BUSINESS MANAGEMENT
N. B. : 1) Attempt any Four cases
2) All cases carry equal marks.
No : 1
REMAINS OF A DREAM
This is a tragic story, narrated in first person, of an entrepreneur who
became bankrupt for no fault of him, without producing anything, mostly
because of the irresponsible political and government environment. This case
study, documented by Bibek Debroy and P.D. Kaushik and published in Business
Today is reproduced here with permission.
In the 1980s, I worked as a chemical analyst for a transnational in
Germany, but kept thinking about shifting to India.
Opportunity knocked when I saw an advertisement by the Uttar Pradesh
government inviting NRI professionals to start a chemical unit in the newly
identified Basti Chemical Industrial Complex. I hail from Lucknow. Hence, this
was attractive. I inquired from the Indian High Commission and was told that
there is single window clearance for NRI investors. The brochure said several
things about the benefits – excise and sales tax holiday for five years,
uninterrupted power supply, low rate of interest on loans, and clearance of
application within 30 days.
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
I started the application formalities for a chemical unit. Once the
application was accepted, I requested for long leave from my employers. I also
inquired from my relatives in Lucknow and was told that the Uttar Pradesh
government’s intentions are clear, and developmental work is progressing at fast
speed.
Every now and then, I received a letter from the ministry of industry in
Uttar Pradesh to furnish some paper or the other, as part of procedural
formalities. After three months, I received my provisional sanction letter for
allotment of land, and term loan. The letter also stated that within six months, I
must take possession of the land, and initiate construction. Otherwise, the
deposited amount (Rs 1 lakh as part of my contribution) will be forfeited. I
resigned from the company, and shifted permanently to India, since my employer
turned down my request for long leave.
On reaching the complex, I was surprised to see that the Uttar Pradesh State
Industrial Development Corporation (UPSIDC) had actually developed the land
in terms of markers, and signboards, compared to what I had seen on my last
visit.
Though roads were not fully laid, it was evident that work was in progress.
I took possession of my land and started construction.
Meanwhile, I approached the UPFC for granting me the term loan for
ordering the plant and machinery. The first obstacle came from the Uttar Pradesh
State Electricity Board (now Uttar Pradesh Power Corporation). The electricity
supply to the complex was not yet available. On inquiring, I was told that the
plan had been sanctioned, but required clearance from the power ministry, before
undertaking further work. The approximate time to get grid supply ranged
between four and six months.
The next obstacle came from the Uttar Pradesh Financial Corporation
(UPFC). It could release the first instalment after I completed construction till the
plinth level. I continued work with the help of a diesel generating set. It took
another month to reach the plinth level.
But before I could request UPFC to release my first instalment, I received a
letter from UPFC that I had to deposit interest against the amount paid to the
UPSIDC for land possession. This was a shock, because interest had to be paid
even before anything was produced.
But I had no alternative, because the first insatlment was due. The UPFC
promptly released the first instalment after inspecting the construction. It helped
me continue construction work, and also book for plant and machinery.
Six months went by. Construction was almost complete. I had received
three instalments from the Uttar Pradesh Financial Corporation (UPFC). Each
time the payment of interest was due, the required sum was adjusted from the
instalment released. If there was any shortfall in money required for construction,
I paid from my own pocket.
But after nine months, my coffers went empty. Machinery suppliers were
after me, for payment. UPFC insisted on interest payments, because this was the
last instalment of my term loan and interest due couldn’t be deducted from future
instalments. I borrowed from family and friends and paid up. Then I received the
final instalment from UPFC for plant and machinery, with another notice that the
yearly instalment for the principal was due.
Within two months, machinery was commissioned at the site. But
electricity was yet to reach the complex. In the previous year, I had visited the
Uttar Pradesh State Electricity Board (UPSEB) office innumerable times. I also
approached the industry association to assist me. But all my efforts were in vain.
This did not help me, or others like me, to get the grid supply.
There were 14 other who were in the same boat. The biggest company of
them all – obviously with contacts at higher levels – arranged for grid supply
from the rural feeder. But that plan also did not take off, because the rural feeder
supplied poor quality power for a mere six hours. A process industry requires 24
hours of uninterrupted electricity supply without load fluctuations. It is precisely
because of this that all 15 of us, who were waiting for electricity, had insisted on
industrial power from UPSEB.
All plans failed. Captive generation was not a viable alternative now. And
we continued to wait for the grid supply. We met the former minister for industry
and pleaded our case. He assured us that he would take up the case with the
power ministry.
Meanwhile, I defaulted on interest payment. So did the others. The final
blow came in the Assembly elections, when both the sitting : Member of
Legislative Assembly, from Basti, and the state industrial minister lost their
seats. Suddenly, everything – from road construction work, to the laying of sewer
and phone lines – came to a standstill.
Only the police post and the UPSKB rural feeder office remained. The new
incumbent in the industrial ministry hailed from Saharanpur, so the thrust of the
ministry changed. Basti was not on their priority list anymore. After waiting for
tow years, UPSEB was not able to connect the complex with grid supply.
In the end, UPFC initiated recovery action and sealed my unit. Besides,
they claimed that I could not get NRI treatment, with preferential interest rates,
because I had permanently moved to India. Thus, there were also plans to file a
case against me on account of misinforming the corporation. Experts suggested I
should file for insolvency if I wanted to avoid going to prison. This I did in 1994.
I spent Rs. 15 lakh from my own pocket.
Now, all that remains of an entrepreneurial dream is a sealed chemical unit
in Basti and a complex legal tangle.
I was better off working for the transnational in Germany. Power does not
come out of the barrel of a gun. A gun’s barrel comes of power, especially when
the latter does not exist.
QUESTIONS
1. Identify and analyse the environmental factors in this case.
2. Who were all responsible for this tragic end?
3. It is right on the part of the government and promotional agencies to
woo entrepreneurs by promising facilities and incentives which they are not
sure of being able to provide?
4. Should there be legislation to compensate entrepreneurs for the loss
suffered due to the irresponsibility of public agencies? What problems
are likely to be olved and created by such legislation?
5. What are the lessons of this case for an entrepreneur and government
and promotional agencies?
No : 2
THE COSTS OF DELAY
The public sector Indian Oil Corporation (IOC), the major oil refining and
marketing company which was also the canalizing agency for oil imports and the
only Indian company I the Fortune 500, in terms of sales, planned to make a
foray in to the foreign market by acquiring a substantial stake in the Balal Oil
field in Iran of the Premier Oil. The project was estimated to have recoverable oil
reserves of about 11 million tonnes and IOC was supposed to get nearly four
million tonnes.
When IOC started talking to the Iranian company for the acquisition in
October 1998, oil prices were at rock bottom ($ 11 per barrel) and most refining
companies were closing shop due to falling margins. Indeed, a number of good
oil properties in the Middle East were up for sale. Using this opportunity, several
developing countries ``made a killing by acquiring oil equities abroad.’’
IOC needed Government’s permission to invest abroad. Application by
Indian company for investing abroad is to be scrutinized by a special committee
represented by the Reserve Bank of India and the finance and commerce
ministries. By the time the government gave the clearance for the acquisition in
December 1999 (i.e., more than a year after the application was made), the prices
had bounced back to $24 per barrel. And the Elf of France had virtually took
away the deal from under IOC’s nose by acquiring the Premier Oil.
The RBI, which gave IOC the approval for $15 million investment, took
more than a year for clearing the deal because the structure for such investments
were not in place, it was reported.
QUESTIONS
1. Discuss internal, domestic and global environments of business
revealed by this case.
2. Discuss whether it is the domestic or global environment that hinders
the globalization of Indian business.
3. Even if Elf had not acquired Premier Oil, what would have been the
impact of the delay in the clearance on IOC?
4. What would have been the significance of the foreign acquisition to
IOC?
5. What are the lessons of this case?
No : 3
NATURAL THRUST
Balsara Hygiene Products Ltd., which had some fairly successful household
hygiene products introduced in 1978 a toothpaste, Promise, with clove oil (which
has been traditionally regarded in India as an effective deterrent to tooth decay
and tooth ache) as a unique selling proposition. By 1986 Promise captured a
market share of 16 per cent and became the second largest selling toothpaste
brand in India. There was, however, an erosion of its market share later because
of the fighting back of the multinationals. Hindustan Lever’s Close-up gel
appealed to the consumers, particularly to the teens and young, very well and
toppled Promise form the second position.
Supported by the Export Import Bank of India’s Export Marketing Finance
(EMF) programme and development assistance, Balsara entered the Malaysian
market with Promise and another brand of tooth paste, Miswak.
The emphasis on the clove oil ingredient of the Promise evoked good
response in Malaysia too. There was good response to Miswak also in the
Muslim dominated Malaysia. Its promotion highlighted the fact that miswak
(Latin Name : Salvadora Persica) was a plant that had been used for centuries by
as a tooth cleaning twig. It had reference in Koran. Quoting from Faizal-EMiswak,
it was pointed out that prophet Mohammed used ``miswak before
sleeping at night and after awakening.’’ The religious appeal in the promotion
was reinforced by the findings of scientists all over the world, including Arabic
ones, of the antibacterial property of clove and its ability to prevent tooth decay
and gums.
Market intelligence revealed that there was a growing preference in the
advanced counties for nature based products. Balsara tied up with Auromere
Imports Inc. (AAII), Los Angeles. An agency established by American followers
of Aurobindo, an Indian philosopher saint. Eight months of intensive R & D
enabled Balsara to develop a tooth paste containing 24 herbal ingredients that
would satisfy the required parameter. Auromere was voted as the No. 1
toothpaste in North Eastern USA in a US Health magazine survey in 1991.
The product line was extended by introducing several variants of
Auromere. A saccharine free toothpaste was introduced. It was found that mint
and menthol were taboo for users of homoeopathic medicines. So a product free
of such mints was developed. Auromere Fresh Mint for the young and Auromere
Cina Mint containing a combination of cinnamon and peppermint were also
introduced. When the company relaised that Auromere was not doing well in
Germany because of the forming agent used in the product, it introduced a
chemical free variant of the products.
QUESTIONS
1. Explain the environmental factors which Balsara used to its advantage.
2. What is the strength of AAII to market ayurvedic toothpaste in USA?
No : 4
THE SWAP
The Economic Times, 20 October 2000, reported that Reliance Industries
entered into a swap deal for the export and import of 36 cargoes of naphtha over
the next six months. Accordingly, three cargoes of 50,000 tonnes each were to be
exported every month from Reliance Petroleum’s Jamnagar refinery and three
cargoes of the same amount were to be imported to the Reliance Industries’
Hazira facility. The deal was done through Japanese traders Mitsubishi,
Marubeni, ltochu, IdCmitsu and Shell. The export was done at around Arabian
Gulf prices plus $22.
Reliance, needs petrochemical grade naphtha for its Hazira facility which is
not being produced at Jamnagar. Therefore, its cracker at Hazira gets
petrochemical grade naphtha from the international markets in return for
Reliance Petroleum selling another grade of naphtha from its Jamnagar refinery
to the international oil trade.
If RIL imports naphtha for Hazira petrochemical plant, the company does
not have to pay the 24 per cent sales tax, which it will have to pay on a local
purchase, even if it is from Reliance Petro. Besides Reliance Petro will also get a
10 per cent duty drawback on its crude imports if it exports naphtha from the
refinery at Jamnagar.
The export of naphtha with Japanese traders is being looked as a coup of
Reliance as it gives the company an entry into the large Japanese market.
Indian refineries have a freight advantage over the Singapore market and
can quote better prices.
QUESTIONS
1. Examine the internal and external factors behind Reliance’s decision
for the swap deal.
2. What environmental changes could make swap deal unattractive in
future?
3. Could there be any strategic reason behind the decision to import and
export naphtha?
4. Should Reliance import and export naphtha even if it does not provide
any profit advantage?
No : 5
A QUESTION OF ETHICS
TELCO opened bookings for different models of its proud small car Indica
in late 1998. The consumer response was overwhelming. Most of the bookings
were for the AC models, DLE and DLX. The DLE model accounted for more
than 70 per cent of the bookings.
Telco has planned to commence delivery of the vehicles by early 1999.
However, delivery schedules for the AC models were upset because of some
problems on the roll out front. According to a report in The Economic Times
dated 13 March 1999, Telco officials attributed the delay to non-availability of
air conditioning kits.
Subros Ltd. supplies AC kits for the DLE version and Voltes is the vendor
for the DLX version. Incidentally, Subros is also the AC supplier to Maruti
Udyog Ltd.
Telco officials alleged that Subros was being pressured by the competitor to
delay the supply of kits. ``If this continues, we will be forced to ask Voltas to
supply kits for the DLE version too,’’ a company official said.
QUESTIONS
1. Why did Telco land itself in the problem (supply problem in respect of
AC kits)?
2. If the allegation about the supplier is right, discuss its implications for
the supplier.
3. Evaluate the ethical issues involved in the case. (Also consider the fact
Maruti was 50 per cent Government owned.)
No : 6
DIFFERENT FOR GAMBLE
Product and Gamble (P & G), a global consumer products giant, ``stormed
the Japanese market with American products, American managers, American
sales methods and strategies. The result was disastrous until the company learnt
how to adapt products and marketing style to Japanese culture. P & G which
entered the Japanese market in 1973 lost money until 1987, but by 1991 it
became its second largest foreign market.’’
P & G acclaimed as ``the world’s most admired marketing machine’’,
entered India, which has been considered as one of the largest emerging markets,
in 1985. It entered the Indian detergent marketing the early nineties with the
Ariel brand through P & G India (in which it had a 51 percent holding which was
raised 65 per cent in January 1993, the remaining 35 per cent being hold by the
public). P & G established P & G Home products, a 100 per cent subsidiary later
(1993) and the Ariel was transferred to it. Besides soaps and detergents, P & G
had or introduced later product portfolios like shampoos (Pantene) medical
products (Viks range, Clearasil and Mediker) and personal products (Whisper
feminine hygiene products, pampers diapers and old spice range of men’s
toiletries).
The Indian detergent and personal care products market was dominated by
Hindustan Lever Ltd. (HLL). In some segments of the personal care products
market the multinational Johnson & Johnson has had a strong presence. Tata
group’s Tomco, which had been in the red for some time, was sold to Hindustan
Lever Ltd. (HLL). HLL, a subsidiary of P & G’s global competitor, has been in
India for about a century. The take over of Tomco by HLL further increased its
market dominance. In the low priced detergents segment Nirma has established a
very strong presence.
Over the period of about one and a half decades since its entry in India, P &
G invested several thousand crores. However, dissatisfied with its performance in
India, it decided to restructure its operations, which in several respects meant a
shrinking of activities – the manpower was drastically cut, and thousands of
stockists were terminated. P & G, however holds that, it will continue to invest in
India. According to Gary Cofer, the country manager, ``it takes time to build a
business category or brand in India. It is possibly an even more demanding
geography than others.’’
China, on the other hand, with business worth several times than in India in
less than 12 years, has emerged as a highly promising market for P & G. when
the Chinese market was opened up, P & G was one of the first MNCS to enter.
Prior to the liberalisation, Chinese consumers had to content with shoddy
products manufactured by government companies. Per capita income of China is
substantially higher than India’s and the Chinese economy was growing faster
than the Indian. Further, the success of the single child concept in China means
higher disposable income.
Further it is also pointed out that for a global company like P & G,
understanding Chinese culture was far easier since the expat Chinese in the US
was not very different from those back home where as most Indian expats tended
to adapt far more to the cultural nuances of the immigrant country.
One of P & G’s big in India was the compact technology premium
detergent brand Ariel. After an initial show, Ariel, however, failed to generate
enough sales – consumers seem to have gone by the per kilo cost than the cost
per wash propagated by the promotion. To start with, P & G had to import the
expensive state-of-the-art ingredients, which attracted heavy customs duties. The
company estimated that it would cost Rs. 60 per kilo for Ariel compared to Rs.
27 for Surf and Rs. 8 for Nirma. Because of the Rupee devaluation of the early
1990s, the test market price of Rs. 35 for 500 gms was soon Rs. 41 by the time
the product was launched. HLL fought Ariel back with premium variants of Surf
like Surf Excel.
It is pointed out that, ``in hindsight, even P & G managers privately admit
that bringing in the latest compact technology was a big blunder. In the eighties,
P & G had taken a huge beating in one of its most profitable markets, Japan, at
the hands of local company Kao. Knowing the Japanese consumer’s fondness for
small things, Kao weaved magic with its new-found compact technology. For a
company that prided itself on technology, the drubbing in Japan was particularly
painful. It was, therefore, decided that compacts would now be the lead brand for
the entire Asia-Pacific region. When P & G launched Ariel in India, it hoped that
the Indian consumer would devise the appropriate benchmarks to evaluate Ariel.
As compacts promised economy of sue, P & G hoped that consumers would buy
into the low-cost-per-wash story. But selling that story through advertising was
particularly difficult, especially sine Indian consumers believed that the washing
wasn’t over unless the bar had been used for scrubbing. Even though Ariel was
targeted at consumer with high disposable income, who represented half the
urban population, consumers simply baulked at the outlay.
Thereafter, one thing led to another. Ariel’s strategy of introducing variants
was a smart move to flank Lever at every price point by cleverly using the
brand’s halo effect. And by supporting the brand in mass media and retaining the
share of voice. By 1996, it had become clear that Ariel’s equity as a highperformance
detergent had begun to take a beating. Its equity as a top-of-the-line
detergent was getting eroded….Nowhere in P & G’s history had a concept like
Super Soaker been used to gain volumes…. It was decided that Super Soaker
would no longer be supported, nor would Ariel bar be supported in media.
QUESTIONS
1. Discuss the reasons for the initial failure of P & G in Japan.
2. Where did P & G go wrong (if it did) in the evaluation of the Indian
market and its strategy?
3. Discuss the reasons for the difference in the performance of P & G in
India and China.
N. B. : 1) Attempt any Four cases
2) All cases carry equal marks.
No : 1
REMAINS OF A DREAM
This is a tragic story, narrated in first person, of an entrepreneur who
became bankrupt for no fault of him, without producing anything, mostly
because of the irresponsible political and government environment. This case
study, documented by Bibek Debroy and P.D. Kaushik and published in Business
Today is reproduced here with permission.
In the 1980s, I worked as a chemical analyst for a transnational in
Germany, but kept thinking about shifting to India.
Opportunity knocked when I saw an advertisement by the Uttar Pradesh
government inviting NRI professionals to start a chemical unit in the newly
identified Basti Chemical Industrial Complex. I hail from Lucknow. Hence, this
was attractive. I inquired from the Indian High Commission and was told that
there is single window clearance for NRI investors. The brochure said several
things about the benefits – excise and sales tax holiday for five years,
uninterrupted power supply, low rate of interest on loans, and clearance of
application within 30 days.
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
I started the application formalities for a chemical unit. Once the
application was accepted, I requested for long leave from my employers. I also
inquired from my relatives in Lucknow and was told that the Uttar Pradesh
government’s intentions are clear, and developmental work is progressing at fast
speed.
Every now and then, I received a letter from the ministry of industry in
Uttar Pradesh to furnish some paper or the other, as part of procedural
formalities. After three months, I received my provisional sanction letter for
allotment of land, and term loan. The letter also stated that within six months, I
must take possession of the land, and initiate construction. Otherwise, the
deposited amount (Rs 1 lakh as part of my contribution) will be forfeited. I
resigned from the company, and shifted permanently to India, since my employer
turned down my request for long leave.
On reaching the complex, I was surprised to see that the Uttar Pradesh State
Industrial Development Corporation (UPSIDC) had actually developed the land
in terms of markers, and signboards, compared to what I had seen on my last
visit.
Though roads were not fully laid, it was evident that work was in progress.
I took possession of my land and started construction.
Meanwhile, I approached the UPFC for granting me the term loan for
ordering the plant and machinery. The first obstacle came from the Uttar Pradesh
State Electricity Board (now Uttar Pradesh Power Corporation). The electricity
supply to the complex was not yet available. On inquiring, I was told that the
plan had been sanctioned, but required clearance from the power ministry, before
undertaking further work. The approximate time to get grid supply ranged
between four and six months.
The next obstacle came from the Uttar Pradesh Financial Corporation
(UPFC). It could release the first instalment after I completed construction till the
plinth level. I continued work with the help of a diesel generating set. It took
another month to reach the plinth level.
But before I could request UPFC to release my first instalment, I received a
letter from UPFC that I had to deposit interest against the amount paid to the
UPSIDC for land possession. This was a shock, because interest had to be paid
even before anything was produced.
But I had no alternative, because the first insatlment was due. The UPFC
promptly released the first instalment after inspecting the construction. It helped
me continue construction work, and also book for plant and machinery.
Six months went by. Construction was almost complete. I had received
three instalments from the Uttar Pradesh Financial Corporation (UPFC). Each
time the payment of interest was due, the required sum was adjusted from the
instalment released. If there was any shortfall in money required for construction,
I paid from my own pocket.
But after nine months, my coffers went empty. Machinery suppliers were
after me, for payment. UPFC insisted on interest payments, because this was the
last instalment of my term loan and interest due couldn’t be deducted from future
instalments. I borrowed from family and friends and paid up. Then I received the
final instalment from UPFC for plant and machinery, with another notice that the
yearly instalment for the principal was due.
Within two months, machinery was commissioned at the site. But
electricity was yet to reach the complex. In the previous year, I had visited the
Uttar Pradesh State Electricity Board (UPSEB) office innumerable times. I also
approached the industry association to assist me. But all my efforts were in vain.
This did not help me, or others like me, to get the grid supply.
There were 14 other who were in the same boat. The biggest company of
them all – obviously with contacts at higher levels – arranged for grid supply
from the rural feeder. But that plan also did not take off, because the rural feeder
supplied poor quality power for a mere six hours. A process industry requires 24
hours of uninterrupted electricity supply without load fluctuations. It is precisely
because of this that all 15 of us, who were waiting for electricity, had insisted on
industrial power from UPSEB.
All plans failed. Captive generation was not a viable alternative now. And
we continued to wait for the grid supply. We met the former minister for industry
and pleaded our case. He assured us that he would take up the case with the
power ministry.
Meanwhile, I defaulted on interest payment. So did the others. The final
blow came in the Assembly elections, when both the sitting : Member of
Legislative Assembly, from Basti, and the state industrial minister lost their
seats. Suddenly, everything – from road construction work, to the laying of sewer
and phone lines – came to a standstill.
Only the police post and the UPSKB rural feeder office remained. The new
incumbent in the industrial ministry hailed from Saharanpur, so the thrust of the
ministry changed. Basti was not on their priority list anymore. After waiting for
tow years, UPSEB was not able to connect the complex with grid supply.
In the end, UPFC initiated recovery action and sealed my unit. Besides,
they claimed that I could not get NRI treatment, with preferential interest rates,
because I had permanently moved to India. Thus, there were also plans to file a
case against me on account of misinforming the corporation. Experts suggested I
should file for insolvency if I wanted to avoid going to prison. This I did in 1994.
I spent Rs. 15 lakh from my own pocket.
Now, all that remains of an entrepreneurial dream is a sealed chemical unit
in Basti and a complex legal tangle.
I was better off working for the transnational in Germany. Power does not
come out of the barrel of a gun. A gun’s barrel comes of power, especially when
the latter does not exist.
QUESTIONS
1. Identify and analyse the environmental factors in this case.
2. Who were all responsible for this tragic end?
3. It is right on the part of the government and promotional agencies to
woo entrepreneurs by promising facilities and incentives which they are not
sure of being able to provide?
4. Should there be legislation to compensate entrepreneurs for the loss
suffered due to the irresponsibility of public agencies? What problems
are likely to be olved and created by such legislation?
5. What are the lessons of this case for an entrepreneur and government
and promotional agencies?
No : 2
THE COSTS OF DELAY
The public sector Indian Oil Corporation (IOC), the major oil refining and
marketing company which was also the canalizing agency for oil imports and the
only Indian company I the Fortune 500, in terms of sales, planned to make a
foray in to the foreign market by acquiring a substantial stake in the Balal Oil
field in Iran of the Premier Oil. The project was estimated to have recoverable oil
reserves of about 11 million tonnes and IOC was supposed to get nearly four
million tonnes.
When IOC started talking to the Iranian company for the acquisition in
October 1998, oil prices were at rock bottom ($ 11 per barrel) and most refining
companies were closing shop due to falling margins. Indeed, a number of good
oil properties in the Middle East were up for sale. Using this opportunity, several
developing countries ``made a killing by acquiring oil equities abroad.’’
IOC needed Government’s permission to invest abroad. Application by
Indian company for investing abroad is to be scrutinized by a special committee
represented by the Reserve Bank of India and the finance and commerce
ministries. By the time the government gave the clearance for the acquisition in
December 1999 (i.e., more than a year after the application was made), the prices
had bounced back to $24 per barrel. And the Elf of France had virtually took
away the deal from under IOC’s nose by acquiring the Premier Oil.
The RBI, which gave IOC the approval for $15 million investment, took
more than a year for clearing the deal because the structure for such investments
were not in place, it was reported.
QUESTIONS
1. Discuss internal, domestic and global environments of business
revealed by this case.
2. Discuss whether it is the domestic or global environment that hinders
the globalization of Indian business.
3. Even if Elf had not acquired Premier Oil, what would have been the
impact of the delay in the clearance on IOC?
4. What would have been the significance of the foreign acquisition to
IOC?
5. What are the lessons of this case?
No : 3
NATURAL THRUST
Balsara Hygiene Products Ltd., which had some fairly successful household
hygiene products introduced in 1978 a toothpaste, Promise, with clove oil (which
has been traditionally regarded in India as an effective deterrent to tooth decay
and tooth ache) as a unique selling proposition. By 1986 Promise captured a
market share of 16 per cent and became the second largest selling toothpaste
brand in India. There was, however, an erosion of its market share later because
of the fighting back of the multinationals. Hindustan Lever’s Close-up gel
appealed to the consumers, particularly to the teens and young, very well and
toppled Promise form the second position.
Supported by the Export Import Bank of India’s Export Marketing Finance
(EMF) programme and development assistance, Balsara entered the Malaysian
market with Promise and another brand of tooth paste, Miswak.
The emphasis on the clove oil ingredient of the Promise evoked good
response in Malaysia too. There was good response to Miswak also in the
Muslim dominated Malaysia. Its promotion highlighted the fact that miswak
(Latin Name : Salvadora Persica) was a plant that had been used for centuries by
as a tooth cleaning twig. It had reference in Koran. Quoting from Faizal-EMiswak,
it was pointed out that prophet Mohammed used ``miswak before
sleeping at night and after awakening.’’ The religious appeal in the promotion
was reinforced by the findings of scientists all over the world, including Arabic
ones, of the antibacterial property of clove and its ability to prevent tooth decay
and gums.
Market intelligence revealed that there was a growing preference in the
advanced counties for nature based products. Balsara tied up with Auromere
Imports Inc. (AAII), Los Angeles. An agency established by American followers
of Aurobindo, an Indian philosopher saint. Eight months of intensive R & D
enabled Balsara to develop a tooth paste containing 24 herbal ingredients that
would satisfy the required parameter. Auromere was voted as the No. 1
toothpaste in North Eastern USA in a US Health magazine survey in 1991.
The product line was extended by introducing several variants of
Auromere. A saccharine free toothpaste was introduced. It was found that mint
and menthol were taboo for users of homoeopathic medicines. So a product free
of such mints was developed. Auromere Fresh Mint for the young and Auromere
Cina Mint containing a combination of cinnamon and peppermint were also
introduced. When the company relaised that Auromere was not doing well in
Germany because of the forming agent used in the product, it introduced a
chemical free variant of the products.
QUESTIONS
1. Explain the environmental factors which Balsara used to its advantage.
2. What is the strength of AAII to market ayurvedic toothpaste in USA?
No : 4
THE SWAP
The Economic Times, 20 October 2000, reported that Reliance Industries
entered into a swap deal for the export and import of 36 cargoes of naphtha over
the next six months. Accordingly, three cargoes of 50,000 tonnes each were to be
exported every month from Reliance Petroleum’s Jamnagar refinery and three
cargoes of the same amount were to be imported to the Reliance Industries’
Hazira facility. The deal was done through Japanese traders Mitsubishi,
Marubeni, ltochu, IdCmitsu and Shell. The export was done at around Arabian
Gulf prices plus $22.
Reliance, needs petrochemical grade naphtha for its Hazira facility which is
not being produced at Jamnagar. Therefore, its cracker at Hazira gets
petrochemical grade naphtha from the international markets in return for
Reliance Petroleum selling another grade of naphtha from its Jamnagar refinery
to the international oil trade.
If RIL imports naphtha for Hazira petrochemical plant, the company does
not have to pay the 24 per cent sales tax, which it will have to pay on a local
purchase, even if it is from Reliance Petro. Besides Reliance Petro will also get a
10 per cent duty drawback on its crude imports if it exports naphtha from the
refinery at Jamnagar.
The export of naphtha with Japanese traders is being looked as a coup of
Reliance as it gives the company an entry into the large Japanese market.
Indian refineries have a freight advantage over the Singapore market and
can quote better prices.
QUESTIONS
1. Examine the internal and external factors behind Reliance’s decision
for the swap deal.
2. What environmental changes could make swap deal unattractive in
future?
3. Could there be any strategic reason behind the decision to import and
export naphtha?
4. Should Reliance import and export naphtha even if it does not provide
any profit advantage?
No : 5
A QUESTION OF ETHICS
TELCO opened bookings for different models of its proud small car Indica
in late 1998. The consumer response was overwhelming. Most of the bookings
were for the AC models, DLE and DLX. The DLE model accounted for more
than 70 per cent of the bookings.
Telco has planned to commence delivery of the vehicles by early 1999.
However, delivery schedules for the AC models were upset because of some
problems on the roll out front. According to a report in The Economic Times
dated 13 March 1999, Telco officials attributed the delay to non-availability of
air conditioning kits.
Subros Ltd. supplies AC kits for the DLE version and Voltes is the vendor
for the DLX version. Incidentally, Subros is also the AC supplier to Maruti
Udyog Ltd.
Telco officials alleged that Subros was being pressured by the competitor to
delay the supply of kits. ``If this continues, we will be forced to ask Voltas to
supply kits for the DLE version too,’’ a company official said.
QUESTIONS
1. Why did Telco land itself in the problem (supply problem in respect of
AC kits)?
2. If the allegation about the supplier is right, discuss its implications for
the supplier.
3. Evaluate the ethical issues involved in the case. (Also consider the fact
Maruti was 50 per cent Government owned.)
No : 6
DIFFERENT FOR GAMBLE
Product and Gamble (P & G), a global consumer products giant, ``stormed
the Japanese market with American products, American managers, American
sales methods and strategies. The result was disastrous until the company learnt
how to adapt products and marketing style to Japanese culture. P & G which
entered the Japanese market in 1973 lost money until 1987, but by 1991 it
became its second largest foreign market.’’
P & G acclaimed as ``the world’s most admired marketing machine’’,
entered India, which has been considered as one of the largest emerging markets,
in 1985. It entered the Indian detergent marketing the early nineties with the
Ariel brand through P & G India (in which it had a 51 percent holding which was
raised 65 per cent in January 1993, the remaining 35 per cent being hold by the
public). P & G established P & G Home products, a 100 per cent subsidiary later
(1993) and the Ariel was transferred to it. Besides soaps and detergents, P & G
had or introduced later product portfolios like shampoos (Pantene) medical
products (Viks range, Clearasil and Mediker) and personal products (Whisper
feminine hygiene products, pampers diapers and old spice range of men’s
toiletries).
The Indian detergent and personal care products market was dominated by
Hindustan Lever Ltd. (HLL). In some segments of the personal care products
market the multinational Johnson & Johnson has had a strong presence. Tata
group’s Tomco, which had been in the red for some time, was sold to Hindustan
Lever Ltd. (HLL). HLL, a subsidiary of P & G’s global competitor, has been in
India for about a century. The take over of Tomco by HLL further increased its
market dominance. In the low priced detergents segment Nirma has established a
very strong presence.
Over the period of about one and a half decades since its entry in India, P &
G invested several thousand crores. However, dissatisfied with its performance in
India, it decided to restructure its operations, which in several respects meant a
shrinking of activities – the manpower was drastically cut, and thousands of
stockists were terminated. P & G, however holds that, it will continue to invest in
India. According to Gary Cofer, the country manager, ``it takes time to build a
business category or brand in India. It is possibly an even more demanding
geography than others.’’
China, on the other hand, with business worth several times than in India in
less than 12 years, has emerged as a highly promising market for P & G. when
the Chinese market was opened up, P & G was one of the first MNCS to enter.
Prior to the liberalisation, Chinese consumers had to content with shoddy
products manufactured by government companies. Per capita income of China is
substantially higher than India’s and the Chinese economy was growing faster
than the Indian. Further, the success of the single child concept in China means
higher disposable income.
Further it is also pointed out that for a global company like P & G,
understanding Chinese culture was far easier since the expat Chinese in the US
was not very different from those back home where as most Indian expats tended
to adapt far more to the cultural nuances of the immigrant country.
One of P & G’s big in India was the compact technology premium
detergent brand Ariel. After an initial show, Ariel, however, failed to generate
enough sales – consumers seem to have gone by the per kilo cost than the cost
per wash propagated by the promotion. To start with, P & G had to import the
expensive state-of-the-art ingredients, which attracted heavy customs duties. The
company estimated that it would cost Rs. 60 per kilo for Ariel compared to Rs.
27 for Surf and Rs. 8 for Nirma. Because of the Rupee devaluation of the early
1990s, the test market price of Rs. 35 for 500 gms was soon Rs. 41 by the time
the product was launched. HLL fought Ariel back with premium variants of Surf
like Surf Excel.
It is pointed out that, ``in hindsight, even P & G managers privately admit
that bringing in the latest compact technology was a big blunder. In the eighties,
P & G had taken a huge beating in one of its most profitable markets, Japan, at
the hands of local company Kao. Knowing the Japanese consumer’s fondness for
small things, Kao weaved magic with its new-found compact technology. For a
company that prided itself on technology, the drubbing in Japan was particularly
painful. It was, therefore, decided that compacts would now be the lead brand for
the entire Asia-Pacific region. When P & G launched Ariel in India, it hoped that
the Indian consumer would devise the appropriate benchmarks to evaluate Ariel.
As compacts promised economy of sue, P & G hoped that consumers would buy
into the low-cost-per-wash story. But selling that story through advertising was
particularly difficult, especially sine Indian consumers believed that the washing
wasn’t over unless the bar had been used for scrubbing. Even though Ariel was
targeted at consumer with high disposable income, who represented half the
urban population, consumers simply baulked at the outlay.
Thereafter, one thing led to another. Ariel’s strategy of introducing variants
was a smart move to flank Lever at every price point by cleverly using the
brand’s halo effect. And by supporting the brand in mass media and retaining the
share of voice. By 1996, it had become clear that Ariel’s equity as a highperformance
detergent had begun to take a beating. Its equity as a top-of-the-line
detergent was getting eroded….Nowhere in P & G’s history had a concept like
Super Soaker been used to gain volumes…. It was decided that Super Soaker
would no longer be supported, nor would Ariel bar be supported in media.
QUESTIONS
1. Discuss the reasons for the initial failure of P & G in Japan.
2. Where did P & G go wrong (if it did) in the evaluation of the Indian
market and its strategy?
3. Discuss the reasons for the difference in the performance of P & G in
India and China.
INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Attempt all questions
All questions carry equal marks.(10 marks)
1. What is International human resource management? Explain nature of
international human resource management.
2. Explain role of multiculturalism in international human resource management.
3. Explain significance of HRM in cross-border mergers & acquisitions.
4. Explain Strategic HRM.
5. What is staffing of international business?
6. What is international compensation management?
7. Write a detailed note on ethics & social responsibility.
8. What is performance management?
9. Write down the importance of training & development.
10. Write a detailed note on international industrial relations.
MEDIA MANAGEMENT
CASE STUDY : 1
The verb Manage comes from the Italian maneggiare (to handle especially a horse), which in turn
derives from the Latin manus (hand). The French word management (later management) influenced the
development in meaning of the English word management in the 17th and 18th Centuries.
Management has to do with power by position, whereas leadership involves power by influence.
Q1) Explain the meaning of Management?
Q2) What are the functions of management?
Q3) Explain one function of management in brief?
Q4) Explain the branches of management towards the end of 20th Century?
CASE STUDY : 2
A management buyout (MBO) is a form of acquisition where a company’s existing managers acquire a
large part or all of company.
Management buyouts are similar in all major legal aspects to any other acquisition of a company. The
particular nature of the management buyout lies in the position of the buyers as managers of the
company and the practical consequences that follow from that. In particular, the due diligence process is
likely to be limited as the buyers already have full knowledge of company available to them. The seller
is also unlikely to give any but the most basic warranties to the management, on the basis that the
management know more about the company than the sellers do and therefore the sellers should not have
to warrant the state of company. These are several ways of financing a management buyouts.
Q1) Explain the purpose of Management buyout (MBO)?
Q2) Explain the various ways of financing a management buyouts?
Q3) Give some examples of MBO’s?
Q4) Explain the objectives for MBO?
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
CASE STUDY : 3
Journalism is a discipline of writing. News-oriented journalism is sometimes described as the “first
rough draft of history” (attributed to Pnil Graham) because Journalism often did second important
events, however producing news articles on short deadlines.
While under pressure to be first with their stories, news media organizations usually edit and proofread
their reports prior to publication, adhearing to each organizations standard’s of accuracy, quality and
style. Many news organizations claim proud traditions of holding Government officials and institutions
accountable to the public, while Media critics have raised questions about holding the press itself
accountable.
Q1) Distinguish between Electronic media and Press Media in detail?
Q2) What are the types or variations of Journalism?
Q3) Explain the elements of Journalism?
Q4) Explain the professional and ethical standards of Journalism in brief?
CASE STUDY : 4
Peter Drucker wrote that “Because the purpose of business is to create a customer, the business
Enterprise has two and only two – basic functions, Marketing & Innovation. Marketing & Innovation
produce results, all the rest are costs”.
Marketing is the distinguishing, unique function of business. Marketing is not limited to advertising.
The practice of marketing is almost as old as humanity itself. Marketing methods are informed by many
of the social sciences, particularly psychology, sociology and all leading economies.
Q1) Define the ‘Marketing’ concept in detail?
Q2) Explain the two levels of Marketing? (in detail)?
Q3) What are the four ‘P’ for a marketing plan to be successful?
Q4) Explain assumptions of Transactional Marketing?
CASE STUDY : 1
The verb Manage comes from the Italian maneggiare (to handle especially a horse), which in turn
derives from the Latin manus (hand). The French word management (later management) influenced the
development in meaning of the English word management in the 17th and 18th Centuries.
Management has to do with power by position, whereas leadership involves power by influence.
Q1) Explain the meaning of Management?
Q2) What are the functions of management?
Q3) Explain one function of management in brief?
Q4) Explain the branches of management towards the end of 20th Century?
CASE STUDY : 2
A management buyout (MBO) is a form of acquisition where a company’s existing managers acquire a
large part or all of company.
Management buyouts are similar in all major legal aspects to any other acquisition of a company. The
particular nature of the management buyout lies in the position of the buyers as managers of the
company and the practical consequences that follow from that. In particular, the due diligence process is
likely to be limited as the buyers already have full knowledge of company available to them. The seller
is also unlikely to give any but the most basic warranties to the management, on the basis that the
management know more about the company than the sellers do and therefore the sellers should not have
to warrant the state of company. These are several ways of financing a management buyouts.
Q1) Explain the purpose of Management buyout (MBO)?
Q2) Explain the various ways of financing a management buyouts?
Q3) Give some examples of MBO’s?
Q4) Explain the objectives for MBO?
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
CASE STUDY : 3
Journalism is a discipline of writing. News-oriented journalism is sometimes described as the “first
rough draft of history” (attributed to Pnil Graham) because Journalism often did second important
events, however producing news articles on short deadlines.
While under pressure to be first with their stories, news media organizations usually edit and proofread
their reports prior to publication, adhearing to each organizations standard’s of accuracy, quality and
style. Many news organizations claim proud traditions of holding Government officials and institutions
accountable to the public, while Media critics have raised questions about holding the press itself
accountable.
Q1) Distinguish between Electronic media and Press Media in detail?
Q2) What are the types or variations of Journalism?
Q3) Explain the elements of Journalism?
Q4) Explain the professional and ethical standards of Journalism in brief?
CASE STUDY : 4
Peter Drucker wrote that “Because the purpose of business is to create a customer, the business
Enterprise has two and only two – basic functions, Marketing & Innovation. Marketing & Innovation
produce results, all the rest are costs”.
Marketing is the distinguishing, unique function of business. Marketing is not limited to advertising.
The practice of marketing is almost as old as humanity itself. Marketing methods are informed by many
of the social sciences, particularly psychology, sociology and all leading economies.
Q1) Define the ‘Marketing’ concept in detail?
Q2) Explain the two levels of Marketing? (in detail)?
Q3) What are the four ‘P’ for a marketing plan to be successful?
Q4) Explain assumptions of Transactional Marketing?
SIX SIGMA QUALITY STANDARDS
Total Marks: 80
.
Q.1) Explain the hyped six sigma? (10 Marks)
Q.2) Explain the benefits of ultimate Six Sigma. (10 Marks)
Q.3) Explain hyped Six Sigma weakness area by area. (10 Marks)
Q.4) Which are the infrastructure to capture maximum customer vality? (10 Marks)
Q.5) Explain 10 steps process in constructing & Empowerment infrastructure? (10 Marks)
Q.6) Types of majorment? (10 Marks)
Q.7) Explain Design Quality Liliability? (10 Marks)
Q.8) Explain the Escalating important of Supply Chain Management? (10 Marks)
QUALITY STANDARDS AND POLICY
Total Marks : 80
.
Q.1) The mean value of the modulus of rupture of a large number of test specimens of green Sitka
spruce has been found to be 5,600 Ib/in2.
a) If the standard deviation is 840 Ib/in2 & the distribution is approximately normal, the modulus of
rupture will fall between 5,000 & 6,200 for what percentage of the specimens?
b) For what percentage will it be above 4,000?
c) Below 3,500? (5 Marks)
Q.2) a) How many different hands of a 13-card might you have out of standard deck of 52 playing
cards?
b) What is the probability of a 13-card hand containing all four aces?
c) What is the probability of a 13-card hand without an ace, king, queen, or jack?
d) What is the probability of a 13-card hand containing one or more aces? (5 Marks)
Q.3) An acceptance plan calls for the inspection of a sample of 75 articles out of a lot of 1,500. If there
are no nonconforming articles in the sample, the lot is accepted; with 7 or more, it is rejected. If a
lot 5% nonconforming is submitted, what is the probability that it will be rejected? Solve using the
poisson distribution as an app (5 Marks)
Q.4) Random Samples of 100 items are drawn from a continuous process that is known to produce
20% nonconforming items. Determine the probability of finding exactly 15 nonconforming items
in a sample:
a) Using the exact binomial distribution.
b) Using the normal approximation to the binomial.
c) Using the poisson approximation to the binomial.
d) Comment on the relative accuracy of the approximations. (10 Marks)
AN ISO 9001 : 2000 CERTIFIED INTERNATIONAL B-SCHOOL
Q.5) The standard deviation of the measured values of a quality characteristic if 40.0 units. However,
the standard deviation of the error of measurement of this characteristic has been determined to
be 12.0 units. (10 Marks)
a) Estimate the value of the true ó of this quality characteristic.
b) How much improvement in the measuring technique would be required to reduce the overall
standard deviation to within 2% of the true standard deviation?
Q.6) It has been suggested that, when extremely high performance of certain missile components is
required, a boundary on the stress requirement be set at 6 standard deviations of the stress
requirement above the average stress. The average strength required of the article would then be
set at 5 standard deviations of the strength of the component above this boundary.
A Certain critical electronic component must operate in a salt air environment at an average
temperature stress of 300C. The standard deviation of this operating temperature is believed to be 50C.
a) What must be the minimum acceptable average strength, in terms of average failing temperature, of
this component? Assume that the standard deviation of strength in this case is 3oC.
b) How much of a safety margin does the requirement provide in multiples of the standard deviation of
the combined strength-stress Characteristic? (10 Marks)
Q.7) a)Determine the D-R Single sampling plan to be used for a lot size of 250 items and an LTPD of
5% with a consumer’s Risk of 10% if the Process average is estimated at 1.1%.
b) What percentage of the product will be subject to sampling inspection with this sampling plan?
c) What is the probability of acceptance of a lot 4.0% nonconforming under this plan?
d) Compute the average total inspection (ATI) at 4.0% and at 1.1% assuming that rejected lots are
screened. (10 Mark)
Q.8) A certain manufacturing group decides to use a Dodge-Torrey CSP-2sampling inspection plan on
a line of small motors. It is decided to inspect 10% of the units when sampling and to maintain
a desired AOQL of 1.0%
a) Prepare a flowchart of the detailed operation of this plan. (5 Marks)
Q.9) A known-sigma variables acceptance plan for a one-sided specification uses n=25 and k’=1.97.
Compute the probability of acceptance of a 3% nonconforming lot assuming that the frequency
distribution in the lot is normal and ó is esteemed correctly. (5 Marks)
Q.10) Assume normal inspection, MIL-STD-414, Variability known, code letter H, 2.50% AQL,
Single specification limit. Compute the probability of acceptance of a normally distributed lot
containing 5% of nonconforming product if the ó of the lot is estimated correctly. (5 Marks)
Q.11) Write short notes:
a) Uses of control charts
b) Principles of Statistical
c) Quality improvement by rejection of entire lots
d) Quality & Standardization (10 Marks)
Total Marks : 80
.
Q.1) The mean value of the modulus of rupture of a large number of test specimens of green Sitka
spruce has been found to be 5,600 Ib/in2.
a) If the standard deviation is 840 Ib/in2 & the distribution is approximately normal, the modulus of
rupture will fall between 5,000 & 6,200 for what percentage of the specimens?
b) For what percentage will it be above 4,000?
c) Below 3,500? (5 Marks)
Q.2) a) How many different hands of a 13-card might you have out of standard deck of 52 playing
cards?
b) What is the probability of a 13-card hand containing all four aces?
c) What is the probability of a 13-card hand without an ace, king, queen, or jack?
d) What is the probability of a 13-card hand containing one or more aces? (5 Marks)
Q.3) An acceptance plan calls for the inspection of a sample of 75 articles out of a lot of 1,500. If there
are no nonconforming articles in the sample, the lot is accepted; with 7 or more, it is rejected. If a
lot 5% nonconforming is submitted, what is the probability that it will be rejected? Solve using the
poisson distribution as an app (5 Marks)
Q.4) Random Samples of 100 items are drawn from a continuous process that is known to produce
20% nonconforming items. Determine the probability of finding exactly 15 nonconforming items
in a sample:
a) Using the exact binomial distribution.
b) Using the normal approximation to the binomial.
c) Using the poisson approximation to the binomial.
d) Comment on the relative accuracy of the approximations. (10 Marks)
AN ISO 9001 : 2000 CERTIFIED INTERNATIONAL B-SCHOOL
Q.5) The standard deviation of the measured values of a quality characteristic if 40.0 units. However,
the standard deviation of the error of measurement of this characteristic has been determined to
be 12.0 units. (10 Marks)
a) Estimate the value of the true ó of this quality characteristic.
b) How much improvement in the measuring technique would be required to reduce the overall
standard deviation to within 2% of the true standard deviation?
Q.6) It has been suggested that, when extremely high performance of certain missile components is
required, a boundary on the stress requirement be set at 6 standard deviations of the stress
requirement above the average stress. The average strength required of the article would then be
set at 5 standard deviations of the strength of the component above this boundary.
A Certain critical electronic component must operate in a salt air environment at an average
temperature stress of 300C. The standard deviation of this operating temperature is believed to be 50C.
a) What must be the minimum acceptable average strength, in terms of average failing temperature, of
this component? Assume that the standard deviation of strength in this case is 3oC.
b) How much of a safety margin does the requirement provide in multiples of the standard deviation of
the combined strength-stress Characteristic? (10 Marks)
Q.7) a)Determine the D-R Single sampling plan to be used for a lot size of 250 items and an LTPD of
5% with a consumer’s Risk of 10% if the Process average is estimated at 1.1%.
b) What percentage of the product will be subject to sampling inspection with this sampling plan?
c) What is the probability of acceptance of a lot 4.0% nonconforming under this plan?
d) Compute the average total inspection (ATI) at 4.0% and at 1.1% assuming that rejected lots are
screened. (10 Mark)
Q.8) A certain manufacturing group decides to use a Dodge-Torrey CSP-2sampling inspection plan on
a line of small motors. It is decided to inspect 10% of the units when sampling and to maintain
a desired AOQL of 1.0%
a) Prepare a flowchart of the detailed operation of this plan. (5 Marks)
Q.9) A known-sigma variables acceptance plan for a one-sided specification uses n=25 and k’=1.97.
Compute the probability of acceptance of a 3% nonconforming lot assuming that the frequency
distribution in the lot is normal and ó is esteemed correctly. (5 Marks)
Q.10) Assume normal inspection, MIL-STD-414, Variability known, code letter H, 2.50% AQL,
Single specification limit. Compute the probability of acceptance of a normally distributed lot
containing 5% of nonconforming product if the ó of the lot is estimated correctly. (5 Marks)
Q.11) Write short notes:
a) Uses of control charts
b) Principles of Statistical
c) Quality improvement by rejection of entire lots
d) Quality & Standardization (10 Marks)
QUALITY MANAGEMENT
(Answer Any 8)
Note : Attempt any 8 Questions
Q1) Describe how the golden rule does or does not influence each of the six concepts of TQM?
Q2) What is the best way to improve market share for a product or service?
Q3) Discuss the advantages of an empowered team?
Q4) Describe two ways to determine a superior process?
Q5) Why has e-Commerce grown so quickly?
Q6) Briefly describe the purpose of an ISO 9000 quality system?
Q7) Why are the product evaluation standards in the development stage?
Q8) What is the overall aim of the EMS Standard?
Q9) Write a warning label or operating instructions for the following products? (Any 4).
a) Cars
b) Fireworks
c) Swimming Pool
d) Power saw
e) In-Line Skates
Q10) State various techniques to sustain continuous improvement?
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
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