal should do to calm down the angry parents?
Question 3 :- How school will regain its reputation? What services school should provide in order to maintain its reputation?

Case Study 2

Case Study on The power of Non-Verbal Communication

The Power of Nonverbal Communication Soon after I graduated from engineering college, I accepted a position with the Sundaram Foundry, a medium-sized firm located in a small town in Tamil Nadu. It was a good position, since I was the assistant to Mr. Vishwanath, the General Manager and president of this family owned company, although there were many technical problems, the work was extremely interesting and I soon learnt all about the foundry business. The foundry workers were mostly older men and were a closely knit team. Many of them were related and had been in the foundry for several years. Therefore, they felt that they knew the business in and out and that a technical education had no value. In fact, Mr. Vishwanath had mentioned to me even at the time of my joining, that I was the only engineer ever to be employed in the foundry. He also let me know that the foundry workers, although a good group, were very clannish, since they had been working together for several years. Therefore, it would probably take them some time to accept me. I introduced myself to the group of foundry workers, a few days after my joining. As I went around in turn, I felt them eyeing me coldly. As I went down the main aisle of the foundry, I heard them talking to each other in low voices and laughing. I found their behavior to be very childish and felt that it was best to ignore these signs of hostility. I thought that if I ignored them, they would automatically stop these antics. A few weeks after this incident, I happened to visit the enamel shop. As I entered, I noticed a worker cleaning the floor with a hose, from which water flowed at high pressure. I was aware that it was the practice to clean the shop at least once a week. I turned my back on the worker and was busy near a dipping tank, when I suddenly felt the force of a stream of water hitting me. I was almost knocked down by the pressure and slipped on the wet floor. When I turned around, the worker looked away in the other direction, as if he had not noticed this happening. However, I was pretty sure that he had intentionally turned the hose on me.

Question 1 – What message did the foundry workers and the new engineer convey to each other through their non-verbal behavior?

Question 2 – Mr. Vishwanath, the General Manager and President, was not often present at the foundry. What could this non-verbal behavior mean to the workers and the new engineer?

Question 3. How could the engineer, the foundry workers and Mr. Vishwanath be more effective, both verbally and nonverbally?

Question 4. What do you suggest that the engineer should do, after the hosing incident?

Case Study 3

BS GETS A D-PLUS ON DIVERSITY FROM MULTIETHNIC COALITOIN

On February 3, 2000, President and CEO of CBS Leslie Moonves signed a pact with Kweisi Mfume, president and CEO of the national association for advancement of colored people (NAACP), who had joined forces with the Hispanic media coalition, and the American Indians in film and television to request the CBS help to increase Indians in film and television to request that CBS help to increase ethnic presence in the television industry. The agreement stipulated the CBS would increase minority participation both on and off screen by June 30.

In April 2000, CBS announced the appointment of Josie Thomas to the newly created position of senior vice president of Diversity at CBS Television. Her job was to improve outreach and recruitment, hiring, promotion, and monitoring practices in all divisions of CBS. That fall Moonves announced that 16 of the 21 CBS shows, including news magazines, would prominently feature minorities. “We think we are a leader in this area,” Moonves said “We think we are ahead of the curves”

Despite Mooves’s Statement that as “broadcasters, we believe strongly that it is our duty to reflect the public that makes up our viewing audience,” there were many who did not feel the company was sincere in its efforts to improve hiring practices. The national Hispanic Foundation for the Arts criticized CBS for not scheduling “American Family,” A pilot drama about middle – class Hispanic family. Moonves said “American Family” simply did not fit in CBS’s schedule, since there were already too many strong dramas planned. He said he took the unusual step of allowing the show’s producer to pitch the CBS-developed networks but no one picked it up. Meanwhile, the June 30 deadline had come and gone without much outward sign of change at CBS television.

Josie Thomas is committed to CBS’s new mandate for multicultural diversity. Twelve of CBS’ prime time series will have minorities in permanent roles and other series will have minority in recurring role. Fore of the network’s shows- C.S.I., the district, the fugitive and welcome to New York have minorities in leading roles.

Since signing the agreement, CBS has established a strong working relationship with national minority supplier council in order to help minority supplier council and women’s businesses. The company has bolstered its internship program to include paid internships on the west coast, pairing up interns with their areas of interest, Such as finance or entertainment. There are 10 minority interns in the program. Moreover, CBS has now made diversity a factor in employee job performance evaluation. “Each area of the network has developed a detailed plan for diversity,” said Thomas. “Manager will be reviewed with respect to their diversity efforts and that will be a factor in compensation decisions.” Ms. Thomas noted that Ghen Maynard, an Asian American Pacific Islander, had just been promoted form director to vice president of alternative programming for the entertainment division.

“Will all believe there is a long way to go,” Thomas said. “What I have found is there are some things that already exist that are positive, such as news magazines having minority anchors. We think ‘city of angels’ renewal was an important step. The ratings were mediocre to low, and we did feel the program was a risk. It says a lot about our commitment”

In June 2001, the coalition gave the Big 4 Broadcast Networks (all of whom had signed an agreement) a report card for their efforts to diversity shows on – air and behind the scenes. CBS got a D-plus.

Mr. Nogales, of the National Hispanic Media Coalition, said he was disappointed “We expect progress; we signed for progress” “The numbers in comparison to last year actually look better” Nogales says. “There have been gains for people of color. There was movement. But it has to be movement across the board, not just for one group.” He is referring to the fact that most of the gains have been made by black actors, writes and producers. Black actors appear as regular in at least 19 of the six major networks’30 new prime-time series. Hispanics shows up in only eight, Asians in five and Native Americans in one.

The pressure being put on the networks- including threats of “boycott” and legal action – is having results. At CBS the number of minority writers and producer has more than tripled, from four to fourteen, including six executive or co executive producer however, obstacles to a fully integrated future remain serious-particularly because of misconceptions about the nature of the television audience and about the way pop culture works. Network executive worry that “ghetto shows” might promote stereotypes. They wonder if shows like The cosby show are “black” enough. Then again, they think that casting too many minorities may drive white viewers away. Some network executives are afraid to cast minority actors in “negative” roles because they may be criticized for it minority writers, who have been getting more work lately, wonder if they are not just “tokens”; and despite some progress it is still almost impossible for Hispanic actor to get non- Hispanic roles.

Both the NAACP and the coalition have been battling discrimination for years. CBS is just finding out that a profound change toward pluralism can take place only with true insight on the part of management. CBS spokesperson Chris Ender says “We have made tremendous strides to increase diversity on screen, behind the camera and in the executive suites. However we certainly recognize that more can be done and more will be done.”

As far as Nogales is concerned. “It’s still a white guy’s world,” and the june 2001 statics for network television prove he is right.

Questions
Question 1:- What advantages would accrue to CBS if it becomes a more diverse workplace?

Question 2:- Where would you have placed CBS on the organizational diversity continuum and where would you place CBS now? Why?

Question 3:- Which approach (es) to pluralism best sums up the diversity policy that is being developed at CBS? Explain

Question 4:- How do the attitudes of management at CBS as depicted in your case study affect the company’s progress toward forming a more diverse workforce? Explain.

Case Study 4

McDonald’s Listening Campaign

At the end of 2002, the world’s largest quick service retailer made its first ever quarterly loss and faced a number of challenges. It responded by launching its Plan to Win program, part of a global strategy to modernize the business, followed by the Listening Campaign in the UK. Here, Ali Carruthers explains how the two initiatives were linked in the UK, and the impact The Listening Campaign has had on communication, culture, image and media perception.

In 2003, things were looking bleak for McDonald’s. Its share price was the lowest it had been in a decade and it faced a series of seemingly insurmountable problems: It was demonized by the UK media in the fierce debate raging over obesity; it faced huge competition on the high street; and it was suffering under a wave of Anti-Americanism in the wake of the wars in Afghanistan and Iraq.
Added to this was the fact that the restaurants themselves were beginning to look dated and UK health lobbyists were determined to push home the message that McDonald’s food was bad for people.
Speaking earlier this year to the BBC, the UK CEO Peter Beresford said: “We had taken our eye off the customer, we were not customer focused, we were not customer driven. And so we reorganized and regrouped. We decided we had to stop and take stock of where we were. We had to be better, but we had to change the way we were running this business.”
The Plan to Win
The senior management put their heads together and devised the Plan to Win program, which went public in the last quarter of 2003. A key part of its focus was a shift to more choice and variety foods, with salads appearing permanently on the menu for the first time in the organization’s history. Key restaurants began to receive make over and a supporting advertising campaign with international stars was planned, all of which were intended to turn the food chain’s image around.
But just as things were beginning to look up for the organization, trouble raised its head again in the shape of the documentary film “Supersize me,” which in turn re-ignited the obesity debate in the media. It was then discovered that one of the salads McDonald’s was marketing contained more calories than one of its hamburgers. The UK press reacted with predictable glee and once again McDonald’s was in the spotlight for all the wrong reasons.
The Listening Campaign. The company responded promptly. Working with agency Blue Rubicon, the in-house communication and media relations team devised the Listening Campaign. It made the most of the arrival of new UK CEO Peter Beresford in July 2004, building on his personal credibility and that of McDonald’s with the Listening Tour. Beresford spoke directly to customers in focus groups, met with franchise holders and with employees in 12 UK cities over the space of six weeks, starting at the end of October.
The key ingredient was listening to customers and staff and then showing the results of this. “Part of the reason [for doing it] was that we had to introduce Peter very quickly to employees, customers and stakeholders,” says head of internal communications AIi Carruthers. “It was also signaling that he’d continue to work to change our culture and lead the drive for a real transparency of approach. We’ve been building on that work ever since.”
Focus groups for stakeholders

The communication team made the most of Beresford’s time by booking ahead so that local franchisees could meet him when he travelled to regional centers for customer focus groups. Next, Listening Groups were created for the company’s regional offices with corporate rather than restaurant-based employees taking part. Initial meetings were centered around three classic focus group questions:
* What works?
* What would you change?
* How would you change it?
In each session, six to 10 employees took part and the sessions lasted around two hours. After the first session, an action plan was drawn up and fed back to the employees in a second round of focus groups. Then the agreed proposed changes were put in place by the organization.
Proposed changes put in place
A range of short, medium and long term actions have been instigated as a result of the focus groups. These include a firm commitment to hold monthly town-hall sessions to regularly address key issues within the organization. “We’ve agreed to use these sessions to feature various departmental heads,” says Carruthers.
“That’s so people can put names to faces, understand the organizational structure better and get an understanding of what goes on outside their own departments.” The company has also committed itself to involving a new group of employees every six months, and to being more transparent about its promotion process and how people are assessed for promotion. It now holds regular Plan to Win meetings, which are related to the global strategy. “We’re using the town-hall sessions to communicate the global strategy to thebroader office group rather than just senior management so there’s a wider understanding of what we’re doing,” says Carruthers.
The company has also committed to a peer-nominated quarterly recognition scheme for the regional and head offices. It’s planned that the town halls will also be used in the recognition scheme. “People need to say well done to each other and be acknowledged by the senior team,” says Carruthers.
A change in company culture
According to Carruthers, the strategy has been recognized globally – a drive for greater face-to-face communication, more transparency, a growth in leadership behavior and accountability. “Basically we’ve been trying to make people feel they’re able to ask questions,” she says. “There’s nothing wrong with challenging the status quo as long as it’s done in a constructive and respectful way. If we can use some of those ideas we can probably make it a more enjoyable place for everyone to work.”
There’s no doubt that the Listening Campaign has had an impact on the senior team and general employees alike. Carruthers has had feedback from both groups and believes the exercise has been an eye-opener for the senior team: “They frequently mention experiences they’ve had in those groups. There’s nothing quite like hearing issues for yourself; the good ones and the more awkward ones.”
The feedback from focus-group participants has been very good; employees say they feel listened to and think their feedback is being taken on board. “They feel confident to ask questions or send e-mails directly to people they thought wouldn’t have listened to their suggestions previously. It’s changing the culture. Anything that builds trust and transparency is good. Now it’s about delivering on the changes that we said we’d make.”
A hotline to the CEO
A hotline to the CEO has made the company’s drive for transparency and commitment to employees even more credible. The “Ask Peter” e-mail address was established when Beresford took up his post and has seen a fair amount of traffic. “It’s word of mouth – people see that it’s well responded to,” says Carruthers. She sees it as important to be straight with employees about how e-mails are dealt with and who sees them. “We’re very up-front about the fact that I see all e-mails as well as Peter, but if we forward them to other departments, they’ll be anonymous.”
A combination of high and low technology adds to the feeling of personal contact: Beresford will often answer e-mails with a hand-written reply. In one famous instance he replied to nearly 100 in one week. “It doesn’t always happen that way, but it’s these things that make a difference. People see it’s coming from him and it’s quite a personal touch.”
Committing to communication, A new round of Listening focus groups with fresh employees is due to kick off in October. The whole cycle of questions, action-planning and feedback will be replayed. “We’re working with a new group of employees because we want to keep changing and avoid having a formalized council of volunteers,” says Carruthers. “They’ll look at what they think has happened so far, whether anything could have been done differently and then we’ll hold a review of the proposals.”
It’s a genuine commitment to keep the focus groups running on an ongoing basis. Carruthers is also expecting that the flexibility and fresh new faces will ensure that new topics arise: “They’re things that inevitably come up along the way and get added to the agenda for change. We just need to follow them through and then tell people the results.”
The results
Since Beresford’s Listening Tour there’s been a turnaround in the media coverage of McDonald’s, which has been much more positive. The Listening Campaign is changing the internal culture of the company and its focus group cycles are becoming permanent two-way communication channels.
Results back in August this year from the last employee survey showed that internal communication is now ranked by employees as number four out of 25 departments. “The communications strategy has helped people become aware of who we are and what we do,” says Carruthers. The Listening Campaign has also helped McDonald’s raise its profile externally, as it was nominated in this year’s UK Chartered Institute of Public Relations Excellence Awards and short-listed for Best Use of Media Relations in the PR Week Awards.

Questions

Question1. Based on this case, develop guidelines for improving communication with each of different stakeholders, through better listening.

Question 2:- What are the essentials for the effective communication?

Question 3:- Write about McDonald marketing plan which they have implemented for the success?

Question 4:- Do the SWOT analysis of following:-

• McDonald
• Food Industry

Human Resource Management

(i) There are three Sections A and B and C.
(ii) Attempt any three questions each from Section A and B. All questions carry 10 marks each.
(iii) Section C is compulsory for all and carries 40 marks.
SECTION A
1. Define and differentiate between Job Analysis, Job Description and Job Evaluation. Select an appropriate job evaluation method and create a plan for evaluating jobs of scientists in different grades.
2. Discuss the role of indoctrination in organizations. How can Performance Appraisal, and Training and Development be made an integral part of Human Resource Planning? Discuss.
3. Discuss the scope of Human Resource Audit. While auditing Reward systems for employees in a manufacturing organization, which factors should be taken into account and why? Explain with suitable examples.
4. Define and discuss the need for Human Resource Planning in an organization. Briefly discuss various approaches to HRP
5. Write short notes on any three of the following:
(a) Training methods
(b) Value determinants of HRP
(c) Human Resource accounting
(d) Labour Market Behavior
(e) Promotion and Reward Policies
SECTION B
1. Define and discuss the objectives of Human Resource Planning at organizational level. How does it help in determining and evaluating future organizational capabilities, needs and anticipated problems? Explain with suitable examples.
2. Define and describe Job Analysis. Briefly discuss several methods in which information about a job is collected and evaluated.
3. What is the purpose and process of recruitment function? Discuss various methods of sourcing manpower.
4. How is monetary value assigned to different dimensions of Human Resources costs, investments, and worth of the employees? Briefly explain Cost and Economic value approaches of measurement.
5. Write short notes on any three of the following :
(a) MBO
(b) Succession Planning
(c) Competency Mapping
(d) Job Evaluation
(e) H.R. Inventory

SECTION C
1. Quality control Department
Read the case given below and answer the questions given at the end.
Mr. Kapil Kumar and Mr. Abbas Ali were working in a scooter manufacturing public sector industry as Senior Quality Control Engineers in 1988. One post of Deputy Chief Quality Controller has fallen vacant due to the retirement of the incumbent and the management decided to recruit a qualified, knowledgeable and experienced professional from outside so that the present quality standard may be improved thus ensuring better marketability of their scooters in the face of stiff competition. Mr. Kapil Kumar, who was a mechanical engineer with about 15 years experience in the Quality Control Department dealing with mopeds and scooters, could have been promoted to fill the post on the basis of seniority. However, the management was looking for a graduate in statistics with experience in latest Quality Control (QC) techniques like statistical quality control, quality assurance and other related areas rather than a mechanical or automobile engineer with the routine experience in quality control. As such instead of promoting Kapil Kumar, the management advertised for the post of Deputy Chief Quality Controller – since as per company rules it was DR (Direct Recruitment) vacancy also.
Selection of Outsider
Out of the applications received in response to the advertisement, six candidates were called for interview including the two internal candidates, Mr. Kapil Kumar and Mr. Abbas Ali. The person selected was an outsider, one Mr. Ratnam, who had over 12 years experience SQC, quality assurance etc., in the two-wheeler private manufacturing industry. Mr. Ratnam joined within 2 months time expecting that in his new position he would be the main controller for quality. However, after joining the organization he came to know that he would be the second senior most person in the hierarchy for controlling the quality and would be reporting to one, Kirpal Sing,. The Chief for Quality Controls. Mr. Kirpal Singh had come up to this post by seniority and was basically a diploma holder in automobile engineering. He had to his credit about 28 years of industrial experience, out of which 20 years were spent in Quality Control Department of two industries. He joined the present organization in its Quality Control Department and had 17 years experience in the organization and was due for retirement within the next 2 or 3 years. On learning about the retirement time of Mr. Kirpal Singh, Mt. Ratnam had the consolation that he would be able to take up the position of ‘Chief Controller of Quality’ very soon.
Interference from Top
Ratnam could not put forth many good suggestions (for quality control) because of the interference and direct supervision of Kirpal Singh. He, however, could pick up a good deal of knowledge about the working of the company, the nature-and tendency of different production department heads particularly with regard to care for quality, organization for ‘QC’ in the company, the various components required for assembly of the company’s two-wheeler scooter and the expected quality standards, drawback in the present system of quality controls. etc.
Right from the time the advertisement for the selection of Deputy Chief Quality Controller appeared, the O.A. (Officers Association) of the organization had been pressing the management to consider the case of Kapil Kumar for promotion to the above post based on his seniority in the organization.
Meanwhile, the management obtained a license in 1989 for producing Three-Wheeler Autos. As a result of this and the pressure from O.A., Ratnam was transferred to look after the Quality Control Department at the company’s new Three-Wheeler plant, whereas Kapil Kumar was promoted as Deputy Chief Quality Controller in the present two-wheeler scooter plant in 1990 (after creating one additional post of Deputy Chief Quality Controller for the new Project).
In 1991, the State Government, which controlled the company in question, changed the Managing Director. During the regime of this new Managing Director, Kapil Kumar was promoted as Chief (Quality Controls) next year, when Kirpal Singh retired. This decision was based on the recommendations of Kirpal Singh and partly attributed to pressure from O.A., for further promotion of Kapil Kumar based on his vast experience in the Quality Control function of this industry. Abbas Ali rose to the position held earlier by Kapil Kumar.
Allotment of Company Quarters
The Company had its own township near the factory. Its quarter allotment scheme was based on the length of service, i.e., date of joining. Ratnam had asked for a suitable quarter at the time of interview and was thus allotted a tile quarter meant for the Senior Engineer’s cadre. He learnt about this, after occupying the quarter. Ratnam asked for a change of Quarter – preferably a RCC-roof quarter, – but his request was turned down, since he had put in only few months of service whereas many others senior to him, on the beds of their longer length of service in the Company (having over 10 years service), were staying in tiled-roof quarters and were awaiting a chance for a RCC-roof quarter. Kapil Kumar and Abbas Ali were residing in RCC-roof quarters. Soon after Kapil Kumar’s promotion to the post of Chief (Quality Controls), he was allotted a bungalow.
The management’s decision in this case must be viewed in the context of the downtrend in the demand for scooters and three-wheeler autos during 1993 following complaints from dealers about the deteriorating quality of components as also their short life. Notably the complaints had risen ten-fold in that year as compared to that in 1988.
Questions
(a) Was the management justified in taking a decision to recruit a qualified and experienced person from outside as Deputy Chief Quality Controller?
(b) Was it in the interest of the organization to transfer Ratnam to the new auto-wheeler plant and promote Kapil Kumar? What could have prompted the management to take this decision?
(c) How do you view the role of O.A.s in supporting only the local and internal candidates and overlooking the interests of direct recruits even when they were family members of the Association, particularly at a time, when the industry needed professionally qualified persons to fill key technical posts?
(d) How would you react to the management’s scheme for quarter allotment and why?

2. Pearl Engineering
Pearl Engineering Company was a large heavy-engineering unit. It attached great importance to the recruitment and training of its senior supervisors. Apart from selecting them from within the organization, the company recruited, every. Alternate year, about ten young engineering graduates and offered them training for a period of two years, before they were appointed as senior supervisors. Such appointments were made to about 40 per cent of the vacancies of senior supervisors that occurred in the organization. This was considered necessary by management as a planned programme of imparting vitality to the organization. Besides, many of the old-timers, who had risen from the ranks, did not possess the necessary academic background with the result that they could not keep pace with the technological changes. Management also believed that in the rapidly changing conditions of industry, a bank of technically competent supervisors played a pivotal role, besides serving as a pool from which to select future departmental managers.
Engineering Graduates were selected from amongst those who applied in response to an all-India advertisement. For the selection of one engineer, on an average, eight applicants were called for interview. A selection committee consisting of the General Manager, the Production Manager, the Personnel Manager and the Training Officer interviewed and selected the candidates. The selection interview was preceded by a written test and only those who secured 40 per cent marks qualified for interview.
The engineers thus selected had to undergo a two year intensive theoretical and practical training. A well-staffed and equipped Training Institute was directly responsible for the training of the graduate engineers, besides training trade apprentices and operatives required by the company. Lectures on theoretical subjects were given at the Training Institute and practical training was imparted in all the works departments under the guidance of qualified and experienced instructors. A few lectures by senior officers of the company were also arranged to acquaint them with the company policies on different matters. During the last quarter of their two-year training programme they were deputed to work fulltime to familiarize themselves with the conditions in departments where they were to be absorbed eventually.
On successful completion of training, the graduate engineers were offered appointments, depending on their performance and aptitude as revealed during training. On placement in the work departments, however, most of them faced some difficulty or the other.
According to management, some of the heads of departments, who were themselves not qualified engineers, did not have sufficient confidence in these younger men. They preferred the subordinates who came up from the ranks to hold positions of responsibility. A few discredited them saying that it would take years before these youngsters could pick up the job. Besides, some of the employees, whose promotional opportunities were adversely affected by the placement of graduate engineers, tried their best to run down the latter as a class, sometimes working on the group feelings of the workers. Some of the supervisors who were not graduate engineers also spoke derisively of them as “the blue-eyed boys” of the organization. Management knew that many of the graduate engineers were not utilized according to their capacity or training, nor was any attempt made to test or develop their potentialities. They also knew that many of the graduate engineers were, therefore, dissatisfied with their work life. Some of them who did not get equal promotional opportunities as their colleagues placed in other departments, were looking for better jobs elsewhere.
On the other hand, according to management, the young graduate engineers were themselves partly responsible for the hostile attitude of others in the organization. Some of them failed to appreciate that a newcomer invited hostility in the beginning and it took time before he was accepted as a member of the work-group. They did not realize that they would be fully productive only after gaining about five to seven years experience in the organization. A few thought that they belonged to a superior cadre and threw their weight around. They did not bother to understand and appreciate the problems of the rank-and-file of employees who worked under them.
In spite of these drawback, the General Manager of the company felt that these men were a set of disciplined supervisors. They had a sense of pride in their profession, and with the extensive training they had received, they would be able to take up any responsible position in the organization in course of time.
The General Manager could not allow the situation to continue especially when it was a difficult and costly process to recruit and train young engineering graduates of the requisite type and caliber. He knew that the prosperity of the company, to a large extent, depended on these young men. In addition, a large number of lucrative employment opportunities were available to these young engineers elsewhere and there was a systematic raid on them, He, therefore, called a meeting of all heads of departments to review the situation.
Questions:
(i) Identify the issues related to manpower planning as evident in the case.
(ii) Discuss the strategies to tackle the percentage of internal promotion at the organizational level.
(iii)What type of additional training programmes should be imparted for direct entrants?
(iv) Suppose you are the head of the personnel division. What would be your suggestions in the meeting – Which has been called by the General Manager?

MARKS : 80
COURSE: MBA

SUB: BUSINESS COMMUNICATION
N. B. : All cases are Compulsory.

CASE NO. 1
How to Proofread like a Pro :
Tips for creating the Perfect Document

You’ve carefully revised and polished your document, and it’s been sent off to the word-processing department or a designer to be put into final form. You can breathe a sigh of relief, but only for the moment : You’ll still be proofreading what comes out of the printer. To ensure that any document is error-free, always proofread the final version. Following are some hints to help make your proofreading more effective.
 Multiple passes – Go through the document several times, focusing on a different aspect each time. The first pass might be to look for omissions and errors in content; the second pass could be for layout, spacing, and other aesthetic features; a final pass might be to check for typographical, grammatical, and spelling errors.
 Perceptual tricks – Your brain has been trained to ignore transposed letters, improper capitalization, and misplaced punctuation. Try (1) reading each page from the bottom to the top (starting at the last word in each line,) (2) Placing your finger under each word and reading it silently, (3) making a slit in a sheet of paper that reveals only one line of type at a time, and (4) reading the document aloud and pronouncing each word carefully.
 Impartial reviews – Have a friend or colleague proofread the document for you. Others are likely to catch mistakes that you continually fail to notice. (All of us have blind spots when it comes to reviewing our own work)
 Typos – Look for the most common typographical errors (typos): transposition (such as teb), substitution (such as economic), and omission (such as productivity)
 Mechanics – When looking for errors in spelling, grammar, punctuation, and capitalization, if you’re unsure about something, look it up in a dictionary, a usage book, or another reference work.
 Accuracy – Double –check the spelling of names and the accuracy of dates, addresses, and all numbers (quantities ordered, prices, and so on). It would not do to order 500 staples when you want only 50.
 Distance – If you have time, set the document aside and proofread it the next day.
 Vigilance – Avoid reading large amounts of material in one sitting, and try not to proofread when you’re tired.
 Focus – Concentrate on what you’re doing. Try to block out distractions, and focus as completely as possible on your proofreading task.
 Caution – Take your time. Quick proofreading is not careful proofreading.
Proofreading may require patience, but it adds creditability to your document.
Career Applications :
1. What qualities does a person need to be a good proofreader ? Are such qualities inborn, or can they be learned ?
2. Proofread the following sentence :
application of these methods in stores in San Deigo nd Cinncinati have resulted in a 30 drop in robberies an a 50 percent decling in violence there, according at the developers if the security system, Hanover brothrs, Inc.

CASE NO. 2
ACTIONS SPEAK LOUDER THAN WORDS ALL AROUND
THE WORLD
“He wouldn’t look me in the eye. I found it disconcerting that he kept looking all over the room but rarely at me,” said Barbara Walters after her interview with Libya’s Colonel Muammar al-Qadhafi. Like many people in the United States, Walters was associating eye contact with trustworthiness, so when Qadhafi withheld eye contact, she felt uncomfortable. In fact Qadhafi was paying Walters a compliment. In Libya, not looking conveys respect, and looking straight at a woman is considered nearly as serious as physical assault.
Nonverbal communication varies widely between cultures, even between subcultures, and the differences strongly affect communication in the workplace. Whether you’re trying to communicate with your new Asian American assistant, the Swedish managers who recently bought out your company, the African American college student who won a summer internship with your firm, or representatives from the French company you hope will buy your firm’s new designs, your efforts will depend as much on physical cues as on verbal ones. Most Americans aren’t usually aware of their own nonverbal behavior, so they have trouble understanding the body language of people from other cultures. The list of differences is endless.
 In Thailand it’s rude to place your arm over the back of a chair in which another person is sitting.
 Finnish female students are horrified by Arab girls who want to walk hand in hand with them.
 Canadian listeners nod to signal agreement.
 Japanese listeners nod to indicate only that they have understood.
 British listeners stare at the speaker, blinking their eyes to indicate understanding.
 People in the United States are taught that it’s impolite to stare.
 Saudis accept foreigners in Western business attire but are offended by tight – fitting clothing and by short sleeves.
 Spaniards indicate a receptive friendly handshake by clasping the other person’s forearm to form a double handshake.
 Canadians consider touching any part of the arm above the hand intrusive, except in intimate relationships.
It may take years to adjust your nonverbal communication to other
cultures, but you can choose from many options to help you prepare. Books and seminars on cultural differences are readily available, as are motion pictures showing a wide range of cultures. You can always rent videos of films and TV shows from other countries. Examining the illustrations in news and business magazines can give you an idea of expected business dress and personal space. Finally, remaining flexible and interacting with people from other cultures who are visiting or living in your country will go a long way toward lowering the barriers presented by nonverbal communication.
Career Applications :
1. Explain how watching a movie from another country might help you prepare to interpret nonverbal behavior from that culture correctly.
2. One of your co-workers is originally from Saudi Arabia. You like him, and the two of you work well together. However, he stands so close when you speak with him that it makes you very uncomfortable. Do you tell him of your discomfort, or do you try to cover it up ?
CASE NO. 3
MASTERING THE ART OF CONSTRUCTIVE CRITICISM
To become better writers, people need to be evaluated, but taking criticism
from others is often difficult. The way you tell someone “ You did it wrong” can destroy goodwill and cooperation, or it can build the relationship and help the person learn from the mistake, improve performance, and retain self-esteem. To criticize more constructively, follow these suggestions :
 Get all the facts first : Don’t accept hearsay or rumors.
Find out specifically who did or said what, when, where, why, and how
 Don’t act in haste : Never act while you’re angry. Think things out before you write or speak, and then explain your criticism calmly, rationally, and objectively.
 Phrase your remarks impersonally : Criticize the mistake, not the person. Focus your remarks on the action only, and analyze it thoughtfully.
 Never criticize in an offhand manner : Treat the situation seriously. Take the time to state the problem in detail, explaining what was wrong and why.
 Avoid an abusive tone : Ridiculing someone, talking down to a person, or using sarcasm prevents people from accepting what you have to say.
 Make the offense clear : Don’t talk in generalities. Be specific about exactly what was done wrong.
 Preface the criticism with a kind word or a compliment : Start with a few words of praise or admiration, saying how much you value the person. First the good news, then the bad.
 Supply the answer : Explain how to do things right. Don’t dwell on the mistake, emphasize how to correct it and how to avoid repeating it.
 Ask for cooperation : Don’t demand cooperation. Asking makes the person feel like a team member and provides an incentive to improve.
 Limit yourself to one criticism for each offense : Don’t dredge up or rehash past mistakes. Focus on the current problem.
 End on a friendly note : Don’t conclude by leaving things up in the air, to be discussed again latter. Settle them now, and make the close friendly. Give the other person a pat on the back. Let the last memory of the matter be a good one.
 Forgive and forget : Once the criticism has been made, let the person start with a clean slate. Avoid looking for more mistakes, and give the person a chance to improve.
 Take steps to prevent a recurrence : Follow up to make sure the person is acting on your suggestions and doing things right.
If you follow these guidelines, constructive criticism can benefit you, your company, and – most important – the person you’re criticizing.
Career Applications :
1. Think back over the lessons you’ve learned in life. How did you benefit from some one telling you the truth about something you were doing wrong ?
2. With a partner, role-play a situation in which one of you is the boss and the other an employee. The boss is angry because the employee repeatedly arrives late for work, takes long lunches, and leaves 5 to 10 minutes early. However, the employee’s work is always excellent. After the role-play, analyze what the boss did right and what could be improved.
CASE NO. 4
WHAT YOU MAY LEGALLY SAY IN A SALES LETTER
As you prepare to write your sales letter, think carefully about your choice
of words. False or misleading statements could land you in court, so make sure your language complies with legal and ethical standards. To keep your sales letters within the limits of the law, review the legal considerations of these typical sales phrases :
 “Our product is the best on the market.” – This statement is acceptable for a sales letter because the law permits you to express an opinion about your product. In the process of merchandising a product, statements of opinion are known as “puffery,” which is perfectly legal as long as you make no deceptive or fraudulent claims.
 “Our product will serve you well for many years to come.” This statement from a sales brochure triggered a lawsuit by a disgruntled customer who claimed the manufacturer’s product lasted only a few years. The courts ruled that the statement was an acceptable form of puffery because the manufacturer did not promise that the product would last for a specific number of years.
 “We’re so confident you’ll enjoy our products that we’ve enclosed a sample of our most popular line. This sample can be yours for only $5.00! Please send your payment in the enclosed, prepaid envelope.” If you include a product sample with your sales letter, your readers may keep the merchandise without paying for it. Under the law, consumers may consider unordered goods as gifts. They are not obligated to return the items to you or submit payments for unsolicited merchandise
 “Thousands of high school students – just like you – are already enjoying this fantastic CD collection ! Order before March 1 and save !” If your sales letter appeals to minors, you are legally obligated to honour their contracts. At the same time, however, the law permits minors to cancel their contracts and return the merchandise to you. Sellers are legally obligated to accept contracts voided by minors and any goods returned by them. Legal adult status is defined differently from state to state, ranging from age 18 to age 21.
 “You’ll find hundreds of bargains at our annual scratch and dent’ sale! All sales are final on merchandise marked as is.” When you use the term as is in your sales letter, you are not misleading customers about the quality of your products. By warning consumers that the condition of sales items is less than perfect, you are not legally obligated to issue refunds to customers who complain about defects later on.
Career Applications :
1. Review two sales letters for content. List the “Puffery” statements in each letter.
2. Note any statements in these sales letters that appear questionable to you. Rewrite one of the statements, carefully choosing words that won’t be misleading to consumers.
CASE NO. 5
MINDING YOUR BUSINESS WITH ONLINE REPORTING
Mrs. Fields uses them. Mrs. Paul’s uses them. However, you don’t have to be in the cookie or fish business to work with electronic reports. More and more companies are adopting electronic reports over hard-copy reports to keep employees, managers, investors, and other stakeholders informed.
Computerized cash registers in Mrs. Fields cookie outlets are the heart of a sophisticated reporting system for monitoring and controlling operations. Rather than taking the time to write reports by hand, store managers enter data into the computer system by following report formats on their screen. Then they electronically transmit these reports to corporate headquarters in Park City, Utah. The computer system also serves as a two-way communication device, allowing store and corporate personnel to send messages back and forth in seconds. So Mrs. Fields corporate managers can quickly receive the information they need in order to track sales and productivity trends – and to spot potential problems – in more than 700 outlets around the world.
At Mrs. Paul’s a computerized reporting system allows production managers to continuously monitor and control the yield from the company’s fish – processing operation. The system calculates the production yield using the weight of the fish before it’s processed, the weight if abt scraosm and the weight of the finished fish meals. If the reports show that the actual yield drops below the expected yield, the managers can immediately adjust the equipment to improve the yield. The production managers have instant access to electronic reports at each stage of the operation, so they can find and fix problems more quickly than if they had to wait for printed reports.
FedEx, the well-known package-shipping firm, uses extensive satellite and computer technologies to track the location of every package in the company’s system. Customers can then access electronic reports to monitor the status of their shipments at any time. This tracking system not only helps the company serve its customers better, but it puts valuable information in the hands of customers with a click of the mouse. Like many companies, FedEx posts an electronic copy of its annual report and other corporate informational reports at its website.
As Mrs. Fields, Mrs. Pauls, FedEx, and other companies know, keeping customers, employees, investors, and other stakeholders informed with electronic reports is the only way to do business in the global workplace.

Career Applications
1. What advantages and disadvantages do you see in asking store managers at Mrs. Fields to file electronic troubleshooting reports immediately on the company’s intranet ?
2. What kinds of electronic reports might a company want to post on its website ?


Quantitative Techniques XAVIERS EXAM ANSWER

XAVIER EXAM ANSWER SHEETS PROVIDED. MBA EMBA BMS DMS ANSWERS PROVIDED. DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com

Subject – Principles and Practice of Management

Communicating in a Crisis

Overview Valley High School, situated in Kodaikanal, was established in 1980 and is owned by a well respected charitable trust. It overlooks a lake and is a modern building equipped with state-of-the-art facilities. The total student enrolment is 2000, out of which more than 50% are girls and the rest boys. The students are all from affluent, educated families. The school has established a good reputation for itself, thanks to the consistently good performance of students in the public examinations. The school is headed by a lady Principal and also has a couple of Supervisors and a team of 25 teachers. The teachers have had extensive experience, are well qualified and are known for their commitment to imparting quality education to students. Due to the recent heavy monsoons, the school was faced with the problem of flooding, with water entering the rooms on the ground floor and water seepage on the terrace. Since repair work had to be done, the school had to be closed for a couple of weeks. The work was carried out by reputed contractors, but the building still looks a little run down.
The crisis the school had just reopened after this two week break. The same morning, a fire suddenly broke out on the third floor and spread to other floors, blocking the stairways. There was widespread panic, as the children started jumping off the balconies, injuring themselves in the process. The Principal and staff had a tough time trying to calm down the children and take control of the situation. Fire engines were called and several of them arrived and began their fire fighting operations. In the meanwhile, many parents also arrived and tried to enter the building to speak to the Principal. The phones were ringing continuously. There was total chaos.

Question 1 :- How communication crises arise?
Question 2 :- What Principal should do to calm down the angry parents?
Question 3 :- How school will regain its reputation? What services school should provide in order to maintain its reputation?

Case Study 2

Case Study on The power of Non-Verbal Communication

The Power of Nonverbal Communication Soon after I graduated from engineering college, I accepted a position with the Sundaram Foundry, a medium-sized firm located in a small town in Tamil Nadu. It was a good position, since I was the assistant to Mr. Vishwanath, the General Manager and president of this family owned company, although there were many technical problems, the work was extremely interesting and I soon learnt all about the foundry business. The foundry workers were mostly older men and were a closely knit team. Many of them were related and had been in the foundry for several years. Therefore, they felt that they knew the business in and out and that a technical education had no value. In fact, Mr. Vishwanath had mentioned to me even at the time of my joining, that I was the only engineer ever to be employed in the foundry. He also let me know that the foundry workers, although a good group, were very clannish, since they had been working together for several years. Therefore, it would probably take them some time to accept me. I introduced myself to the group of foundry workers, a few days after my joining. As I went around in turn, I felt them eyeing me coldly. As I went down the main aisle of the foundry, I heard them talking to each other in low voices and laughing. I found their behavior to be very childish and felt that it was best to ignore these signs of hostility. I thought that if I ignored them, they would automatically stop these antics. A few weeks after this incident, I happened to visit the enamel shop. As I entered, I noticed a worker cleaning the floor with a hose, from which water flowed at high pressure. I was aware that it was the practice to clean the shop at least once a week. I turned my back on the worker and was busy near a dipping tank, when I suddenly felt the force of a stream of water hitting me. I was almost knocked down by the pressure and slipped on the wet floor. When I turned around, the worker looked away in the other direction, as if he had not noticed this happening. However, I was pretty sure that he had intentionally turned the hose on me.

Question 1 – What message did the foundry workers and the new engineer convey to each other through their non-verbal behavior?

Question 2 – Mr. Vishwanath, the General Manager and President, was not often present at the foundry. What could this non-verbal behavior mean to the workers and the new engineer?

Question 3. How could the engineer, the foundry workers and Mr. Vishwanath be more effective, both verbally and nonverbally?

Question 4. What do you suggest that the engineer should do, after the hosing incident?

Case Study 3

BS GETS A D-PLUS ON DIVERSITY FROM MULTIETHNIC COALITOIN

On February 3, 2000, President and CEO of CBS Leslie Moonves signed a pact with Kweisi Mfume, president and CEO of the national association for advancement of colored people (NAACP), who had joined forces with the Hispanic media coalition, and the American Indians in film and television to request the CBS help to increase Indians in film and television to request that CBS help to increase ethnic presence in the television industry. The agreement stipulated the CBS would increase minority participation both on and off screen by June 30.

In April 2000, CBS announced the appointment of Josie Thomas to the newly created position of senior vice president of Diversity at CBS Television. Her job was to improve outreach and recruitment, hiring, promotion, and monitoring practices in all divisions of CBS. That fall Moonves announced that 16 of the 21 CBS shows, including news magazines, would prominently feature minorities. “We think we are a leader in this area,” Moonves said “We think we are ahead of the curves”

Despite Mooves’s Statement that as “broadcasters, we believe strongly that it is our duty to reflect the public that makes up our viewing audience,” there were many who did not feel the company was sincere in its efforts to improve hiring practices. The national Hispanic Foundation for the Arts criticized CBS for not scheduling “American Family,” A pilot drama about middle – class Hispanic family. Moonves said “American Family” simply did not fit in CBS’s schedule, since there were already too many strong dramas planned. He said he took the unusual step of allowing the show’s producer to pitch the CBS-developed networks but no one picked it up. Meanwhile, the June 30 deadline had come and gone without much outward sign of change at CBS television.

Josie Thomas is committed to CBS’s new mandate for multicultural diversity. Twelve of CBS’ prime time series will have minorities in permanent roles and other series will have minority in recurring role. Fore of the network’s shows- C.S.I., the district, the fugitive and welcome to New York have minorities in leading roles.

Since signing the agreement, CBS has established a strong working relationship with national minority supplier council in order to help minority supplier council and women’s businesses. The company has bolstered its internship program to include paid internships on the west coast, pairing up interns with their areas of interest, Such as finance or entertainment. There are 10 minority interns in the program. Moreover, CBS has now made diversity a factor in employee job performance evaluation. “Each area of the network has developed a detailed plan for diversity,” said Thomas. “Manager will be reviewed with respect to their diversity efforts and that will be a factor in compensation decisions.” Ms. Thomas noted that Ghen Maynard, an Asian American Pacific Islander, had just been promoted form director to vice president of alternative programming for the entertainment division.

“Will all believe there is a long way to go,” Thomas said. “What I have found is there are some things that already exist that are positive, such as news magazines having minority anchors. We think ‘city of angels’ renewal was an important step. The ratings were mediocre to low, and we did feel the program was a risk. It says a lot about our commitment”

In June 2001, the coalition gave the Big 4 Broadcast Networks (all of whom had signed an agreement) a report card for their efforts to diversity shows on – air and behind the scenes. CBS got a D-plus.

Mr. Nogales, of the National Hispanic Media Coalition, said he was disappointed “We expect progress; we signed for progress” “The numbers in comparison to last year actually look better” Nogales says. “There have been gains for people of color. There was movement. But it has to be movement across the board, not just for one group.” He is referring to the fact that most of the gains have been made by black actors, writes and producers. Black actors appear as regular in at least 19 of the six major networks’30 new prime-time series. Hispanics shows up in only eight, Asians in five and Native Americans in one.

The pressure being put on the networks- including threats of “boycott” and legal action – is having results. At CBS the number of minority writers and producer has more than tripled, from four to fourteen, including six executive or co executive producer however, obstacles to a fully integrated future remain serious-particularly because of misconceptions about the nature of the television audience and about the way pop culture works. Network executive worry that “ghetto shows” might promote stereotypes. They wonder if shows like The cosby show are “black” enough. Then again, they think that casting too many minorities may drive white viewers away. Some network executives are afraid to cast minority actors in “negative” roles because they may be criticized for it minority writers, who have been getting more work lately, wonder if they are not just “tokens”; and despite some progress it is still almost impossible for Hispanic actor to get non- Hispanic roles.

Both the NAACP and the coalition have been battling discrimination for years. CBS is just finding out that a profound change toward pluralism can take place only with true insight on the part of management. CBS spokesperson Chris Ender says “We have made tremendous strides to increase diversity on screen, behind the camera and in the executive suites. However we certainly recognize that more can be done and more will be done.”

As far as Nogales is concerned. “It’s still a white guy’s world,” and the june 2001 statics for network television prove he is right.

Questions
Question 1:- What advantages would accrue to CBS if it becomes a more diverse workplace?

Question 2:- Where would you have placed CBS on the organizational diversity continuum and where would you place CBS now? Why?

Question 3:- Which approach (es) to pluralism best sums up the diversity policy that is being developed at CBS? Explain

Question 4:- How do the attitudes of management at CBS as depicted in your case study affect the company’s progress toward forming a more diverse workforce? Explain.

Case Study 4

McDonald’s Listening Campaign

At the end of 2002, the world’s largest quick service retailer made its first ever quarterly loss and faced a number of challenges. It responded by launching its Plan to Win program, part of a global strategy to modernize the business, followed by the Listening Campaign in the UK. Here, Ali Carruthers explains how the two initiatives were linked in the UK, and the impact The Listening Campaign has had on communication, culture, image and media perception.

In 2003, things were looking bleak for McDonald’s. Its share price was the lowest it had been in a decade and it faced a series of seemingly insurmountable problems: It was demonized by the UK media in the fierce debate raging over obesity; it faced huge competition on the high street; and it was suffering under a wave of Anti-Americanism in the wake of the wars in Afghanistan and Iraq.
Added to this was the fact that the restaurants themselves were beginning to look dated and UK health lobbyists were determined to push home the message that McDonald’s food was bad for people.
Speaking earlier this year to the BBC, the UK CEO Peter Beresford said: “We had taken our eye off the customer, we were not customer focused, we were not customer driven. And so we reorganized and regrouped. We decided we had to stop and take stock of where we were. We had to be better, but we had to change the way we were running this business.”
The Plan to Win
The senior management put their heads together and devised the Plan to Win program, which went public in the last quarter of 2003. A key part of its focus was a shift to more choice and variety foods, with salads appearing permanently on the menu for the first time in the organization’s history. Key restaurants began to receive make over and a supporting advertising campaign with international stars was planned, all of which were intended to turn the food chain’s image around.
But just as things were beginning to look up for the organization, trouble raised its head again in the shape of the documentary film “Supersize me,” which in turn re-ignited the obesity debate in the media. It was then discovered that one of the salads McDonald’s was marketing contained more calories than one of its hamburgers. The UK press reacted with predictable glee and once again McDonald’s was in the spotlight for all the wrong reasons.
The Listening Campaign. The company responded promptly. Working with agency Blue Rubicon, the in-house communication and media relations team devised the Listening Campaign. It made the most of the arrival of new UK CEO Peter Beresford in July 2004, building on his personal credibility and that of McDonald’s with the Listening Tour. Beresford spoke directly to customers in focus groups, met with franchise holders and with employees in 12 UK cities over the space of six weeks, starting at the end of October.
The key ingredient was listening to customers and staff and then showing the results of this. “Part of the reason [for doing it] was that we had to introduce Peter very quickly to employees, customers and stakeholders,” says head of internal communications AIi Carruthers. “It was also signaling that he’d continue to work to change our culture and lead the drive for a real transparency of approach. We’ve been building on that work ever since.”
Focus groups for stakeholders

The communication team made the most of Beresford’s time by booking ahead so that local franchisees could meet him when he travelled to regional centers for customer focus groups. Next, Listening Groups were created for the company’s regional offices with corporate rather than restaurant-based employees taking part. Initial meetings were centered around three classic focus group questions:
* What works?
* What would you change?
* How would you change it?
In each session, six to 10 employees took part and the sessions lasted around two hours. After the first session, an action plan was drawn up and fed back to the employees in a second round of focus groups. Then the agreed proposed changes were put in place by the organization.
Proposed changes put in place
A range of short, medium and long term actions have been instigated as a result of the focus groups. These include a firm commitment to hold monthly town-hall sessions to regularly address key issues within the organization. “We’ve agreed to use these sessions to feature various departmental heads,” says Carruthers.
“That’s so people can put names to faces, understand the organizational structure better and get an understanding of what goes on outside their own departments.” The company has also committed itself to involving a new group of employees every six months, and to being more transparent about its promotion process and how people are assessed for promotion. It now holds regular Plan to Win meetings, which are related to the global strategy. “We’re using the town-hall sessions to communicate the global strategy to thebroader office group rather than just senior management so there’s a wider understanding of what we’re doing,” says Carruthers.
The company has also committed to a peer-nominated quarterly recognition scheme for the regional and head offices. It’s planned that the town halls will also be used in the recognition scheme. “People need to say well done to each other and be acknowledged by the senior team,” says Carruthers.
A change in company culture
According to Carruthers, the strategy has been recognized globally – a drive for greater face-to-face communication, more transparency, a growth in leadership behavior and accountability. “Basically we’ve been trying to make people feel they’re able to ask questions,” she says. “There’s nothing wrong with challenging the status quo as long as it’s done in a constructive and respectful way. If we can use some of those ideas we can probably make it a more enjoyable place for everyone to work.”
There’s no doubt that the Listening Campaign has had an impact on the senior team and general employees alike. Carruthers has had feedback from both groups and believes the exercise has been an eye-opener for the senior team: “They frequently mention experiences they’ve had in those groups. There’s nothing quite like hearing issues for yourself; the good ones and the more awkward ones.”
The feedback from focus-group participants has been very good; employees say they feel listened to and think their feedback is being taken on board. “They feel confident to ask questions or send e-mails directly to people they thought wouldn’t have listened to their suggestions previously. It’s changing the culture. Anything that builds trust and transparency is good. Now it’s about delivering on the changes that we said we’d make.”
A hotline to the CEO
A hotline to the CEO has made the company’s drive for transparency and commitment to employees even more credible. The “Ask Peter” e-mail address was established when Beresford took up his post and has seen a fair amount of traffic. “It’s word of mouth – people see that it’s well responded to,” says Carruthers. She sees it as important to be straight with employees about how e-mails are dealt with and who sees them. “We’re very up-front about the fact that I see all e-mails as well as Peter, but if we forward them to other departments, they’ll be anonymous.”
A combination of high and low technology adds to the feeling of personal contact: Beresford will often answer e-mails with a hand-written reply. In one famous instance he replied to nearly 100 in one week. “It doesn’t always happen that way, but it’s these things that make a difference. People see it’s coming from him and it’s quite a personal touch.”
Committing to communication, A new round of Listening focus groups with fresh employees is due to kick off in October. The whole cycle of questions, action-planning and feedback will be replayed. “We’re working with a new group of employees because we want to keep changing and avoid having a formalized council of volunteers,” says Carruthers. “They’ll look at what they think has happened so far, whether anything could have been done differently and then we’ll hold a review of the proposals.”
It’s a genuine commitment to keep the focus groups running on an ongoing basis. Carruthers is also expecting that the flexibility and fresh new faces will ensure that new topics arise: “They’re things that inevitably come up along the way and get added to the agenda for change. We just need to follow them through and then tell people the results.”
The results
Since Beresford’s Listening Tour there’s been a turnaround in the media coverage of McDonald’s, which has been much more positive. The Listening Campaign is changing the internal culture of the company and its focus group cycles are becoming permanent two-way communication channels.
Results back in August this year from the last employee survey showed that internal communication is now ranked by employees as number four out of 25 departments. “The communications strategy has helped people become aware of who we are and what we do,” says Carruthers. The Listening Campaign has also helped McDonald’s raise its profile externally, as it was nominated in this year’s UK Chartered Institute of Public Relations Excellence Awards and short-listed for Best Use of Media Relations in the PR Week Awards.

Questions

Question1. Based on this case, develop guidelines for improving communication with each of different stakeholders, through better listening.

Question 2:- What are the essentials for the effective communication?

Question 3:- Write about McDonald marketing plan which they have implemented for the success?

Question 4:- Do the SWOT analysis of following:-

McDonald
Food Industry

Quantitative Techniques

Please attempt any one question out of section A and any 10 questions out of Section B. The section A is for 20 Marks and Section B is for 80 Marks (8 Marks X 10 Questions)
Total Marks – 100
Section A

1. Distinguish between decision making under certainty and decision making under uncertainty. Mention certain methods for solving decision problems under uncertainty. Discuss how these methods can be applied to solve decision problems.

2. Distinguish between probability and non-probability sampling. Elucidate the reasons for the use of non-probability sampling in many situations in spite of its theoretical weaknesses.

3. What are models? Discuss the role of models in decision-making. How can you classify models on the basis of behavior characteristics?

4. What are matrices? How are determinants different from matrices? Discuss few applications of matrices in business.

Section B
Write short notes on any ten of the following:
(a) Concept of Maxima and Minima
(b) Types of classification of data
(c) Pascal Distribution
(d) Multi-stage sampling & Multi-phase sampling
(e) Box-Jenkins Models for Time Series
(f) Determinant of a Square Matrix
(g) Primary and Secondary Data
(h) Bernoulli Process
(i) The Student’s t Distribution
(j) Use of Auto-correlations in identifying Time Series
(K) Absolute value function
(l) Quantiles
(m) Criteria of pessimism in decision theory
(n) Cluster vs. Stratum
(o) Moving average models

(p) Step function
(q) More than type ogive
(r) Subjectivist’s criterion in decision making
(s) Double sampling
(t) Auto regressive models


BUSINESS COMMUNICATION XAVIER ANSWER SHEET

COURSE: MBA

SUB: BUSINESS COMMUNICATION XAVIER ANSWER SHEET

N. B. : All cases are Compulsory.

CASE NO. 1

How to Proofread like a Pro :

Tips for creating the Perfect Document

You’ve carefully revised and polished your document, and it’s been sent off to the word-processing department or a designer to be put into final form. You can breathe a sigh of relief, but only for the moment : You’ll still be proofreading what comes out of the printer. To ensure that any document is error-free, always proofread the final version. Following are some hints to help make your proofreading more effective.

§ Multiple passes – Go through the document several times, focusing on a different aspect each time. The first pass might be to look for omissions and errors in content; the second pass could be for layout, spacing, and other aesthetic features; a final pass might be to check for typographical, grammatical, and spelling errors.

§ Perceptual tricks – Your brain has been trained to ignore transposed letters, improper capitalization, and misplaced punctuation. Try (1) reading each page from the bottom to the top (starting at the last word in each line,) (2) Placing your finger under each word and reading it silently, (3) making a slit in a sheet of paper that reveals only one line of type at a time, and (4) reading the document aloud and pronouncing each word carefully.

§ Impartial reviews – Have a friend or colleague proofread the document for you. Others are likely to catch mistakes that you continually fail to notice. (All of us have blind spots when it comes to reviewing our own work)

§ Typos – Look for the most common typographical errors (typos): transposition (such as teb), substitution (such as economic), and omission (such as productivity)

§ Mechanics – When looking for errors in spelling, grammar, punctuation, and capitalization, if you’re unsure about something, look it up in a dictionary, a usage book, or another reference work.

§ Accuracy – Double –check the spelling of names and the accuracy of dates, addresses, and all numbers (quantities ordered, prices, and so on). It would not do to order 500 staples when you want only 50.

§ Distance – If you have time, set the document aside and proofread it the next day.

§ Vigilance – Avoid reading large amounts of material in one sitting, and try not to proofread when you’re tired.

§ Focus – Concentrate on what you’re doing. Try to block out distractions, and focus as completely as possible on your proofreading task.

§ Caution – Take your time. Quick proofreading is not careful proofreading.

Proofreading may require patience, but it adds creditability to your document.

Career Applications :

1. What qualities does a person need to be a good proofreader ? Are such qualities inborn, or can they be learned ?

2. Proofread the following sentence :

application of these methods in stores in San Deigo nd Cinncinati have resulted in a 30 drop in robberies an a 50 percent decling in violence there, according at the developers if the security system, Hanover brothrs, Inc.

CASE NO. 2

ACTIONS SPEAK LOUDER THAN WORDS ALL AROUND

THE WORLD

“He wouldn’t look me in the eye. I found it disconcerting that he kept looking all over the room but rarely at me,” said Barbara Walters after her interview with Libya’s Colonel Muammar al-Qadhafi. Like many people in the United States, Walters was associating eye contact with trustworthiness, so when Qadhafi withheld eye contact, she felt uncomfortable. In fact Qadhafi was paying Walters a compliment. In Libya, not looking conveys respect, and looking straight at a woman is considered nearly as serious as physical assault.

Nonverbal communication varies widely between cultures, even between subcultures, and the differences strongly affect communication in the workplace. Whether you’re trying to communicate with your new Asian American assistant, the Swedish managers who recently bought out your company, the African American college student who won a summer internship with your firm, or representatives from the French company you hope will buy your firm’s new designs, your efforts will depend as much on physical cues as on verbal ones. Most Americans aren’t usually aware of their own nonverbal behavior, so they have trouble understanding the body language of people from other cultures. The list of differences is endless.

§ In Thailand it’s rude to place your arm over the back of a chair in which another person is sitting.

§ Finnish female students are horrified by Arab girls who want to walk hand in hand with them.

§ Canadian listeners nod to signal agreement.

§ Japanese listeners nod to indicate only that they have understood.

§ British listeners stare at the speaker, blinking their eyes to indicate understanding.

§ People in the United States are taught that it’s impolite to stare.

§ Saudis accept foreigners in Western business attire but are offended by tight – fitting clothing and by short sleeves.

§ Spaniards indicate a receptive friendly handshake by clasping the other person’s forearm to form a double handshake.

§ Canadians consider touching any part of the arm above the hand intrusive, except in intimate relationships.

It may take years to adjust your nonverbal communication to other

cultures, but you can choose from many options to help you prepare. Books and seminars on cultural differences are readily available, as are motion pictures showing a wide range of cultures. You can always rent videos of films and TV shows from other countries. Examining the illustrations in news and business magazines can give you an idea of expected business dress and personal space. Finally, remaining flexible and interacting with people from other cultures who are visiting or living in your country will go a long way toward lowering the barriers presented by nonverbal communication.

Career Applications :

1. Explain how watching a movie from another country might help you prepare to interpret nonverbal behavior from that culture correctly.

2. One of your co-workers is originally from Saudi Arabia. You like him, and the two of you work well together. However, he stands so close when you speak with him that it makes you very uncomfortable. Do you tell him of your discomfort, or do you try to cover it up ?

CASE NO. 3

MASTERING THE ART OF CONSTRUCTIVE CRITICISM

To become better writers, people need to be evaluated, but taking criticism

from others is often difficult. The way you tell someone “ You did it wrong” can destroy goodwill and cooperation, or it can build the relationship and help the person learn from the mistake, improve performance, and retain self-esteem. To criticize more constructively, follow these suggestions :

§ Get all the facts first : Don’t accept hearsay or rumors.

Find out specifically who did or said what, when, where, why, and how

§ Don’t act in haste : Never act while you’re angry. Think things out before you write or speak, and then explain your criticism calmly, rationally, and objectively.

§ Phrase your remarks impersonally : Criticize the mistake, not the person. Focus your remarks on the action only, and analyze it thoughtfully.

§ Never criticize in an offhand manner : Treat the situation seriously. Take the time to state the problem in detail, explaining what was wrong and why.

§ Avoid an abusive tone : Ridiculing someone, talking down to a person, or using sarcasm prevents people from accepting what you have to say.

§ Make the offense clear : Don’t talk in generalities. Be specific about exactly what was done wrong.

§ Preface the criticism with a kind word or a compliment : Start with a few words of praise or admiration, saying how much you value the person. First the good news, then the bad.

§ Supply the answer : Explain how to do things right. Don’t dwell on the mistake, emphasize how to correct it and how to avoid repeating it.

§ Ask for cooperation : Don’t demand cooperation. Asking makes the person feel like a team member and provides an incentive to improve.

§ Limit yourself to one criticism for each offense : Don’t dredge up or rehash past mistakes. Focus on the current problem.

§ End on a friendly note : Don’t conclude by leaving things up in the air, to be discussed again latter. Settle them now, and make the close friendly. Give the other person a pat on the back. Let the last memory of the matter be a good one.

§ Forgive and forget : Once the criticism has been made, let the person start with a clean slate. Avoid looking for more mistakes, and give the person a chance to improve.

§ Take steps to prevent a recurrence : Follow up to make sure the person is acting on your suggestions and doing things right.

If you follow these guidelines, constructive criticism can benefit you, your company, and – most important – the person you’re criticizing.

Career Applications :

1. Think back over the lessons you’ve learned in life. How did you benefit from some one telling you the truth about something you were doing wrong ?

2. With a partner, role-play a situation in which one of you is the boss and the other an employee. The boss is angry because the employee repeatedly arrives late for work, takes long lunches, and leaves 5 to 10 minutes early. However, the employee’s work is always excellent. After the role-play, analyze what the boss did right and what could be improved.

CASE NO. 4

WHAT YOU MAY LEGALLY SAY IN A SALES LETTER

As you prepare to write your sales letter, think carefully about your choice

of words. False or misleading statements could land you in court, so make sure your language complies with legal and ethical standards. To keep your sales letters within the limits of the law, review the legal considerations of these typical sales phrases :

§ “Our product is the best on the market.” – This statement is acceptable for a sales letter because the law permits you to express an opinion about your product. In the process of merchandising a product, statements of opinion are known as “puffery,” which is perfectly legal as long as you make no deceptive or fraudulent claims.

§ “Our product will serve you well for many years to come.” This statement from a sales brochure triggered a lawsuit by a disgruntled customer who claimed the manufacturer’s product lasted only a few years. The courts ruled that the statement was an acceptable form of puffery because the manufacturer did not promise that the product would last for a specific number of years.

§ “We’re so confident you’ll enjoy our products that we’ve enclosed a sample of our most popular line. This sample can be yours for only $5.00! Please send your payment in the enclosed, prepaid envelope.” If you include a product sample with your sales letter, your readers may keep the merchandise without paying for it. Under the law, consumers may consider unordered goods as gifts. They are not obligated to return the items to you or submit payments for unsolicited merchandise

§ “Thousands of high school students – just like you – are already enjoying this fantastic CD collection ! Order before March 1 and save !” If your sales letter appeals to minors, you are legally obligated to honour their contracts. At the same time, however, the law permits minors to cancel their contracts and return the merchandise to you. Sellers are legally obligated to accept contracts voided by minors and any goods returned by them. Legal adult status is defined differently from state to state, ranging from age 18 to age 21.

§ “You’ll find hundreds of bargains at our annual scratch and dent’ sale! All sales are final on merchandise marked as is.” When you use the term as is in your sales letter, you are not misleading customers about the quality of your products. By warning consumers that the condition of sales items is less than perfect, you are not legally obligated to issue refunds to customers who complain about defects later on.

Career Applications :

1. Review two sales letters for content. List the “Puffery” statements in each letter.

2. Note any statements in these sales letters that appear questionable to you. Rewrite one of the statements, carefully choosing words that won’t be misleading to consumers.

CASE NO. 5

MINDING YOUR BUSINESS WITH ONLINE REPORTING

Mrs. Fields uses them. Mrs. Paul’s uses them. However, you don’t have to be in the cookie or fish business to work with electronic reports. More and more companies are adopting electronic reports over hard-copy reports to keep employees, managers, investors, and other stakeholders informed.

Computerized cash registers in Mrs. Fields cookie outlets are the heart of a sophisticated reporting system for monitoring and controlling operations. Rather than taking the time to write reports by hand, store managers enter data into the computer system by following report formats on their screen. Then they electronically transmit these reports to corporate headquarters in Park City, Utah. The computer system also serves as a two-way communication device, allowing store and corporate personnel to send messages back and forth in seconds. So Mrs. Fields corporate managers can quickly receive the information they need in order to track sales and productivity trends – and to spot potential problems – in more than 700 outlets around the world.

At Mrs. Paul’s a computerized reporting system allows production managers to continuously monitor and control the yield from the company’s fish – processing operation. The system calculates the production yield using the weight of the fish before it’s processed, the weight if abt scraosm and the weight of the finished fish meals. If the reports show that the actual yield drops below the expected yield, the managers can immediately adjust the equipment to improve the yield. The production managers have instant access to electronic reports at each stage of the operation, so they can find and fix problems more quickly than if they had to wait for printed reports.

FedEx, the well-known package-shipping firm, uses extensive satellite and computer technologies to track the location of every package in the company’s system. Customers can then access electronic reports to monitor the status of their shipments at any time. This tracking system not only helps the company serve its customers better, but it puts valuable information in the hands of customers with a click of the mouse. Like many companies, FedEx posts an electronic copy of its annual report and other corporate informational reports at its website.

As Mrs. Fields, Mrs. Pauls, FedEx, and other companies know, keeping customers, employees, investors, and other stakeholders informed with electronic reports is the only way to do business in the global workplace.

Career Applications

1. What advantages and disadvantages do you see in asking store managers at Mrs. Fields to file electronic troubleshooting reports immediately on the company’s intranet ?

2. What kinds of electronic reports might a company want to post on its website ?

Human Resource Management

(i) There are three Sections A and B and C.

(ii) Attempt any three questions each from Section A and B. All questions carry 10 marks each.

(iii) Section C is compulsory for all and carries 40 marks.

SECTION A

1. Define and differentiate between Job Analysis, Job Description and Job Evaluation. Select an appropriate job evaluation method and create a plan for evaluating jobs of scientists in different grades.

2. Discuss the role of indoctrination in organizations. How can Performance Appraisal, and Training and Development be made an integral part of Human Resource Planning? Discuss.

3. Discuss the scope of Human Resource Audit. While auditing Reward systems for employees in a manufacturing organization, which factors should be taken into account and why? Explain with suitable examples.

4. Define and discuss the need for Human Resource Planning in an organization. Briefly discuss various approaches to HRP

5. Write short notes on any three of the following:

(a) Training methods

(b) Value determinants of HRP

(c) Human Resource accounting

(d) Labour Market Behavior

(e) Promotion and Reward Policies

SECTION B

1. Define and discuss the objectives of Human Resource Planning at organizational level. How does it help in determining and evaluating future organizational capabilities, needs and anticipated problems? Explain with suitable examples.

2. Define and describe Job Analysis. Briefly discuss several methods in which information about a job is collected and evaluated.

3. What is the purpose and process of recruitment function? Discuss various methods of sourcing manpower.

4. How is monetary value assigned to different dimensions of Human Resources costs, investments, and worth of the employees? Briefly explain Cost and Economic value approaches of measurement.

5. Write short notes on any three of the following :

(a) MBO

(b) Succession Planning

(c) Competency Mapping

(d) Job Evaluation

(e) H.R. Inventory

SECTION C

1. Quality control Department

Read the case given below and answer the questions given at the end.

Mr. Kapil Kumar and Mr. Abbas Ali were working in a scooter manufacturing public sector industry as Senior Quality Control Engineers in 1988. One post of Deputy Chief Quality Controller has fallen vacant due to the retirement of the incumbent and the management decided to recruit a qualified, knowledgeable and experienced professional from outside so that the present quality standard may be improved thus ensuring better marketability of their scooters in the face of stiff competition. Mr. Kapil Kumar, who was a mechanical engineer with about 15 years experience in the Quality Control Department dealing with mopeds and scooters, could have been promoted to fill the post on the basis of seniority. However, the management was looking for a graduate in statistics with experience in latest Quality Control (QC) techniques like statistical quality control, quality assurance and other related areas rather than a mechanical or automobile engineer with the routine experience in quality control. As such instead of promoting Kapil Kumar, the management advertised for the post of Deputy Chief Quality Controller – since as per company rules it was DR (Direct Recruitment) vacancy also.

Selection of Outsider

Out of the applications received in response to the advertisement, six candidates were called for interview including the two internal candidates, Mr. Kapil Kumar and Mr. Abbas Ali. The person selected was an outsider, one Mr. Ratnam, who had over 12 years experience SQC, quality assurance etc., in the two-wheeler private manufacturing industry. Mr. Ratnam joined within 2 months time expecting that in his new position he would be the main controller for quality. However, after joining the organization he came to know that he would be the second senior most person in the hierarchy for controlling the quality and would be reporting to one, Kirpal Sing,. The Chief for Quality Controls. Mr. Kirpal Singh had come up to this post by seniority and was basically a diploma holder in automobile engineering. He had to his credit about 28 years of industrial experience, out of which 20 years were spent in Quality Control Department of two industries. He joined the present organization in its Quality Control Department and had 17 years experience in the organization and was due for retirement within the next 2 or 3 years. On learning about the retirement time of Mr. Kirpal Singh, Mt. Ratnam had the consolation that he would be able to take up the position of ‘Chief Controller of Quality’ very soon.

Interference from Top

Ratnam could not put forth many good suggestions (for quality control) because of the interference and direct supervision of Kirpal Singh. He, however, could pick up a good deal of knowledge about the working of the company, the nature-and tendency of different production department heads particularly with regard to care for quality, organization for ‘QC’ in the company, the various components required for assembly of the company’s two-wheeler scooter and the expected quality standards, drawback in the present system of quality controls. etc.

Right from the time the advertisement for the selection of Deputy Chief Quality Controller appeared, the O.A. (Officers Association) of the organization had been pressing the management to consider the case of Kapil Kumar for promotion to the above post based on his seniority in the organization.

Meanwhile, the management obtained a license in 1989 for producing Three-Wheeler Autos. As a result of this and the pressure from O.A., Ratnam was transferred to look after the Quality Control Department at the company’s new Three-Wheeler plant, whereas Kapil Kumar was promoted as Deputy Chief Quality Controller in the present two-wheeler scooter plant in 1990 (after creating one additional post of Deputy Chief Quality Controller for the new Project).

In 1991, the State Government, which controlled the company in question, changed the Managing Director. During the regime of this new Managing Director, Kapil Kumar was promoted as Chief (Quality Controls) next year, when Kirpal Singh retired. This decision was based on the recommendations of Kirpal Singh and partly attributed to pressure from O.A., for further promotion of Kapil Kumar based on his vast experience in the Quality Control function of this industry. Abbas Ali rose to the position held earlier by Kapil Kumar.

Allotment of Company Quarters

The Company had its own township near the factory. Its quarter allotment scheme was based on the length of service, i.e., date of joining. Ratnam had asked for a suitable quarter at the time of interview and was thus allotted a tile quarter meant for the Senior Engineer’s cadre. He learnt about this, after occupying the quarter. Ratnam asked for a change of Quarter – preferably a RCC-roof quarter, – but his request was turned down, since he had put in only few months of service whereas many others senior to him, on the beds of their longer length of service in the Company (having over 10 years service), were staying in tiled-roof quarters and were awaiting a chance for a RCC-roof quarter. Kapil Kumar and Abbas Ali were residing in RCC-roof quarters. Soon after Kapil Kumar’s promotion to the post of Chief (Quality Controls), he was allotted a bungalow.

The management’s decision in this case must be viewed in the context of the downtrend in the demand for scooters and three-wheeler autos during 1993 following complaints from dealers about the deteriorating quality of components as also their short life. Notably the complaints had risen ten-fold in that year as compared to that in 1988.

Questions

(a) Was the management justified in taking a decision to recruit a qualified and experienced person from outside as Deputy Chief Quality Controller?

(b) Was it in the interest of the organization to transfer Ratnam to the new auto-wheeler plant and promote Kapil Kumar? What could have prompted the management to take this decision?

(c) How do you view the role of O.A.s in supporting only the local and internal candidates and overlooking the interests of direct recruits even when they were family members of the Association, particularly at a time, when the industry needed professionally qualified persons to fill key technical posts?

(d) How would you react to the management’s scheme for quarter allotment and why?

2. Pearl Engineering

Pearl Engineering Company was a large heavy-engineering unit. It attached great importance to the recruitment and training of its senior supervisors. Apart from selecting them from within the organization, the company recruited, every. Alternate year, about ten young engineering graduates and offered them training for a period of two years, before they were appointed as senior supervisors. Such appointments were made to about 40 per cent of the vacancies of senior supervisors that occurred in the organization. This was considered necessary by management as a planned programme of imparting vitality to the organization. Besides, many of the old-timers, who had risen from the ranks, did not possess the necessary academic background with the result that they could not keep pace with the technological changes. Management also believed that in the rapidly changing conditions of industry, a bank of technically competent supervisors played a pivotal role, besides serving as a pool from which to select future departmental managers.

Engineering Graduates were selected from amongst those who applied in response to an all-India advertisement. For the selection of one engineer, on an average, eight applicants were called for interview. A selection committee consisting of the General Manager, the Production Manager, the Personnel Manager and the Training Officer interviewed and selected the candidates. The selection interview was preceded by a written test and only those who secured 40 per cent marks qualified for interview.

The engineers thus selected had to undergo a two year intensive theoretical and practical training. A well-staffed and equipped Training Institute was directly responsible for the training of the graduate engineers, besides training trade apprentices and operatives required by the company. Lectures on theoretical subjects were given at the Training Institute and practical training was imparted in all the works departments under the guidance of qualified and experienced instructors. A few lectures by senior officers of the company were also arranged to acquaint them with the company policies on different matters. During the last quarter of their two-year training programme they were deputed to work fulltime to familiarize themselves with the conditions in departments where they were to be absorbed eventually.

On successful completion of training, the graduate engineers were offered appointments, depending on their performance and aptitude as revealed during training. On placement in the work departments, however, most of them faced some difficulty or the other.

According to management, some of the heads of departments, who were themselves not qualified engineers, did not have sufficient confidence in these younger men. They preferred the subordinates who came up from the ranks to hold positions of responsibility. A few discredited them saying that it would take years before these youngsters could pick up the job. Besides, some of the employees, whose promotional opportunities were adversely affected by the placement of graduate engineers, tried their best to run down the latter as a class, sometimes working on the group feelings of the workers. Some of the supervisors who were not graduate engineers also spoke derisively of them as “the blue-eyed boys” of the organization. Management knew that many of the graduate engineers were not utilized according to their capacity or training, nor was any attempt made to test or develop their potentialities. They also knew that many of the graduate engineers were, therefore, dissatisfied with their work life. Some of them who did not get equal promotional opportunities as their colleagues placed in other departments, were looking for better jobs elsewhere.

On the other hand, according to management, the young graduate engineers were themselves partly responsible for the hostile attitude of others in the organization. Some of them failed to appreciate that a newcomer invited hostility in the beginning and it took time before he was accepted as a member of the work-group. They did not realize that they would be fully productive only after gaining about five to seven years experience in the organization. A few thought that they belonged to a superior cadre and threw their weight around. They did not bother to understand and appreciate the problems of the rank-and-file of employees who worked under them.

In spite of these drawback, the General Manager of the company felt that these men were a set of disciplined supervisors. They had a sense of pride in their profession, and with the extensive training they had received, they would be able to take up any responsible position in the organization in course of time.

The General Manager could not allow the situation to continue especially when it was a difficult and costly process to recruit and train young engineering graduates of the requisite type and caliber. He knew that the prosperity of the company, to a large extent, depended on these young men. In addition, a large number of lucrative employment opportunities were available to these young engineers elsewhere and there was a systematic raid on them, He, therefore, called a meeting of all heads of departments to review the situation.

Questions:

(i) Identify the issues related to manpower planning as evident in the case.

(ii) Discuss the strategies to tackle the percentage of internal promotion at the organizational level.

(iii)What type of additional training programmes should be imparted for direct entrants?

(iv) Suppose you are the head of the personnel division. What would be your suggestions in the meeting – Which has been called by the General Manager?


PRINCIPLES & PRACTICE OF MANAGEMENT XAVIERS

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Xaviers Institute of Business Management Studies

Principles & Practice of Management

Marks – 80

(Please attempt any 4 of the below mentioned case studies. Each Case study is for 20 marks)

Read the following case and answer the questions given at the end of the case.
LOSING A GOOD MAN
Sundar Steel Limited was a medium-sized steel company manufacturing special steels of various types and grades. It employed 5,000 workers and 450 executives.
Under the General Manager operation, maintenance, and headed by a chief. The Chief of and under him Mukherjee Maintenance Engineer. The total was 500 workers, 25 executives, (Production), there were services groups, each Maintenance was Shukla was working as the strength of Maintenance and 50 supervisors.
Chatterjee was working in Maintenance as a worker for three years. He was efficient. He had initiative and drive. He performed his duties in a near perfect manner. He was a man of proven technical ability with utmost drive and dash. He was promoted as Supervisor. Chattejee, now a Supervisor, was one day passing through the Maintenance Shop on his routine inspection. He found a certain worker sitting idle. He pulled him up for this. The worker retaliated by abusing him with filthy words. With a grim face and utter frustration, Chatterjee reported the matter to Mukherjee. The worker who insulted Chatterjee was a “notorious character” , and no supervisor dared to confront him. Mukherjee took a serious view of the incident and served a strong warning letter to the worker. Nothing very particular about Chatterjee or from him came to the knowledge of Mukherjee. Things were moving smoothly. Chatterjee was getting along well with others But after about three years, another serious incident took place. A worker came drunk to duty, began playing cards, and using very filthy language. When Chatterjee strongly objected to this, the worker got up and slapped Chatterjee. Later, the worker went to his union – and reported that Chatterjee had assaulted him while he was performing his duties.
Chatterjee had no idea that the situation would take such a turn. He, therefore, never bothered to report the matter to his boss or collect evidence in support of his case.
The union took the case to Shukla and prevailed over him to take stern action against Chatterjee. Shukla instructed Mukherjee to demote Chatterjee to the rank of a worker. Mukherjee expressed his apprehension that in such a case Chatterjee will be of no use to the department, and. the demotion would adversely affect the morale of all sincere and efficient supervisors. But Chatterjee was demoted.
Chatterjee continued working in the organisation with all his efficiency, competence, and ability for two months. Then he resigned stating that he had secured better employment elsewhere. Mukherjee was perturbed at this turn of events. While placing Chatterjee’s resignation letter before Shukla, he expressed deep concern at this development.
Shukla called Chief of Personnel for advice on this delicate issue. The Chief of Personnel said, “l think the incident should help us to appreciate the essential qualification required for a successful supervisor. An honest and hardworking man need not necessarily prove to be an effective supervisor. Something more is required for this as he has to get things done rather than do himself.” Mukherjee said, “l have a high opinion of Chatterjee. He proved his technical competence and was sincere at his work. Given some guidance on how to deal, with the type of persons he had to work with, the sad situation could h.ave been avoided.” Shukla said, “l am really sorry to lose Chatterjee, He was very honest and painstaking in his work. But I do not know how I could have helped him; I wonder how he always managed to get into trouble with workers. we know they are illiterates and some of them are tough. But a supervisor must have the ability and presence of mind to deal with such men. I have numerous supervisors, but I never had to teach anybody how to supervise his men.”
Questions:
(a) Identify the problems in this case.
(b) Do you think the decision taken by shukla is in keeping with the faith, trust and creating developmental climate in the organisation? Critically evaluate
(c) How would you help in improving rough and tough behavior of employees?

Read the following case and answer the questions given at the end.
ABC manufacturing
The ABC Manufacturing Company is a metal working plant under the direction of a plant manager who is known as a strict disciplinarian. One day a foreman noticed Bhola, one of the workers, at the time-clock punching out two cards his own and the card of Nathu, a fellow worker. Since it was the rule of the company that each man must punch out his own card, the foreman asked Bhola to accompany him to the Personnel Director, who interpreted the incident as a direct violation of a rule and gave immediate notice of discharge to both workers. The two workers came to see the Personnel Director on the following day. Nathu claimed innocence on the ground that he had not asked for his card to be punched and did not know at the time that it was being punched. He had been offered a ride by a friend who had already punched out and who could not wait for him to go through the punch-out procedure. Nathu was worried about his wife who was ill at home and was anxious to reach home as quickly as possible. He planned to take his card to the foreman the next morning for reinstatement, a provision sometimes exercised in such cases. These circumstances were verified by Bhola. He claimed that he had punched Nathu’s card the same time he punched his own, not being conscious of any wrongdoing.
The Personnel Director was inclined to believe the story of the two men but did not feel he could reverse the action taken. He recognized that these men were good workers and had good records prior to this incident. Nevertheless, they had violated a rule for which the penalty was immediate discharge. He also reminded them that it was the policy of the company to enforce the rules without exception.
A few days later the Personnel Director, the Plant Manager, and the Sales Manager sat together at lunch. The Sales Manager reported that he was faced with the necessity of notifying one of their best customers that his order must be delayed because of the liability of one department to conform to schedule. The department in question was the one from which the two workers had been discharged. Not only had it been impossible to replace these men to date, but disgruntlement over the incident had led to significant decline in the cooperation of the other workers. The Personnel Director and the Sales Manager took the position that the discha rge of these two valuable men could have been avoided if there had been provision for onsidering the circumstances of the case. They pointed out that the incident was costly to the company in the possible loss of a customer, in the dissatisfaction within the employee group, and in the time and money that would be involved in recruiting and training replacements. The Plant Manager could not agree with this point of view. “We must have rules if we are to have efficiency; and the rules are no god unless we enforce them. Furthermore, if we start considering all these variations in circumstances, we will find ourselves loaded down with everybody thinking he is an exception.” He admitted that the grievances were frequent but countered with the point that they could be of little consequence if the contract agreed to by the union was followed to the letter.
Questions
(a) Identify the core issues in the case
(b) Place yourself in the position of the Personnel Director. Which of the following courses of action would you have chosen and why?
(i) Would you have discharged both men?
(ii) Would you have discharged Bhola only?
(iii) Would you have discharged Nathu only?
(iv) Would you have discharged neither of them? Justify your choice of decision.
(c) What policy and procedural changes would you recommend for handling such cases in future?

Read the case and answer the questions given at the end of the case.
PK Mills

PK Mills manufactures woolen clothes. Over the years, it has earned an envious reputation in the market. People associate PK Mills with high quality woolen garments. Most of the existing employees have joined the company long back and are nearing retirement stage. The process of replacing these old employees with younger ones, drawn from the nearby areas, has already begun. Recently, the quality of the garments has deteriorated considerably. Though the company employs the best material that is available, the workmanship has gone down. Consequently, the company has lost its customers in the surrounding areas to a great extent. The company stands, in the eyes of general public, depreciated and devalued. The production manager, in a frantic bid to recover lost ground, held several meetings with his staff but all in vain. The problem, of course, has its roots in the production department itself. The young workers have started resisting the bureaucratic rules and regulations vehemently. The hatred against regimentation and tight control is total. The old workers, on the verge of retirement, say that conditions have changed considerably in recent years. In. The days gone by, they say, they were guided by a process of self-control in place of bureaucratic control. Each worker did his work diligently and honestly under the old set-up. In an attempt to restructure the organizational set-up, the managers who have been appointed afterwards brought about radical changes. Workers under the new contract had very little freedom in the workplace. They are expected to bend their will to rules and regulations. Witnessing the difference between the two ‘cultures’ the young workers, naturally, began to oppose the regulatory mechanism devised by top management. The pent-up feelings of frustration and resentment against management, like a gathering storm, have resulted in volcanic eruptions leading to violent arguments between young workers and foremen on the shop-floor. In the process production has suffered, both quantitatively and qualitatively. The production manager in an attempt to weather out the storm, is seriously thinking of bringing about a radical change in the control process that is prevailing now in the organization.
Questions:
(a) What are the core issues the case?
(b) Do you agree with the statement “The problem, of course, has its roots in the production department itself”? Reason out your stand.
(c) Critically evaluate the finding that old supervisors complain and new workers to resist any type of control.
(d) What type of control system would you suggest to the company to improve the production?

The AB Steel Plant

The Vice President for Production at the AB Steel Plant was giving the Production Department Manager, Mr. Singh, a hard time for not doing anything about his work group which was perpetually coming late to work and was behind schedule in the performance quotas for several months now. The vice President’s contention was that if the production’ crew was consistently tardy, the production process was delayed by about 15 minutes on an average per member per day, and this was no way for the department to meet the assigned quotas. “They are losing about 6 to 8 hours of production time per member per month, and you don’t seem one bit concerned about it,” he yelled at the manager. He added that he was pretty upset about the ‘lax management style’ of the manager and very clearly stated that unless the manager did something about the tardiness problem, another manager who can manage the crew effectively’ will have to be found.
Mr. Singh knows that he has an able and good group of workers but he also realizes that they are bored with their work and do not have enough incentives to meet the production quotas. Hence, they seem to respond to the situation by taking it easy and coming late to work by a few minutes every day. Mr. Singh has also noticed that they were taking turns leaving the workplace a few minutes early in the evenings. Even though Singh was aware of this, entire he pretended not to notice the irregularities and was satisfied that once the workers started their work, they were pretty good at their jobs and often helped to meet rush orders whenever they knew that Mr. Singh was in a bind.
Questions:
(a) What do you think is the real, problem in this case?
(b) How do you perceive the stand of Mr. Singh? Analyze critically.
(c) What intervention should Mr. Singh use to rectify the type, of situation he is presently confronted with? Discuss giving the reasons.
(d) Discuss the implications of effecting them with your recommendations.

Dealing with an Employee’s Problem

Ms. Renu had graduated with a degree in foreign languages. As the child of a military family, she had visited many parts of the world and had travelled extensively in Europe. Despite these broadening experiences, she had never given much thought to a career until her recent divorce.
Needing to provide her own income, Ms. Renu began to look for work. After a fairly intense but unsuccessful search for a job related to her foreign language degree, she began to evaluate her other skills. She had become a proficient typist in college and decided to look into secretarial work. Although she still wanted a career utilizing her foreign language skills, she felt that the immediate financial pressures would be eased in a temporary secretarial position.
Within a short period fo time, she was hired as a clerk/typist in a typical pool at Life Insurance Company. Six months later, she became the top typist in the pool and and was assigned as secretary to Mrs. Khan’ manager of marketing research. She was pleased to get out of the pool and to get a job that had more variety in the tasks to perform. Besides, she also got a nice raise in pay.
Everything seemed to proceed well for the next nine months. Mrs. Khan was pleased with Renu’s work, and she seemed happy with her work. Renu applied for a few other more professional jobs in other areas during this time. However, each time her application was rejected for lack of related education and/or experience in the area.
Over the next few months, Khan noticed changes in Renu. She did not always dress as neatly as she had in the past, she was occasionally late for work, some of her lunches extended to two hours, and most of her productive work was done in the morning hours. Khan did not wish to say anything because Renu had been doing an excellent job and her job tasks still were being accomplished on time. However, Renu’s job behavior continued to worsen. She began to be absent frequently on Mondays or Fridays. The two-hour lunch periods became standard, and her work performance began to deteriorate. In addition, Khan began to suspect that Renu was drinking heavily, due to her appearance some mornings and behavior after two-hour lunches.
Khan decided that she must confront Renu with the problem. However, she wanted to find a way to held her without losing a valuable employee. Before she could set up a meeting, Renu burst through her floor after lunch one day and said:
“I want to talk to you Mrs. Khan”
“That’s fine,” Khan replied. “Shall we set a convenient time?”
“No! I want to talk now.”
“OK, why don’t you sit down and let’s talk?”
Khan noticed that Renu was slurring her words slightly and she was not too steady.
“Mrs. Khan, I need some vacation time.”
“I’m sure we can work that out. You’ve been with company for over a year and have two weeks’ vacation coming.”
“No, you don’t understand. I want to start it tomorrow.”
“But, Renu, we need to plan to get a temporary replacement. We can’t just let your job go for two weeks”.
“Why not? Anyway anyone with an IQ above 50 can do my job. Besides, I need the time off. ”
“Renu, are you sure you are all right ?”
“Yes, I just need some time away from the job.”
Khan decided to let Renu have the vacation, which would allow her some time to decide what to do about the situation.
Khan thought about the situation the next couple of days. It was possible that Renu was an alcoholic.
However, she also seemed to have a negative reaction to her job. Maybe Renu was bored with her job. She did not have the experience or job skills to move to a different type of job at present. Khan decided to meet with the Personnel Manager and get some help developing her options to deal with Renu’s problem.
Questions:
(a) What is the problem in your opinion? Elaborate.
(b) How would you explain the behavior of Renu and Mrs. Khan? Did Mrs. Khan handle the situation timely and properly?
(c) Assume that you are the Personnel Manager. What are the alternatives available with Mrs. Khan?
(d) What do you consider the best alternative? Why?

Xaviers Institute of Business Management Studies

SHIPPING MANAGEMENT
Maximum marks: 80
PART A — (2 ´ 10 = 20 marks)
Answer any TWO questions.
1. What is turnaround time?
2. List out the elements of dock safety.
3. What is meant by intermodal connectivity of ports?
4. What are performance indicators? Give examples.
5. Explain briefly about ISPS code.

PART B — (4 ´ 15 = 60 marks)
Answer any FOUR questions.
6. Explain the factors affecting development of a port.
7. Explain the functions of stakeholders of a port.
8. Outline the factors affecting terminal productivity.
9. Explain in detail about green field projects.
10. Outline the various features of container terminal.
11. Outline the environmental issues connected with ports.
12. Explain in detail why inland waterways need to be developed for sustainable economic development.
——–––––––––


MARKETING MANAGEMENT XAVIERS

XAVIER EXAM ANSWER SHEETS PROVIDED. MBA EMBA BMS DMS ANSWERS PROVIDED. DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com

Xaviers Institute of Business Management Studies
MARKS : 80

SUB: Marketing Management

N. B. : 1) Attempt all Four Case studies
2) All questions carry equal marks.

Case study 1

Case Study on Segmentation, Targeting & Positioning

Profiles Group is a leading interior decorator and designer in the country. Mr. Neerav Gupta, one of the partners in the group has invested a good amount of money in the business. The other two partners namely Mr. Pratham Gupta who is a distant cousin of Neerav and Mr. Dev Suri are mainly into managing the firm’s country wide operations. Mr. Stanley Pereira, who is more of a sleeping partner, looks after the administrative and financial aspects of the firm.
Profiles Group has around 44 service centers in the country including state capitals and several developing cities. Since the firm’s inception in 1998, its progress has been unstoppable. The clients include many reputed companies, hotel chains, popular celebrities and even hospitals and commercial banks.

A brief background of the Partners:
Neerav Gupta had a family owned business that was into manufacturing wooden furniture but Neerav‟s interest was more into decorating. So, after completing a Master’s course in interior designing from a reputed college abroad, he decided to start his own interior design services. Meanwhile, the furniture manufacturing business was handed over to Pratham Gupta due to property and family settlement issues. But, Pratham decided to join Neerav and they both started a partnership firm.
Dev Suri, a friend of Neerav who had been living abroad, sold out his real estate business and had decided to settle on the Indian soil itself. He offered help by providing additional capital and his knowledge of real estates did help the firm although in a small way. Stanley Pereira, an experienced teacher and consultant, had worked previously in leading interior designing colleges and was instrumental in making required changes in syllabus structure and interior designing courses. He has also written many books and articles on the topic. He had retired early due to family commitments but landed up in Profiles Group as a Partner through mutual contacts.

The conversation:
All the four partners are comfortably sitting face to face on a peach colored cushioned sofa which is situated near the window corner inside Neerav’s well-structured office.
Pratham Gupta feels that since their firm has invested large funds, they must enter into more market segments especially the smaller ones. And, regarding this issue, a professional conversation takes place among the partners. The talks are as follows:
Pratham: “So, what do you think about expanding our market segments to smaller more ordinary markets?”
Stanley: “What are you exactly trying to say, Pratham? Will you explain it?”
Pratham: “Listen guys, right now, we have 44 centers and competent people to work under us, but when we see our customer base, it looks small and limited. What I mean to say is that we also need to have those individual household customers who are looking for service expertise in this field. Most household customers don’t get the necessary information as to how to go about the interiors or how to decorate their home/offices etc.”
Neerav: “I agree with your points Pratham, but don‟t you think if we have to reach the smaller segments of the market, we need a different approach to cater to their needs. We would have to advertise and communicate to these segments in a customised way. This will increase the promotion budget and our focus on the existing customers may be compromised.” Dev: “I think we need to get a balance here. Pratham‟s points are valid enough and it will make Profiles group more productive. If need be, we may have to take help of a service consultancy in order to penetrate deeper markets.”
Stanley: “Okay… so, even if we allocate these segments, we need to target them in a way where we will know the immediate impact of these segments. We have to position in such manner that we get this customer base to keep moving towards us… however, the problem lies in the demand for our product in these segments!”
Pratham: “What is that problem you are talking about, Stanley?”
Stanley: “I will tell the problem, we know our product… but these individual customer segments will see our product as a one time purchase… Interiors and designing is done by a household customer at one point… very rarely, he will seek for a change or improvement. So, is it acceptable that we cater to their one time need and then let go?”
Neerav: “I do understand that point… But, that’s always the case in our business. Interior decorations and designs are usually considered one-time expenditure by household customers…. and as a matter of fact, that has not affected the way we do our business or on our returns.”
Pratham: “See, even otherwise it should not affect our firm because individual customer segments are willing to pay or spend on interiors. If they need a good, comfortable home along with a neat set of furniture then why don’t we cater to that need, even if it’s a one time demand from a particular customer? This is exactly what I meant earlier when I said, given the expertise we have, why don’t we use it to expand our customer base? Of course, we may have to develop suitable pricing strategies, promotion strategies for these market segments which is according to me, not a big thing to do.”
Dev: “Let’s first consult with our marketing hero and ask their opinion or suggestions as well”
Dev takes out his cell phone to dial Mr. Sunil’s number and he immediately gets the connection. Sunil is the head of the marketing section and he is very efficient in his job. He also has an acceptable humour quotient. Dev asks Sunil to come over to Neerav’s office.

Sunil enters the office:
Sunil: “What’s up, Bosses?”
Dev gives a brief explanation to Sunil about the potential market.
Sunil: “that’s a welcome sign actually… we have the necessary resources and we are available to any customer at any given point… So, I think it‟s a good idea that we update our customer profiles also… Only thing is we have to make sure we are targeting and positioning our customer segment in the way they feel comfortable to approach us…”
Pratham: “Nicely said Sunil… You are our man in this task…. We rely on you to make our markets bigger and customer segments broader…”
Sunil: “Always thinking in the interests of Profiles Group, Mr. Gupta… Not to worry… You tell me the confirmed plans and leave the execution on me…”
Neerav: “Well, what can I say? If we are sure about managing the newer segments which is existing out there, then our work is just to target them and position our product as per the given requirements”
Dev: “There is one important suggestion I would like to present here…. We need to ensure that we properly differentiate our existing customers from the newer ones so that we are not overriding one another or our customers don’t feel compromised at any point.”
Stanley: “That’s a really valuable suggestion, Dev… I completely agree with this point”
Sunil: “Me too… Mr. Suri has stated an absolute theory… But, it’s not that we can’t take the benefits from the two and use it for our purpose… Somewhere, we can link the newer segments with the existing ones and gradually Profiles Group will mean the same to every one. That is however applicable in the long term… For now, we need to attend our customer base on a one-to-one basis… So, we do it slow and steady”
Neerav: “Sunil, I don’t understand, but whenever you speak you visualize the big picture as well… I admire your quality and also that you are very loyal to Profiles Group”
Sunil: “Anytime Mr. Gupta, I am at your service….Just give the command and it will be done”
All of them laugh at that comment and decide to have an official meeting regarding the Segmenting, Targeting and Positioning strategies for the potential market. Within a month, the scheduled meeting is done with the involvement of key people and various points are noted down for implementation.
The marketing team after a brainstorming session also comes up with a collective idea about introducing Re-decorating and re-designing to be offered as a part of Profile’s group’s services. This meant that clients or customers can think about re-designing or re-decorating their homes/offices with the already available possessions and existing furniture. This also meant less cost to the clients. This idea was taken up seriously and plans to implement such services were already underway.

The Progress:
The next six months in the Profiles Group has made everyone busy with different tasks and agendas to be accomplished. Sunil is the busiest person around and he is actively engaged in marketing activities related to the targeting and positioning of their product to the new customer base.
Very soon, the results are noticeable in the Profiles Group. After a considerable amount of planning and hard work, the subsequent months showed positive results as given below:
 The markets are segmented based on the income level of the household customers
 Their needs, wants and demands are analyzed
 These markets are targeted based on their desire, willingness and capabilities to attain the required interiors and furnishings.
 Sunil headed a separate section namely Re-designing and Re-decorating Services at the firm’s main office. Sunil was immediately involved in making special centers for Re-designing and re-decorating services in different parts of the country.
 Marketing section was taken over by a competent person – Ms. Sneha Agarwal who has over 8 years of experience in interior designing. She was chosen on the recommendation of Stanley Pereira as Sneha had been a merit student previously and Stanley had been her teacher.
 Neerav had even managed to get some MNC‟s as the firm’s clients.
 Positioning of Profiles Group’s product and services was done in three ways –
 For the already existing customer base which include the corporate and business houses, film industry and celebrities and other big units who spend huge amounts on the interior decorations.
 For the newer segments also termed as the individual household segments who have limited spending abilities but have a desire for elegant interiors at reasonable rates.
 For the collective market – re-design and re-decor services were offered.
 The structure of the firm’s web-site was made more user-friendly and included several videos showing how proper layout and interiors increased efficiency, easy movement, allowed more lighting and ventilation and created a feeling of well-being and comfort.
 A CD was also launched which included these videos and the necessary information of the Profile’s firm with the contact addresses and numbers. The CD also included interview with certain well-known clients who were highly satisfied with the firm’s services. This established trust and good communication in the market.
 Soon enough, the firm launches into environmental friendly interiors and develops „Go Green‟ initiatives that uses more re-cycled and renewable substances.
 There was a plan to begin annual contests and games which involved household customer segments to give their ideas or suggestions for a well laid out interiors using eco-friendly materials and “Go-Green‟ initiatives.

The Partners and the interview:
It’s been two years now since Profile’s Group had moved into individual household segments.
All four partners are seated on the sofa inside Neerav‟s office except this time the sofa is of cream shade and a press reporter namely Namitha Goel is sitting on a single sofa across them. Namitha Goel had scheduled this interview and later will be published in the “Living Designs”, a new monthly magazine that deals with interiors. She begins with a direct question to Neerav –
Namitha: “Mr. Neerav Gupta, do you think the reason for the substantial increase in your customer base is due to the Redesign and re-decoration services?
Neerav: “Well, to a considerable extent, I believe it is so. Re-design is not about my taste or your taste. It’s about working with what the client owns and making them happy. Most people are good in re-arranging their stuff but they don’t have time or energy to do it. So, we offer them this assistance.”
Namitha: “How come you got this thought about making these household segments as your customers? I mean, your firm is associated with the influential clientele base and considering that, why did you feel that these household segments would prove to be a lucrative market for you?”
Neerav: “The entire credit for making individual household segments as our customers goes to my business partners here, my workforce and their efforts. Around two and a half years back, we had just got into a conversation in this very same office and Pratham suggested about tapping these markets with our available resources. Let me clarify that we decided to target this segment not for profits but we felt they too would benefit from our expertise in this field.”
Namitha: “According to the market survey, it seems that there is no close competitor for you in this business. So, your firm stands at the top like it’s been from a long time. What do you say in this matter?”
Neerav is about to answer but his cell phone rings and he attends to it quickly.
Neerav: “Excuse me, Ms. Namitha.., I have urgent business call that can’t wait…, Carry on with your questions and my team mates will answer. I have to go now.” He addresses his partners and leaves the office in a hurry.
The interview proceeds and remaining partners contribute their views. The interview takes another 45 minutes and Namitha Goel is satisfied with her work as a press reporter. She leaves the Profile’s Group office with a sense of achievement.
The next month’s issue of “Living Designs” carries the cover story of the Profiles Group with the partners‟ exclusive interview placed in the shaded column of the magazine pages.

Questions: 1 Examine the progress of Profile’s Group as a leading interior designer and decorator.
Questions: 2 What kind of change was observed in the STP strategy of the firm and how was it useful?
Questions: 3 Evaluate the working of Profile’s group with respect to the Segmenting, Targeting and Positioning of markets. Do you have any suggestions for the firm?

Case study 2
Determining the Marketing 4 P’s

Any business organization in order to be successful needs to have a clear picture about the 4 P’s of marketing. This forms the basis on which business functioning takes place. What are these 4 P’s and why are they important? Let’s assume that we are interested to start up a small business enterprise and for that we have the necessary capital, skills and people. And now, since we are in the initial stage of enterprise formation, we need to answer the previous question.
Marketing mix comprises of the four basic elements or components which are termed together as 4 P’s of marketing. They are:
Product: what is it that we have to offer to the market? What can it include? In what ways can it be modified, changed, expanded, diversified etc.? Will our products be accepted in the market? If not, how do we create a market for our products?
Price: at what value should the products be offered in the market? What should be the returns? Will it be worth to the buyers? What variations, differences and strategies can we adopt in order to earn a fair margin and also gain customer satisfaction?
Place: where must be our products available? How soon it’s demanded in the market? How quick we can deliver it to the consumption points? Who do we need to involve in the distribution of our products? How much will they charge for their services?
Promotion: why do we need to promote our products? Will people be aware of our products if we don’t do any promotion? If we need to promote our products, what kind of message we should convey to the market? In what ways and methods we can carry out the promotion?
Unless we know the answers to the above questions, we cannot make our business function. Therefore, after considering the strengths and weakness of our likely enterprise and studying the market opportunities, we decide to manufacture wax crayons.

The main reason behind this decision is –
1. We can come up with an effective 4 P’s either by marketing the crayons ourselves and if not, we can take orders by being the suppliers to our clients.
2. We know that our market mainly comprises of educational institutions, drawing and painting classes/centers, artistes, even big companies use crayons extensively.
3. We realize the potential of wax crayons as we can offer variety in sizes, quality, colors, price ranges, wholesale and retail prices etc. We can even venture into related areas such as wax artic rafts, wax candles, oil colors, paint etc.
4. We can have direct contact with our clients and in the long term we can even engage an agency to market the crayons.
5. We know that promotion strategies can be based on the type of our customer segment and we could easily do it through advertising on Television, newspapers, children’s comics, notebooks, school notice boards, etc. We can even sponsor or conduct drawing competitions, art exhibitions or we can have contractual agreements with the stationery outlets, art schools etc. However, we are still apprehensive about our marketing mix. We are yet to confirm about our marketing mix and until then we are unable to finalize on our decisions or start with the implementation process.

Question 1.How will you determine the marketing mix for our enterprise?
Question 2.Do you have any ideas to make our enterprise successful particularly by enhancing or improving the marketing mix?
Question 3.What do you think will be the challenges in making an effective marketing mix since our enterprise is a new one?

Case study 3

Good Publicity vs. Bad Publicity

Roger Twain walked as usual with a pleasant aura and at a leisurely pace to his office. Roger is a PR Manager in one of the top FMCG companies of the world. His office along with the PR staff was recently shifted from sixth floor to the second floor of the building. The reason was simple enough. Top management did not want external parties to wander around the whole building in the excuse of meeting PR staff or the PR manager. Roger Twain in fact, welcomed this shift and was glad that he didn’t have to wait for the lift as he could now very well use the staircase. Roger has around 15 years of experience in PR and handling Publicity related issues. He had worked with several companies as well as non-business organisations and institutes.
Roger currently in his 53rd year has achieved lot of success in his career as a professional expert in the field of PR and Publicity handling. Although his plans to start his own PR Consultancy firm didn’t work out the way he wanted, he was actively involved in several worldwide workshops, seminars and presentations. He even wrote articles on PR strategies and published some books on PR. Roger’s ideologies as a PR professional was –

 “No News is not good news… You have to be in the news – good or bad. And, the objective should
be to convert bad news into good news.”
 “You cannot create bad news about your company. At the same time, you cannot create a good one. You can only communicate it in good or bad way.”
 “PR is about being in the news – time and date don’t matter much.”
 “It’s not about being right or wrong – it’s about being clear and sticking to the truth and using it positively.”
 “Everyone has a right to express… But, a PR person should consider it as a righteous Duty”
 “Your Company can show only performance. PR has to talk about it.”

A few of his career achievements in the different organizations that he worked for are as follows:

Problem Situation 1: Some of the cosmetic products of Jasper Ltd. were selling in the market beyond its expiry date. A media report exposed and presented this story to the public that Jasper Ltd. was desperate to increase its sales and did not consider consumers’ interests or their well-being. This led to decrease in sales volume even in the other product categories of the company. Due to incorrect operations of some channel members and retail outlets, old stock was sold to the consumers after the expiry dates. The outcome was Jasper Ltd.’s low profit margins.
Challenge: Roger’s challenge was to make consumers more aware and responsible while purchasing the company’s products without ruining the distribution channel relations and at the same time making the company socially responsible.

Solution: Roger suggested to the advertising department to create a public awareness ad regarding the importance of checking product expiry dates before buying. He advised the management to take back old stock from the retail outlets and distributors by offering a reasonable price and also prescribing the time limit within which those products should reach the company. Roger’s view was that distributors will mostly see their benefit and continue to sell the old stock. If they sell it back to the company itself for a price, they would definitely make an effort to get the new stock and sell those to the consumers. Roger’s logic was “it is better to spend some money on getting back the old stock than let it sell in the market at the risk of company’s reputation.” Meanwhile, consumers will also be aware about expiry dates of cosmetics when they buy it.

Problem situation 2: Acorn Seeds Company’s assistant finance manager was involved in some fraudulent activity and was accused of misappropriation of funds. This news became public and soon enough, company’s investors and stakeholders began to question the integrity and trustworthiness of the company. Company found it difficult to convince people that one person’s immoral intentions does not mean that everyone in the company is beyond trust and moral obligations. Furthermore, company’s products and services got severely affected and consumers started opting for competing products. There was bad publicity all around. Sales declined and situation got worse when finance manager unable to handle pressure resigned. Even though finance manager was not involved with his assistant, he was linked with him and given a bad treatment from outsiders even including some of the employees. Media accelerated this issue and created more hype than was necessary.
Challenge: Roger’s challenges in this situation was handling bad press, dealing with media people with patience and uplift the company’s integrity with good reputation. He also needed to make the financial department integrated with other departments and boost the employee morale. At the same time he had to take care that company’s products do not suffer in the situation.
Solution: Roger suggested to the top management to issue a public message in the newspapers/magazines and also at the end of the Company’s product ads on TV. The message was – “We value your trust in us as you value our commitment towards you.” Roger’s view was that once the fraud was committed and was out in the open, there was nothing much to be done but to move on accepting that such incident occurred and will not happen again. Roger also advised for just one press conference regarding this issue to put an end to this matter. The assistant finance manager had confessed and was told to resign instead of being fired. Soon enough, people forgave and forgot this issue, sales improved and company was on the track once again.

Problem Situation 3: One of the women’s facial creams produced by Jasper Ltd. was severely criticised by media and women. The belief was that the product contained acidic substance causing harmful chemical reactions on the skin. This belief was created when some women claimed that their skin discoloured/scalded after using this facial cream. Media reports provided some facts related to the product that made women who were using this cream more alert. As a result sales dropped drastically.

Challenge: First of all, Roger had to study the product and know its constituents. Secondly, he discussed with product research team as to why such claims could be targeted towards the product. Next, he had to face the media and women consumers addressing the claims and product’s safety.

Solution: Roger collected those facts provided in the media reports and sent them for verification with the skin specialists, research team and for laboratory testing. It was verified and proved that facts provided were immaterial in causing damaged skin. It was also proved that the cream contained no acidic