ANSWER
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9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE:
www.casestudyandprojectreports.com
ORGANIZATIONAL BEHAVIOUR
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CASE STUDY -1 (20 Marks)
Introduction: XYZ -An Organizational Perspective
The Pre-OD Scenario: Our Strengths and Areas of Concern
In the years 1990-91 XYZ had grown into the largest Indian HARDWARE company with revenues
of over Rs. 1100 crores and racing towards achieving its vision of being global top ten. As pioneers in
the industry, XYZ¡¦s strengths included on time delivery, premier position in the industry in terms of
revenues, focus on training programs, quality initiatives, use of good technical tools and procedures
and encouragement of individual excellence in performance.However, XYZ¡¦s was also, at that point in
time, grappling with a few areas of concern with regard to its operational paradigm.
Mounting revenue pressures: The pressure to retain its strong premier position led the organization to
tend towards short-term revenues, and relatively lesser efforts were being put into medium and longterm
markets and activities (such as products and building up knowledge). Though XYZ¡¦s built
relationships with individual customers, Relationship Managers largely tended to focus on obtaining
short-term projects ¡V there was lesser investment on aligning to long-term objectives of customers. The
approach, by and large, was of reactive project management and we were yet to espouse the approach
of architecting proactive solutions for the customer.
Selectivity in projects: There was a tangible tension at, XYZ¡¦s between generating revenues and
organizing strategically, on basis of technology and business areas, impacting selectivity in projects
accepted. Pressures from customers on schedules was resulting in faster delivery and hence,
snowballing into further pressure on future schedules.
Focus on specialization: There was diffusion of expertise and we were yet to focus on building
strategic expertise in individual centers. Employees were rotated across domains and skills in the
interest of learn ability as well as for meeting requirements. In a sense, there was heightened focus on
Voice of the Customer, in comparison to the Voice of Employee.
Efforts on Experimentation & Innovation: The management at XYZ¡¦s felt that by and large,
employees tended to go straight by the book. Though Dr. De Bono¡¦s techniques were introduced and
employees trained on these techniques to encourage innovation, there was a need to scale up on
perceived rewards for experimentation.
Rewards and Recognitions: The reward structure at XYZ¡¦s was, at this point in time, primarily
focused on individual performance and we were yet to explore the institutionalization of team based
rewards at the organizational level.
Inter group co-ordination & knowledge sharing: Sharing of knowledge was very centre-oriented,
and although, informally, best practices spread by interaction and word of mouth, we were yet to
evolve a formal system which would capture these for ease of replication across projects. Multiple
centers and multiple projects within the same centre ended up resolving the same sort of issues,
resulting in avoidable rework.
Branding and PR: Image building endeavors were not yet an area of focus and, in a subtle way, this
affected the sense of pride of employees. Among educational institutions, this meant greater difficulty
in terms of attracting quality talent, which further aggravated stress among the few key performers in
the organization. By the year 2002, management felt the conscious need to bring in changes in our
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approach to the aforementioned areas, in order to align more closely with the customer, business and
market requirements at an organizational level.
Questions
1 List the various reasons in Organization xyz , which lead to its development?
2 If the organization had not invested in its employee, would they have developed?
3 Site few examples of Indian companies, similar to XYZ mentioned above?
4 What would have been the drawback of the XYZ Company prior to 1991?
CASE -2 (20 Marks)
The Great US Meltdown: Privatization of Profits, Nationalization of Losses
AIG, Bear Stearns, Freddie Mac & Fannie Mae required government bail-outs. Lehmann Brothers has
filed for bankruptcy. Merrill Lynch has been sold. Such grave situation of affairs reflects immense
failures in respect of management, leadership and regulation of these firms. The government, like a
knight-in-shining-armor, comes to the rescue and lends bail-outs worth a trillion dollars to these
companies. Consider the fact that only 12 countries in this world have a GDP more than $ 1 Trillion
and a country of more than 1 Billion joined this elite club only last year. This act of bailing-out using
taxpayer's money has been rightly called "The Bail-out of all Bail-outs". Also this raises serious
questions on the way money has been used to protect private companies, which was supposed to be
used for benefits of the society by large.
These bail-outs would certainly be a bitter pill to swallow for all those who argued that free market
capitalism was the best, and there should be no regulations at all in an unfettered market. And this idea
has been most certainly put to rest in the last few days with the US government curbing short-selling
and offering guarantees to money market mutual funds on 19th of last month, as it attempted to bailout
hundreds of billions of dollars mortgage debts. This follows the bail-out of three financial giants
early last month. The stocks soared in response to these actions. Though this certainly re-affirms the
requirement for regulations, but the question arises as to what extent this marks a shift towards more
interventions.
It is a fact supported by many leading economists that history suggests that policy makers demand deregulation
during good times and bailing out in a big way at the times of crisis.
The present action does address the short-term problems of liquidity crisis and mid-term problem of
dealing with bad assets, but on the longer term regulatory issue, there is no strategic plan in place and
that is really problematic. What is required is a complete overhaul of present regulations and not just
more regulations. Moreover, the government rushed to rescue these firms without trying many of the
private sector solutions.
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Questions
1 Is it fine to privatize profits and nationalize losses, is it right for organizational development ?
2 Was this a result of failure of leadership of these firms?
CASE - 3 (20 Marks)
Tata Cummins Limited (TCL) is a 50-50 joint venture between Tata Motors and Cummins Engine
Co., Inc., USA. Tata Motors is the largest manufacturer of commercial vehicles in India, and Cummins
Engine Co. is the largest 200+ HP diesel engine manufacturer in the world. The Joint Venture was
incorporated in October 1993 and commercial production commenced on January 1, 1996.
The vision of TCL is to be widely acknowledged and bench-marked as one of the best companies in
the world. The company, thus, abides by the following core values: -
„h Care for customers
„h Obsession for quality
„h Care deeply about people
„h Do what's right and not what's convenient
„h Guarantee product leadership
„h Responsible citizenship
„h Relentless improvement
TCL is a QS 9000 company. TCL Jamshedpur boasts of state-of-the-art, fully air-conditioned diesel
engine plant, with a computerized Building Management System for safety and energy conservation.
The plant has five major components manufacturing lines for Cylinder Block, Cylinder Head,
Connecting Rod, Crankshaft & Camshaft, with the best measuring and gauging instruments to assure
Consistent Quality. TCL has very strong systems and IT infrastructure for controlling and facilitating
its operations. To further increase overall efficiency and visibility of information, Oracle Applications
and a web-based Supply Chain Management System have been implemented in June 2000.
Products
The low emission Diesel Engines manufactured by Tata Cummins are for use in a new generation of
Tata Motors Ltd's Medium and Heavy Commercial Vehicles. The engines conform to EURO-I,
EURO-II & EURO-III standards for emissions. The 78 to 235 Horsepower engines have a high power
to weight ratio and will enable Tata Motors Ltd. access new markets worldwide with its advantage of
emissions, power, oil consumption and durability.
Plant
Tata Cummins has a modern manufacturing facility located adjacent to Tata Motors Ltd., designed by
Kevin Roche, John Dinkeloo Associates of USA and C. P. Kukreja Associates of Delhi. The unique
plant comprises a fully air-conditioned 182 x 186 m building with pre-cast concrete coffer roofing and
15 x 15 m bays.
The North and South walls are of glazed curtain glass. Features such as a PLC controlled Fire
Detection / Suppression System, Skylights and Building Management System ensures high levels of
Safety and Energy efficiency.
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Organizational Strategy
At Tata Cummins, the organizational strategy is designed by the leadership team which includes the
top management and the department heads. The department goals are then formulated in accordance
with the organizational goals. These goals are reflected in a document called 'Goal-Tree'. The tree also
contains the action plan, the schedule for achieving the goals, and the persons responsible for
achieving them.
As per the Goal-Tree, the three organizational goals for 2005 are: -
„h Grow Sales to 853 crores
„h Improve PBIT by 10% over last year and achieve 25% ROANA
„h Achieve and Sustain the respect of all Stake Holders
The organizational goals are broken down to the strategies. The initiatives for implementing the
strategies are then identified. The responsibility for implementing these initiatives is then assigned to
respective departments. Further, the tentative deadlines are also reflected. The targets are reviewed
quarterly.
Questions
1 Do the core values, really influence and have a impact on organizational development ?Explain.
2 Is organizational development depended internally on employees and externally influenced by
customers? Discuss
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Case -4 (20 Marks)
Benchmarking Performance
Key performance indicators (KPIs) are the metrics deemed essential to understanding operational
health. Measuring performance allows an organization to objectively determine what is working and
what is not. In addition, by identifying successes, managers can reward and learn from best practices.
"Measurement has the power to focus attention on desired behavior and results," said Gardner.
"People will pay attention when they know their job is being measured, especially if the measurement
is linked to compensation." When targets are set using validated, normalized data, measurement will
support a means to determine operational improvement. Of course, it is critical to tie process
improvement to measures that matter to an organization. In doing so, measures can provide:
„h Feedback to guide change,
„h Assessment and baseline information,
„h A compelling business case,
„h A diagnostic tool to identify areas for improvement and set priorities, and
„h A basis for communication (using a consistent definition).
Most measurement occurs at the process level, where the transformation from input (resources applied)
to output (goods and services) takes place. The four main categories of metrics to assess performance
at the process level are:
„h Cost effectiveness (e.g., $ 6.22 per invoice),
„h Staff productivity (e.g., 93 invoices processed per FTE),
„h Process efficiency (e.g., 11.2 percent error rate), and
„h Cycle time (e.g., processing time of 3.8 days).
Cost Effectiveness
Cost effectiveness measures tell how well companies manage cost. Normalized data usually include
cost per unit, cost as a percentage of revenue, cost as a percentage of total budget, and actual costs
versus budgeted costs. Supporting indicators include cost components as a percentage of total and
disaggregated cost per unit. Examples of measures follow:
„h Customer service/call centers
o Cost per call (or cost per minute)
o Cost per reported complaint
„h Finance and accounting
o Cost per invoice
o Cost per remittance
„h Human resources
o Cost per recruit
o Benefits administration cost per employee
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Staff Productivity
Measuring staff productivity provides insights into how much output each FTE has produced. KPIs
include units of output (e.g., invoices and purchase orders) per FTE and workload (e.g., customers and
general ledger) per FTE. Supporting indicators can focus on factors influencing staff productivity such
as hours of training per FTE and employee tenure. Examples of measures follow:
„h Customer service/call centers
o Calls per representative
o Resolved complaints per FTE
„h Finance and accounting
o Invoices processed per accounts payable FTE
o Remittances processed per accounts receivable FTE
„h Human resources
o Total organization FTE per HR FTE
o Requisitions per recruiter
Questions
1) Measurement has the power to focus attention on desired behavior and results," How it leads to
organizational development?
2) Discuss benchmarking techniques, are really helpful for succeeding in I today¡¦s scenario?
Investment Analysis Management
Total Marks -80
CASE STUDY 1 (Marks 20)
Downloaded Data of Bank of Baroda and HDFC Bank from www.nseindia.com of last 11 years has
been summarized as follows. You are required to analyze the data using appropriate statistical tools,
interpret the results and provide necessary advice to the investors as research analyst.
Sr.No Date Symbol
Close
Price Symbol Sr.No Date
Close
Price
1 1-Apr-97 BANKBARODA 56.75 HDFCBANK 1 1-Apr-97 46.45
2 1-Apr-98 BANKBARODA 108.35 HDFCBANK 2 1-Apr-98 72.8
3 1-Apr-99 BANKBARODA 45 HDFCBANK 3 1-Apr-99 67.6
4 3-Apr-00 BANKBARODA 47.4 HDFCBANK 4 3-Apr-00 247.15
5 30-Mar-01 BANKBARODA 60.45 HDFCBANK 5 2-Apr-01 223.15
6 1-Apr-02 BANKBARODA 50.45 HDFCBANK 6 1-Apr-02 233.65
7 1-Apr-03 BANKBARODA 86.45 HDFCBANK 7 1-Apr-03 234.3
8 1-Apr-04 BANKBARODA 250.45 HDFCBANK 8 1-Apr-04 384.35
9 1-Apr-05 BANKBARODA 221.85 HDFCBANK 9 1-Apr-05 551.55
10 3-Apr-06 BANKBARODA 232.95 HDFCBANK 10 3-Apr-06 773.85
11 30-Mar-07 BANKBARODA 215.05 HDFCBANK 11 30-Mar-07 954.15
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
CASE STUDY 2 (20 Marks)
Given below are the returns on the three stocks Supertex, Colourtex and Wivetex for a four year
period. Compute the average returns, variance and standard deviation if a portfolio is constructed
such that the stock has lowest standard deviation accounts for 50% of the funds, a stock having the
next lowest standard deviation accounting for 30% and the third stock accounting for 20% of the
funds.
Period ( Years) Annual Returns (%)
Supertex Colourtex Wivetex
1 10 11 8
2 12 9 12
3 14 13 9
4 16 17 15
CASE STUDY 3 (20 Marks)
Pruthvi Hardware Ltd. Invested on 1-04-2006 in equity shares as below:-
In September 2006, Mafatlal Ltd. Paid 10% dividend and in October, 2006 Nataraj Ltd. Paid 30% dividend.
On 31-3-2007, market price of shares of Mafatlal Ltd. And Nataraj Ltd. Were Rs.220 and Rs.290 respectively.
Pruthvi Hardware ltd. have been informed by their investment advisor that :-
Company Number of Shares Cost (Rs.)
Mafatlal .Ltd. .1000 (Rs.100 Each) 2,00,000
Natraja Pencil Ltd. 500 (Rs.10 each) 1,50,000.
1) Dividend s from Mafatlal L Ltd. And Nataraj Ltd. For the year ending 31-03-2008 are likely to be
20% and 35% respectively.
You are required to
1) Calculate the average return from the portfolio for the year ended 31-03-2007.
2) Advice P Ltd. Of the comparative risk of two investments by calculating the standard deviation in
each case.
CASE STUDY 4 (20 Marks)
A) The following table provides details about three mutual fund portfolios. Find out the
Sharpe, Treynor and Jensen Index and rank them. What are your suggestions to the investors?
(10 Marks)
Portfolio Return on
Portfolio
Standard Deviation Beta
Equity Fund 26 12 1.25
Mid Cap
Fund
40 10 0.80
Infra – Fund 24 14 1.40
Market Index 18 1.00
Risk Free Rate of Return : 6%
1. The beta of Equity fund is higher than the Beta of Mid Cap fund but the returns are higher in
Mid Cap Fund than Equity Fund. Do you agree with this statement? If yes, explain with
reasonable examples.
2. The beta of Infra – Fund is the highest among all three fund but the returns is the lowest
among all three fund. Explain with reasonable examples.
B) Share of HDFC and BANK of Baroda display the following returns over the past two years:-
(10 Marks)
YEAR HDFC BANK OF BARODA
First Year 232 775
Second Year 215 955
1) What is the expected return on a portfolio made up of 40% of Pepsi and 60% of Coca-Cola?
2) What is the standard deviation of each share?
3) What is the covariance of Share of Pepsi and Coca-Cola?
4) What is the correlation coefficient?
5) Interpret the results in each case and advice the investors for investment decision?
Total Marks -80
CASE STUDY 1 (Marks 20)
Downloaded Data of Bank of Baroda and HDFC Bank from www.nseindia.com of last 11 years has
been summarized as follows. You are required to analyze the data using appropriate statistical tools,
interpret the results and provide necessary advice to the investors as research analyst.
Sr.No Date Symbol
Close
Price Symbol Sr.No Date
Close
Price
1 1-Apr-97 BANKBARODA 56.75 HDFCBANK 1 1-Apr-97 46.45
2 1-Apr-98 BANKBARODA 108.35 HDFCBANK 2 1-Apr-98 72.8
3 1-Apr-99 BANKBARODA 45 HDFCBANK 3 1-Apr-99 67.6
4 3-Apr-00 BANKBARODA 47.4 HDFCBANK 4 3-Apr-00 247.15
5 30-Mar-01 BANKBARODA 60.45 HDFCBANK 5 2-Apr-01 223.15
6 1-Apr-02 BANKBARODA 50.45 HDFCBANK 6 1-Apr-02 233.65
7 1-Apr-03 BANKBARODA 86.45 HDFCBANK 7 1-Apr-03 234.3
8 1-Apr-04 BANKBARODA 250.45 HDFCBANK 8 1-Apr-04 384.35
9 1-Apr-05 BANKBARODA 221.85 HDFCBANK 9 1-Apr-05 551.55
10 3-Apr-06 BANKBARODA 232.95 HDFCBANK 10 3-Apr-06 773.85
11 30-Mar-07 BANKBARODA 215.05 HDFCBANK 11 30-Mar-07 954.15
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
CASE STUDY 2 (20 Marks)
Given below are the returns on the three stocks Supertex, Colourtex and Wivetex for a four year
period. Compute the average returns, variance and standard deviation if a portfolio is constructed
such that the stock has lowest standard deviation accounts for 50% of the funds, a stock having the
next lowest standard deviation accounting for 30% and the third stock accounting for 20% of the
funds.
Period ( Years) Annual Returns (%)
Supertex Colourtex Wivetex
1 10 11 8
2 12 9 12
3 14 13 9
4 16 17 15
CASE STUDY 3 (20 Marks)
Pruthvi Hardware Ltd. Invested on 1-04-2006 in equity shares as below:-
In September 2006, Mafatlal Ltd. Paid 10% dividend and in October, 2006 Nataraj Ltd. Paid 30% dividend.
On 31-3-2007, market price of shares of Mafatlal Ltd. And Nataraj Ltd. Were Rs.220 and Rs.290 respectively.
Pruthvi Hardware ltd. have been informed by their investment advisor that :-
Company Number of Shares Cost (Rs.)
Mafatlal .Ltd. .1000 (Rs.100 Each) 2,00,000
Natraja Pencil Ltd. 500 (Rs.10 each) 1,50,000.
1) Dividend s from Mafatlal L Ltd. And Nataraj Ltd. For the year ending 31-03-2008 are likely to be
20% and 35% respectively.
You are required to
1) Calculate the average return from the portfolio for the year ended 31-03-2007.
2) Advice P Ltd. Of the comparative risk of two investments by calculating the standard deviation in
each case.
CASE STUDY 4 (20 Marks)
A) The following table provides details about three mutual fund portfolios. Find out the
Sharpe, Treynor and Jensen Index and rank them. What are your suggestions to the investors?
(10 Marks)
Portfolio Return on
Portfolio
Standard Deviation Beta
Equity Fund 26 12 1.25
Mid Cap
Fund
40 10 0.80
Infra – Fund 24 14 1.40
Market Index 18 1.00
Risk Free Rate of Return : 6%
1. The beta of Equity fund is higher than the Beta of Mid Cap fund but the returns are higher in
Mid Cap Fund than Equity Fund. Do you agree with this statement? If yes, explain with
reasonable examples.
2. The beta of Infra – Fund is the highest among all three fund but the returns is the lowest
among all three fund. Explain with reasonable examples.
B) Share of HDFC and BANK of Baroda display the following returns over the past two years:-
(10 Marks)
YEAR HDFC BANK OF BARODA
First Year 232 775
Second Year 215 955
1) What is the expected return on a portfolio made up of 40% of Pepsi and 60% of Coca-Cola?
2) What is the standard deviation of each share?
3) What is the covariance of Share of Pepsi and Coca-Cola?
4) What is the correlation coefficient?
5) Interpret the results in each case and advice the investors for investment decision?
BUSINESS COMMUNICATION
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CASE-1 (20 Marks)
Nestle has launched quality street ,lion and after 8 choclates imported from Europe. Qualtty Street is an
assortment of chocolates priced at Rs. 7 5 for 218 gm. After Eight is a popular adult chocolate priced at Rs.25
for 20 gm and Lion is a caramel wafer bar priced at Rs. 20 for a 45 gm bar. (Kit Kat )is priced at Rs. 6 for a 17
gm bar and has a chocolaty taste while Lion has a crunchy taste). The brands have different tastes and will
appeal to different target segments (though the target segment is one which may have already been exposed to
these brands during visits abroad). These brands have been introduced in metros in upmarket stores which sell
brands bears the label "lmported by Nestle India Ltd." indicating that they may be better than smuggled ones
(which may be stale).
Question :
1 Suggest suitable media /media vehicles for promoting these brands. Give reasons in support of your answer
2 What business communication media you will utilize if you have to launch a soap in rural India?
CASE -2 (20 Marks)
The herbal shampoo market is valued at around Rs. 100 crores. Ny/e, Ayur, Dqbur and Biotique are some of the
established brands in the market.
Helene Curtis (JK Group) has introduced a premium herbal shampoo (with variants Shikskai, henna and qmla
and brqhmi and josur) priced between Rs. 80 and Rs. 90 (500 ml) for different types of hair. The proposition is
the benefits offered by lhe variant based on the combination of herbs, benefits offered by the variants range
from extra protection and nourishment to colour, body and bounce. The shampoos have been launched under
the brand name Premium Herbsl Shsmpoos and they target urban housewives with a monthly household
income of Rs.25,000. The brand is distributed through 7 0,000 retail outlets and 120 Raymond shops. The
company has planned only point of purchase (POP) posters initially and may consider the electronic media
later. The shampoo has an annual advertising expenditure of Rs. 10 crores.
Question :
1 Comment on the marketing mix of JK's Premium Herbsl Shampoos ?
2 How can you make their communication more effective ?.
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CASE 3 (40 Marks)
Attempt all cases of the following: (10 marks each)
(i) Iran Rafsanjan Co., Rafsanjan City, Iran has taken a marine insurance policy No. VB/84/3629/29 dated
20th December, 2005 from Albroz Insurance Co., Kerman City, Iran for the import of 500 tractor gears
from Apex Products (India) Ltd., Delhi. The exporter shipped the cargo on board vessel — SEEMA on
26th December, 2005 for Bandar Abbas Port of Iran.
As per the letter of credit condition, the exporter was required to fax the shipment details to Albroz
Insurance Company within 24 hours of the shipment. However, the exporter could not fax such details due
to change in telephone (fax) number of the insurance company.
Draft an express telegram to intimate shipment details.
ii) Yours is a multinational company having joint venture with a Chinese company. Plant is to be located at
Surat. The company immediately needs an Executive - Foreign Affairs (male/female) with ability of
“writing and speaking Chinese language.
Draft a recruitment advertisement for publication under classified column of a national daily. Salary-is no
bar for the right candidate. E-mail address -info@krishnafashions.com
iii) The local head office of State Bank of India is located at 11, Parliament Street, New Delhi-110001. The
bank wants to construct 76 flats at Noida for its employees and invite applications for pre-qualification of
contractors. Full details are available on its website - www.sbi.co.in or www.statebankofindia.com/
procurement_news.
Draft a notice for pre-qualification of contractors.
iv) The Joint Admission Board (JAB) of Indian Institutes of Technology in its meeting held on 17th
September, 2005 at Kolkata has taken some decisions with regard to Joint Entrance Examination (JEE)
2006, i.e., to appear in JEE, one must secure at least 60% marks (55% for SC/ST and PD) in 10+2
examination; a candidate can have only two attempts with effect from JEE-2006; and a candidate who
joins any of the IITs through JEE-2006 will not be permitted to appear in JEE in future.* It was also
decided that candidates, who have passed their qualifying examination in 2005 or earlier, will be allowed
to appear in JEE-2006 as the last chance, witji no consideration of marks or attempts at JEE subject to age
requirements. On behalf of the JAB, draft a suitable press release to be issued by organising chairman
highlighting these decisions.
INDUSTRIAL MANAGEMENT
MARKS :100
1. Write short note on : { 10 Mark }
a) Programmed instruction
b) Computer-assisted instruction
2.Explain the Ranking and Job grading methods of job evaluation. {10 Mark }
3.Define Accident. What you can do to prevent the causes of industrial
accidents?{10 Mark }
4.Define job enrichment. Discuss core dimensions of job enrichment. {10 Mark }
5.Explain price elasticity of demand and determinants of price elasticity of
demand. { 10 Mark }
6. What is Delhi Method? What are the uses of this method in demand forecasting?
{10 Mark }
7. What is law of diminishing marginal utility? { 10 Mark }
8.Discuss different types of Monopoly. How pricing and output decisions are taken
in the monopoly market in the short run? { 10 Mark }
9. Define break even analysis and outline its uses and applications. { 10 Mark }
10. What are the different methods of measuring national income? Which of these
are followed in India? { 10 Mark }
HUMAN RESOURCE MANAGEMENT
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CASE STUDY : 1
A policy is a plan of action. It is a statement of intention committing the management to a general course of
action. When the management drafts a policy statement to cover some features of its personnel programmes,
the statement may often contain an expression of philosophy and principle as well. Although it is perfectly
legitimate for an organization to include its philosophy, principles and policy in one policy expression.
Q1) Why organizations adopt personnel policies explain the benefits?
Q2) What are the sources and content of personnel policies?
Q3) Explain few personnel policies?
Q4) Explain principles of personnel policies?
CASE STUDY : 2
Recruitment is understood as the process of searching for and obtaining applicants for jobs, from among
whom the rights people can be selected. Theoretically, recruitment process is said to end with the receipt of
applications, in practice the activity extends to the screening of applications so as to eliminate those who are
not qualified for the job.
Recruitment refers to the process of receipt of applications from job seekers. In reality, the term is used to
describe the entire process of employee hiring. These are recruitment boards for railways, banks and other
organization.
Q1) Explain in detail the general purpose of recruitment?
Q2) Explain factors governing Recruitment?
Q3) Explain the Recruitment process with diagram?
Q4) Explain Recruitment planning?
CASE STUDY : 3
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Navin AGM materials, is fuming and fretting. He bumped into Kiran, GM Materials, threw the resignation
letter on his table, shouted and walked out of the room swiftly.
Navin has reason for his sudden outburst. He has been driven to the wall. Perhaps details of the story will
tell the reasons for Navin’s bile and why he put in his papers, barely four months after he took up his
assignment.
The year was 2005 when Navin quit the prestigious Sail plant at Mumbai. As a manager material Navin
enjoyed the power. He could even place an order for materials worth Rs 25 lakh. He needed nobody’s prior
approval.
Navin joined a pulp making plant located at Pune as AGM Materials. The plant is owned by a prestigious
business house in India. Obviously perks, designation and reputation of the conglomerate lured Navin away
from the public sector.
When he joined the pulp making company, little did Navin realize that he needed prior approval to place an
order for materials worth Rs 12 lakhs. He had presumed that he had the authority to place an order by
himself worth half the amount of what he used to do at the mega steel maker. He placed the order material
arrived, were recived, accepted and used up in the plant.
Trouble started when the bill for Rs 12 lakh came from vendor. The accounts department withheld payment
for the reason that the bill was not endorsed by Kiran. Kiran rused to sign the bill as his approval was not
taken by Navin before placing the order.
Navin felt fumigated and cheated. A brief encounter with Kiran only aggrarated the problem. Navin was
curtly told that he should have known company rules before venturing. Navin decided to quit the company.
Q1) Does the company have an orientation programme?
Q2) If yes how effective is it?
Q3) How is formal Orientation programme conducted?
Q4) If you were Navin what would have you done?
CASE STUDY : 4
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Bitter it may taste, shrill it may sound, and sleepless nights it may cause, but it is true. In a major shake up
Airbus. The European aircraft manufacturers has thrown a big shock to its employees. Before coming to the
details of the shock, a peep into the company’s resume.
Name Airbus
Created 1970
President CEO : Vijay M.
Employees 57000
Turnover 26 Bn (Euro)
Total Aircraft sold (Feb
2007)
7187
Delivered 4598
Headquarters Paris (France)
Facilities 16
Rival Boeing
Airbus announced on February 27, 2007 that it would shed 10,000 jobs across four European contries and
sell six of its unit. N the same day the helpless workers did what was expected of them – downed tools and
staged protests. The protesting workers at Airbus’s factory at Meaulte, northern France, were seen picketing
outside the factory gate after holding up production a day earlier. To be fair to Airbus, its management
entered talks with unions before the job loss and sale was formally announced. But the talks did not mollify
the agitated workers.
Job sheating and hiring of units are a part of Power and restructuring plan unleashed by Airbus to save itself
from increasing loss of its ground to the arch rival, Boeing Co.
Airbus Power & Strategy was first mooted in October 2006 but sparkled a split between France & Germany
over the distribution of job losses and the placement of future ones. Later the two countries agreed to share
both job losses and new technology.
The power and plan, if finalized, would mean a 3 per cent reduction to Airbus’s 55000 employee strength.
Q1) Why should Power and focus on shedding jobs to save on cost?
Q2) Are there no alternative strategies?
Q3) Will the proposed shedding of jobs and scale of six units help airbus survive the intense competition
from Boeing?
Q4) Comment on the whole issue?
ADVERTISING MANAGEMENT
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Case No : 1
VENKY’S OF VENKATESHWARA HATCHERIES
Venkateshwara Hatcheries which went public recently is one of the most modern plants in poultry business
in Asia. They have 60 p.c. market share of chicken marketed in the country. Dr. B.V. Rao of Venkateshwara
Hatcheries expired in 1996. His daughter Anuradha Desai is now the Chairperson and M.D. of VHL. In the
beginning they had an Executive Director Gulam Harjanwalla who professionalized chicken marketing.
Sajid Peerbhoy’s Speer ad agency was chosen. The brief given to Speer was “to market raw chicken in the
form of a full bird. Further, to market legs. To market legs and breast. To market curried pieces. And halfbird.”
The company also planned to market ready-to-fly pre-spiced chicken and to operate a chain of fast-food
outlets serving chicken fast food on the lines of McDonald’s.
Speer did some marketing research by focus group studies in Mumbai and then in Pune. The qualitative
reseaci1 (QR) findings were followed by quantitative research.
The following summarises the findings.
Occasions to use chicken:
(a) On special occasions
(b) On Sundays
(c) As a special treat
(d) Cook it for guests
(e) First non-veg food to which vegetay1ans graduated.
(f) Each mother cherishes her own special recipe for a chicken dish. She prides herself on it.
The ideal chicken was: Freshly chicken.
The convenient option was: Frozen chicken.
The following are the demerits of the frozen chicken:
(a) It does not taste good.
(b) It does not cook fast.
(c) It requires a lot of water to cook.
The Inconveniences in getting fresh chicken were:
(a) It is more and more difficult to get it near-by.
(b) The search consumes time.
(c) It involves transportation cost.
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On deep probing, the consumer psychology while buying fresh chicken was one of guilt and disgust. The
birds look so cute, as they are young. Just a minute ago, they were alive. It is so awful. Those poor
creatures! Imagine them alive one minute, and then being eaten the next. It is so difficult to get used to this
process.
Advertising Strategy
It is not necessary to remind about live chicken. It is not necessary to see and think about raw chicken,
dressed or otherwise. The communication strategy should be to treat chicken as a vegetable. They are not to
be shown alive or in their ugly raw dressed form. The client was led step-by-step and was supportive.
Long-run Objective
Though chicken has high standing as a special food, we have to make it an almost twice or thrice a week
food item.
Positioning
It was necessary to overcome the negative barrier to frozen food. In the market, fresh chicken was in fact
frozen chicken vulnerable to bacterial contamination. The answer was a fact frozen chicken product.
Venky’s chickens were chilled by a special process: blast freezing. The position taken was that of
technological superiority. Venky’s unique freezing process makes it taste better and cook faster and melt
quickly.
Differentiation
It was a special breed of chicken, that was extra delicious to eat. It scores over ordinary frozen chicken and
even the freshly killed chicken. Brand Name
In spite of the Agency’s reservations, the Venky’s was chosen as brand name, since it was the name of the
M.D.’s son. The Agency had considered fifty other optional brand names. Marketing research showed
Venky’s connoted a South Indian image and was associated with vegetarian food. There were also
connections with Lord Venkateshwara.
Headlines
These worked hard to ward off negatives:
‘Chicken so fresh, it simply melts in your mouth. Reason: Superior blast freezing process.”
“Chicken so fresh, it’s only minutes old.”
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Promotion of Special Parts
The special parts were promoted as:
“The part you want are the parts you get.”
Execution
A simple mnemonic was used. Chicken was shown in a graphic from; one that did not turn off the house
wife, and yet looked modern.
The colour scheme used was of yellow and red colours, being happy and bright food colours. These colours
are appetising too.
For quick identification, a common symbol was used on all hoardings. ad material and at POP.
Success of the Launch
The launch created tremendous demand but the distribution was weak. There was the problem of spurious
brands.
The company strengthened the distribution network later. However consumer supplies were diverted to
institutional buyers leading to non-availability and spurious brands passing off as Venky’s.
The Agency advised premium pricing and quality policy. Instead, the company lowered the price. So many
persons dealt with the Agency. Each questioned and disagreed with the thinking of earlier persons. Gulam,
their E.D. left Venky’s. The number of out left were increased dramatically.
New Ad Agency
New agency was selected. It brought chicken again to a commodity position A good chicken that makes
tasty chicken dishes). Emphasis on blast freezing was dropped. Emphasis on blast freezing was dropped.
Raw chicken again appeared in the ads, contrary to research findings. Brand or product differentiation
strategy was dropped. Instead, emphasis was on different recipes.
Present Thinking
Venky’s is moving closer and closer to a commodity than a brand. It is fine as long as there is no
competition. The company perhaps believes that no one has the backing or volume of production to be a
threat to them. It is satisfied with a marginal price premium. Being a chicken monopoly, it can afford not to
have a marketing cutting edge. The following is their present ad copy:
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Questions (A)
(a) Comment on the advertising strategy adopted previously and currently.
(b) Comment on branding of food products, and their promotion.
(c) Can you think of a different creative strategy for a product like chicken?
Lip-sticks with permitted colours can also damage the lips since the stainers are tetra-bromo-fluorosine.
When rubbed against the palm, darkness of the stain will indicate the quantity of stainer present.
Darkening of lip colour also depends upon the bio-chemistry of individual’s lips.
Questions (B)
(a) The complete product knowledge is given in the above write-up. What do you think should be the copy
platform for these products? Indicate the theme, the appeal and the buying motives.
(b) Indicate a suitable media mix for advertising these products. Give your reasoning.
Case No : 2
ALEMBIC CHEMICAL WORKS LTD.
DIRECT MAILINGS OF ALCEPHIN: THE LEGEND
AMONG ANTIBIOTICS
The pharmaceutical companies have to do direct marketing by necessity as they cannot advertise ethical
products in layman's media for him, but are required to promote only to the medical profession. They
produce fine visual aids and product literature which could either be sent as direct mailings to the medical
profession or can be delivered to them through medical representatives.
The Living Legends
What does one say about Lata Mangeshkar? That she has dominated the Indian film music scene for almost
four decades and promises to do so for atleast another decade? That she became a legend in her own life
time? That here is a musical genius which comes about just once in many centuries? One could say all
these things and yet be merely repeating what has been said a million times over. And yet there is so much
more to one is capturing one more vital as poet which one did not realize had existed in her. Such is the
quality of her singing.
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Very few of those who see her at the pinnacle of her success realise the amount of effort, hard work end
deprivation that have gone into building the facade which is so enviable. Born In Induce on September 28,
1929. Late Mangeshkar is the eldest in family of four sister, and a brother, all of whom have made a name in
the field of music. Daughter of the noted Marathi stage actor-singer Master Dinnanath Mangeshkar, Lata
revealed her musical genius at the tender age of five. Her first guru wee her own father and she avidly
followed his musical stage plays.
Late's mother Mai Mangeshkar ha, one vivid memory of Lata as a child. It would seen that the young Late,
one day, was singing a song from one of her father's. plays when she bumped against something. All rushed
toward the unconscious child and tried to revive her. When she came to, however, Lata continued with the
singing of the song as if nothing had happened. This dedication to music led to her debut on stage.
However, her father's productive shadow was not to last for long. On April 24, 1942 Master Dinanath
passed away reportedly telling her "Except for the tanpura in the corner and these notebooks filled with
classical music and songs and God's blessings. I have nothing elseto give you. "The family'spenury
compelled Lata to sign a contract with MasterVinayak's Huna Pictures as an actress-singer. In the same
year,1942, she made her debut as a playback singer with Vasant Joglekar's Kia Hasool in Marathi under the
baton of shripad Nevrekar .But taking up a career as a playback singer was still impossible. She continued
with her acting career, acting in Pahili Mangeshgar (Marathi 42) Chimna Sansar (Marathi43) More Bal
(Marathi 43) Gajadhan (Marathi 44) Badi Mao (Hindi 45) and Mandir (Hindi 48) With Mandir Lata seemed
to have reached a dead end. Mandir was Master Vinayak's last film, after which he passed away. She was
no great shakes as an actress and her career in playback singing had not really taken off. Two Years earlier
she had made her debut in Hindi playback singing with Vasant Joglekar's Aap Ki Sewa Afein under the
baton of composor Dutta Dawjekar but nothing much had happened. However, stars served more
benevolent. Ghulam Haider, who was then acoring the music for Majboor and who had seen and heard lata
in the early. Forties, signed her up to sing a song for the film. Within a week of singing this song. Lata
became the talk of the music world and was signed up by three other musical giants. Khemchand Prakash
for Mahal.
The most important thing is to make the mundane promotion outstanding by creative ideas. Promotion of
S.S. Oberoi came out with a set of 10 four-page folders for Alcephin based on the theme 'The Living
Legends.' The folders are extremely well-executed - well-designed and printed. The graphics and
typography and illustrations are appealing. The idea is outstanding. Ten living legends are chosen and
include names like Satyajit Ray (since then deceased), Mother Teresa, Baba Ainte, Lata Mangeshkar, Sunil
Gavaskar, R.K. Laxman, Abdul Kalain and Shivram Karanth. Each folder deals exclusively with one
legend. The selection covers a wide cross-section of interests.
Each folder is well-researched. It brings out the circumstances that inspired the magic in each of them. It
becomes a collector's series. The centre-spread has the manufacturer's plug. A short write-up on the
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characteristics of Alcephin and the line 'The Legend Among Antibiotics.' It is not intrusive at all. Yet it is
effective.
Questions
(a) Which other businesses/products can be suitable candidates for direct marketing? What promotional
techniques can be employed?
(b) Please do some research of your own on direct mailings of pharmaceutical companies. What are your
reactions?
(c) Put on your thinking cap. Identify a there for a campaign of one general tonic.
CASE : 3 : IS SUPER BOWL ADVERTISING SUPER EFFECTIVE ?
About 140 million Americans and 700 million total global viewers tune in to Super Bowl Sunday, making
the event one of the largest occasions for home entertainment. Advertising time during the Super Bowl is
limited and priced at a premium. The fight for the prime spots starts months in advance of the actual
airtime. In 1993, the cost for a 30 – second time slot was a high $850,000, but by 1997 the cost had shot to
$1.2 million for the same short time frame. In 1998, a 30-second spot during the Super Bowl cost $1.3
million. In 2000, a 30-second spot during the Super bowl cost companies a record average of $2.2 million.
Dot.com companies that have since failed or are struggling to keep their heads above water purchased forty
percent of the Super Bowl ad slots in 2000. For the 2001 Super Bowl XXXVI, the average rate for an
advertising spot was approximately 2.1 million.
In 2002, during Super Bowl XXXVI, Fox Network offered 60 commercial spots for a total of 30
minutes of advertising time. The average selling price for each 30-second spot was just under $2 million, at
$ 1.9 million each. Companies who paid for commercial time during Super Bowl XXXVI included
Anheuser- Busch, who purchased ten 30 – second spots, Pepsi Co, who featured one 90-second commercial
starring Britney Spears, E-trade, M & M/Mars, AT & T Wireless, Levi Strauss, Yahoo, Visa and fast food
chains Quizno’s Taco Bell, and Subway are among others.
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Although Fox did end up selling all of the available ad spots, the network did not sell the final ad
until the Thursday before the game. There are several reasons for the selling delay and for the reduced rates
in 2002. First, marketers were facing the “worst advertising recession in recent memory.” This caused
companies to carefully monitor how they spent their advertising budgets and many decided that the money
could be better applied elsewhere. Many companies chose to advertise during other prime time events that
were more affordable. The average rate for a 30-second spot during the early evening news in 2002 was
$45,900. Even events such as the Golden Globes (estimated price $45,000 per 30-second spot), the
Grammies (estimated price $57,000 per 30-second spot), and the Academy Awards (estimated price $1.6
million per 30-second spot) offer companies ad time at lower rates. However, these events do not draw as
many viewers as the Super Bowl. Secondly, the NFL, for the first time, sponsored a pre-game show on the
Friday night before the Super Bowl. Some companies, such as AOL Time Warner, Phillip Morris, Miller
Brewing Co., and Motorola chose to avoid paying “television’s highest commercial prices” and bought ad
time for lower rates during the pre-game show. A final reason for lower rates and less marketer interest in
Super Bowl ad time was competition from the 2002 Olympic Winter Games. The games began just five
days after the Super Bowl and offered 17 days of events during which advertisers could buy commercial
time. The average selling rate for a 30-second prime time spot during the Olympics was only $600,000, a
bargain compared to the Super Bowl.
Is Super Bowl advertising worth the cost? For many advertisers who bought time slots in previous
games the answer was a resounding no. Nissan, Porsche, Fila and MCI passed on the chance to advertise
during the game. According to marketing consultant Jack Trout, the increasing rates made buying Super
Bowl ad time difficult to justify. Nissan marketing Chief Brad Bradshaw stated that although the company
had intended to advertise during the game, it came to the conclusion that the resources could be better used
to sell its vehicles in other ways.
In addition to the cost factor, many question what effect advertising actually has on the audience.
The purpose of an advertisement is to increase customer awareness for a particular brand. For Super Bowl
ads, however, the brand name often becomes secondary to the commercial itself in terms of viewer
attention. Super Bowl ads have become events in and of themselves, with each firm trying to put out the
next earth-shattering commercial that will stir talk about the commercial itself. Ever since Apple
computer’s classic “1984” ad, firms have been trying to top previous years’ ads. Ad agencies and clients
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often seem to shoot for ads that are extraordinary for the sake or creativity, rather than their intended
purpose, with many attention-getting promotions not translating into product purchases. It is questionable
whether brand name is retained, and so despite having an incredible commercial, many advertisers’ ad
dollars possibly goes into just providing new fodder for water cooler conversation for the week instead of
forming a lasting brand image in the minds of consumers. Without new research into the effectiveness of
Super Bowl advertising and its effect on consumers, many advertisers may be better off avoiding buying
Super Bowl ad time and abandoning the world’s biggest television audience.
Some advertisers like Purina Cat Chow have taken a slightly different approach by purchasing
airtime on the show directly following the Super Bowl. They obtained airtime at one-sixth of the cost
during the game and they believe that they retain approximately 40 percent of the audience. Which
advertiser got the biggest bang for the bucks: M & M/Mars that advertised during Super Bowl 2002, or
Purina Cat Chow that advertised after the game? Without systematic marketing research aimed at
measuring Super Bowl advertising effectiveness, questions such as these beg answers. It remains to be
established that Super Bowl advertising is super effective?
Questions:
1. What kind of research design would you recommend for determining the effectiveness of M &
M/Mars advertising during the Super Bowl?
2. If the research design involves a survey of households, which survey method would you
recommend and why?
3. What kind of measures and scales will you employ in your survey?
4. Can the observation method be used to determine the effectiveness of M & M/Mars advertising
during the Super Bowl? If so, which observation method would you recommend and why?
5. Which syndicated services discussed in the book can provide useful information ?
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CASE NO : 4 : NIKE SPRINTS AHEAD OF THE COMPETITION,
YET HAS A LONG WAY TO RUN
Nike, Inc.(www.nike.com), located in Beaverton, Oregon, is the number one U.S. athletic footwear
company and one of the most recognized American brands among foreign consumers. This high degree of
recognition is one of the main reasons Nike has been so successful. For the 2001 fiscal year ended May 31,
2001, the company continued to soar, with sales of over $9.5 billion.
Perhaps such success could be attributed to its concept - based advertising campaigns. The company
uses a process that is often called “image transfer”. Nike ads traditionally did not specifically place a
product – or mention the brand name. A mood or atmosphere was created and then the brand is associated
with that mood. “We don’t set out to make ads. The ultimate goal is to make a connection,” states Dan
Weiden, executive of one of Nike’s ad agencies. One ad featured the Beatles and clips of Nike athletes,
Michael Jordan and John McEnroe, juxtaposed with pictures of regular folks also engaged in sports. It was
used to infer that real athletes prefer Nike and that perhaps if the general audience buys the brand they will
play better too. Nike’s unpredictable image-based ads have ranged from shocking, such as its portrayal of
real blood and guts in a “Search and Destroy” campaign usesd during the 1996 Olympic games, to
humorous, such as the first ad used to launch Michael Jordan’s Jordan brand wear. The latter advertising
made the tongue – in – cheek suggestion that Jordan himself had a hand in production by slipping away
from a Bulls’ game at half time to run over to his company and then return in time for the game’s second
half.
In 1998, Nike shifted to a new phase in its marketing strategy. Nike emphasized more of its product
innovation skills than the jockey, edgy attitude that it displayed in previous years. “We recognize that our
ads need to tell consumers that we’re about product innovation and not just athletes and exposure. We need
to prove to consumers that we’re not just slapping a swoosh (the company trademark) on stuff to make a
buck,” said Chris Zimmerman, director of Nike’s U.S. advertising. With the launch of the “I can”
campaign, Nike showed less of the celebrity athletes that previously adorned its marketing output and
showed more product usage than in the previous “Just Do It” campaign. Competitors Reebok and Adidas
recently featured more product-focused ads and were met with a great deal of success. Despite this
rearranged focus, Nike did not back away from innovative marketing.
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Nike continues to excel in the advertising arena. Nike was named one of 2001’s best in advertising
by Time magazine for its ad featuring expert dribblers doing trick moves. Time is quoted as saying the ad
conveyed a message that “Sport is music. Sport is dance. Sport is art.” Nike states that this ad was their
most popular ad in 20 years. Another popular ad from 2001 was known as the “Take Me Out to the
Ballgame” ad. This particular ad featured professional athletes from varying sports singing one line of the
song. “Take Me Out to the Ballgame” in their native language.
As the company looks ahead to 2010, at the heart of Nike’s future strategy is the international arena,
which could prove to be the most difficult element for Nike to undertake. There seemed to be a pretty
strong recognition that by 2010, Nike would be larger outside of the U.S. than inside. As of 2003,
international sales comprised one-third of Nike’s business. Nike would like to expand into the soccer and
international sports arena, but to do so, it would have to refocus its marketing and distribution in order to reestablish
itself as an authentic, technically superior sports shoe.
In February 2001, Nike unveiled its latest technological revolution, the Nike Shox, to United
Kingdom consumers. This shoe was in development for 16 years, and Nike hoped it would revolutionize
the sports shoe market in much the same way that NikeAir did when it was launched in the UK in the 1980s.
One reporter in London states that his pair of Nike Shox makes him feel like he is “walking on cloud nine
with a spring in (his) step.” The shoes are reported to provide support, comfort, shock absorbency, and style
all at the same time. The Nike Shox line of athletic shoes is shaping up to be very popular in both the U.S.
and the U.K.
Most recently, Nike bought out many of its worldwide distribution centers in order to achieve greater
control of its operations. In the future, Nike would like to build up its presence in the key markets of China,
Germany, Mexico, and Japan. Nike will focus its advertising on sports, and will feature sports that are of a
particular interest in specific regions. Nike realizes that while it is ahead of competition, it still has a long,
long way to run.
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Questions:
1. Should Nike switch from a focus on celebrities to a focus on its products in its advertising?
Discuss the role of marketing research in helping Nike management make this decision. What
kind of research should be undertaken /
2. How would you describe the buying behavior of consumers with respect to athletic footwear?
3. What is the management decision problem facing Nike as it attempts to retain its leadership
position?
4. Define the marketing research problem facing Nike, given the management decision problem
you have identified.
5. Develop two suitable research questions and formulate two hypotheses for each.
6. How can the Internet be used to help Nike in conducting marketing research, and in marketing
its products?
CONSUMER BEHAVIOR
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CASE 1 (20 Marks)
Sports marketing strategy: A consumer behavior case analysis in China. Marketing research that
targets consumers' influences and financial implications is a worthwhile sports marketing effort. To
implement effective marketing strategies in a specific country, it is pertinent to understand consumer
behavior in that country. In this paper, 11 major findings related to the unique behavior, attitudes, and
buying patterns of Chinese sports consumers are highlighted. From the results of questionnaires
administered to 2,155 mainland Chinese consumers in 10 selected cities, different economic, social,
and personal factors in the China's environment are determined. The marketing implications of the
Chinese culture and lifestyle are also discussed.
With a quarter of the world's population and a fast-growing economy, China is rapidly turning into
one of the busiest market centers in the world. Sports marketing has the potential to emerge not only
as an effective vehicle in imitating the development of the Chinese economy, it also affects the
Chinese culture and lifestyle.
Since sports marketing in China has not been analyzed or researched, it is appropriate to study the
consumer as well as general financial implications. A look at American success in sports marketing
will be helpful. However, implementing such strategies in China creates special considerations
because of the existence of cultural and economic differences between the two countries. This study
attempts to identify the proper marketing strategies in China through an analysis of Chinese
consumers' behavior, attitudes, and buying patterns.
METHODOLOGY
The methodology used in this study consisted of exploratory research of interviewing managers of
retail outlets, secondary research of literature review, and primary research of a total of 4,000
questionnaires distributed in 10 selected cities (Beijing, Chendu, Guangzhou, Nanjing, Qindao,
Shanghai, Shenzhen, Tianjin, Xian, and Xiamen) in China. Questionnaires were administered to a
judgmental quota sample and assigned to one of four age groups with equal males and females. The
rate of response was 53.9%; 2,155 questionnaires were returned.
The analysis of the data include editing, coding, analyzing coded observations, and interpreting
results for solutions to the research problems. Tabulations and measures of central tendency were
used to describe the distribution of characteristics in the subject population. Crosstabulation and chi
square statistics were also used to show relationships between consumer segments.
SURVEY FINDINGS
Eleven major factors affecting consumer purchasing emerged from the questionnaire data analysis: 1.
purchasing reasons; 2. purchasing experience evaluation; 3. income level relative to the expense
level; 4. type of sporting goods purchased; 5. product factors affecting purchasing; 6. people
influencing consumer purchasing; 7. sources of information about where and how to purchase;8.
influence of advertisements; 9. brands consumers prefer; 10. where goods purchased; and 11. time
spent in sports.
Purchasing Reasons: The major reason why people purchased sports products was "for exercise."
Purchasing Experience Evaluation: Approximately half of the respondents indicated that their
purchasing experience was "positive."
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Income Level Relative to the Expenses Level: The Chinese consumers' income levels range from less
than $173 U.S. per year to over $863 U.S. a year. The middle income level accounted for 72% of the
respondents.
However, most respondents indicated they spent "less than $40 U.S. per year" on the purchase of
sporting goods.
Type of Sporting Goods Purchased: "Shoes" were the No. 1 favorite type of sporting goods for
Chinese consumers. Females tended to purchase apparel; males were more likely to purchase all type
of sporting goods.
Product Factors Affecting Purchasing: "Quality," "style," and "price" were the three most important
factors influencing purchasing decisions. People Influencing Consumer.
Purchasing: "Boy-and-girlfriend" had the most important influence in the decision process. "Parents"
had the least important influence.
Sources of Information About Where and How to Purchase: The major information channel for
Chinese consumers was their "going to a shopping mall" experience.
Influence of Advertisements: Of those responding to the survey, more than half said they either
"occasionally" or "rarely" believe advertisements.
Brands Consumers Prefer: Adidas, Asics, Nike, and Reebok were identified by the Chinese
consumers.
Where Goods Purchased: Most of those surveyed purchased their sporting goods from either "a
sporting goods store" or "a department store."
Time Spent in Sports Activities: Almost 90% of the Chinese consumers spent "less than 5 hours a
week" participating in sports activities. However, three meaningful findings emerged: 1) those who
participated "less than 5 hours per week" in sports activities spent more money purchasing sports
products than those who participated "over 5 hours" per week in sports activities; 2) those in the
income level of "$402 to $863 U.S." spent more time participating in sports activities; 3) young
adults and "unmarried" persons spent more time per week participating in activities than those who
were "married" or elderly.
DISCUSSION ON CONSUMER INFLUENCES
The following discussion focuses on economic, social, and personal influences. These three
categories have unique Chinese environmental and cultural meanings and thus need to be considered
when engaging in marketing in China.
Economic Factors: Unlike the past, when most income was spent on basic necessities such as food
and clothing, the current Chinese consumer spends more money on entertainment and durable goods.
However, the general tendency of the Chinese consumer to have stronger purchasing power and the
fact that their buying decisions reflect creative purchasing beyond bare necessities are not reflected in
sports marketing. It could be concluded that not all Chinese consumers are willing to spend a certain
percent of their income on sports products. This phenomenon can be explained either by consumers'
lack of sufficient income or too high a price for sports products. On the other hand, however, a great
potential exits for marketers who appeal to the Chinese consumers with creative strategies. Those
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who know desires and needs in specific areas, while being sensitive to economic restraints, may
capture a slumbering Chinese market.
Social and Culture Factors: With the implementation of an "open-door policy" in China, the lifestyle
of the Chinese people changes constantly. Several social and cultural trends may stimulate marketers
to be optimistic about Chinese consumers.
„h The most important trend is growing fitness consciousness. No matter the gender, age,
occupation, and education of those surveyed, all tend to tie their purchase of sports products
with exercise and entertainment.
„h A second trend the survey revealed is a movement toward use of sports products for casual
reasons. Chinese consumers are embracing a more casual and health-conscious lifestyle.
„h There is a growing consumer preference for international products. The Chinese people,
especially the younger generation, are very fond of wearing and using brand name sporting
goods from around the world. Owning high grade sporting goods seems to be a symbol of
wealth and a new fashion for those young consumers.
The social and culture trends just discussed will lead to different pricing, promotional, and
distributional strategies. Since marketing principles are applicable throughout the international arena,
what has proved successful in the American market could basically be transferred and applied to the
China market.
However, to implement a successful marketing strategy in China, several environmental differences
must be taken into account:
1) "Shopping on Sundays" is a hobby for Chinese consumers. Marketers should create an
attractive shopping environment in a prestigious shopping center.
2) Chinese consumers believe what they see rather than what they hear. They know that some
imitation products exist in the market, and dishonesty in advertising is publicized. Marketers
should increase their image by eliminating imitation products and dishonesty advertising.
3) Although consumers' attitudes toward the international sports products are positive, devotion
or loyalty to brands is subject to rapid change. Marketers should have a strategy to keep
consumers' loyalty.
4) Non athletes have greater purchasing power than most athletes or sportspersons. Nonathletes
buy sporting goods either to impress others or simply because their friends have those items.
Marketers should consider how to design sports product with attractive sports features.
5) The type of sporting goods desired by the older and younger generations is widely dissimilar.
And a large gap exists between the desire to purchase and the ability to purchase sporting
goods. It causes problems of bringing the right products to the right person and establishing
an appropriate price policy.
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6) The purchasing decision of Chinese consumers is heavily influenced by social values and the
social environment. Marketers should establish an educational program to either match or
lead a social value.
Personal Factors: Because of recent social changes, Chinese consumers have learned much from
other cultures. They are more independent and more knowledgeable about commerce and business.
There are at least three particular changes which may create opportunities for marketers:
1) The nuclear family has become the baic economic unit, and it has more power to make
purchasing decisions. With the implementation of the "one child per family" policy in China,
the nuclear family, consisting of parents with one child, has replaced the traditional clan
family which consisted of two or more generations living as one family.
2) Chinese wives are viewed as decision makers for goods purchased in families. Since wives
control family finances, it is important to target wives.
3) Individuals who live in the urban locations have stronger purchasing power. The Chinese
government predicts that by the end of 1995, people in large urban areas will increase to
30% of the population. This modernization movement will undoubtedly create business
opportunities.
Questions
Discuss the various factor which influences consumer behavior in china?
What should be the target market and what can be the marketing strategy?
CASE - 2 (20 Marks)
Consumer behavior: yesterday, today, and tomorrow
THE ECONOMIC PARADIGM
The 1940s view of the consumer in the marketplace was rooted in economic theory. Most scholars of
economics probably still hold to the theory of Economic Man. In this paradigm, purchasing decisions
are the result of largely "rational" and conscious economic calculations. The individual buyer seeks to
spend his income on those goods that will deliver the most utility (satisfaction) according to his tastes
and relative prices. This is a normative rather than a descriptive model of behavior, because logical
norms are provided for buyers who want to be "rational."
The model suggests useful behavioral hypotheses, such as: (a) the lower the price of the product, the
higher the sales; (b) the lower the price of substitute products, the lower their sales; (c) the lower the
price of complementary products, the higher their sales, provided they are not "inferior" goods; and
(d) the higher the promotional expenditures the higher the sales. In striving to meet these hypotheses,
consumers are not only assumed to be aware of all available alternatives in the marketplace; they are
also assumed to be able to rationally rank order the available alternatives by preferences. This is the
case of perfect information in the marketplace and unlimited ability of tile consumer.
In applying these assumptions to actual consumption, several problems became apparent. First of all,
consumers do not have perfect information in the marketplace. Second, they do not all have the same
information about the existing alternatives or attributes of known alternatives. instead, each consumer
has fragmented knowledge of his or her own set of known alternatives; as a result, consumers can not
6 | P a g e
always rank a set of alternatives available to them. In addition, preferences often violate utility
theory, because different people prefer different styles, have different tastes, and hence make choices
built on preferences rather than objective information such as price.
Problems arise with applying economic theories to gifts. Increasing the price of goods may actually
make them more desirable, defying basic economic theory. Hence, inverted demand curves reflect
products where increasing prices stimulate increasing sales. Perfume is a perfect example of this type
of good. Most perfume or cologne is bought as a gift, and the connotations of bringing home a $2
bottle of cologne or a $50 bottle for a loved one are implicit. A relationship may not last upon receipt
of the cheaper good. Hence the economic model ignores the fundamental question of how product
and brand preferences are formed.
THE IRRATIONAL CONSUMER
After becoming aware that goods have "hidden meaning," scholars of consumer behavior in the
1950s took to the notion of the consumer as an irrational, impulsive decision maker. Consumers were
seen as passive, open, and vulnerable to external influences. This position was an obvious reaction to
the "economic man" and also represented a time when business schools were developing. Earlier,
faculty trained in economics were the first to be hired, but in the 1950s psychologists were added to
the payroll. Their insights from Freud to Maslow, from personality to motivation theory, seemed ever
so relevant to our study of the consumer.
The two major psychological theories underlying this era were the Pavlovian learning model and the
Freudian psychoanalytic model. The Pavlovian model is based on four central concepts-those of
drive, cue, response, and reinforcement. Drive or motives can be primary, such as hunger and sex, or
secondary, such as fear. A drive is very general and impels a particular response only in relation to a
particular configuration of cues. The Pavlovian model emphasizes the desirability of repetition in
advertising. Repetition fights the tendency for learned responses to weaken in the absence of practice
and provides reinforcement.
The model also provides guidelines for copy strategy. To be effective as a cue, an advertisement must
arouse strong drives in the person. For candy bars, it may be hunger; for safety belts, fear; for hair
tonics, sex; for automobiles, status.
In the Freudian psychoanalytic model, the guilt or shame man feels toward his sexual urges causes
him to repress them from his consciousness. Through rationalization and sublimation, these urges are
denied or become transmuted into socially approved expressions. These urges are never eliminated or
under perfect control and they emerge in dreams, in slips of the tongue, or in neurotic or obsessive
behavior.
Because of these urges, the consumer's motivations for behavior are not obvious or deeply
understood. As a result, Freudian psychology gave consumer behavior the tool of in-depth
interviewing to get at the motives and symbols behind a purchase. If a consumer is asked why lie
purchased an expensive foreign sports car, he may reply that he likes its maneuverability and its
looks. At a deeper level he may have purchased the car to impress others, or to feel young again. At a
still deeper level, lie may be purchasing the sports car to achieve substitute gratification for
unsatisfied sexual strivings.
Other Freudian consumer research findings included men wanting their cigars to be odoriferous to
prove they were masculine, and women being very serious when baking cakes because unconsciously
they were going through the symbolic act of birth. These theories were certainly more interesting
reading than the graphs and curves of economics.
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One major study of this era (Haire 1950) found that when a shopping list included instant coffee
rather than drip grind, the owner of the list was perceived to be a very different person. The owner of
the list with instant coffee was lazy, a poor planner, a spendthrift, and a bad wife. Meanwhile, the
owner of the list with drip coffee was perceived to be thrifty and a good wife. Fortunately a
replication of this study was done in 1970 and housewives were no longer judged by their coffee
(Wilkie 1986). However, Haire's study provided good insight to the fact that products have meaning
and significance that go far beyond the physical attributes of the products themselves. Furthermore,
these hidden values were thought to be a major influence on consumer decisions. To tap into the
consumers' hidden motives for purchase, more indirect methods of data gathering were necessary.
Toward the end of the 1950s an empirical article started to throw doubt on the heavy reliance on
psychological perspectives. A study by Evans (1959) sought to determine the personality
characteristics of Ford versus Chevrolet owners. In the 1950s these were the major automobile
manufacturers. Wider choice and Japanese imports did not exist. If the differences between the cars
were not major, the train of thought was that the personality of the owner must be significantly
different and motivate the consumer to buy one brand or the other. A carefully controlled survey of
personality characteristics of 1,600 owners of Fords and Chevrolets showed no major significant
differences in personality characteristics of the car owners. The importance of this line of behavioral
research to consumer products was questioned. By this time, in the early and mid-1960s, business
schools were producing their own scholars and faculty. Researchers were trained by business schools
rather than only economics and psychology departments. Researchers of consumer behavior gained
from this marriage of economics and psychology and began to develop their own theories of the
consumer.
THE PROBLEM SOLVER
In the 1960s John Kennedy became president of the United States and gave the consumer elevated
status. In his message to Congress on March 15, 1962, he put forth the Consumer Bill of Rights
(1963) as a social contract between business and society. Government was tile ultimate guarantor of
these rights, which included the right to safety, the right to be informed, the right to choose, and the
right to be heard (redress). The government took Kennedy seriously and began an activist role
The marketplace was becoming more diversified. The concept of market segmentation became even
more important. Goods that the consumer ted were now being produced, rather than just the goods
the manufacturer wanted to make. Choice prevailed for the consumer, and the consumer was
recognized by the highest official in the country. Consumers had the right to he informed and
protected.
The government poured millions of dollars into departments whose goal was to make sure the
consumer had access to information. The Federal Trade Commission flourished. Labels were put on
products listing all ingredients. Advertising was regulated and measured; if it was misleading, then
corrective advertising was necessary. Information was in great supply to the consumer. Ralph Nader,
with his book Unsafe At Any Speed, emerged as the hero of the 1970s, taking on corporate giants in
the name of the little man. Consumerism was everywhere.
As a result of this environment, consumer behavior researchers started to see the consumer as a
"cognitive man." The irrational psychotic purchaser of the 1950s and early 1960s was left behind.
The consumer was now a problem solver. He or she was receptive to products or services that
consciously met his or her needs. Consumers were thought to actively search for information about
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the products and services they bought. Consumer Reports was born. Consumers were seen as striving
to make the best decisions possible given their limitations.
However, consumer researchers told us that even though consumers are given information, they often
fail to use it to make decisions. In an initial experiment (Jacoby, Speller, and Kohn 1974) and a
follow-up (Scammon 1975), consumers were given objective product information concerning several
brands available in the marketplace. The results of the first study showed that consumers felt better
about their brand selections with more information, but actually made poorer choices. The study by
Scammon corrected for weaknesses in the original study but still found that recall of product
attributes decreased with increasing information. Consumers were still limited by the extent of their
knowledge about the marketplace and their capacity to store information about the marketplace in
short-term memory. Miller's (1956) rule of seven plus or minus two) pieces of information as
cognitive capacity held for the consumer.
The information in the marketplace was not organized for the ease of the consumer. Unit pricing was
fine, but comparing prices across brands and sizes for products was quite a challenge. Only when unit
prices were posted on one sheet in a simple linear manner by decreasing prices across all sizes and
brands did the consumers shift in their decision making toward lower-priced brands. You can imagine
the national brand manufacturer's enthusiasm toward presentation of this information at point of
purchase.
The overriding conclusion of consumer research in the 1970s was that people can only attend to
limited information at one point in time. The consumers' existing skills, habits, reflexes, values, and
goals shape the way they search and use information to make their decisions. The 1970s told us that
consumers' skills were limited, but at the same time the number of choices available to the consumer
kept increasing. More and more choices became available in the 1980s.
THE COGNITIVE MISER
Today's consumer uses decision-making skills originally developed in the 1970s, but the 1980s
consumer went farther than just recognizing man's cognitive limitations. Researchers have labelled
the low-involvement decision maker (or cognitive miser) as unable or unwilling to engage in
extensive decision-making activities in many cases and settle instead for "satisfactory" decisions
(Olshavsky and Granbois 1979). There is too much choice and not enough discretionary time to
engage in extended cognitive effort for purchases. Instead the consumer develops rules of thumb or
heuristics to simplify purchase behavior. An in-store study showed that consumers go through almost
no brand price comparison behavior (Hoyer 1984). Rules such as "buy the cheapest," "buy name
brands," or "buy what my friend bought" give the consumer a satisfactory choice in the marketplace
that supplants an optimal choice. This is a very adaptive and rational course for the consumer to have
taken in the 1980s, given the cluttered choice environment with little time for decision making and
virtually no support in information handling. The cost of thinking was recognized as a limiting factor
in processing choices.
The 1980s brought a focus on business and conservatism, and many came to feel that governmental
regulation was more of a hindrance than a help. This was expressed in the election of Ronald Reagan.
As quickly as Kennedy had made the consumer important, Reagan made him unimportant. With
strokes of a pen, the FTC experienced a sharp reduction in its budget and influence. Whole
departments set up by the government to service the consumer were abandoned. Consumer programs
developed for the 1970s folded.
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The 1980s were for business. This focus was a result of several factors. First, the "baby boomer
bulge" had a greater number of people for a smaller number of jobs. In the early 1970s a college
graduate decided what job to take, or perhaps a trip to Europe, then work. In the early 1980s the
concern was for getting any job at all. The economy was slow and competition was stiff. Business
looked to the MBA to turn companies around. The student was serious and conservative due to the
competitive environment. Business and engineering were in; the humanities were out. The
marketplace became more competitive, more diversified. Deregulation prevailed.
Too many goods cluttered too many store shelves for the consumer. For example, the average number
of products in supermarkets soared from 13,000 in 1981 to 21,000 in 1987. There are said to he 400
different brands of beer available to the American beer drinker. A new car purchaser might have 300
different types of cars and light trucks, domestic and imported, to choose from.
Along with the "over choice" and market diversity of the 1980s came decreased leisure time for the
consumer, not more leisure time as predicted in the 1940s. The number of free hours a person
possesses decreased from four to one since the 1970s. The reason for this is that the average time
spent at work has increased seven to eight hours a week since 1978 (Stern 1987). More than 50
percent of all women are working, so household duties are done after 6 p.m. or on weekends. Single
working mothers have virtually no free time and can't take care of all they want to do. This scenario
has led to a demand for convenience products and convenience shopping. Home catalogs, home TV
shopping, home computer shopping, and home shopping parties are part of this easier access to goods
that will prevail in the 1990s. The efficiency of in-home shopping, especially through direct
marketing, is exemplified by the fact that American Express sold 7 percent of all the luggage bought
in the U.S. by sending mailings to affluent cardholders whose charge records showed they spent
heavily on travel-related merchandise.
This the cognitive miser of the 1980s is a product of decreased time for shopping decisions and
increased choice in the marketplace. It is an adaptive strategy to suit the decision-making
environment.
THE COLLECTIVE BUYER OF THE 1990s
The focus on individual decision processes for personal purchase of products and services will be
replaced by a more collective decision-making style during the 1990s. This will be caused by the
changing cultural patterns of North America combined with the decrease in purchasing power of the
individual consumer. The culture of North America is changing due to: (1) the rapid increase in the
percent of elderly people who are neither healthy nor wealthy; (2) the aging of the baby boomers,
causing a shift in values and needs; and (3) increased immigration from Asian cultures with high
birth rates to offset the North American decline in population. All three categories of this cultural
shift will have to rely on joint decisions for purchase of goods and services, since goods and services
will be shifting to a collective consumption style rather than individual consumption in the North
American marketplace.
Individuals will combine households in an increasing rate to make life more affordable. The evidence
that this joint living may be a trend for the future is exemplified by the fact that 6.2 percent of all
employed people are working two jobs, mainly to meet living expenses. When the economy turns
down these extra jobs will not be available, and people will have to decrease their standard of living
to meet day-to-day expenses. More unmarried people will share apartments, more single-parent
families will couple up, and more children will live at home longer. Thus, more people will be
sharing consumer goods just due to living arrangements. Also, through the changing face of North
American consumers, the marketplace will continue to change and supply more and more services for
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these groups. The changing face of the consumer will alter the marketplace and the mode of decision
making.
Much has been written about the marketing opportunities for the senior segment. Right now
approximately 7.3 percent of the population is over 65. By the year 2000, this group will increase by
20 percent, making it the fastest-growing segment of our population. This is one reason why
marketers focus on the elderly. However, this group is not all that wealthy or all that healthy. It is
estimated that 80 percent of people over 65 have chronic health problems, and 16 percent have severe
physical problems. One in five Americans over the age of 85 resides in a nursing home.
The Baby Boomers
A full one-third of the population is bulging at middle age. In the year 2000 they will be 36 to 54
years old and at the middle of peak earnings. They are important to our view of consumer behavior
because they will head 44 percent of all households and still account for a majority of purchasing
power. Due to the conflicting structure of the population versus the corporate culture, there will be
less moving around among this group, and they will be more stable in their jobs. Hence, their values
and attitudes will change dramatically to reflect this stability. The collective decision-making style
will be based on their stable environment.
Questions
Discuss as to how the consumer behavior has evolved post 1950?
CASE - 3 (20 Marks)
Consumer behaviour: Men still major decision-makers
In India, men continue to dominate.
Even today, only 16 per cent of Indian professionals are women. Therefore, consumer decisionmaking
in all areas -- ranging from what cars to buy to what clothes manufacturers to patronize -- is
dictated by men when it comes to the most upscale market segment in India.
'Horizon 2003', a study by BBC World, BBC's 24-hour international news and information channel,
using the latest census as a base, gives some startling insights into the attitudes and activities of
India's leading consumers and decision makers.
The research, conducted by market research agency NFO-MBL across six top metros and profiling
380,000 people, will greatly help media planners, agencies and advertisers to understand this
particular horizon professional.
Life insurance was found to be the biggest financial investment for most Indians, followed by the
stock markets.
Washing machines were the most desirable consumer durable products, followed by cars and desktop
computers.
Forty-two per cent of the respondents owned a mobile phone, of which 52 per cent had a Nokia, and
42 per cent of these subscribed to AirTel cellular service.
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For example, more than half of the people surveyed (56 per cent) felt that it was all right to give or
take bribes to get their work done. A slightly smaller number (40 per cent) thought it perfectly
acceptable 'to make money through underhand means/deals.'
Who decides
Self Spouse Joint Family Elders Children
Buying a house 25% 5.8% 20.8% 30.1% 14% 0.4%
Child's marriage 7.7% 5.9% 21.8% 18.7% 11.5% 4%
Own marriage 20.4% 2.5% 6.2% 22.4% 29.7% 0.9%
Child's education 15.1% 6.6% 34% 12.5% 5.6% 4.6%
Taking a loan 31.4% 5% 24.3% 18.1% 9.2% 0.6%
Fixing monthly budget 24.2% 10.3% 33.3% 18.5% 11.2% 0.6%
Buying entertainment durables, like TVs 21.4% 8.2% 33.4% 26.7% 7.4% 1.6%
Buying durables like washing machines 19.3% 10.7% 33.3% 26.2% 8.2% 1%
Deciding on holiday destinations 20.6% 6.1% 28.4% 31.8% 4.5% 5.6%
"It is very difficult to survey this group by using traditional methods," says Jeremy Nye, BBC
World's head of research, in the study. "However, it is important to know the tastes of these
professionals who will be shaping India's destiny."
Adds Dezma De Melo, research manager, BBC World: "All the individuals in this class are rather
alike. They have similar opinions, attitudes and beliefs."
The study showed the emergence of certain definite trends in the area of just who decides what. For
example, the person in question seemed to play a major role in deciding the monthly budget or
whether to take a loan, but when it came to deciding whom he should marry, it was still the older
people in the family who played a key role.
Both, the husband and the wife jointly decided on issues like the marriage of progeny. In a majority
of cases, the whole family got together to decide what kind of house to buy where to go for a holiday.
Alcohol consumption habits indicated that 25 per cent drank alcohol, of which 72 per cent were beer
drinkers. Most executives drank at bars and pubs, while self-employed professionals drank at friends'
homes. Businessmen preferred parties to have a drink or two at.
The research has an entire section focusing on travellers as a separate target audience. This is the first
time that anyone has studied consumer behaviour in this area in such depth.
The study tries to understand the travelling habits -- such as the mode of transport, kind of holidays,
choice of place and media consumption while travelling -- which will be different from normal
household viewership.
The survey sets forth several interesting findings in this area. Sixty per cent people take a holiday in
India, while 5 per cent take a holiday abroad. Eighteen per cent travel on business within India, while
8 per cent travel on business abroad at least once in a year.
12 | P a g e
As for international holidays taken in the last one year, people from Mumbai (30 per cent), Bangalore
(35 per cent) and Hyderabad (26 per cent) preferred travelling to the United States, while 35 per cent
from Kolkata and 41 per cent from Chennai travelled to Singapore.
A quarter of the respondents from Delhi went to Nepal for a holiday.
Among domestic business travellers, Jet Airways (60 per cent) is the preferred airline, followed by
India Airlines (53 per cent) and Sahara Airlines (20 per cent). For domestic leisure travel, Jet
Airways and Indian Airlines enjoy an equal share.
Among international leisure destinations, Singapore is the favourite with 23 per cent respondents,
followed by 22 per cent opting to visit the US. International business travellers prefer the US (24 per
cent) followed by Singapore (23 per cent) and the United Kingdom (13 per cent).
Interestingly, people in the six metros surveyed seemed to show entirely different tastes in watching
television. The average number of channels watched was five and an average of 100 minutes of
television is watched a day, with 30 minutes devoted to news.
News and Sports are the most preferred programme genres, followed by general entertainment.
However, 29 per cent of the respondents in Delhi preferred News channels, while only 14 per cent of
those surveyed in Bangalore preferred News. Bangaloreans prefer watching Sports with a high of 34
per cent.
"We look forward to Horizon 2003 being a tool for advertisers and planners to get a better
understanding of this upscale, influential audience. We have been able to offer better solutions on the
channel to advertisers based on the learning of this upmarket audience," Seema Mohapatra, head of
advertising sales for BBC World, says.
The survey also found that 95 per cent of the professionals were proud to be Indians, while 75 per
cent believed risks are worth taking.
Questions
Q1) With reference to case above ,define the terms below,and justify how they influence
consumer behaviour?
Cultural and Cross-Cultural Influences
Subculture and Social Class
Reference Groups and Family
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CASE-4 (20 Marks)
After its successful launch of local classifieds, Admanya, India¡¦s leading consumer internet portal
today announced the launch of a free classifieds matrimony service for its users .Based on user
suggestions and requests, Admanya realized the needs of people in India who are extremely busy yet
believe in the traditional way of matchmaking. With its network across 500 cities in India, this new
functionality of Admanya will also help people from smaller cities in their search for life partners.
Ranjana, a 26 year old software professional from Bangalore says, "Admanya has always been
coming up with surprises. With our busy and hectic schedule this is indeed a welcome surprise for us,
seeking a simple platform for matrimonial alliances."
Mr. Jaydeep Bhattacharjee, the founder and CEO of Admanya says, "People in India have always
been rooted in tradition and religious beliefs. They believe in arranged marriages
rather then romanticized tying of partners. So, we are indeed honoured to extend this free service to
our members to make their search for a life partner fast and easy. With no elaborate profiles required
posting a matrimonial ad in Admanya will be simple and hassle-free."
Admanya is not only an online classifieds service that caters to the growing requirements of
communities all over the world but is also a place for product reviews, consumer feedbacks and an
emerging social community. You can find a job, recruit people, sell your car or buy one, rent your
house and do much more through Admanya classifieds.
Questions
Matrimonial classified has moved from newspaper to online service, how has the consumer behavior
changed, what are the factors which had influenced it?
OPERATIONS MANAGEMENT
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CASE-1 (16 Marks)
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?
CASE-2 (16 Marks)
In the table given below the Distribution Manager is expected to service these DCs as per the demands
placed. If the actual sales after completing week one is as follows, what would be the quantities that
would need amendment as far as Distribution Manager is concerned to service for week two and
onwards?
After week one the actual sales to Forecasted sales for week one ratio is as under: Mumbai did 80 % of
forecast , Lucknow did 75 % of forecast Kolkata did 60 % of week one forecast Chennai did 125 % of
forecast and Delhi did 150 % of week one forecast
Note : Kolkata will receive transit stocks in week 2 .
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CASE-3 (16 Marks)
After working for 30 years, Ramjee Somjee Dutt opted for VRS and started a courier company and did
very well in the first four years. He was now looking for expansion of his business and decided to
venture into Road transportation business between Chennai and Mumbai and Mumbai and Delhi as he
felt that he could do well on this line. However before taking a final decision he hires your
Management Consultant firm formed by yourself. He has requested you to work out the Price to quote
his clients for these two routes considering the costs involved. He expects to earn a minimum profit of
Rs 1000 per day per truck after meeting all expenses. Your analysis of market conditions tell you the
following:
Vehicle cost Rs 7 lacs Depreciation 15 % Maintenance costs per day Rs 150 Drivers monthly Salary
Rs 5000 : Attendants monthly salary Rs 3000 . Misc expenses Rs 200 per day. Driver allowance is Rs
125 per day and attendant gets Rs 75. Diesel cost per liter is Rs 25 and the vehicle gives an average
mileage of 4 km to a liter. The Financial institutions offer loans at 10 % interest pa, which Ramjee has
been negotiating. It has been observed that on an average the vehicle covers 400 km per day. The
distance between Mumbai to Delhi is 1500 km and Mumbai to Chennai is 1350 km. The driver gets
rest day in Mumbai only for one day after they return from any trip.
CASE-4 (16 Marks)
A company is operating in two unrelated businesses. The first one is making common salt, which is
sold in one-kilogram consumer packs. The second business is making readymade garments. The owner
of the businesses has decided to implement Materials Requirement Planning (MRP) in one of the two
businesses, which is likely to give him greater benefit. Assuming that the current turnover and profits
of both the units are comparable, compare the relative benefits and limitations of Materials
Requirement Planning (MRP) for these two businesses.
CASE-5 (16 Marks)
A Manufacturer of motorcycles buys spark plugs at Rs.15 each. Now he wishes to manufacture the
plugs in his own factory. The estimated cost for the manufacture of spark plugs is around
Rs.50,000=00 and the variable cost comes to Rs.5 per spark plug. The Production Manager advises the
Manufacturer that the factory should go for manufacturing instead of procuring them from the open
market.
List out reasons for the decision of the Production Manager backed up by the necessary data.
PROJECT MANAGEMENT
Attempt all questions
1. Give a detailed description on “Detailed Project Report”. Indicate the Pros and Cons of it also.
(10 Marks)
2. What is Project Management Information System? Why is a Project Management Information
System considered to be of immense importance in a project? In designing a Project Management
Information System what parameters are to be spelt out clearly in line with the objectives of the
Project management Information System? (20 Marks)
3. Technology and processes play crucial role in certain projects. What the key issues are in regards
to choice of technology, equipment and processes at the stage of formulation of Detailed Project
Report?
(10 Marks)
4. Given the activity mean and Standard Deviation, Find the probability that the project will take
more than 10 weeks to complete. (20 Marks)
Activity
Mean Standard Deviation
1 – 2 5 1
2 – 3 4 1
1 - 3 8 1
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
5. For the following network data ,
(20 Marks)
(a) Identify the Critical Path and its duration
(b) Calculate the total network slack time.
Job
(Activity)
Network
Initial Node
Network
Final Node
Estimated Time(days)
A 1 2 2
B 1 3 3
C 1 4 3
D 2 5 3
E 2 9 3
F 3 5 1
G 3 6 2
H 3 7 3
I 4 7 5
J 4 8 3
K 5 6 3
L 6 9 4
M 7 9 4
N 8 9 3
O 9 10 2
Public Administration
Attempt all questions
All questions carries equal marks
1. Explain the Meaning, Scope and Significance of Public Administration, Public and
Private Administration, Evolution of the discipline and its present status.
2. Explain what you understand by Good Governance. Also briefly discuss on the
concept and application e-Governance.
3. Under the Comparative Public Administration, discuss the Bureaucratic and
Ecological models.
4. Describe the following
(a) Evolution of Indian Administration,
(b) Administration of Ancient India,
(c) Administration of Medieval India,
(d) Administration of Modern India(from British Period)
5. How Public Administration and Changing role of Bureaucracy play a crucial role
as a tool for Development.
6. What are the various Forms of Public Undertakings? Discuss their contribution to
the economy problems of autonomy and accountability.
7. In the context of liberalization how effective is Changing role of the Public Sector.
8. Differentiate Rural and Urban Local Government. Identify. Major rural and Urban
development programs and their management.
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
9. Based on your general study, Do you feel there exists a strong Impact of
information Technology on Public Administration? If so, why?
10 Discuss with reasonable justification the following
(a) Environmental issues.
(b) Privatization and Globalization Perspectives
(c) Disaster Management
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