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Logistics Management
Total marks 80
Case 1 (10 Marks)
M/s Britecolor Paints Ltd. (BPL) is a manufacturer of decorative paints for households commercial
premises and industrial application.
(a) M/s. BPL had embarked on a policy of satisfying every possible customer in respect of shades,
delivery and durability. Thus it went ahead and created twenty-five depots, one almost in every major
city. The manufacturing base however, was maintained at Pune. The factory received information in
connection with stocks from depots J once in a week and there was no inter-communication between
depots. Since they were in a competitive market, price was predetermined, i.e. the manufacturer had no
liberty to price the product as per one’s own choice.
(b) In their effort to satisfy the customer, M/s BPL manufactured every possible shade by combining
various primary shades and would await the prospective customer to carry out the purchase. It ensured
that these shades were available at
each and every depot even at the cost of transportation incurred in sending goods in less than full
truckload lots. This certainly provided a very high service level and customers who could get the shade as
per their desire, were fully satisfied.
(c) While on one hand M/s BPL had a population of very satisfied customers, they had almost 50% of
their total domestic sales lying as finish Goods inventory at various depots, on the other hand.
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
(d) Industrial paints, though not very customised, the respective industrial customer was quite satisfied.
Consequently, the inventory of finished goods was very low in this segment. But at the same time,
realisation was also lower due to stiff competition from other industrial paint manufacturers than the
domestic segment.
(e) Nevertheless, the economic runs of industrial paints were always assured due to high off-take by the
industrial customers.
(f) The objective of the manufacturer was to increase the realization taking into account, economic runs,
inventory, seasonality and individual choices of domestic / industrial customer.
Qeustions
If you are appointed as the logistics consultant, then advise M/s BPL in respect of ‘
(a) How to achieve economy in transportation, by maintaining almost same service level?
(b) Demand Forecasting technique to take care of seasonality, reduction in inventory.
(c) Information technology to substitute maintenance of high inventory without affecting customer
service level.
(d) Connectivity between factory and depots (networking Diagram)
Case 2 (10 Marks)
ABCL Ltd. is leading/ Fast Food Processing Company operating from Thane. It is involved in the fast
food business
since last 10 years and has tie up with a foreign firm operating in the same field. It handles both
Vegetable as well Non—Vegetable products for which it arranges the vegetables and chickens from the
local vegetable vendors and poultry farms as well as from far off places like Nasik, Pune and
Aurangabad. It has very good market in Mumbai, Pune and surrounding cities. The products are sold in
the brand name of ‘Nasta’ which is very popular brand amongst the young collegians and office goers. it
has its ‘7,- most modern kitchen at New •Mumbai to cater the needs for fresh Nasta. Vegetables and
chicken items are transported from the procurement centres of Nasik, Pune, Aurangabad using hired
Trucks. While transporting vegetables and chickens there were shortages,.. damages and decomposition
problems which varies from 1Y’lo 15% and there is inconsistency in the transit time the reliability of the
raw material transporters is very low. Packaging of the Nasta is very good and attractive but it is not long
lasting tyje. Hoever, the quality and taste are the reasons for its popularity. Nasta is sold in three different
packs — party, family and individual. The Nasta looses the taste and flavour after 8 hours, if not
preserved in refrigeration. The Nasta is distributed through 25 distribution centers including three at its
main procurement centers of Nasik Pune, and Aurangabad.. Logistics information network is not up to
the mark. ‘The procurement centers directly communicate to the operating center at Thane. Due to lack of
proper co-ordination at different distribution centers it has started creating the problems of stocks,
spoilage, pilferage and wastage of raw material as well as finished goods at certain distribution and
procurement centers. Transportation and storage problems are identified as main culprits for the heavy
losses being incurred at some centers. Holidays, festivities and college seasonably puts a lot of pressure
on the existing demand and supply situation of the Nasta resulting in losses and mismanagement. Entry
of multinationals has increased the competition and put a let of pressure on the Nasta. Managing Director
has formed a team of Senior Executive to suggest a concrete plan to fight the competition and overcome
the transport, storage and other related problems so as to increase the market share and margin.
Questions
In case you are appointed as logistic consultant to solve the problems, you are required to put forward
your suggestions for:
(a) Proper transportation policy to ensure minimum transportation loss of vegetables and poultry products
and reduction in the packaging costs.
(b) Demand Forecasting techniques to take care of the seasonality, reduction in inventory and shortage
and other related problems.
(c) Suggestion for improved Purchase and Distribution policy.
(d) Is it advisable to have company owned dedicated transport fleet?
Case 3 (10 Marks)
Mumbai four mills, provide high-quality bakery flours to commercial bakers as well as to the consumer
market. The commercial buyers have consistent demand and brand-loyalty, whereas consumers have
minimal brand-loyalty but also generally prefer known names over store brands. Demand is seasonal for
the flours with the annual break occurring just before Diwali and slacking off dramatically during
January and February. To offset these both, Mumbai Flour Mills and its major supermarket chainaccounts
carry out special deals and sales promotions.
The Production planning Dept. of the company located at Akola, Maharashtra, has the responsibility for
controlling the inventory levels at the plant warehouse at Nagpur as well as three distribution centres
located at Nasik in Maharashtra, Bhopal in Madhya Pradesh and 1-lyderabad in Andhra Pradesh.
Planning has been routinely based on past experience and history. No formal forecasting is performed.
Distribution centres get their requirements by rail from Nagpur. The lead time of replenishment from
Nagpur to distribution centres is 7 days. The replenishment rate is 48 to 54 pallets per wagon depending
upon the type of wagon used. In case of any emergency demand, eighteen pallets can be made available
by truck with a 3 days transit time.
Recently the company has experienced two major stock out for its consumer-size 5 Kg. sacks of refined
quality white flour. One of these was due to problems in milling operations, the other occurred when
marketing initiated a “buy one, get one free” coupon promotion. Since these events, the planning has
become overly cautious and errs on the side having excess inventories at the distribution centres.
Additional, two other events have affected Distribution Centre’ throughput:
(1) implementation of direct factory supply for replenishing the five largest super market chains, and (2)
a price increase making Mumbai Flour more expensivethan its national brand competitors such a
Pillsbury or ATA Maida.
Of 1500 pallets in the Hyderabad Distribution Centre the Mumbai Flour Mills shows only 396 pallets for
open orders. This has led the company to use outside overflow storage, where there are another 480
pallets. Flour is easily damaged, hence, Mumhai Flour Mills prefers to minimise handling. Over stocking
at Distribution centres alone cost Rs. 1.85/- per pallet for outside storage to which must be added Rs. 4.25
per pallet extra handling and Rs. 225 per truckload for transportation.
Similar scenarios are being played out at the other DCs as well. Mr. Mohan, the distribution manager is
contemplating various approaches to solving the inventory problem. It is clear that the product must be in
place at the time a consumer is making a decision to buy the product, but the company cannot
tolerate the overstocking situation and the stress that it is putting on facilities and cash flow. Mr. Mohan’s
first thought is “a better information system” which will provide timely and accurate information
throughout the organisation.
On the basis of above case answer the following:
Questions:-
(1) Evaluate the alternative solution that could be considered by Mr. Mohan.
(2) What additional solution do you propose?
(3) Examine the transportation system and its drawbacks?
Case 4 (10 Marks)
M/s Modern Garments is the manufacturers of Ladies and Gents garments like shirts, tops and
undergarments etc. The technology is advanced and there are several players with access to such latest
technologies. The supply chains for M/s Modern Garments includes significant purchases of raw
material, stitching, packaging and supply to customers. The logistics functions are the key competitive
elements in the market, M/s Modern Garments is considering to take over the control of its inbound and
out bound logistics function which affect the inventories, reduce the losses due to transit delays and
improve the response timeand service reliability. However the cost implications of such changes have to
be looked into.
The M/s Modem Garments has been a leader in the readymade shirts market in India for a number of
years. After liberalization they entered into a joint venture with a French Company to expand their
business in the field of Trousers and T-shirts. However new joint venture company M/s Modern
Garments still continues to manufacture its shirts at Thane near Mumbai and has started a new state-ofart
garment manufacturing plant at Pune in Maharashtra to compete with other market players. The
company has planned to undertake the distribution of garments made and packed in its plants at New-
Mumbai and Kalyan so as to retain the control over design, quality and service channel of the products.
After liberalization, the market has grown more matured and expectations of the customers towards the
features of the product have increased and also the technology and design has improved considerably.
Now in the market only garments with good delivery quality are acceptable. All the competitors have
equally good quality product in the market. Presently the area of logistics distribution, customer service
and satisfaction are the area of prime concern in order to have extra value addition to the product. The
product defects due to stitching, cutting and transportation are now under increasing scrutiny.
From the cost control point of view, the amount of money held up in distribution pipeline is significant.
The large variety of garments now means more raw materials to be held in stocks. Presently the incoming
supplies are arranged by the vendor firms, they may be persuaded to opt for jointly approved transporters.
Due to product variations, the order fulfillment and its processing is of considerable importance. The
traditional information system has become inadequate. There are over 500 retail outlets through which
the finished products are distributed with the help of more than 50 transporters. Lead- time variability is
creating problem of buffer stocks• with distributors. The transit time fluctuations are due to the
breakdown of trucks, improper documentation and unfair practice of over charging of the vehicles etc.
Such variability has to be reduced. Major portion of logistics cost was allocated in fleet management;
where as warehousing, raw material management and information networking have insignificant costs.
Questions
(i) Examine the possibility of alternatives in transportation of the inbound and outbound materials?
(ii) How to reduce the cost of inbound and outbound logistics functions?
(iii) What could be the major problem in exploiting the inbound and outbound logistic functions?
(iv) Is it advisable to have dedicated transport system to operate packaged materials mainly for the
company?
(v) What arrangements have to be made to ensure the service quality for customers?
Case 5 (10 Marks)
M/s Ador Electrodes Limited (AEL) was incorporated in the year 1981 and is the second largest player in
the welding industry in India & has the widest product range amongst all its competitors. As it has
happened to a the industries, the heat of the competition coming from the International Companies,
mainly from China, started affecting to this industry too.
‘The company has four state-of-an-art manufacturing plants accredited with ISO certification & backed
by strong technical support from their foreign collaborators. The company is also having a well
established all India distribution network consisting of numbers of dealers. The products flow from the
manufacturing plants to the warehouses, managed & maintained by the company, located at different
places across the country. The dealers draw their requirements from these warehouses for onward
delivery to their customers, The inventory of the products is under the ownership of the company and is
maintained as per the anticipated demand in the region. Primary transportation from the plant to the
warehouses is the responsibility of the company, whereas the transportation from the warehouse to the
customer is the dealer’s responsibility.
The biggest drawback in the present system is that the inventory at all warehouses is carried by the
company, blocking the huge amount of company’s working capital. The level of average inventory they
maintain is equal to their 6 months sales requirements. Over & above, in many places where the sales are
low, the stocks remain unsold for longer periods. Moreover, because of improper maintenance of these
warehouses the stocks also get damaged I spoiled or stolen. The warehouses are managed by the
employees of the company having no ‘basic qualifications & experience in inventory and warehouse
management.
The management of the company took a serious note of the situation and now wishes to take immediate
steps to overcome the current logistical problems to face the competitive scenario.
Questions:
1. What are the company’s present logistical problems?
2. Give your recommendations for improving the company’s logistical performance?
Case 6 (10 Marks)
1967 M/s. Vijay Enterprise ventured into trading of electronic consumer durable targeting the large
potential market in the year 1970, the company managed to get the exclusive dealership of a leading
electronic manufacturing company in India to market their products in the Western Indiá. Later on, the
company with a view to create their own brand in the market established a plant in Maharashtra & started
their own manufacturing activities. With a manufacturing capacity under their belt, the company
increased their turnover tremendously in the next 20 years with the help of all India distribution network
consisted of 4 regional offices, 4 mother warehouses, 12 C & F agents & 75 stockists & 5000 odd retail
outlets.
After the liberalisation of the Indian economy in 1991, the entire business scenario- particularly in
consumer durable industry - has undergone a drastic change. The company started experiencing the
pressure of competition from local as well as international players. It was observed that during the last 5
years sales growth has come down and the company is losing its market share slowly& steadily.
The external agency that conducted a study for the Company came out with their following observations.
1. At all levels in the company employee orientation is towards production rather than marketing
2 The cost of product distribution is the highest compared to the Industry standards
3. The warehouse space was urderutilized — the utilization factor varies between 95 % during the peak
season and drop to 40% during the slack season.
4. There is duplication of many logistics operations. Every department has their own policies I practices
and objectives.
5. In more than 20 per cent of the trips made to mother warehouses / C& F agents, the products are
despatched in less than full truckloads, resulting in high transportation costs.
6. Only 65 % of shipments were delivered on time, as a result of slow information flow and inadequate
connectivity across the system causing longer order processing time.
7. Transit damages were ranging between 2 to 5 % due to improper logistical packaging and inadequate
material handling equipment.
6. The finished goods inventory is above the best managed company in the industry
Questions:
1. Identify the main logistical problems of the Company
2. To offer better customer service level and reduce the operating cost, how will you go about
redesigning the distribution network?
Case 7 (10 Marks)
M/s. Decorative Laminates Corporation (DLC) is a supplier of decorative sheets for wooden furniture
makers in domestic as well as commercial markets. In spite of competition n this field their sales volumes
shown growth during last 2 to 3 years. The last year was recorded 15% more sales compared to previous
year. Even though the sales volume are increasing• the profit margin is getting reduced day by day due to
future competition.
In one of the monthly management review meetings it was observed that the main cause for depleting
profitability is the increasing procurement costs. . The report presented by the new Purchase Manger
revealed that in order to obtain quantity discounts from the suppliers the company was purchasing inputs
& other maintenance items much more than their actual requirements. This has not only created a
problem of holding huge inventories but necessitated hiring of additional warehouse space to
accommodate these high inventories. It has also been observed that most of the purchasing tasks like
inventory control are still performed manually. The computers are used only for maintaining purchasing
records and printing purchase orders.
Questions
1. What is the main problem in this case? What are your suggestions to the company on inventory
management?
2. What type of logistical cost approach you would suggest to the company?
Case 8 (10 Marks)
M/s. Compu-Tech is on the reputed Indian companies producing various types of computer printers.
Their production plant is situated at Noida in northern India and the products are distributed through
distribution centers located in every region.
The company introduced LS popular line of Desk Jet printers first time in India in 2005. Immediately on
the launch of this products
The solo more than one lacs units during that year. But the problems came with the boom in sales.
Already, the company was running into serious inventory snags, particularly with service to its customers
situated In southern region. The printers were generally shipped to all the distribution centers & onward
to the customers by road only. Unfortunately, that resulted in long lead times, making It tough to meet the
shorter delivery time offered by the local sellers mainly from Southern India.
The Company also found itself running short of production capacity to meet the quantity requirements
of certain large institutional & industrial customers. To add to it, quite often the company was running
out of stock for certain fast moving models and at the same time facing problems of excess inventory of
other models. Working out product wise demand from each market was also proving difficult for their
manufacturing plant.
Questions’
1. What are the main problems in the logistical network of M/s. Compu-Tech?
2. What solutions would you propose o overcome these problems?
Total marks 80
Case 1 (10 Marks)
M/s Britecolor Paints Ltd. (BPL) is a manufacturer of decorative paints for households commercial
premises and industrial application.
(a) M/s. BPL had embarked on a policy of satisfying every possible customer in respect of shades,
delivery and durability. Thus it went ahead and created twenty-five depots, one almost in every major
city. The manufacturing base however, was maintained at Pune. The factory received information in
connection with stocks from depots J once in a week and there was no inter-communication between
depots. Since they were in a competitive market, price was predetermined, i.e. the manufacturer had no
liberty to price the product as per one’s own choice.
(b) In their effort to satisfy the customer, M/s BPL manufactured every possible shade by combining
various primary shades and would await the prospective customer to carry out the purchase. It ensured
that these shades were available at
each and every depot even at the cost of transportation incurred in sending goods in less than full
truckload lots. This certainly provided a very high service level and customers who could get the shade as
per their desire, were fully satisfied.
(c) While on one hand M/s BPL had a population of very satisfied customers, they had almost 50% of
their total domestic sales lying as finish Goods inventory at various depots, on the other hand.
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
(d) Industrial paints, though not very customised, the respective industrial customer was quite satisfied.
Consequently, the inventory of finished goods was very low in this segment. But at the same time,
realisation was also lower due to stiff competition from other industrial paint manufacturers than the
domestic segment.
(e) Nevertheless, the economic runs of industrial paints were always assured due to high off-take by the
industrial customers.
(f) The objective of the manufacturer was to increase the realization taking into account, economic runs,
inventory, seasonality and individual choices of domestic / industrial customer.
Qeustions
If you are appointed as the logistics consultant, then advise M/s BPL in respect of ‘
(a) How to achieve economy in transportation, by maintaining almost same service level?
(b) Demand Forecasting technique to take care of seasonality, reduction in inventory.
(c) Information technology to substitute maintenance of high inventory without affecting customer
service level.
(d) Connectivity between factory and depots (networking Diagram)
Case 2 (10 Marks)
ABCL Ltd. is leading/ Fast Food Processing Company operating from Thane. It is involved in the fast
food business
since last 10 years and has tie up with a foreign firm operating in the same field. It handles both
Vegetable as well Non—Vegetable products for which it arranges the vegetables and chickens from the
local vegetable vendors and poultry farms as well as from far off places like Nasik, Pune and
Aurangabad. It has very good market in Mumbai, Pune and surrounding cities. The products are sold in
the brand name of ‘Nasta’ which is very popular brand amongst the young collegians and office goers. it
has its ‘7,- most modern kitchen at New •Mumbai to cater the needs for fresh Nasta. Vegetables and
chicken items are transported from the procurement centres of Nasik, Pune, Aurangabad using hired
Trucks. While transporting vegetables and chickens there were shortages,.. damages and decomposition
problems which varies from 1Y’lo 15% and there is inconsistency in the transit time the reliability of the
raw material transporters is very low. Packaging of the Nasta is very good and attractive but it is not long
lasting tyje. Hoever, the quality and taste are the reasons for its popularity. Nasta is sold in three different
packs — party, family and individual. The Nasta looses the taste and flavour after 8 hours, if not
preserved in refrigeration. The Nasta is distributed through 25 distribution centers including three at its
main procurement centers of Nasik Pune, and Aurangabad.. Logistics information network is not up to
the mark. ‘The procurement centers directly communicate to the operating center at Thane. Due to lack of
proper co-ordination at different distribution centers it has started creating the problems of stocks,
spoilage, pilferage and wastage of raw material as well as finished goods at certain distribution and
procurement centers. Transportation and storage problems are identified as main culprits for the heavy
losses being incurred at some centers. Holidays, festivities and college seasonably puts a lot of pressure
on the existing demand and supply situation of the Nasta resulting in losses and mismanagement. Entry
of multinationals has increased the competition and put a let of pressure on the Nasta. Managing Director
has formed a team of Senior Executive to suggest a concrete plan to fight the competition and overcome
the transport, storage and other related problems so as to increase the market share and margin.
Questions
In case you are appointed as logistic consultant to solve the problems, you are required to put forward
your suggestions for:
(a) Proper transportation policy to ensure minimum transportation loss of vegetables and poultry products
and reduction in the packaging costs.
(b) Demand Forecasting techniques to take care of the seasonality, reduction in inventory and shortage
and other related problems.
(c) Suggestion for improved Purchase and Distribution policy.
(d) Is it advisable to have company owned dedicated transport fleet?
Case 3 (10 Marks)
Mumbai four mills, provide high-quality bakery flours to commercial bakers as well as to the consumer
market. The commercial buyers have consistent demand and brand-loyalty, whereas consumers have
minimal brand-loyalty but also generally prefer known names over store brands. Demand is seasonal for
the flours with the annual break occurring just before Diwali and slacking off dramatically during
January and February. To offset these both, Mumbai Flour Mills and its major supermarket chainaccounts
carry out special deals and sales promotions.
The Production planning Dept. of the company located at Akola, Maharashtra, has the responsibility for
controlling the inventory levels at the plant warehouse at Nagpur as well as three distribution centres
located at Nasik in Maharashtra, Bhopal in Madhya Pradesh and 1-lyderabad in Andhra Pradesh.
Planning has been routinely based on past experience and history. No formal forecasting is performed.
Distribution centres get their requirements by rail from Nagpur. The lead time of replenishment from
Nagpur to distribution centres is 7 days. The replenishment rate is 48 to 54 pallets per wagon depending
upon the type of wagon used. In case of any emergency demand, eighteen pallets can be made available
by truck with a 3 days transit time.
Recently the company has experienced two major stock out for its consumer-size 5 Kg. sacks of refined
quality white flour. One of these was due to problems in milling operations, the other occurred when
marketing initiated a “buy one, get one free” coupon promotion. Since these events, the planning has
become overly cautious and errs on the side having excess inventories at the distribution centres.
Additional, two other events have affected Distribution Centre’ throughput:
(1) implementation of direct factory supply for replenishing the five largest super market chains, and (2)
a price increase making Mumbai Flour more expensivethan its national brand competitors such a
Pillsbury or ATA Maida.
Of 1500 pallets in the Hyderabad Distribution Centre the Mumbai Flour Mills shows only 396 pallets for
open orders. This has led the company to use outside overflow storage, where there are another 480
pallets. Flour is easily damaged, hence, Mumhai Flour Mills prefers to minimise handling. Over stocking
at Distribution centres alone cost Rs. 1.85/- per pallet for outside storage to which must be added Rs. 4.25
per pallet extra handling and Rs. 225 per truckload for transportation.
Similar scenarios are being played out at the other DCs as well. Mr. Mohan, the distribution manager is
contemplating various approaches to solving the inventory problem. It is clear that the product must be in
place at the time a consumer is making a decision to buy the product, but the company cannot
tolerate the overstocking situation and the stress that it is putting on facilities and cash flow. Mr. Mohan’s
first thought is “a better information system” which will provide timely and accurate information
throughout the organisation.
On the basis of above case answer the following:
Questions:-
(1) Evaluate the alternative solution that could be considered by Mr. Mohan.
(2) What additional solution do you propose?
(3) Examine the transportation system and its drawbacks?
Case 4 (10 Marks)
M/s Modern Garments is the manufacturers of Ladies and Gents garments like shirts, tops and
undergarments etc. The technology is advanced and there are several players with access to such latest
technologies. The supply chains for M/s Modern Garments includes significant purchases of raw
material, stitching, packaging and supply to customers. The logistics functions are the key competitive
elements in the market, M/s Modern Garments is considering to take over the control of its inbound and
out bound logistics function which affect the inventories, reduce the losses due to transit delays and
improve the response timeand service reliability. However the cost implications of such changes have to
be looked into.
The M/s Modem Garments has been a leader in the readymade shirts market in India for a number of
years. After liberalization they entered into a joint venture with a French Company to expand their
business in the field of Trousers and T-shirts. However new joint venture company M/s Modern
Garments still continues to manufacture its shirts at Thane near Mumbai and has started a new state-ofart
garment manufacturing plant at Pune in Maharashtra to compete with other market players. The
company has planned to undertake the distribution of garments made and packed in its plants at New-
Mumbai and Kalyan so as to retain the control over design, quality and service channel of the products.
After liberalization, the market has grown more matured and expectations of the customers towards the
features of the product have increased and also the technology and design has improved considerably.
Now in the market only garments with good delivery quality are acceptable. All the competitors have
equally good quality product in the market. Presently the area of logistics distribution, customer service
and satisfaction are the area of prime concern in order to have extra value addition to the product. The
product defects due to stitching, cutting and transportation are now under increasing scrutiny.
From the cost control point of view, the amount of money held up in distribution pipeline is significant.
The large variety of garments now means more raw materials to be held in stocks. Presently the incoming
supplies are arranged by the vendor firms, they may be persuaded to opt for jointly approved transporters.
Due to product variations, the order fulfillment and its processing is of considerable importance. The
traditional information system has become inadequate. There are over 500 retail outlets through which
the finished products are distributed with the help of more than 50 transporters. Lead- time variability is
creating problem of buffer stocks• with distributors. The transit time fluctuations are due to the
breakdown of trucks, improper documentation and unfair practice of over charging of the vehicles etc.
Such variability has to be reduced. Major portion of logistics cost was allocated in fleet management;
where as warehousing, raw material management and information networking have insignificant costs.
Questions
(i) Examine the possibility of alternatives in transportation of the inbound and outbound materials?
(ii) How to reduce the cost of inbound and outbound logistics functions?
(iii) What could be the major problem in exploiting the inbound and outbound logistic functions?
(iv) Is it advisable to have dedicated transport system to operate packaged materials mainly for the
company?
(v) What arrangements have to be made to ensure the service quality for customers?
Case 5 (10 Marks)
M/s Ador Electrodes Limited (AEL) was incorporated in the year 1981 and is the second largest player in
the welding industry in India & has the widest product range amongst all its competitors. As it has
happened to a the industries, the heat of the competition coming from the International Companies,
mainly from China, started affecting to this industry too.
‘The company has four state-of-an-art manufacturing plants accredited with ISO certification & backed
by strong technical support from their foreign collaborators. The company is also having a well
established all India distribution network consisting of numbers of dealers. The products flow from the
manufacturing plants to the warehouses, managed & maintained by the company, located at different
places across the country. The dealers draw their requirements from these warehouses for onward
delivery to their customers, The inventory of the products is under the ownership of the company and is
maintained as per the anticipated demand in the region. Primary transportation from the plant to the
warehouses is the responsibility of the company, whereas the transportation from the warehouse to the
customer is the dealer’s responsibility.
The biggest drawback in the present system is that the inventory at all warehouses is carried by the
company, blocking the huge amount of company’s working capital. The level of average inventory they
maintain is equal to their 6 months sales requirements. Over & above, in many places where the sales are
low, the stocks remain unsold for longer periods. Moreover, because of improper maintenance of these
warehouses the stocks also get damaged I spoiled or stolen. The warehouses are managed by the
employees of the company having no ‘basic qualifications & experience in inventory and warehouse
management.
The management of the company took a serious note of the situation and now wishes to take immediate
steps to overcome the current logistical problems to face the competitive scenario.
Questions:
1. What are the company’s present logistical problems?
2. Give your recommendations for improving the company’s logistical performance?
Case 6 (10 Marks)
1967 M/s. Vijay Enterprise ventured into trading of electronic consumer durable targeting the large
potential market in the year 1970, the company managed to get the exclusive dealership of a leading
electronic manufacturing company in India to market their products in the Western Indiá. Later on, the
company with a view to create their own brand in the market established a plant in Maharashtra & started
their own manufacturing activities. With a manufacturing capacity under their belt, the company
increased their turnover tremendously in the next 20 years with the help of all India distribution network
consisted of 4 regional offices, 4 mother warehouses, 12 C & F agents & 75 stockists & 5000 odd retail
outlets.
After the liberalisation of the Indian economy in 1991, the entire business scenario- particularly in
consumer durable industry - has undergone a drastic change. The company started experiencing the
pressure of competition from local as well as international players. It was observed that during the last 5
years sales growth has come down and the company is losing its market share slowly& steadily.
The external agency that conducted a study for the Company came out with their following observations.
1. At all levels in the company employee orientation is towards production rather than marketing
2 The cost of product distribution is the highest compared to the Industry standards
3. The warehouse space was urderutilized — the utilization factor varies between 95 % during the peak
season and drop to 40% during the slack season.
4. There is duplication of many logistics operations. Every department has their own policies I practices
and objectives.
5. In more than 20 per cent of the trips made to mother warehouses / C& F agents, the products are
despatched in less than full truckloads, resulting in high transportation costs.
6. Only 65 % of shipments were delivered on time, as a result of slow information flow and inadequate
connectivity across the system causing longer order processing time.
7. Transit damages were ranging between 2 to 5 % due to improper logistical packaging and inadequate
material handling equipment.
6. The finished goods inventory is above the best managed company in the industry
Questions:
1. Identify the main logistical problems of the Company
2. To offer better customer service level and reduce the operating cost, how will you go about
redesigning the distribution network?
Case 7 (10 Marks)
M/s. Decorative Laminates Corporation (DLC) is a supplier of decorative sheets for wooden furniture
makers in domestic as well as commercial markets. In spite of competition n this field their sales volumes
shown growth during last 2 to 3 years. The last year was recorded 15% more sales compared to previous
year. Even though the sales volume are increasing• the profit margin is getting reduced day by day due to
future competition.
In one of the monthly management review meetings it was observed that the main cause for depleting
profitability is the increasing procurement costs. . The report presented by the new Purchase Manger
revealed that in order to obtain quantity discounts from the suppliers the company was purchasing inputs
& other maintenance items much more than their actual requirements. This has not only created a
problem of holding huge inventories but necessitated hiring of additional warehouse space to
accommodate these high inventories. It has also been observed that most of the purchasing tasks like
inventory control are still performed manually. The computers are used only for maintaining purchasing
records and printing purchase orders.
Questions
1. What is the main problem in this case? What are your suggestions to the company on inventory
management?
2. What type of logistical cost approach you would suggest to the company?
Case 8 (10 Marks)
M/s. Compu-Tech is on the reputed Indian companies producing various types of computer printers.
Their production plant is situated at Noida in northern India and the products are distributed through
distribution centers located in every region.
The company introduced LS popular line of Desk Jet printers first time in India in 2005. Immediately on
the launch of this products
The solo more than one lacs units during that year. But the problems came with the boom in sales.
Already, the company was running into serious inventory snags, particularly with service to its customers
situated In southern region. The printers were generally shipped to all the distribution centers & onward
to the customers by road only. Unfortunately, that resulted in long lead times, making It tough to meet the
shorter delivery time offered by the local sellers mainly from Southern India.
The Company also found itself running short of production capacity to meet the quantity requirements
of certain large institutional & industrial customers. To add to it, quite often the company was running
out of stock for certain fast moving models and at the same time facing problems of excess inventory of
other models. Working out product wise demand from each market was also proving difficult for their
manufacturing plant.
Questions’
1. What are the main problems in the logistical network of M/s. Compu-Tech?
2. What solutions would you propose o overcome these problems?
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
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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
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.
5 | P a g e
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
6 | P a g e
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
7 | P a g e
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?
OPERATIONS MANAGEMENT
Total Marks : 80
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
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Note : Kolkata will receive transit stocks in week 2 .
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.
Total Marks : 80
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
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
Note : Kolkata will receive transit stocks in week 2 .
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.
OPERATION MANAGEMENT
N.B.: 1) Attempt any Eight Questions
2) All questions carries equal marks.
1. How would operations strategy for a service industry be different if any from that
for a manufacturing industry? (It’s an example & explains)
2. Consider the following two mutually exclusive projects. The net cash flows are
given below:
YEAR NET CASH FLOWS FROM
PROJECT A
NET CASH FLOWS
FROM PROJECT B
0 - Rs. 1,00,000 - Rs. 1,00,000/-
1 + Rs. 30,000 + Rs. 15,000/-
2 + Rs. 35,000 + Rs. 17,500/-
3 + Rs. 40,000 + Rs. 20,000/-
4 + Rs. 45,000 + Rs. 22,500/-
5 + Rs. 25,000/-
6 + Rs. 27,500/-
7 + Rs. 30,000/-
8 + Rs. 32,500/-
If the desired rate of return is 10% which project should be chosen?
3. What are the levels of aggregation in forecasting for a manufacturing
organization? How should this hierarchy of forecasts be linked and used?
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4. How would forecasting be useful for operations in a BPO (Business processes
outsourcing) unit? What factors may be important for this industry? Discuss.
5. A good work study should be followed by good supervision for getting good
results. Explain with an example.
6. What is job evaluation? Can it be alternatively used as job ranking? How does
one ensure that job evaluation evaluates the job and not the man? Explain with
examples?
7. What is the impact of technology on jobs? What are the similarities between job
enlargement & job rotation? Discuss the importance of training in the content of
job redesign? Explain with examples?
8. What is internet connectivity? How is it important in to days business would with
respect to materials requirement planning & purchasing? Explain with
examples?
9. Would a project management organization be different from an organization for
regular manufacturing in what ways? Examples.
10. How project evaluation different from project appraisal? Explain with examples.
N.B.: 1) Attempt any Eight Questions
2) All questions carries equal marks.
1. How would operations strategy for a service industry be different if any from that
for a manufacturing industry? (It’s an example & explains)
2. Consider the following two mutually exclusive projects. The net cash flows are
given below:
YEAR NET CASH FLOWS FROM
PROJECT A
NET CASH FLOWS
FROM PROJECT B
0 - Rs. 1,00,000 - Rs. 1,00,000/-
1 + Rs. 30,000 + Rs. 15,000/-
2 + Rs. 35,000 + Rs. 17,500/-
3 + Rs. 40,000 + Rs. 20,000/-
4 + Rs. 45,000 + Rs. 22,500/-
5 + Rs. 25,000/-
6 + Rs. 27,500/-
7 + Rs. 30,000/-
8 + Rs. 32,500/-
If the desired rate of return is 10% which project should be chosen?
3. What are the levels of aggregation in forecasting for a manufacturing
organization? How should this hierarchy of forecasts be linked and used?
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
4. How would forecasting be useful for operations in a BPO (Business processes
outsourcing) unit? What factors may be important for this industry? Discuss.
5. A good work study should be followed by good supervision for getting good
results. Explain with an example.
6. What is job evaluation? Can it be alternatively used as job ranking? How does
one ensure that job evaluation evaluates the job and not the man? Explain with
examples?
7. What is the impact of technology on jobs? What are the similarities between job
enlargement & job rotation? Discuss the importance of training in the content of
job redesign? Explain with examples?
8. What is internet connectivity? How is it important in to days business would with
respect to materials requirement planning & purchasing? Explain with
examples?
9. Would a project management organization be different from an organization for
regular manufacturing in what ways? Examples.
10. How project evaluation different from project appraisal? Explain with examples.
GENERAL MANAGEMENT
Total Marks : 80
CASE-1 : ATTEMPT ANY 4 CASES, EQUAL MARKS PER CASE (20 Marks)
Case on Discomfort in a factory and Management Decision Making
Mohan remembered the call from the head office as he puts down the telephone receiver. His boss
from head office he said, "I just read your analysis and I want you to go down to our plant in Kollakal
near Mysore right away. You know we cannot afford this plant any more - the costs are just too high.
So go down there, check out what would be our operational costs would be if we move, and report
back to me in a week."
Mohan knew the challenge quite well as the branch manager of the Good will Specialty Products. His
company is into manufacturing of special apparel for injured and people with other medical conditions.
He needs to deal with high-cost labor in a remote village not so sophisticated plant, unionized
manufacturing plant. Although he had done the analysis there were 480 people who made a living at
this facility and if it is closed most of them will find it very difficult to get another job in the small
town consisting of about 10 000 people.
Instead of the Rs.20/- per hour paid to the Kollakal workers the wages paid to the migrant workers near
Aurangabad will be much cheaper Rs.7/- hour working in sub human conditions. This provides a
saving of 15 lakhs to the company for a year, which, can now be used to meet the costs for training,
transportation and other matters.
After two days of talking with Migrant workers association and representatives of other companies
using the same services in the town, Mohan had enough information to formulate alternative plan for
production and the cost figures for production and transportation. What was bothering him was only
the thought that how is going to handover the termination of service notice to the Kollakal workers.
The plant in Kollakal had been in operation since 1930s making special apparel for persons suffering
from injuries and other medical conditions. Mohan has often talked to the employees who would
recount stories of their fathers and grant fathers working in the company plant-the last of the original
manufacturing operations in the town.
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But friendship aside competitors had already edged past Good will in terms of price and were
dangerously close to overtaking it in product quality. Although Mohan and his Boss had tried to
convince the union to accept the lower wages, union leaders resisted it. In fact, in one occasion when
Mohan tried to discuss a cell manufacturing approach, which would cross train employees to perform
up to three different jobs, local union leaders could barely restrain their anger. Yet probing beyond
their anger Mohan sensed their vulnerability, but could not break through.
Tomorrow he will discuss his report with the CEO. Mohan does not want to be responsible for
dismantling of the plant at Kollakal, an act, which Mohan believes is personally wrong, but he is
helpless. Mohan said to himself "The costs are too high, the union's unwilling to cooperate, and the
company needs to make a better return on its investment if it has to continue at all. It sounds right, but
it feels wrong. What should I do?
Questions :
1. Assume you want to lead the change to save the Kollkal plant. Describe how you would proceed?
2. What is the primary type of change needed - technology, product, structure or people/culture?
3. What techniques would you use to overcome union resistance and implement change?
CASE-2 (20 Marks)
A small group of managers at Falcon Computer met regularly on Wednesday mornings to develop a
statement capturing what they considered to be the 'Falcon Culture'. Their discussions were wideranging,
covering what they thought their firm's culture was, what it should be and how to create it.
They were probably influenced by other firms in their environment since they were located in the
Silicon Valley area of California. Falcon computer was a new firm, having been created just eight
months earlier. Since the corporation was still in the start- up phase managers decided it would be
timely to create and instill the type of culture they thought would be most appropriate for their
organization. After several weeks of brain storming, writing, debating, and rewriting, the management
group eventually produced a document called 'Falcon Values', which described the culture of the
company as they saw it. The organizational culture statement covered such topics, as treatment of
customers, relations among work colleagues, preferred style of social communication, the decision
making process, and the nature of working environment.
Peter Richards read over the Falcon values statement shortly after he was hired as a software trainer.
After observing managerial and employee behaviors at Falcon for a few weeks, he was struck by wide
discrepancy between the values expressed in the document and what he observed as actual practice
within the organization. For example the Falcon values document-contained statements such as this:
"Quality; attention to detail is our trademark; our goal s to do it right the first time. We intend to
deliver defect free products and services to customers on the date promised."
However Richards had already seen shipping reports showing that a number of defective computers
were being shipped to customers. And his personal experience supported his worst fears. When he
borrowed four brand-new Falcon computers from the shipping room for use in a training class he
found that only two of them started up correctly without additional technical work on his part.
Another example of the difference between the Falcon Values document and actual practice concerned
this statement on communication: "Managing by personal communication is part of the Falcon way.
We value and encourage open, direct, person to person communication as part of our daily routine."
Executives bragged about how they arranged their chairs in a circle to show equality and to facilitate
open communications whenever they met to discuss the Falcon values document Richards had heard
the "open communication" buzzword a lot since coming to Falcon, but he hadn't seen much evidence
of such communication. As a matter of fact all other meetings used a more traditional layout with top
executives at the front of the room. Richards believed that the real organizational culture that was
developing at Falcon was characterised by secrecy and communications that followed the formal chain
of command. Even the Falcon values document Richard was told had been created in secret.
Richards soon became disillusioned. He confided in a coworker on afternoon "the falcon values
document was so at avarice with what people saw everyday that very few of them took it seriously."
Employees quickly learned what was truly emphasized in the organization-hierarchy, secrecy, and
expediency and focused on those realities instead, ignoring many of the concepts incorporated in the
values document. Despite this frustration Richards stayed with Falcon until it filed for bankruptcy two
year later. "Next time" he thought to himself as he cleaned out his desk "ill pay more attention to what
is actually going on, and less to what top management says is true. Furthermore, I guess you just can't
create values."
Questions
1. What is more important the statement in a corporate culture document or actual managerial
behaviour?
2. Why did the Falcon executives act as they did?
3. Why didn't employees like Richards blow the whistle on Falcon, challenging the inconsistency
between values and behaviour?
4. How can executives go about changing the old values that govern an organization?
CASE-3 (20 Marks)
Study the case below.Discuss customer insight? Define CRM,role and advantages for todays
management?
Archana Tuli (Owner of a water purifier): Look at my water purifier. Last week a person came to my
house saying my service contract was up for renewal. Mind you, that was the first time in 10 months I
was seeing anyone from Purifo. I did not like his barging into my time without prior notice. But that
did not bother him. He had a list to clear, never mind if I was in the midst of cooking lunch.
I asked him about the servicing, since under the maintenance contract the company should have
serviced the unit twice that year. " You should have called the company," he said. But that was a
preventive maintenance contract and it was for the company to call and take a date.
Finally, he set about servicing the machine. I found that his handling of the machine was rather
clumsy. He dropped the casing twice and strewed the carbon all over the sink. I discovered that he was
just four months old in the Company. Before that, he used to sell plastic boxes. Is this what I get for
being your customer?
Then he said the filter candle needed to be changed which I would have to pay for. That annoyed me. I
showed him the contract, which clearly stated that the company would replace the candle once a year
at its cost. He did not know that. Would you believe that? Clearly such service contracts are simply a
means to make money. There is no attitude to servicing. He came because it was February and he had
contract renewal targets to complete. He came without calling, expecting we would drop everything
else to serve him. He had no clue as to what he had to give the customer for the contract. He messed up
my kitchen and did not even attempt to tidy it up.
The worst was that when I started the machine, the water would not flow. I was furious. Purifo sends
incompetent, inexperienced people to cut costs. I carry the responsibility of providing my family a
safe, hygienic environment at home, so I am prepared to pay for preventive maintenance. But what did
I get?
But it is a good product and I am an informed consumer who knows how to work around a
manufacturer's inefficiency. I simply gave the service contract to a private firm. I don't want to have
anything to do with Purifo.
Ritikant Sharma (Credit Card holder): Every month, I receive a credit card bill and my payment is sent
the very next day. Five months ago, the bill did not come on the 22nd evening as it normally would. I
received the bill 10 days later with a charge of Rs. 675/- for overdue interest. I was taken aback and
called up by the bank. But the bank manager argued that the bill had been sent earlier. It was my word
against his.
I wrote to Monet Bank, protesting against this undue charge. Eventually, after six letters from me,
including one to the managing director, the bank " waived" the interest. But I was left with a bitter taste
in my mouth. I wondered why the bank did this to me. Did I deliberately delay payment? I had this
card for three years and not once had I defaulted on payment.
I also wondered if the bank considered the cost of this argument to me. Was it worth the Rs. 675/-?
Why was the customer not right this time? And what about all those times when I paid four days
before the due date? I was amazed that the bank treated me like an errant schoolboy. Since then I have
not felt good about using the Monet credit card.
Worse, every month the bill continues to show the overdue interest and every month there is a fresh
exchange of letters on the matter. Only last week I received an invitation to become a member of
another credit card company. I am planning to surrender the Monet Card.
Divya Mathur (Owner of a washing machine): You say I am an important customer of Crysta. Great.
But for your customer service cell, I am just a number. For six months now, I have been having
problems with the washing machine. Last month, when I called the customer service cell to follow up
an old complaint about the motor, the lady who took the call asked me to repeat the details: model
number, date of purchase, and the like. When I pointed out that all these details had been given several
times before and all she needed to do was check the complaint order number, her response was
shocking. " May be, but I can't boot the system. I am only standing in for someone who has not
reported today. So, you have to give the details again." She said.
Tell me what am I getting for being your customer? Respect? Good handling? No. Now you come here
and ask me personal details like family income, number of members, husband's designation. You still
haven't told me why you need all this information. You are researching. Are you collecting this
information to help your company or me?
Then there was the problem with the V-belt. Within a day of replacing it, there were some cracking
sounds. The engineer said he would have to wait for the senior supervisor to examine it. Reason? " We
recently changed our supplier and all his pieces are turning out to be defective." I was taken aback. It
frightened me to know that there was no quality check at your end. We outsource a lot of stuff for our
garment business, but every button and needle is checked before it is used. We are not a multinational,
just an old family-managed business.
Radhika Iyer (School Teacher): That feeling for the customer is simply not there. The customer is not a
person but a collective noun. If the customer was important, wouldn't my water purifier Company tell
me when it changed the service agent? When I called the number in my contract card, I discovered that
the number now belonged to a courier company. I had to call the head office in Mumbai and get the
new service agent's number in Delhi.
Is this fair? Or does it matter? I guess the Company's attitude was: " If a customer needs service, let her
break her back and spend money to find out who the new agent is. " The only motives are profits and
sales volumes. Not customer loyalty or service. Therefore a customer is one who buys your product,
not one who has bought your product. Once you've bought the product you are a 'has been'. Why
would you want to invest energy in a set of people to whom a sale has been made? You spend energy
as long as a sale is not made. Once a sale is done, it is for the customer to invest energy in sustaining
his relationship with the manufacturer. Isn't that how it is? The manufacturer's attitude is-you need me
more than I need you, so guess who should work harder?
And everyone once in a while, there is a new face at my door asking me if I own a Zento purifier.
Dammit, don't you have a customer file? No, he says. We go from door to door. Splendid. Then what
do you do with all the data you collect? And every one of these men asks me the same questions: when
did you buy it, what is your model number, is it working properly? The worst is: " What is your
address?" I don't care what the information is being used for. But I don't want to be disturbed for
information, which you already have.
We believe that because India now manufactures Coke and Mercedes, we have progressed. But this
new market is no different from the gray market, where you can buy anything but cannot expect
service. For instance, I bought a packet of macaroni, which said I had to boil it in 250 ml of water. I
did that, but after the prescribed five minutes of boiling, there was enough water left in the pan. I then
boiled it for another three minutes, and the pasta dissolved into a unrecognizable mass.
One day, I met someone who worked for this macaroni company. I told him about my experience. He
said I should let the pan rest for five minutes after turning off the heat. The residual water would get
absorbed. That worked. Couldn't the firm have said so on the pack? Or is it cheaper to let the customer
learn? Does the Company use experienced hands-on cooks while designing these products or are they
MBAs who can't tell a stove from a cigarette lighter?
I bought a jar of mayonnaise the other day. The label said it should be used within six months. Of
what? Of the date of manufacture or of the date of opening the seal? Do I refrigerate it or not? It takes
us back to what I said before: once the sale has been made, the consumer does not matter anymore.
The sale is not on the customer's involvement, loyalty or satisfaction. It never was; it will never be.
DIPANKAR BARUAH (Cell Phone Owner): There are numerous messages that are flashed on the cell
phone to announce the sale of wedding suits, printers, shoes, or TV programmes, or updates on cricket
scores. These messages usually send out a single, short beep. Only personal messages are announced
with a long, continuous beep. Last week, I was distracted by six ad messages for a chocolate. And all
of them were long beeps. It made me mad because I was in the midst of meeting clients and that kind
of triviality is distracting.
The cell phone is a great device. It helps me catch messages, which I would otherwise have missed.
But I don't want it to distract me during a meeting. Please respect my privacy. The cell phone is for my
convenience, not for the convenience of callous advertisers. Now, I leave the cell phone with the
secretary and she calls me only if the message is a personal one.
Tell me, has the advertiser benefited? He sought to get his messages across to 1,50,000 subscribers at
one go. It appears to me that my cell phone has become a cheap medium for advertising. Since it has
done me the favour of selling me the cell phone, the cell phone operator can pass on my personal
details to advertisers without even asking me. The cell phone is a private medium of communication,
not a public address system like a radio.
We have allowed a million new products to enter the country but along with that, we have not allowed
the market mindset to evolve or grow. Few people realize that the customer needs to be treated with
respect.
BERYL DIAS (owner of a laser printer): This printer cost me Rs. 28,000. My company did not fund it.
I saved for it for a year. Saving that kind of money was not easy. I wanted the best, which is what I
thought I got when I bought it., It worked very well and I know it is a good product. But that's where
my ecstasy ends.
One day, the paper jammed and I needed help. So I called up the company. The lady who took the call
said: " You will have to bring the printer here, we are not going to come there." I felt that was very
hostile. I expressed surprise that their service engineers would not come to my home. The lady gave
me a silly reason. " If your mixie breaks down wouldn't you take it to the service center?" Maybe she
took the liberty to talk down to me because I was a woman and I operated a home office. But there's a
world of difference between a Rs. 2,500 mixie and a Rs. 28,000 printer. But she was surly from the
word go. Worse, their office was located very far from where I lived and going there would mean
wasting an entire morning.
It was her surly behaviour that angered me the most. I recall how the sales engineers hovered around
me when I had first contacted the company for a brochure. For three weeks someone from the
company would call me practically daily. They virtually pushed me into buying the printer. I
remember I still had the last Rs.1,500 /-to save up, when they decided to give me a Rs.1,000/- discount
to hasten my decision. Their sales pitch mesmerized me. Today, I am just a statistic. I can almost hear
them saying: "You have no choice. If your printer is not working, that's your problem. If you live afar,
that's also your problem.!"
I had not considered the after - sales trauma when I brought the printer. I assumed that the company
would come home to repair it, as other companies do for other products. They did not tell me about
their service terms at the time of the sale. It was not important, I guess. For, all they wanted was my
Rs.28, 000/-.
To repair the printer, I went through an agent, who lost my complaint order papers, forgot to intimate
the company about the part I wanted and made me wait for four weeks before the printer was repaired.
Then I discovered it had not been repaired at all. I decided then that I wouldn't have anything to do
with the company ever again. I sold that printer and brought another brand after ascertaining that there
was a service agent close by. My old printer was state of the art, but the real differentiator is the effort
a firm is willing to put into customer service.
CASE-4 : (20 Marks)
Company Social Responsibility & AIDS
The AIDS epidemic today is unparalleled in the challenges it poses to the world, and it is clearly an
issue that no one can address alone. Business is an essential partner in the response to AIDS. The
private sector like the other sectors is not immune from AIDS. Involvement of the private sector in the
response to HIV/AIDS is crucial to the success of our country's efforts against the epidemic.
Questions
1. What is the impact of AIDS on businesses? Do you agree that businesses in the near future would
be actively interested in addressing the issue of AIDS? Justify your answer
2. ABC Corporation wants to partner with an NGO and address the issue of AIDS around its factory,
discuss what steps should ABC Corporation take to initiate, manage and sustain its partnership
with the NGO .
CASE-5 : (20 Marks)
Read the following case study and answer the questions that follow
Prakash Gupte is a sales representative with Beta Water Purifiers. Prakash is a star sales representative
with the highest sales turnover record for 5 consecutive months. He is an aggressive and a dynamic
sales person with a strong target-orientation. His marketing manager Shreyans Desai is very proud of
his accomplishments. Based on his performance appraisal, Prakash has been promoted to the rank of
Assistant Manager (Marketing). He is now required to supervise the work of 6 sales representatives
and to manage sales targets for his area.
After assuming charge as an Asst. Marketing Manager, Prakash set the targets for the first month and
communicated these to the sales representatives in a direct and explicit manner. 4 sales representatives
found the targets to be too ambitious but reserved their comments. After the meeting they discussed the
issue informally and dispersed. Prakash called the fortnightly review meeting to take stock of the
situation. He was extremely disappointed to know that all the six representatives were trailing behind
in target achievement. He was very blunt in communicating his disappointment and told their team to
get their targets by the end of the month. After the meeting, all the six representatives expressed their
displeasure with the meeting and found the demand of Prakash unreasonable. They commonly
perceived him to be a difficult person to deal with. They thought of approaching Shreyans for this.
Harish and Sameer, two of the representatives met Shreyans and discussed this with him. Shreyans was
a little upset with Prakash, but he thought to himself that Prakash is very efficient but lacks tact to
work with people. He assured the duo that he will speak to Prakash in this regard.
Shreyans called Prakash for an informal chat and advised him to go a little easy with people. Prakash
was clearly agitated about this since he took this as a personal affront, as he sensed during this meeting
that someone must have complained about his behavior to Shreyans. Instead of going easy with the
team, he turned more bitter in his approach. He called a meeting of all the sales representatives, and
indirectly communicated his displeasure with the incident. He once again made it clear that the targets
were attainable but needed a greater sense of commitment from the group. Obviously the sales
representatives did not like this. At the month-end briefing, Prakash was absolutely disappointed with
the team for having under-achieved on the targets’ count. He rebuked them for going slow on their
work and told them sternly to adhere to the targets in the next month. Deepak, on of the sales
representatives, objected to highly monthly targets and suggested that the targets be made more
reasonable. To this Prakash retorted by saying that the targets were absolutely reasonable. Obviously
the team was disheartened with this. They all decided to collectively approach Shreyans this time and
seek his intervention. When they met Shreyans to brief him about the situation, Shreyans was sure that
he had made a mistake somewhere.
QUESTIONS:
1) What happened when Prakash got promoted to the position of Asst. Manager (Marketing)? Why
did this happen?
2) If you were entrusted with the responsibility of managing 6 sales representatives & creating an
effective sales team, how would you do it?
Total Marks : 80
CASE-1 : ATTEMPT ANY 4 CASES, EQUAL MARKS PER CASE (20 Marks)
Case on Discomfort in a factory and Management Decision Making
Mohan remembered the call from the head office as he puts down the telephone receiver. His boss
from head office he said, "I just read your analysis and I want you to go down to our plant in Kollakal
near Mysore right away. You know we cannot afford this plant any more - the costs are just too high.
So go down there, check out what would be our operational costs would be if we move, and report
back to me in a week."
Mohan knew the challenge quite well as the branch manager of the Good will Specialty Products. His
company is into manufacturing of special apparel for injured and people with other medical conditions.
He needs to deal with high-cost labor in a remote village not so sophisticated plant, unionized
manufacturing plant. Although he had done the analysis there were 480 people who made a living at
this facility and if it is closed most of them will find it very difficult to get another job in the small
town consisting of about 10 000 people.
Instead of the Rs.20/- per hour paid to the Kollakal workers the wages paid to the migrant workers near
Aurangabad will be much cheaper Rs.7/- hour working in sub human conditions. This provides a
saving of 15 lakhs to the company for a year, which, can now be used to meet the costs for training,
transportation and other matters.
After two days of talking with Migrant workers association and representatives of other companies
using the same services in the town, Mohan had enough information to formulate alternative plan for
production and the cost figures for production and transportation. What was bothering him was only
the thought that how is going to handover the termination of service notice to the Kollakal workers.
The plant in Kollakal had been in operation since 1930s making special apparel for persons suffering
from injuries and other medical conditions. Mohan has often talked to the employees who would
recount stories of their fathers and grant fathers working in the company plant-the last of the original
manufacturing operations in the town.
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
But friendship aside competitors had already edged past Good will in terms of price and were
dangerously close to overtaking it in product quality. Although Mohan and his Boss had tried to
convince the union to accept the lower wages, union leaders resisted it. In fact, in one occasion when
Mohan tried to discuss a cell manufacturing approach, which would cross train employees to perform
up to three different jobs, local union leaders could barely restrain their anger. Yet probing beyond
their anger Mohan sensed their vulnerability, but could not break through.
Tomorrow he will discuss his report with the CEO. Mohan does not want to be responsible for
dismantling of the plant at Kollakal, an act, which Mohan believes is personally wrong, but he is
helpless. Mohan said to himself "The costs are too high, the union's unwilling to cooperate, and the
company needs to make a better return on its investment if it has to continue at all. It sounds right, but
it feels wrong. What should I do?
Questions :
1. Assume you want to lead the change to save the Kollkal plant. Describe how you would proceed?
2. What is the primary type of change needed - technology, product, structure or people/culture?
3. What techniques would you use to overcome union resistance and implement change?
CASE-2 (20 Marks)
A small group of managers at Falcon Computer met regularly on Wednesday mornings to develop a
statement capturing what they considered to be the 'Falcon Culture'. Their discussions were wideranging,
covering what they thought their firm's culture was, what it should be and how to create it.
They were probably influenced by other firms in their environment since they were located in the
Silicon Valley area of California. Falcon computer was a new firm, having been created just eight
months earlier. Since the corporation was still in the start- up phase managers decided it would be
timely to create and instill the type of culture they thought would be most appropriate for their
organization. After several weeks of brain storming, writing, debating, and rewriting, the management
group eventually produced a document called 'Falcon Values', which described the culture of the
company as they saw it. The organizational culture statement covered such topics, as treatment of
customers, relations among work colleagues, preferred style of social communication, the decision
making process, and the nature of working environment.
Peter Richards read over the Falcon values statement shortly after he was hired as a software trainer.
After observing managerial and employee behaviors at Falcon for a few weeks, he was struck by wide
discrepancy between the values expressed in the document and what he observed as actual practice
within the organization. For example the Falcon values document-contained statements such as this:
"Quality; attention to detail is our trademark; our goal s to do it right the first time. We intend to
deliver defect free products and services to customers on the date promised."
However Richards had already seen shipping reports showing that a number of defective computers
were being shipped to customers. And his personal experience supported his worst fears. When he
borrowed four brand-new Falcon computers from the shipping room for use in a training class he
found that only two of them started up correctly without additional technical work on his part.
Another example of the difference between the Falcon Values document and actual practice concerned
this statement on communication: "Managing by personal communication is part of the Falcon way.
We value and encourage open, direct, person to person communication as part of our daily routine."
Executives bragged about how they arranged their chairs in a circle to show equality and to facilitate
open communications whenever they met to discuss the Falcon values document Richards had heard
the "open communication" buzzword a lot since coming to Falcon, but he hadn't seen much evidence
of such communication. As a matter of fact all other meetings used a more traditional layout with top
executives at the front of the room. Richards believed that the real organizational culture that was
developing at Falcon was characterised by secrecy and communications that followed the formal chain
of command. Even the Falcon values document Richard was told had been created in secret.
Richards soon became disillusioned. He confided in a coworker on afternoon "the falcon values
document was so at avarice with what people saw everyday that very few of them took it seriously."
Employees quickly learned what was truly emphasized in the organization-hierarchy, secrecy, and
expediency and focused on those realities instead, ignoring many of the concepts incorporated in the
values document. Despite this frustration Richards stayed with Falcon until it filed for bankruptcy two
year later. "Next time" he thought to himself as he cleaned out his desk "ill pay more attention to what
is actually going on, and less to what top management says is true. Furthermore, I guess you just can't
create values."
Questions
1. What is more important the statement in a corporate culture document or actual managerial
behaviour?
2. Why did the Falcon executives act as they did?
3. Why didn't employees like Richards blow the whistle on Falcon, challenging the inconsistency
between values and behaviour?
4. How can executives go about changing the old values that govern an organization?
CASE-3 (20 Marks)
Study the case below.Discuss customer insight? Define CRM,role and advantages for todays
management?
Archana Tuli (Owner of a water purifier): Look at my water purifier. Last week a person came to my
house saying my service contract was up for renewal. Mind you, that was the first time in 10 months I
was seeing anyone from Purifo. I did not like his barging into my time without prior notice. But that
did not bother him. He had a list to clear, never mind if I was in the midst of cooking lunch.
I asked him about the servicing, since under the maintenance contract the company should have
serviced the unit twice that year. " You should have called the company," he said. But that was a
preventive maintenance contract and it was for the company to call and take a date.
Finally, he set about servicing the machine. I found that his handling of the machine was rather
clumsy. He dropped the casing twice and strewed the carbon all over the sink. I discovered that he was
just four months old in the Company. Before that, he used to sell plastic boxes. Is this what I get for
being your customer?
Then he said the filter candle needed to be changed which I would have to pay for. That annoyed me. I
showed him the contract, which clearly stated that the company would replace the candle once a year
at its cost. He did not know that. Would you believe that? Clearly such service contracts are simply a
means to make money. There is no attitude to servicing. He came because it was February and he had
contract renewal targets to complete. He came without calling, expecting we would drop everything
else to serve him. He had no clue as to what he had to give the customer for the contract. He messed up
my kitchen and did not even attempt to tidy it up.
The worst was that when I started the machine, the water would not flow. I was furious. Purifo sends
incompetent, inexperienced people to cut costs. I carry the responsibility of providing my family a
safe, hygienic environment at home, so I am prepared to pay for preventive maintenance. But what did
I get?
But it is a good product and I am an informed consumer who knows how to work around a
manufacturer's inefficiency. I simply gave the service contract to a private firm. I don't want to have
anything to do with Purifo.
Ritikant Sharma (Credit Card holder): Every month, I receive a credit card bill and my payment is sent
the very next day. Five months ago, the bill did not come on the 22nd evening as it normally would. I
received the bill 10 days later with a charge of Rs. 675/- for overdue interest. I was taken aback and
called up by the bank. But the bank manager argued that the bill had been sent earlier. It was my word
against his.
I wrote to Monet Bank, protesting against this undue charge. Eventually, after six letters from me,
including one to the managing director, the bank " waived" the interest. But I was left with a bitter taste
in my mouth. I wondered why the bank did this to me. Did I deliberately delay payment? I had this
card for three years and not once had I defaulted on payment.
I also wondered if the bank considered the cost of this argument to me. Was it worth the Rs. 675/-?
Why was the customer not right this time? And what about all those times when I paid four days
before the due date? I was amazed that the bank treated me like an errant schoolboy. Since then I have
not felt good about using the Monet credit card.
Worse, every month the bill continues to show the overdue interest and every month there is a fresh
exchange of letters on the matter. Only last week I received an invitation to become a member of
another credit card company. I am planning to surrender the Monet Card.
Divya Mathur (Owner of a washing machine): You say I am an important customer of Crysta. Great.
But for your customer service cell, I am just a number. For six months now, I have been having
problems with the washing machine. Last month, when I called the customer service cell to follow up
an old complaint about the motor, the lady who took the call asked me to repeat the details: model
number, date of purchase, and the like. When I pointed out that all these details had been given several
times before and all she needed to do was check the complaint order number, her response was
shocking. " May be, but I can't boot the system. I am only standing in for someone who has not
reported today. So, you have to give the details again." She said.
Tell me what am I getting for being your customer? Respect? Good handling? No. Now you come here
and ask me personal details like family income, number of members, husband's designation. You still
haven't told me why you need all this information. You are researching. Are you collecting this
information to help your company or me?
Then there was the problem with the V-belt. Within a day of replacing it, there were some cracking
sounds. The engineer said he would have to wait for the senior supervisor to examine it. Reason? " We
recently changed our supplier and all his pieces are turning out to be defective." I was taken aback. It
frightened me to know that there was no quality check at your end. We outsource a lot of stuff for our
garment business, but every button and needle is checked before it is used. We are not a multinational,
just an old family-managed business.
Radhika Iyer (School Teacher): That feeling for the customer is simply not there. The customer is not a
person but a collective noun. If the customer was important, wouldn't my water purifier Company tell
me when it changed the service agent? When I called the number in my contract card, I discovered that
the number now belonged to a courier company. I had to call the head office in Mumbai and get the
new service agent's number in Delhi.
Is this fair? Or does it matter? I guess the Company's attitude was: " If a customer needs service, let her
break her back and spend money to find out who the new agent is. " The only motives are profits and
sales volumes. Not customer loyalty or service. Therefore a customer is one who buys your product,
not one who has bought your product. Once you've bought the product you are a 'has been'. Why
would you want to invest energy in a set of people to whom a sale has been made? You spend energy
as long as a sale is not made. Once a sale is done, it is for the customer to invest energy in sustaining
his relationship with the manufacturer. Isn't that how it is? The manufacturer's attitude is-you need me
more than I need you, so guess who should work harder?
And everyone once in a while, there is a new face at my door asking me if I own a Zento purifier.
Dammit, don't you have a customer file? No, he says. We go from door to door. Splendid. Then what
do you do with all the data you collect? And every one of these men asks me the same questions: when
did you buy it, what is your model number, is it working properly? The worst is: " What is your
address?" I don't care what the information is being used for. But I don't want to be disturbed for
information, which you already have.
We believe that because India now manufactures Coke and Mercedes, we have progressed. But this
new market is no different from the gray market, where you can buy anything but cannot expect
service. For instance, I bought a packet of macaroni, which said I had to boil it in 250 ml of water. I
did that, but after the prescribed five minutes of boiling, there was enough water left in the pan. I then
boiled it for another three minutes, and the pasta dissolved into a unrecognizable mass.
One day, I met someone who worked for this macaroni company. I told him about my experience. He
said I should let the pan rest for five minutes after turning off the heat. The residual water would get
absorbed. That worked. Couldn't the firm have said so on the pack? Or is it cheaper to let the customer
learn? Does the Company use experienced hands-on cooks while designing these products or are they
MBAs who can't tell a stove from a cigarette lighter?
I bought a jar of mayonnaise the other day. The label said it should be used within six months. Of
what? Of the date of manufacture or of the date of opening the seal? Do I refrigerate it or not? It takes
us back to what I said before: once the sale has been made, the consumer does not matter anymore.
The sale is not on the customer's involvement, loyalty or satisfaction. It never was; it will never be.
DIPANKAR BARUAH (Cell Phone Owner): There are numerous messages that are flashed on the cell
phone to announce the sale of wedding suits, printers, shoes, or TV programmes, or updates on cricket
scores. These messages usually send out a single, short beep. Only personal messages are announced
with a long, continuous beep. Last week, I was distracted by six ad messages for a chocolate. And all
of them were long beeps. It made me mad because I was in the midst of meeting clients and that kind
of triviality is distracting.
The cell phone is a great device. It helps me catch messages, which I would otherwise have missed.
But I don't want it to distract me during a meeting. Please respect my privacy. The cell phone is for my
convenience, not for the convenience of callous advertisers. Now, I leave the cell phone with the
secretary and she calls me only if the message is a personal one.
Tell me, has the advertiser benefited? He sought to get his messages across to 1,50,000 subscribers at
one go. It appears to me that my cell phone has become a cheap medium for advertising. Since it has
done me the favour of selling me the cell phone, the cell phone operator can pass on my personal
details to advertisers without even asking me. The cell phone is a private medium of communication,
not a public address system like a radio.
We have allowed a million new products to enter the country but along with that, we have not allowed
the market mindset to evolve or grow. Few people realize that the customer needs to be treated with
respect.
BERYL DIAS (owner of a laser printer): This printer cost me Rs. 28,000. My company did not fund it.
I saved for it for a year. Saving that kind of money was not easy. I wanted the best, which is what I
thought I got when I bought it., It worked very well and I know it is a good product. But that's where
my ecstasy ends.
One day, the paper jammed and I needed help. So I called up the company. The lady who took the call
said: " You will have to bring the printer here, we are not going to come there." I felt that was very
hostile. I expressed surprise that their service engineers would not come to my home. The lady gave
me a silly reason. " If your mixie breaks down wouldn't you take it to the service center?" Maybe she
took the liberty to talk down to me because I was a woman and I operated a home office. But there's a
world of difference between a Rs. 2,500 mixie and a Rs. 28,000 printer. But she was surly from the
word go. Worse, their office was located very far from where I lived and going there would mean
wasting an entire morning.
It was her surly behaviour that angered me the most. I recall how the sales engineers hovered around
me when I had first contacted the company for a brochure. For three weeks someone from the
company would call me practically daily. They virtually pushed me into buying the printer. I
remember I still had the last Rs.1,500 /-to save up, when they decided to give me a Rs.1,000/- discount
to hasten my decision. Their sales pitch mesmerized me. Today, I am just a statistic. I can almost hear
them saying: "You have no choice. If your printer is not working, that's your problem. If you live afar,
that's also your problem.!"
I had not considered the after - sales trauma when I brought the printer. I assumed that the company
would come home to repair it, as other companies do for other products. They did not tell me about
their service terms at the time of the sale. It was not important, I guess. For, all they wanted was my
Rs.28, 000/-.
To repair the printer, I went through an agent, who lost my complaint order papers, forgot to intimate
the company about the part I wanted and made me wait for four weeks before the printer was repaired.
Then I discovered it had not been repaired at all. I decided then that I wouldn't have anything to do
with the company ever again. I sold that printer and brought another brand after ascertaining that there
was a service agent close by. My old printer was state of the art, but the real differentiator is the effort
a firm is willing to put into customer service.
CASE-4 : (20 Marks)
Company Social Responsibility & AIDS
The AIDS epidemic today is unparalleled in the challenges it poses to the world, and it is clearly an
issue that no one can address alone. Business is an essential partner in the response to AIDS. The
private sector like the other sectors is not immune from AIDS. Involvement of the private sector in the
response to HIV/AIDS is crucial to the success of our country's efforts against the epidemic.
Questions
1. What is the impact of AIDS on businesses? Do you agree that businesses in the near future would
be actively interested in addressing the issue of AIDS? Justify your answer
2. ABC Corporation wants to partner with an NGO and address the issue of AIDS around its factory,
discuss what steps should ABC Corporation take to initiate, manage and sustain its partnership
with the NGO .
CASE-5 : (20 Marks)
Read the following case study and answer the questions that follow
Prakash Gupte is a sales representative with Beta Water Purifiers. Prakash is a star sales representative
with the highest sales turnover record for 5 consecutive months. He is an aggressive and a dynamic
sales person with a strong target-orientation. His marketing manager Shreyans Desai is very proud of
his accomplishments. Based on his performance appraisal, Prakash has been promoted to the rank of
Assistant Manager (Marketing). He is now required to supervise the work of 6 sales representatives
and to manage sales targets for his area.
After assuming charge as an Asst. Marketing Manager, Prakash set the targets for the first month and
communicated these to the sales representatives in a direct and explicit manner. 4 sales representatives
found the targets to be too ambitious but reserved their comments. After the meeting they discussed the
issue informally and dispersed. Prakash called the fortnightly review meeting to take stock of the
situation. He was extremely disappointed to know that all the six representatives were trailing behind
in target achievement. He was very blunt in communicating his disappointment and told their team to
get their targets by the end of the month. After the meeting, all the six representatives expressed their
displeasure with the meeting and found the demand of Prakash unreasonable. They commonly
perceived him to be a difficult person to deal with. They thought of approaching Shreyans for this.
Harish and Sameer, two of the representatives met Shreyans and discussed this with him. Shreyans was
a little upset with Prakash, but he thought to himself that Prakash is very efficient but lacks tact to
work with people. He assured the duo that he will speak to Prakash in this regard.
Shreyans called Prakash for an informal chat and advised him to go a little easy with people. Prakash
was clearly agitated about this since he took this as a personal affront, as he sensed during this meeting
that someone must have complained about his behavior to Shreyans. Instead of going easy with the
team, he turned more bitter in his approach. He called a meeting of all the sales representatives, and
indirectly communicated his displeasure with the incident. He once again made it clear that the targets
were attainable but needed a greater sense of commitment from the group. Obviously the sales
representatives did not like this. At the month-end briefing, Prakash was absolutely disappointed with
the team for having under-achieved on the targets’ count. He rebuked them for going slow on their
work and told them sternly to adhere to the targets in the next month. Deepak, on of the sales
representatives, objected to highly monthly targets and suggested that the targets be made more
reasonable. To this Prakash retorted by saying that the targets were absolutely reasonable. Obviously
the team was disheartened with this. They all decided to collectively approach Shreyans this time and
seek his intervention. When they met Shreyans to brief him about the situation, Shreyans was sure that
he had made a mistake somewhere.
QUESTIONS:
1) What happened when Prakash got promoted to the position of Asst. Manager (Marketing)? Why
did this happen?
2) If you were entrusted with the responsibility of managing 6 sales representatives & creating an
effective sales team, how would you do it?
SHIPPING MANAGEMENT
MARKS: 80
Q1) Describe the Sustainable transport Mode? (Marks 3)
Q2) Explain the Following? (Marks 3)
a) Second line of Defance?
b) Changing Technology
c) Shipping Weakness and threats
d) Ship disposal
e) Cargoes
Q3) What are shipping Strengths and opportunities? (Marks 3)
Q4) Who are the actors in shipping? (Marks 3)
Q5) Case ¡V 1 (Marks 15)
Today shipping has become more globalize than the air line industry perceptions have changed nations and
companies are willing to use ships that fly any flag provides they offer competitive freights to move
cargo/people safely and effectively from point A To B national strategic interest has also receded since the
advent of flag of convenience ships. For ship owners and operators of flag of convenience, their interest now
loess in operating efficiency and maximizing profits recent examples of this phenomenon are Falklands, Iran
/ Iraq wars and the invasion of kauit in all these cases the limitations of these ships under their own flag did
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
2
not pose a problem. The ships available far exceeded the logistical requirement for the conflicts, and
chartering their vessels was relatively easy.
Questions
a)What does the above scenario show?
b)What does this prove?
c)What does it prove to our country ¡V INDIA
Q6) Describe the strengths and weaknesses of the Indian shipping? (Marks 3)
Q7) Describe the advantages and disadvantages and standards of EDI? (Marks3)
Q8) Explain the cost and value service principle? (Marks 3)
Q10) What is the principle of ¡§WHAT THE TRAFFIC CAN BEAR¡¨ (Marks 3)
Q9) what are quality Management Systems? (Marks 3)
Q11) Explain Impact of Competition on rates? (Marks 3)
Q12) Describe the complete structure of shipping Operations? (Marks 3)
Q13) Explain the following in brief? (Marks 8)
a) Bulk Cargo market.
b) Iron Ore trade.
c) Coal trade.
d) Grain Trade.
e) Shipping Demand Forecast.
f) Operating Cost.
g) Ship Market.
h) Freight Market.
Q14) Explain Financial Management with the help of the following points. (Marks 8)
a) Debt Equity Mix and Dividend.
b) Treasury Function.
c) Funds from international sources.
d) Trading activities.
e) Shipping Business.
f) Buying and selling of ships.
3
g) Foreign Exchange transactions
h) Diversification.
Q15) Present an organization Chart? (Marks 3)
Q16) Case --------II (Marks 16)
„h The Indian cultural belief in "Karma" if it is for the upliftment of oneself
„h Indian society's acceptance of creation of riches by a person by his/her ownefforts.Wealth is seen as
God's gift.
„h An almost mythical belief of bringing oneself above the masses both in excellence and in wealth.
The impact of this belief is so deep that we have accepted the "lotus" as our national flower which
blooms even in dirty ponds without its natural beauty and fragrance being affected.
„h A large sea coast and a large coastal population which earns its living from sea resources.
„h A growing offshore oil industry which provides support to the shipping industry, especially in times
of depression in the shipping industry.
„h The existence of English as a widely spoken language which happens to be the lingua franca of the
shipping industry.
„h Recent growth in net worth of non-resident Indians and Indian ventures abroad who can be both
investors and users of shipping services.
Until now, my comments and questions have been straightforward but the problem ahead is to find the
best possible solution which, if adopted or practiced, may provide a stimulus for the growth of the shipping
industry.
The shipping industry, in view of its globalizes operations, is so complex in nature, high on capital
requirement and low on returns (IRR), especially in comparison to some other industries, such as a
manufacturing, in a overpopulated country like India
It will be difficult to attract existing industrialists from other sectors to the shipping industry unless
sea transportation forms a captive part of their business or the government provides sufficient subsidies and
protections as incentive.
Therefore, my friends, the burden for growth of Indian shipping lies on our shoulders, being the
shipping managers in the forefront of the industry. Failure on our part will not be pardoned by the future
generations involved in shipping.
4
Questions:-
a) Why will it not be pardoned by future generations?
b) How can executives and managers of that Indian shipping industry take advantage of these
opportunities?
c) So now the question is: what level playing fields are relevant today?
d) Issues on which a ship-owner should commit himself to the nation?
MARKS: 80
Q1) Describe the Sustainable transport Mode? (Marks 3)
Q2) Explain the Following? (Marks 3)
a) Second line of Defance?
b) Changing Technology
c) Shipping Weakness and threats
d) Ship disposal
e) Cargoes
Q3) What are shipping Strengths and opportunities? (Marks 3)
Q4) Who are the actors in shipping? (Marks 3)
Q5) Case ¡V 1 (Marks 15)
Today shipping has become more globalize than the air line industry perceptions have changed nations and
companies are willing to use ships that fly any flag provides they offer competitive freights to move
cargo/people safely and effectively from point A To B national strategic interest has also receded since the
advent of flag of convenience ships. For ship owners and operators of flag of convenience, their interest now
loess in operating efficiency and maximizing profits recent examples of this phenomenon are Falklands, Iran
/ Iraq wars and the invasion of kauit in all these cases the limitations of these ships under their own flag did
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
2
not pose a problem. The ships available far exceeded the logistical requirement for the conflicts, and
chartering their vessels was relatively easy.
Questions
a)What does the above scenario show?
b)What does this prove?
c)What does it prove to our country ¡V INDIA
Q6) Describe the strengths and weaknesses of the Indian shipping? (Marks 3)
Q7) Describe the advantages and disadvantages and standards of EDI? (Marks3)
Q8) Explain the cost and value service principle? (Marks 3)
Q10) What is the principle of ¡§WHAT THE TRAFFIC CAN BEAR¡¨ (Marks 3)
Q9) what are quality Management Systems? (Marks 3)
Q11) Explain Impact of Competition on rates? (Marks 3)
Q12) Describe the complete structure of shipping Operations? (Marks 3)
Q13) Explain the following in brief? (Marks 8)
a) Bulk Cargo market.
b) Iron Ore trade.
c) Coal trade.
d) Grain Trade.
e) Shipping Demand Forecast.
f) Operating Cost.
g) Ship Market.
h) Freight Market.
Q14) Explain Financial Management with the help of the following points. (Marks 8)
a) Debt Equity Mix and Dividend.
b) Treasury Function.
c) Funds from international sources.
d) Trading activities.
e) Shipping Business.
f) Buying and selling of ships.
3
g) Foreign Exchange transactions
h) Diversification.
Q15) Present an organization Chart? (Marks 3)
Q16) Case --------II (Marks 16)
„h The Indian cultural belief in "Karma" if it is for the upliftment of oneself
„h Indian society's acceptance of creation of riches by a person by his/her ownefforts.Wealth is seen as
God's gift.
„h An almost mythical belief of bringing oneself above the masses both in excellence and in wealth.
The impact of this belief is so deep that we have accepted the "lotus" as our national flower which
blooms even in dirty ponds without its natural beauty and fragrance being affected.
„h A large sea coast and a large coastal population which earns its living from sea resources.
„h A growing offshore oil industry which provides support to the shipping industry, especially in times
of depression in the shipping industry.
„h The existence of English as a widely spoken language which happens to be the lingua franca of the
shipping industry.
„h Recent growth in net worth of non-resident Indians and Indian ventures abroad who can be both
investors and users of shipping services.
Until now, my comments and questions have been straightforward but the problem ahead is to find the
best possible solution which, if adopted or practiced, may provide a stimulus for the growth of the shipping
industry.
The shipping industry, in view of its globalizes operations, is so complex in nature, high on capital
requirement and low on returns (IRR), especially in comparison to some other industries, such as a
manufacturing, in a overpopulated country like India
It will be difficult to attract existing industrialists from other sectors to the shipping industry unless
sea transportation forms a captive part of their business or the government provides sufficient subsidies and
protections as incentive.
Therefore, my friends, the burden for growth of Indian shipping lies on our shoulders, being the
shipping managers in the forefront of the industry. Failure on our part will not be pardoned by the future
generations involved in shipping.
4
Questions:-
a) Why will it not be pardoned by future generations?
b) How can executives and managers of that Indian shipping industry take advantage of these
opportunities?
c) So now the question is: what level playing fields are relevant today?
d) Issues on which a ship-owner should commit himself to the nation?
SHIPPING MANAGEMENT
Marks : 80
1) what are quality Management Systems? (Marks 10)
2) Explain Impact of Competition on rates? (Marks 10)
3) Describe the complete structure of shipping Operations? (Marks 10)
4) Explain the following in brief? (Marks 10)
a) Bulk Cargo market.
b) Iron Ore trade.
c) Coal trade.
d) Grain Trade.
e) Shipping Demand Forecast.
f) Operating Cost.
g) Ship Market.
h) Freight Market.
5) Explain Financial Management with the help of the following points. (Marks 20)
a) Debt Equity Mix and Dividend.
b) Treasury Function.
c) Funds from international sources.
d) Trading activities.
e) Shipping Business.
f) Buying and selling of ships.
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
2
g) Foreign Exchange transactions
h) Diversification.
6) Case --------II (Marks 20)
The Indian cultural belief in "Karma" if it is for the upliftment of oneself
Indian society's acceptance of creation of riches by a person by his/her ownefforts.Wealth is seen
as God's gift.
An almost mythical belief of bringing oneself above the masses both in excellence and in wealth.
The impact of this belief is so deep that we have accepted the "lotus" as our national flower which
blooms even in dirty ponds without its natural beauty and fragrance being affected.
A large sea coast and a large coastal population which earns its living from sea resources.
A growing offshore oil industry which provides support to the shipping industry, especially in times
of depression in the shipping industry.
The existence of English as a widely spoken language which happens to be the lingua franca of the
shipping industry.
Recent growth in net worth of non-resident Indians and Indian ventures abroad who can be both
investors and users of shipping services.
Until now, my comments and questions have been straightforward but the problem ahead is to find the
best possible solution which, if adopted or practiced, may provide a stimulus for the growth of the shipping
industry.
The shipping industry, in view of its globalizes operations, is so complex in nature, high on capital
requirement and low on returns (IRR), especially in comparison to some other industries, such as a
manufacturing, in a overpopulated country like India
It will be difficult to attract existing industrialists from other sectors to the shipping industry unless
sea transportation forms a captive part of their business or the government provides sufficient subsidies
and protections as incentive.
Therefore, my friends, the burden for growth of Indian shipping lies on our shoulders, being the
shipping managers in the forefront of the industry. Failure on our part will not be pardoned by the future
generations involved in shipping.
3
Questions:-
a) Why will it not be pardoned by future generations?
b) How can executives and managers of that Indian shipping industry take advantage of these
opportunities?
c) So now the question is: what level playing fields are relevant today?
d) Issues on which a ship-owner should commit himself to the nation?
MARKETING MANAGEMENT
COURSE : Total Marks : 80
N.B. : 1) There are questions in paper.
2) All Questions are compulsory
A) Discuss Various Marketing Research Instruments .Give suitable examples (one example
/instrument)? (10 Marks)
B) Describe following in context of new product development (NPD)? (10 Marks)
1. The new product development decision process
2. Risk factors hindering new product development
C) Illustrate the marketing mix for any two of the following? (15 Marks)
1. Cafe Coffee Day
2. Dr. Batra’s clinic
3. Lux Soap
4. HP( Hewlett Packard)
D) Illustrate with examples, the differences between Product marketing &
Services marketing? (10 Marks)
E) Illustrate with examples, the methods/ways of evaluating advertising effectiveness? (10 Marks)
F) Discuss the factors which contribute in deciding the “price” of the product? Discuss
various pricing methods? (10 Marks)
G) “Laco Industries “has planned to introduce new baby shampoo in the kids market. The company
conducted a research in selected tier II cities in India to know the demand & successfully
launched its product. In this context, discuss the characteristics of the good research? (15 Marks)
AN ISO 9001 : 2000 CERTIFIED INTERNATIONAL B-SCHOOL
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