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Business Administration
Marks - 80
(Please attempt any 4 of the below mentioned case studies. Each Case study is for 20 marks)
MR. John
Please read the case and answer the questions given at the end.
John was rapidly becoming the main topic of discussion for the workers on E-shift. For
the past year, he had been working in the jeep-transportation department at a large
manufacturing plant. His record of attendance was good and his work was considered far
above average by his immediate supervisor. His supervisor also considered John the
informal leader of the transportation department. This feeling was shared by the
foreman and the other workers.
Lately, though, John had been seen by several supervisors breaking different safety
regulations. Most of the violations would have been of no more consequence than a good
talking to, so the supervisors let them slide.
Finally, John was caught by the plant safety supervisor without his safety glasses on.
This resulted in his being laid off without pay for five working days.
It was the plant's policy that safety glasses must be to gain admittance to the plant and
must be worn times in the plant. This policy was to ensure that no employee would lose
his eye-sight from an accident or from a resulting fire.
This written policy stated that an employee who was caught not wearing his safety
glasses would for the first offence get a five day lay-off and then for a second offence
gets another five day suspension. After John returned to work, he was again observed
not wearing his safety devices. Within a few days of his return, John was caught by the
same safety supervisor without his safety glasses. The supervisor informed John in an
angry voice, "l m getting tired of writing you up for stupid mistakes." At this point, John
replied, "Why don't you go home and smash your head. " The supervisor then struck
John, dt which point John proceeded to beat the supervisor unconscious.
John was laid off from work until the company could decide what action to take
regarding the fight. After a brief meeting the next day, Mr. Prasad, the transportation
supervisor, informed John that he was terminated. A union steward then asked Mr.
Prasad about the fate of the supervisor. Mr. Prasad replied, "He will remain at work as
far as I know. " The union steward immediately stepped to the telephone and called the
union president. From the ensuing conversation, Mr. Prasad learnt that a wild cat strike
might be ordered over the firing of John and not the supervisor.
Mr. Prasad knew that it was the company's stated policy that whoever started or was
involved in a fight would be terminated immediately. Mr. Prasad was beginning to
wonder whether the company had made a mistake in its decision and what should be
done now.
Questions:
(a) What is the problem in the case?
(b) How do you see the behavior of the safety supervisor? What would you do if you
were the safety supervisor ?
(c) How do you see the change in John's behavior from an informal leader to the one
involved in a fight with a supervisor vis-a-vis the company's policy?
(d) Could Mr. Prasad and the safety supervisor have prevented John's case at the initial
level?
ABC Company – An important decision
Please read the case and answer the questions given at the end.
One afternoon in January 1982, Amrit, industrial engineer of ABC Company, was called
to the office of his immediate superior Nair, the production manager. Nair said, 'Amrit I
want to discuss a situation in the production department. A lot of people feel that
Govinda is not the right man for the Assistant Superintendents position. The President
and others have decided that I have got to fire Govinda or at least move him out of
production. Everyone wants to fire Govinda, but I won’t do it to him. I was talking with
Bhadra this morning, and we deckled that you might be able to make use of Govinda in
your department.'
Amrit was surprised by both the information, and the proposal.
Nair concluded his comments with, 'Amrit. I am asking you to take Govinda. You can say
'No'. But then he gets fired. I have told Govinda this. Also, Govinda knows that if he
goes with you, he will take a pay cut. However, I think you can make use of him both to
your own and his satisfaction. You are, anyway, carrying out an in-process quality
control and you might to able to make good use of Govinda in view of his long technical
experience of production work. Think It over, and let me know by tomorrow.'
Amrit thought over the matter
ABC Company had been a successful enterprise until March 1982 at which time it
suffered a sharp decline of profits: Sales had fallen off, and production costs had risen.
The President adopted three measures which he hoped would improve the condition.
First, by creating an Industrial Engineering Department for establishing work standards
on all production operations, to determine which manufacturing costs were out of line
and where remedial action should be taken. Amrit, 28 years old, who had been with the
company for two years in the Purchasing Department, was selected. Amrit had WE. and
MBA degrees to his credit. What he lacked in his business experience, he made up by his
eagerness to learn. He was ambitious and liked by his associates. He wanted a transfer
from Purchasing to Production for better opportunities for advancement.
Secondly, he consulted a Management Consultation firm to make a study of the
Production Department. They pointed out that the chain of command was too long from
Production Manager through Plant Superintendent through Assistant Superintendent to
Foremen. They recommended the elimination of the position of Assistant
Superintendent.
Thirdly, he engaged an Industrial Psychologist to appraise all the Supervisory Personnel.
Govinda had been with the company for 20 years since its founding and during this
period had worked on every production operation, and his last 11 years had been in
supervisory capacity. His manners were rough and aggressive, he had little formal
education. The Industrial Psychologists report about Govinda contained the following
points
(i) Evaluation for the position of Assistant Superintendent: Not good enough.
(ii) Capacity for good human relations in supervision will have friction frequently.
(iii) Need for development counseling: Counseling greatly needed.
(iv) General Evaluation: Govinda had a good ability profile. He suffers from a sense of
inferiority. He does not like the responsibility of making decisions. His supervision is that
of Autocratic type. Though he has the ability, as far as his personality make-up is
Questions:
(a) What is the problem in the case? Explain.
(b) Explain Govinda's behavior and work experience vis-a-vis the psychologist's report.
(c) How do you see Nair's suggestion to Amrit? Give reasons.
(d) What are Amrit's considerations in taking a decision? What should he do? Explain.
Marks - 80
(Please attempt any 4 of the below mentioned case studies. Each Case study is for 20 marks)
MR. John
Please read the case and answer the questions given at the end.
John was rapidly becoming the main topic of discussion for the workers on E-shift. For
the past year, he had been working in the jeep-transportation department at a large
manufacturing plant. His record of attendance was good and his work was considered far
above average by his immediate supervisor. His supervisor also considered John the
informal leader of the transportation department. This feeling was shared by the
foreman and the other workers.
Lately, though, John had been seen by several supervisors breaking different safety
regulations. Most of the violations would have been of no more consequence than a good
talking to, so the supervisors let them slide.
Finally, John was caught by the plant safety supervisor without his safety glasses on.
This resulted in his being laid off without pay for five working days.
It was the plant's policy that safety glasses must be to gain admittance to the plant and
must be worn times in the plant. This policy was to ensure that no employee would lose
his eye-sight from an accident or from a resulting fire.
This written policy stated that an employee who was caught not wearing his safety
glasses would for the first offence get a five day lay-off and then for a second offence
gets another five day suspension. After John returned to work, he was again observed
not wearing his safety devices. Within a few days of his return, John was caught by the
same safety supervisor without his safety glasses. The supervisor informed John in an
angry voice, "l m getting tired of writing you up for stupid mistakes." At this point, John
replied, "Why don't you go home and smash your head. " The supervisor then struck
John, dt which point John proceeded to beat the supervisor unconscious.
John was laid off from work until the company could decide what action to take
regarding the fight. After a brief meeting the next day, Mr. Prasad, the transportation
supervisor, informed John that he was terminated. A union steward then asked Mr.
Prasad about the fate of the supervisor. Mr. Prasad replied, "He will remain at work as
far as I know. " The union steward immediately stepped to the telephone and called the
union president. From the ensuing conversation, Mr. Prasad learnt that a wild cat strike
might be ordered over the firing of John and not the supervisor.
Mr. Prasad knew that it was the company's stated policy that whoever started or was
involved in a fight would be terminated immediately. Mr. Prasad was beginning to
wonder whether the company had made a mistake in its decision and what should be
done now.
Questions:
(a) What is the problem in the case?
(b) How do you see the behavior of the safety supervisor? What would you do if you
were the safety supervisor ?
(c) How do you see the change in John's behavior from an informal leader to the one
involved in a fight with a supervisor vis-a-vis the company's policy?
(d) Could Mr. Prasad and the safety supervisor have prevented John's case at the initial
level?
ABC Company – An important decision
Please read the case and answer the questions given at the end.
One afternoon in January 1982, Amrit, industrial engineer of ABC Company, was called
to the office of his immediate superior Nair, the production manager. Nair said, 'Amrit I
want to discuss a situation in the production department. A lot of people feel that
Govinda is not the right man for the Assistant Superintendents position. The President
and others have decided that I have got to fire Govinda or at least move him out of
production. Everyone wants to fire Govinda, but I won’t do it to him. I was talking with
Bhadra this morning, and we deckled that you might be able to make use of Govinda in
your department.'
Amrit was surprised by both the information, and the proposal.
Nair concluded his comments with, 'Amrit. I am asking you to take Govinda. You can say
'No'. But then he gets fired. I have told Govinda this. Also, Govinda knows that if he
goes with you, he will take a pay cut. However, I think you can make use of him both to
your own and his satisfaction. You are, anyway, carrying out an in-process quality
control and you might to able to make good use of Govinda in view of his long technical
experience of production work. Think It over, and let me know by tomorrow.'
Amrit thought over the matter
ABC Company had been a successful enterprise until March 1982 at which time it
suffered a sharp decline of profits: Sales had fallen off, and production costs had risen.
The President adopted three measures which he hoped would improve the condition.
First, by creating an Industrial Engineering Department for establishing work standards
on all production operations, to determine which manufacturing costs were out of line
and where remedial action should be taken. Amrit, 28 years old, who had been with the
company for two years in the Purchasing Department, was selected. Amrit had WE. and
MBA degrees to his credit. What he lacked in his business experience, he made up by his
eagerness to learn. He was ambitious and liked by his associates. He wanted a transfer
from Purchasing to Production for better opportunities for advancement.
Secondly, he consulted a Management Consultation firm to make a study of the
Production Department. They pointed out that the chain of command was too long from
Production Manager through Plant Superintendent through Assistant Superintendent to
Foremen. They recommended the elimination of the position of Assistant
Superintendent.
Thirdly, he engaged an Industrial Psychologist to appraise all the Supervisory Personnel.
Govinda had been with the company for 20 years since its founding and during this
period had worked on every production operation, and his last 11 years had been in
supervisory capacity. His manners were rough and aggressive, he had little formal
education. The Industrial Psychologists report about Govinda contained the following
points
(i) Evaluation for the position of Assistant Superintendent: Not good enough.
(ii) Capacity for good human relations in supervision will have friction frequently.
(iii) Need for development counseling: Counseling greatly needed.
(iv) General Evaluation: Govinda had a good ability profile. He suffers from a sense of
inferiority. He does not like the responsibility of making decisions. His supervision is that
of Autocratic type. Though he has the ability, as far as his personality make-up is
Questions:
(a) What is the problem in the case? Explain.
(b) Explain Govinda's behavior and work experience vis-a-vis the psychologist's report.
(c) How do you see Nair's suggestion to Amrit? Give reasons.
(d) What are Amrit's considerations in taking a decision? What should he do? Explain.
Business Communication
N. B. : 1) Attempt any Four Case studies
2) All case studies carry equal marks.
No: 1
A REPLY SENT TO AN ERRING CUSTOMER
Dear Sir,
Your letter of the 23rd, with a cheque for Rs. 25,000/- on account, is to hand.
We note what you say as to the difficulty you experience in collecting your
outstanding accounts, but we are compelled to remark that we do not think you
are treating us with the consideration we have a right to expect.
It is true that small remittances have been forwarded from time to time, but the
debit balance against you has been steadily increasing during the past twelve
months until it now stands at the considerable total of Rs. 85,000/-
Having regard to the many years during which you have been a customer of this
house and the, generally speaking, satisfactory character of your account, we are
reluctant to resort to harsh measures.
We must, however, insist that the existing balance should be cleared off by
regular installments of say Rs. 10,000/- per month, the first installment to reach
us by the 7th. In the meantime you shall pay cash for all further goods; we are
allowing you an extra 3% discount in lieu of credit.
We shall be glad to hear from you about this arrangement, as otherwise we shall
have no alternative but definitely to close your account and place the matter in
other hands.
Yours truly,
Questions:
1. Comment on the appropriateness of the sender’s tone to a customer.
2. Point out the old – fashioned phrases and expressions.
3. Rewrite the reply according to the principles of effective writing in
business.
NO. 2
WAVE
(ATV : Advertising Radio FM Brand)
A young, gorgeous woman is standing in front of her apartment window
dancing to the 1970s tune, “All Right Now” by the one – hit band free. Across the
street a young man looks out of his apartment window and notices her. He
moves closer to the window, taking interest. She cranks up the volume and
continues dancing, looking out the window at the fellow, who smiles hopefully
and waves meekly. He holds up a bottle of wine and waves it, apparently
inviting her over for a drink. The lady waves back. He kisses the bottle and
excitedly says, “Yesss.” Then, he gazes around his apartment and realizes that it
is a mess. “No !” he exclaims in a worried tone of voice. Frantically, he does his
best to quickly clean up the place, stuffing papers under the sofa and putting old
food back in the refrigerator, He slips on a black shirt, slicks back his hair, sniffs
his armpit, and lets out an excited , “Yeahhh!” in eager anticipation of
entertaining the young lady. He goes back to the window and sees the woman
still dancing away. He points to his watch, as if to say “ Come on. It is getting
late.” As she just continues dancing, he looks confused. Then a look of sudden
insight appears on his face, “Five,” he says to himself. He turns on his radio, and
it too is playing “All Right Now.” The man goes to his window and starts dancing
as he watches his lady friend continue stepping. “Five, yeah,” he says as he
makes the “okay” sign with his thumb and forefinger. He waves again.
Everyone in the apartment building is dancing by their window to “All Right
Now.” A super appears on the screen: “Are you on the right wavelength ?”
Questions :
1. What is non – verbal communication ? Why do you suppose that
this commercial relies primarily on non-verbal communication
between a young man and a gorgeous woman ? What types of non –
verbal communication are being used in this case ?
2. Would any of the non-verbal communications in this spot (ad) not
work well in another culture ?
3. What role does music play in this spot ? Who is the target market ?
4. Is the music at all distracting from the message ?
5. How else are radio stations advertised on TV ?
N. B. : 1) Attempt any Four Case studies
2) All case studies carry equal marks.
No: 1
A REPLY SENT TO AN ERRING CUSTOMER
Dear Sir,
Your letter of the 23rd, with a cheque for Rs. 25,000/- on account, is to hand.
We note what you say as to the difficulty you experience in collecting your
outstanding accounts, but we are compelled to remark that we do not think you
are treating us with the consideration we have a right to expect.
It is true that small remittances have been forwarded from time to time, but the
debit balance against you has been steadily increasing during the past twelve
months until it now stands at the considerable total of Rs. 85,000/-
Having regard to the many years during which you have been a customer of this
house and the, generally speaking, satisfactory character of your account, we are
reluctant to resort to harsh measures.
We must, however, insist that the existing balance should be cleared off by
regular installments of say Rs. 10,000/- per month, the first installment to reach
us by the 7th. In the meantime you shall pay cash for all further goods; we are
allowing you an extra 3% discount in lieu of credit.
We shall be glad to hear from you about this arrangement, as otherwise we shall
have no alternative but definitely to close your account and place the matter in
other hands.
Yours truly,
Questions:
1. Comment on the appropriateness of the sender’s tone to a customer.
2. Point out the old – fashioned phrases and expressions.
3. Rewrite the reply according to the principles of effective writing in
business.
NO. 2
WAVE
(ATV : Advertising Radio FM Brand)
A young, gorgeous woman is standing in front of her apartment window
dancing to the 1970s tune, “All Right Now” by the one – hit band free. Across the
street a young man looks out of his apartment window and notices her. He
moves closer to the window, taking interest. She cranks up the volume and
continues dancing, looking out the window at the fellow, who smiles hopefully
and waves meekly. He holds up a bottle of wine and waves it, apparently
inviting her over for a drink. The lady waves back. He kisses the bottle and
excitedly says, “Yesss.” Then, he gazes around his apartment and realizes that it
is a mess. “No !” he exclaims in a worried tone of voice. Frantically, he does his
best to quickly clean up the place, stuffing papers under the sofa and putting old
food back in the refrigerator, He slips on a black shirt, slicks back his hair, sniffs
his armpit, and lets out an excited , “Yeahhh!” in eager anticipation of
entertaining the young lady. He goes back to the window and sees the woman
still dancing away. He points to his watch, as if to say “ Come on. It is getting
late.” As she just continues dancing, he looks confused. Then a look of sudden
insight appears on his face, “Five,” he says to himself. He turns on his radio, and
it too is playing “All Right Now.” The man goes to his window and starts dancing
as he watches his lady friend continue stepping. “Five, yeah,” he says as he
makes the “okay” sign with his thumb and forefinger. He waves again.
Everyone in the apartment building is dancing by their window to “All Right
Now.” A super appears on the screen: “Are you on the right wavelength ?”
Questions :
1. What is non – verbal communication ? Why do you suppose that
this commercial relies primarily on non-verbal communication
between a young man and a gorgeous woman ? What types of non –
verbal communication are being used in this case ?
2. Would any of the non-verbal communications in this spot (ad) not
work well in another culture ?
3. What role does music play in this spot ? Who is the target market ?
4. Is the music at all distracting from the message ?
5. How else are radio stations advertised on TV ?
SUB : BUSINESS ETHICS
N. B. : 1) Attempt any Four Cases
2) All cases carries equal marks.
No : 1
PUBLIUS
Although many people believe that the World Wide Web is anonymous and secure
from censorship, the reality is very different. Governments, law courts, and other
officials who want to censor, examine, or trace a file of materials on the Web need
merely go to the server (the online computer) where they think the file is stored.
Using their subpoena power, they can comb through the server’s drives to find the
files they are looking for and the identify of the person who created the files.
On Friday June 30, 2000, however, researches at AT & T Labs announced the
creation of Publius, a software program that enables Web users to encrypt (translate
into a secret code) their files – text, pictures, or music – break them up like the
pieces of a jigsaw puzzle, and store the encrypted pieces on many different servers
scattered all over the globe on the World Wide Web. As a result, any one wanting to
examine or censor the files or wanting to trace the original transaction that produced
the file would find it impossible to succeed because they would have to examine the
contents of dozens of different servers all over the world, and the files in the servers
would be encrypted and fragmented in a way that would make the pieces impossible
to identify without the help of the person who created the file. A person authorized
to retrieve the file, however, would look through a directory of his files posted on a
Publius – affiliated website, and the Publius network would reassemble the file for
him at his request. Researchers published a description of Publius at
www.cs.nyu.edu/waldman/publius.
Although many people welcomed the way that the new software would
enhance freedom of speech on the Web, many others were dismayed. Bruce Taylor,
an antipornography activist for the National Law Center for Children and Families,
stated : “It’s nice to be anonymous, but who wants to be more anonymous than
criminals, terrorists, child molesters, child pornographers, hackers and e-mail virus
punks.” Aviel Rubin and Lorrie Cranor, the creators of Publius, however, hoped that
their program would help people in countries where freedom of speech was repressed
and individuals were punished for speaking out. The ideal user of Publius, they
stated, was “a person in China observing abuses of human rights on a day – to – day
basis.”
Questions :
1. Analyze the ethics of marketing Publius using utilitarianism, rights,
justice, and caring. In your judgement, is it ethical to market Publius ? Explain.
2. Are the creators of Publius in any way morally responsible for any
criminal acts that criminals are able to carry out and keep secret by
relying on Publius ? Is AT & T in any way morally responsible for these ?
Explain your answers.
3. In your judgment, should governments allow the implementation of
Publius ? Why or why not ?
N. B. : 1) Attempt any Four Cases
2) All cases carries equal marks.
No : 1
PUBLIUS
Although many people believe that the World Wide Web is anonymous and secure
from censorship, the reality is very different. Governments, law courts, and other
officials who want to censor, examine, or trace a file of materials on the Web need
merely go to the server (the online computer) where they think the file is stored.
Using their subpoena power, they can comb through the server’s drives to find the
files they are looking for and the identify of the person who created the files.
On Friday June 30, 2000, however, researches at AT & T Labs announced the
creation of Publius, a software program that enables Web users to encrypt (translate
into a secret code) their files – text, pictures, or music – break them up like the
pieces of a jigsaw puzzle, and store the encrypted pieces on many different servers
scattered all over the globe on the World Wide Web. As a result, any one wanting to
examine or censor the files or wanting to trace the original transaction that produced
the file would find it impossible to succeed because they would have to examine the
contents of dozens of different servers all over the world, and the files in the servers
would be encrypted and fragmented in a way that would make the pieces impossible
to identify without the help of the person who created the file. A person authorized
to retrieve the file, however, would look through a directory of his files posted on a
Publius – affiliated website, and the Publius network would reassemble the file for
him at his request. Researchers published a description of Publius at
www.cs.nyu.edu/waldman/publius.
Although many people welcomed the way that the new software would
enhance freedom of speech on the Web, many others were dismayed. Bruce Taylor,
an antipornography activist for the National Law Center for Children and Families,
stated : “It’s nice to be anonymous, but who wants to be more anonymous than
criminals, terrorists, child molesters, child pornographers, hackers and e-mail virus
punks.” Aviel Rubin and Lorrie Cranor, the creators of Publius, however, hoped that
their program would help people in countries where freedom of speech was repressed
and individuals were punished for speaking out. The ideal user of Publius, they
stated, was “a person in China observing abuses of human rights on a day – to – day
basis.”
Questions :
1. Analyze the ethics of marketing Publius using utilitarianism, rights,
justice, and caring. In your judgement, is it ethical to market Publius ? Explain.
2. Are the creators of Publius in any way morally responsible for any
criminal acts that criminals are able to carry out and keep secret by
relying on Publius ? Is AT & T in any way morally responsible for these ?
Explain your answers.
3. In your judgment, should governments allow the implementation of
Publius ? Why or why not ?
Human Resource Management
(i) There are three Sections A and B and C.
(ii) Attempt any three questions each from Section A and B. All questions carry 10 marks
each.
(iii) Section C is compulsory for all and carries 40 marks.
SECTION A
1. Define and differentiate between Job Analysis, Job Description and Job Evaluation.
Select an appropriate job evaluation method and create a plan for evaluating jobs of
scientists in different grades.
2. Discuss the role of indoctrination in organizations. How can Performance Appraisal,
and Training and Development be made an integral part of Human Resource Planning?
Discuss.
3. Discuss the scope of Human Resource Audit. While auditing Reward systems for
employees in a manufacturing organization, which factors should be taken into account
and why? Explain with suitable examples.
4. Define and discuss the need for Human Resource Planning in an organization. Briefly
discuss various approaches to HRP
5. Write short notes on any three of the following:
(a) Training methods
(b) Value determinants of HRP
(c) Human Resource accounting
(d) Labour Market Behavior
(e) Promotion and Reward Policies
(i) There are three Sections A and B and C.
(ii) Attempt any three questions each from Section A and B. All questions carry 10 marks
each.
(iii) Section C is compulsory for all and carries 40 marks.
SECTION A
1. Define and differentiate between Job Analysis, Job Description and Job Evaluation.
Select an appropriate job evaluation method and create a plan for evaluating jobs of
scientists in different grades.
2. Discuss the role of indoctrination in organizations. How can Performance Appraisal,
and Training and Development be made an integral part of Human Resource Planning?
Discuss.
3. Discuss the scope of Human Resource Audit. While auditing Reward systems for
employees in a manufacturing organization, which factors should be taken into account
and why? Explain with suitable examples.
4. Define and discuss the need for Human Resource Planning in an organization. Briefly
discuss various approaches to HRP
5. Write short notes on any three of the following:
(a) Training methods
(b) Value determinants of HRP
(c) Human Resource accounting
(d) Labour Market Behavior
(e) Promotion and Reward Policies
SUB: INTERNATIONAL BUSINESS
N. B.: 1) Attempt any four cases
2) All cases carries equal marks.
No: 1
BPO – BANE OR BOON ?
Several MNCs are increasingly unbundling or vertical disintegrating their activities.
Put in simple language, they have begun outsourcing (also called business process
outsourcing) activities formerly performed in-house and concentrating their energies on a few
functions. Outsourcing involves withdrawing from certain stages/activities and relaying on
outside vendors to supply the needed products, support services, or functional activities.
Take Infosys, its 250 engineers develop IT applications for BO/FA (Bank of America).
Elsewhere, Infosys staffers process home loans for green point mortgage of Novato, California.
At Wipro, five radiologists interpret 30 CT scans a day for Massachusetts General Hospital.
2500 college educated men and women are buzzing at midnight at Wipro Spectramind
at Delhi. They are busy processing claims for a major US insurance company and providing
help-desk support for a big US Internet service provider-all at a cost upto 60 percent lower
than in the US. Seven Wipro Spectramind staff with Ph.Ds in molecular biology sift through
scientific research for western pharmaceutical companies.
Another activist in BOP is Evalueserve, headquarterd in Bermuda and having main
operations near Delhi. It also has a US subsidiary based in New York and a marketing office
in Australia to cover the European market. As Alok Aggarwal (co-founder and chairman)
says, his company supplies a range of value-added services to clients that include a dozen
Fortune 500 companies and seven global consulting firms, besides market research and
venture capital firms. Much of its work involves dealing with CEOs, CFOs, CTOs, CIOs, and
other so called C-level executives.
Evaluserve provides services like patent writing, evaluation and assessment of their
commercialization potential for law firms and entrepreneurs. Its market research services
are aimed at top-rung financial service firms, to which it provides analysis of investment
opportunities and business plans. Another major offering is multilingual services.
Evalueserve trains and qualifies employees to communicate in Chinese, Spanish, German,
Japanese and Italian, among other languages. That skill set has opened market opportunities
in Europe and elsewhere, especially with global corporations.
ICICI infotech Services in Edison, New Jersey, is another BOP services provider that is
offering marketing software products and diversifying into markets outside the US. The firm
has been promoted by $2-billion ICICI Bank, a large financial institution in Mumbai that is
listed on the New York Stock Exchange.
In its first year after setting up shop in March 1999, ICICI infotech spent $33 million
acquiring two information technology services firms in New Jersy-Object Experts and ivory
Consulting – and command Systems in Connecticut. These acquisitions were to help ICICI
Infotech hit the ground in the US with a ready book of contracts. But it soon found US
companies increasingly outsourcing their requirements to offshore locations, instead of hiring
foreign employees to work onsite at their offices. The company found other native modes for
growth. It has started marketing its products in banking, insurance and enterprise resource
planning among others. It has earmarket $10 million for its next US market offensive, which
would go towards R & D and back-end infrastructure support, and creating new versions of its
products to comply with US market requirements. It also has a joint venture – Semantik
Solutions GmbH in Berlin, Germany with the Fraunhofer Institute for Software and Systems
Engineering, which is based in Berlin and Dortmund, Germany – Fraunhofer is a leading
institute in applied research and development with 200 experts in software engineering and
evolutionary information.
A relatively late entrant to the US market , ICICI Infotech started out with plain
vanilla IT services, including operating call centeres. As the market for traditional IT
services started wakening around mid-2000, ICICI Infotech repositioned itself as a “Solutions”
firm offering both products and services. Today , it offers bundied packages of products and
services in corporate and retail banking and include data center and disaster recovery
management and value chain management services.
ICICI Infotech’s expansion into new overseas markets has paid off. Its $50 million
revenue for its latest financial year ending March 2003 has the US operations generating
some $15 million, while the Middle East and Far East markets brought in another $9 million.
It new boasts more than 700 customers in 30 countries, including Dow Jones, Glazo-
Smithkline, Panasonic and American Insurance Group.
The outsourcing industry is indeed growing form strength. Though technical support
and financial services have dominated India’s outsourcing industry, newer fields are emerging
which are expected to boost the industry many times over.
Outsourcing of human resource services or HR BPO is emerging as big opportunity for
Indian BPOs with global market in this segment estimated at $40-60 billion per annum. HR
BPO comes to about 33 percent of the outsourcing revenue and India has immense potential
as more than 80 percent of Fortune 1000 companies discuss offshore BOP as a way to cut
costs and increase productivity.
Another potential area is ITES/BOP industry. According to A NASSCOM survey, the
global ITES/BOP industry was valued at around $773 billion during 2002 and it is expected to
grow at a compounded annual growth rate of nine percent during the period 2002 – 06,
NASSCOM lists the major indicators of the high growth potential of ITES/BOP industry in
India as the following.
During 2003 – 04, The ITES/BPO segment is estimated to have achieved a 54 percent
growth in revenues as compared to the previous year. ITES exports accounted for $3.6 billion
in revenues, up form $2.5 billion in 2002 – 03. The ITES-BPO segment also proved to be a
major opportunity for job seekers, creating employment for around 74,400 additional
personnel in India during 2003 – 04. The number of Indians working for this sector jumped to
245,500 by March 2004. By the year 2008, the segment is expected to employ over 1.1 million
Indians, according to studies conducted by NASSCOM and McKinsey & Co. Market research
shows that in terms of job creation, the ITES-BOP industry is growing at over 50 per cent.
Legal outsourcing sector is another area India can look for. Legal transcription
involves conversion of interviews with clients or witnesses by lawyers into documents which
can be presented in courts. It is no different from any other transcription work carried out in
India. The bottom-line here is again cheap service. There is a strong reason why India can
prove to be a big legal outsourcing Industry.
India, like the US, is a common-law jurisdiction rooted in the British legal tradition.
Indian legal training is conducted solely in English. Appellate and Supreme Court
proceedings in India take place exclusively in English. Due to the time zone differences,
night time in the US is daytime in India which means that clients get 24 hour attention, and
some projects can be completed overnight. Small and mid – sized business offices can solve
staff problems as the outsourced lawyers from India take on the time – consuming labour
intensive legal research and writing projects. Large law firms also can solve problems of
overstaffing by using the on – call lawyers.
Research firms such as Forrester Research, predict that by 2015 , more than 489,000
US lawyer jobs, nearly eight percent of the field, will shift abroad..
Many more new avenues are opening up for BOP services providers. Patent writing
and evaluation services are markets set to boom. Some 200.000 patent applications are
written in the western world annually, making for a market size of between $5 billion and $7
billion. Outsourcing patent writing service could significantly lower the cost of each patent
application, now anywhere between $12,000 and $15,000 apiece-which would help expand the
market.
Offshoring of equity research is another major growth area. Translation services are
also becoming a big Indian plus. India produces some 3,000 graduates in German each year,
which is more than that in Switzerland.
Though going is good, the Indian BPO services providers cannot afford to be
complacent. Phillppines, Maxico and Hungary are emerging as potential offshore locations.
Likely competitor is Russia, although the absence of English speaking people there holds the
country back. But the dark horse could be South Affrica and even China
BOP is based on sound economic reasons. Outsourcing helps gain cost advantage. If
an activity can be performed better or more cheaply by an outside supplier, why not outsource
it ? Many PC makers, for example, have shifted from in – house assembly to utilizing contract
assemblers to make their PCs. CISCO outsources all productions and assembly of its routers
and witching equipment to contract manufactures that operate 37 factories, all linked via the
internet.
Secondly, the activity (outsourced) is not crucial to the firm’s ability to gain sustainable
competitive advantage and won’t hollow out its core competence, capabilities, or technical
know how. Outsourcing of maintenance services, date processing, accounting, and other
administrative support activities to companies specializing in these services has become
common place. Thirdly, outsourcing reduces the company’s risk exposure to changing
technology and / or changing buyer preferences.
Fourthly, BPO streamlines company operations in ways that improve organizational
flexibility, cut cycle time, speedup decision making and reduce coordination costs. Finally,
outsourcing allows a company to concentrate on its core business and do what it does best.
Are Indian companies listening ? If they listen, BPO is a boon to them and not a bane.
Questions:
1. Which of the theories of international trade can help Indian services providers gain
competitive edge over their competitors?
2. Pick up some Indian services providers. With the help of Michael Porter’s diamond,
analyze their strengths and weaknesses as active players in BPO.
3. Compare this case with the case given at the beginning of this chapter. What
similarities and dissimilarities do you notice? Your analysis should be based on the
theories explained.
N. B.: 1) Attempt any four cases
2) All cases carries equal marks.
No: 1
BPO – BANE OR BOON ?
Several MNCs are increasingly unbundling or vertical disintegrating their activities.
Put in simple language, they have begun outsourcing (also called business process
outsourcing) activities formerly performed in-house and concentrating their energies on a few
functions. Outsourcing involves withdrawing from certain stages/activities and relaying on
outside vendors to supply the needed products, support services, or functional activities.
Take Infosys, its 250 engineers develop IT applications for BO/FA (Bank of America).
Elsewhere, Infosys staffers process home loans for green point mortgage of Novato, California.
At Wipro, five radiologists interpret 30 CT scans a day for Massachusetts General Hospital.
2500 college educated men and women are buzzing at midnight at Wipro Spectramind
at Delhi. They are busy processing claims for a major US insurance company and providing
help-desk support for a big US Internet service provider-all at a cost upto 60 percent lower
than in the US. Seven Wipro Spectramind staff with Ph.Ds in molecular biology sift through
scientific research for western pharmaceutical companies.
Another activist in BOP is Evalueserve, headquarterd in Bermuda and having main
operations near Delhi. It also has a US subsidiary based in New York and a marketing office
in Australia to cover the European market. As Alok Aggarwal (co-founder and chairman)
says, his company supplies a range of value-added services to clients that include a dozen
Fortune 500 companies and seven global consulting firms, besides market research and
venture capital firms. Much of its work involves dealing with CEOs, CFOs, CTOs, CIOs, and
other so called C-level executives.
Evaluserve provides services like patent writing, evaluation and assessment of their
commercialization potential for law firms and entrepreneurs. Its market research services
are aimed at top-rung financial service firms, to which it provides analysis of investment
opportunities and business plans. Another major offering is multilingual services.
Evalueserve trains and qualifies employees to communicate in Chinese, Spanish, German,
Japanese and Italian, among other languages. That skill set has opened market opportunities
in Europe and elsewhere, especially with global corporations.
ICICI infotech Services in Edison, New Jersey, is another BOP services provider that is
offering marketing software products and diversifying into markets outside the US. The firm
has been promoted by $2-billion ICICI Bank, a large financial institution in Mumbai that is
listed on the New York Stock Exchange.
In its first year after setting up shop in March 1999, ICICI infotech spent $33 million
acquiring two information technology services firms in New Jersy-Object Experts and ivory
Consulting – and command Systems in Connecticut. These acquisitions were to help ICICI
Infotech hit the ground in the US with a ready book of contracts. But it soon found US
companies increasingly outsourcing their requirements to offshore locations, instead of hiring
foreign employees to work onsite at their offices. The company found other native modes for
growth. It has started marketing its products in banking, insurance and enterprise resource
planning among others. It has earmarket $10 million for its next US market offensive, which
would go towards R & D and back-end infrastructure support, and creating new versions of its
products to comply with US market requirements. It also has a joint venture – Semantik
Solutions GmbH in Berlin, Germany with the Fraunhofer Institute for Software and Systems
Engineering, which is based in Berlin and Dortmund, Germany – Fraunhofer is a leading
institute in applied research and development with 200 experts in software engineering and
evolutionary information.
A relatively late entrant to the US market , ICICI Infotech started out with plain
vanilla IT services, including operating call centeres. As the market for traditional IT
services started wakening around mid-2000, ICICI Infotech repositioned itself as a “Solutions”
firm offering both products and services. Today , it offers bundied packages of products and
services in corporate and retail banking and include data center and disaster recovery
management and value chain management services.
ICICI Infotech’s expansion into new overseas markets has paid off. Its $50 million
revenue for its latest financial year ending March 2003 has the US operations generating
some $15 million, while the Middle East and Far East markets brought in another $9 million.
It new boasts more than 700 customers in 30 countries, including Dow Jones, Glazo-
Smithkline, Panasonic and American Insurance Group.
The outsourcing industry is indeed growing form strength. Though technical support
and financial services have dominated India’s outsourcing industry, newer fields are emerging
which are expected to boost the industry many times over.
Outsourcing of human resource services or HR BPO is emerging as big opportunity for
Indian BPOs with global market in this segment estimated at $40-60 billion per annum. HR
BPO comes to about 33 percent of the outsourcing revenue and India has immense potential
as more than 80 percent of Fortune 1000 companies discuss offshore BOP as a way to cut
costs and increase productivity.
Another potential area is ITES/BOP industry. According to A NASSCOM survey, the
global ITES/BOP industry was valued at around $773 billion during 2002 and it is expected to
grow at a compounded annual growth rate of nine percent during the period 2002 – 06,
NASSCOM lists the major indicators of the high growth potential of ITES/BOP industry in
India as the following.
During 2003 – 04, The ITES/BPO segment is estimated to have achieved a 54 percent
growth in revenues as compared to the previous year. ITES exports accounted for $3.6 billion
in revenues, up form $2.5 billion in 2002 – 03. The ITES-BPO segment also proved to be a
major opportunity for job seekers, creating employment for around 74,400 additional
personnel in India during 2003 – 04. The number of Indians working for this sector jumped to
245,500 by March 2004. By the year 2008, the segment is expected to employ over 1.1 million
Indians, according to studies conducted by NASSCOM and McKinsey & Co. Market research
shows that in terms of job creation, the ITES-BOP industry is growing at over 50 per cent.
Legal outsourcing sector is another area India can look for. Legal transcription
involves conversion of interviews with clients or witnesses by lawyers into documents which
can be presented in courts. It is no different from any other transcription work carried out in
India. The bottom-line here is again cheap service. There is a strong reason why India can
prove to be a big legal outsourcing Industry.
India, like the US, is a common-law jurisdiction rooted in the British legal tradition.
Indian legal training is conducted solely in English. Appellate and Supreme Court
proceedings in India take place exclusively in English. Due to the time zone differences,
night time in the US is daytime in India which means that clients get 24 hour attention, and
some projects can be completed overnight. Small and mid – sized business offices can solve
staff problems as the outsourced lawyers from India take on the time – consuming labour
intensive legal research and writing projects. Large law firms also can solve problems of
overstaffing by using the on – call lawyers.
Research firms such as Forrester Research, predict that by 2015 , more than 489,000
US lawyer jobs, nearly eight percent of the field, will shift abroad..
Many more new avenues are opening up for BOP services providers. Patent writing
and evaluation services are markets set to boom. Some 200.000 patent applications are
written in the western world annually, making for a market size of between $5 billion and $7
billion. Outsourcing patent writing service could significantly lower the cost of each patent
application, now anywhere between $12,000 and $15,000 apiece-which would help expand the
market.
Offshoring of equity research is another major growth area. Translation services are
also becoming a big Indian plus. India produces some 3,000 graduates in German each year,
which is more than that in Switzerland.
Though going is good, the Indian BPO services providers cannot afford to be
complacent. Phillppines, Maxico and Hungary are emerging as potential offshore locations.
Likely competitor is Russia, although the absence of English speaking people there holds the
country back. But the dark horse could be South Affrica and even China
BOP is based on sound economic reasons. Outsourcing helps gain cost advantage. If
an activity can be performed better or more cheaply by an outside supplier, why not outsource
it ? Many PC makers, for example, have shifted from in – house assembly to utilizing contract
assemblers to make their PCs. CISCO outsources all productions and assembly of its routers
and witching equipment to contract manufactures that operate 37 factories, all linked via the
internet.
Secondly, the activity (outsourced) is not crucial to the firm’s ability to gain sustainable
competitive advantage and won’t hollow out its core competence, capabilities, or technical
know how. Outsourcing of maintenance services, date processing, accounting, and other
administrative support activities to companies specializing in these services has become
common place. Thirdly, outsourcing reduces the company’s risk exposure to changing
technology and / or changing buyer preferences.
Fourthly, BPO streamlines company operations in ways that improve organizational
flexibility, cut cycle time, speedup decision making and reduce coordination costs. Finally,
outsourcing allows a company to concentrate on its core business and do what it does best.
Are Indian companies listening ? If they listen, BPO is a boon to them and not a bane.
Questions:
1. Which of the theories of international trade can help Indian services providers gain
competitive edge over their competitors?
2. Pick up some Indian services providers. With the help of Michael Porter’s diamond,
analyze their strengths and weaknesses as active players in BPO.
3. Compare this case with the case given at the beginning of this chapter. What
similarities and dissimilarities do you notice? Your analysis should be based on the
theories explained.
SUB: Marketing Management
N. B. : 1) Attempt all Four Case studies
2) All questions carry equal marks.
Case study 1
Case Study on Segmentation, Targeting & Positioning
Profiles Group is a leading interior decorator and designer in the country. Mr. Neerav Gupta,
one of the partners in the group has invested a good amount of money in the business. The
other two partners namely Mr. Pratham Gupta who is a distant cousin of Neerav and Mr. Dev
Suri are mainly into managing the firm’s country wide operations. Mr. Stanley Pereira, who
is more of a sleeping partner, looks after the administrative and financial aspects of the firm.
Profiles Group has around 44 service centers in the country including state capitals and
several developing cities. Since the firm’s inception in 1998, its progress has been
unstoppable. The clients include many reputed companies, hotel chains, popular celebrities
and even hospitals and commercial banks.
A brief background of the Partners:
Neerav Gupta had a family owned business that was into manufacturing wooden furniture but
Neerav‟s interest was more into decorating. So, after completing a Master’s course in
interior designing from a reputed college abroad, he decided to start his own interior design
services. Meanwhile, the furniture manufacturing business was handed over to Pratham
Gupta due to property and family settlement issues. But, Pratham decided to join Neerav and
they both started a partnership firm.
Dev Suri, a friend of Neerav who had been living abroad, sold out his real estate business and
had decided to settle on the Indian soil itself. He offered help by providing additional capital
and his knowledge of real estates did help the firm although in a small way. Stanley Pereira,
an experienced teacher and consultant, had worked previously in leading interior designing
colleges and was instrumental in making required changes in syllabus structure and interior
designing courses. He has also written many books and articles on the topic. He had retired
early due to family commitments but landed up in Profiles Group as a Partner through mutual
contacts.
The conversation:
All the four partners are comfortably sitting face to face on a peach colored cushioned sofa
which is situated near the window corner inside Neerav’s well-structured office.
Pratham Gupta feels that since their firm has invested large funds, they must enter into more
market segments especially the smaller ones. And, regarding this issue, a professional
conversation takes place among the partners. The talks are as follows:
Pratham: “So, what do you think about expanding our market segments to smaller more
ordinary markets?”
Stanley: “What are you exactly trying to say, Pratham? Will you explain it?”
Pratham: “Listen guys, right now, we have 44 centers and competent people to work under
us, but when we see our customer base, it looks small and limited. What I mean to say is that
we also need to have those individual household customers who are looking for service
expertise in this field. Most household customers don’t get the necessary information as to
how to go about the interiors or how to decorate their home/offices etc.”
Neerav: “I agree with your points Pratham, but don‟t you think if we have to reach the
smaller segments of the market, we need a different approach to cater to their needs. We
would have to advertise and communicate to these segments in a customised way. This will
increase the promotion budget and our focus on the existing customers may be
compromised.” Dev: “I think we need to get a balance here. Pratham‟s points are valid
enough and it will make Profiles group more productive. If need be, we may have to take
help of a service consultancy in order to penetrate deeper markets.”
Stanley: “Okay... so, even if we allocate these segments, we need to target them in a way
where we will know the immediate impact of these segments. We have to position in such
manner that we get this customer base to keep moving towards us... however, the problem
lies in the demand for our product in these segments!”
Pratham: “What is that problem you are talking about, Stanley?”
Stanley: “I will tell the problem, we know our product... but these individual customer
segments will see our product as a one time purchase... Interiors and designing is done by a
household customer at one point... very rarely, he will seek for a change or improvement. So,
is it acceptable that we cater to their one time need and then let go?”
Neerav: “I do understand that point... But, that’s always the case in our business. Interior
decorations and designs are usually considered one-time expenditure by household
customers.... and as a matter of fact, that has not affected the way we do our business or on
our returns.”
Pratham: “See, even otherwise it should not affect our firm because individual customer
segments are willing to pay or spend on interiors. If they need a good, comfortable home
along with a neat set of furniture then why don’t we cater to that need, even if it’s a one
time demand from a particular customer? This is exactly what I meant earlier when I said,
given the expertise we have, why don’t we use it to expand our customer base? Of course,
we may have to develop suitable pricing strategies, promotion strategies for these market
segments which is according to me, not a big thing to do.”
Dev: “Let’s first consult with our marketing hero and ask their opinion or suggestions as
well”
Dev takes out his cell phone to dial Mr. Sunil’s number and he immediately gets the
connection. Sunil is the head of the marketing section and he is very efficient in his job. He
also has an acceptable humour quotient. Dev asks Sunil to come over to Neerav’s office.
Sunil enters the office:
Sunil: “What’s up, Bosses?”
Dev gives a brief explanation to Sunil about the potential market.
Sunil: “that’s a welcome sign actually... we have the necessary resources and we are
available to any customer at any given point... So, I think it‟s a good idea that we update our
customer profiles also... Only thing is we have to make sure we are targeting and positioning
our customer segment in the way they feel comfortable to approach us...”
Pratham: “Nicely said Sunil... You are our man in this task.... We rely on you to make our
markets bigger and customer segments broader...”
Sunil: “Always thinking in the interests of Profiles Group, Mr. Gupta... Not to worry... You
tell me the confirmed plans and leave the execution on me...”
Neerav: “Well, what can I say? If we are sure about managing the newer segments which is
existing out there, then our work is just to target them and position our product as per the
given requirements”
Dev: “There is one important suggestion I would like to present here.... We need to ensure
that we properly differentiate our existing customers from the newer ones so that we are not
overriding one another or our customers don’t feel compromised at any point.”
Stanley: “That’s a really valuable suggestion, Dev... I completely agree with this point”
Sunil: “Me too... Mr. Suri has stated an absolute theory... But, it’s not that we can’t take
the benefits from the two and use it for our purpose... Somewhere, we can link the newer
segments with the existing ones and gradually Profiles Group will mean the same to every
one. That is however applicable in the long term... For now, we need to attend our customer
base on a one-to-one basis... So, we do it slow and steady”
Neerav: “Sunil, I don’t understand, but whenever you speak you visualize the big picture as
well... I admire your quality and also that you are very loyal to Profiles Group”
Sunil: “Anytime Mr. Gupta, I am at your service....Just give the command and it will be
done”
All of them laugh at that comment and decide to have an official meeting regarding the
Segmenting, Targeting and Positioning strategies for the potential market. Within a month,
the scheduled meeting is done with the involvement of key people and various points are
noted down for implementation.
The marketing team after a brainstorming session also comes up with a collective idea about
introducing Re-decorating and re-designing to be offered as a part of Profile’s group’s
services. This meant that clients or customers can think about re-designing or re-decorating
their homes/offices with the already available possessions and existing furniture. This also
meant less cost to the clients. This idea was taken up seriously and plans to implement such
services were already underway.
The Progress:
The next six months in the Profiles Group has made everyone busy with different tasks and
agendas to be accomplished. Sunil is the busiest person around and he is actively engaged in
marketing activities related to the targeting and positioning of their product to the new
customer base.
Very soon, the results are noticeable in the Profiles Group. After a considerable amount of
planning and hard work, the subsequent months showed positive results as given below:
The markets are segmented based on the income level of the household customers
Their needs, wants and demands are analyzed
These markets are targeted based on their desire, willingness and capabilities to attain the
required interiors and furnishings.
Sunil headed a separate section namely Re-designing and Re-decorating Services at the
firm’s main office. Sunil was immediately involved in making special centers for Redesigning
and re-decorating services in different parts of the country.
Marketing section was taken over by a competent person - Ms. Sneha Agarwal who has
over 8 years of experience in interior designing. She was chosen on the recommendation of
Stanley Pereira as Sneha had been a merit student previously and Stanley had been her
teacher.
Neerav had even managed to get some MNC‟s as the firm’s clients.
Positioning of Profiles Group’s product and services was done in three ways –
For the already existing customer base which include the corporate and business houses,
film industry and celebrities and other big units who spend huge amounts on the interior
decorations.
For the newer segments also termed as the individual household segments who have
limited spending abilities but have a desire for elegant interiors at reasonable rates.
For the collective market – re-design and re-decor services were offered.
The structure of the firm’s web-site was made more user-friendly and included several
videos showing how proper layout and interiors increased efficiency, easy movement,
allowed more lighting and ventilation and created a feeling of well-being and comfort.
A CD was also launched which included these videos and the necessary information of the
Profile’s firm with the contact addresses and numbers. The CD also included interview with
certain well-known clients who were highly satisfied with the firm’s services. This
established trust and good communication in the market.
Soon enough, the firm launches into environmental friendly interiors and develops „Go
Green‟ initiatives that uses more re-cycled and renewable substances.
There was a plan to begin annual contests and games which involved household customer
segments to give their ideas or suggestions for a well laid out interiors using eco-friendly
materials and “Go-Green‟ initiatives.
The Partners and the interview:
It’s been two years now since Profile’s Group had moved into individual household
segments.
All four partners are seated on the sofa inside Neerav‟s office except this time the sofa is of
cream shade and a press reporter namely Namitha Goel is sitting on a single sofa across them.
Namitha Goel had scheduled this interview and later will be published in the “Living
Designs”, a new monthly magazine that deals with interiors. She begins with a direct
question to Neerav –
Namitha: “Mr. Neerav Gupta, do you think the reason for the substantial increase in your
customer base is due to the Redesign and re-decoration services?
Neerav: “Well, to a considerable extent, I believe it is so. Re-design is not about my taste or
your taste. It’s about working with what the client owns and making them happy. Most
people are good in re-arranging their stuff but they don’t have time or energy to do it. So,
we offer them this assistance.”
Namitha: “How come you got this thought about making these household segments as your
customers? I mean, your firm is associated with the influential clientele base and considering
that, why did you feel that these household segments would prove to be a lucrative market for
you?”
Neerav: “The entire credit for making individual household segments as our customers goes
to my business partners here, my workforce and their efforts. Around two and a half years
back, we had just got into a conversation in this very same office and Pratham suggested
about tapping these markets with our available resources. Let me clarify that we decided to
target this segment not for profits but we felt they too would benefit from our expertise in this
field.”
Namitha: “According to the market survey, it seems that there is no close competitor for you
in this business. So, your firm stands at the top like it’s been from a long time. What do you
say in this matter?”
Neerav is about to answer but his cell phone rings and he attends to it quickly.
Neerav: “Excuse me, Ms. Namitha.., I have urgent business call that can’t wait..., Carry on
with your questions and my team mates will answer. I have to go now.” He addresses his
partners and leaves the office in a hurry.
The interview proceeds and remaining partners contribute their views. The interview takes
another 45 minutes and Namitha Goel is satisfied with her work as a press reporter. She
leaves the Profile’s Group office with a sense of achievement.
The next month’s issue of “Living Designs” carries the cover story of the Profiles Group
with the partners‟ exclusive interview placed in the shaded column of the magazine pages.
Questions: 1 Examine the progress of Profile’s Group as a leading interior designer and
decorator.
Questions: 2 What kind of change was observed in the STP strategy of the firm and how was
it useful?
Questions: 3 Evaluate the working of Profile’s group with respect to the Segmenting,
Targeting and Positioning of markets. Do you have any suggestions for the firm?
N. B. : 1) Attempt all Four Case studies
2) All questions carry equal marks.
Case study 1
Case Study on Segmentation, Targeting & Positioning
Profiles Group is a leading interior decorator and designer in the country. Mr. Neerav Gupta,
one of the partners in the group has invested a good amount of money in the business. The
other two partners namely Mr. Pratham Gupta who is a distant cousin of Neerav and Mr. Dev
Suri are mainly into managing the firm’s country wide operations. Mr. Stanley Pereira, who
is more of a sleeping partner, looks after the administrative and financial aspects of the firm.
Profiles Group has around 44 service centers in the country including state capitals and
several developing cities. Since the firm’s inception in 1998, its progress has been
unstoppable. The clients include many reputed companies, hotel chains, popular celebrities
and even hospitals and commercial banks.
A brief background of the Partners:
Neerav Gupta had a family owned business that was into manufacturing wooden furniture but
Neerav‟s interest was more into decorating. So, after completing a Master’s course in
interior designing from a reputed college abroad, he decided to start his own interior design
services. Meanwhile, the furniture manufacturing business was handed over to Pratham
Gupta due to property and family settlement issues. But, Pratham decided to join Neerav and
they both started a partnership firm.
Dev Suri, a friend of Neerav who had been living abroad, sold out his real estate business and
had decided to settle on the Indian soil itself. He offered help by providing additional capital
and his knowledge of real estates did help the firm although in a small way. Stanley Pereira,
an experienced teacher and consultant, had worked previously in leading interior designing
colleges and was instrumental in making required changes in syllabus structure and interior
designing courses. He has also written many books and articles on the topic. He had retired
early due to family commitments but landed up in Profiles Group as a Partner through mutual
contacts.
The conversation:
All the four partners are comfortably sitting face to face on a peach colored cushioned sofa
which is situated near the window corner inside Neerav’s well-structured office.
Pratham Gupta feels that since their firm has invested large funds, they must enter into more
market segments especially the smaller ones. And, regarding this issue, a professional
conversation takes place among the partners. The talks are as follows:
Pratham: “So, what do you think about expanding our market segments to smaller more
ordinary markets?”
Stanley: “What are you exactly trying to say, Pratham? Will you explain it?”
Pratham: “Listen guys, right now, we have 44 centers and competent people to work under
us, but when we see our customer base, it looks small and limited. What I mean to say is that
we also need to have those individual household customers who are looking for service
expertise in this field. Most household customers don’t get the necessary information as to
how to go about the interiors or how to decorate their home/offices etc.”
Neerav: “I agree with your points Pratham, but don‟t you think if we have to reach the
smaller segments of the market, we need a different approach to cater to their needs. We
would have to advertise and communicate to these segments in a customised way. This will
increase the promotion budget and our focus on the existing customers may be
compromised.” Dev: “I think we need to get a balance here. Pratham‟s points are valid
enough and it will make Profiles group more productive. If need be, we may have to take
help of a service consultancy in order to penetrate deeper markets.”
Stanley: “Okay... so, even if we allocate these segments, we need to target them in a way
where we will know the immediate impact of these segments. We have to position in such
manner that we get this customer base to keep moving towards us... however, the problem
lies in the demand for our product in these segments!”
Pratham: “What is that problem you are talking about, Stanley?”
Stanley: “I will tell the problem, we know our product... but these individual customer
segments will see our product as a one time purchase... Interiors and designing is done by a
household customer at one point... very rarely, he will seek for a change or improvement. So,
is it acceptable that we cater to their one time need and then let go?”
Neerav: “I do understand that point... But, that’s always the case in our business. Interior
decorations and designs are usually considered one-time expenditure by household
customers.... and as a matter of fact, that has not affected the way we do our business or on
our returns.”
Pratham: “See, even otherwise it should not affect our firm because individual customer
segments are willing to pay or spend on interiors. If they need a good, comfortable home
along with a neat set of furniture then why don’t we cater to that need, even if it’s a one
time demand from a particular customer? This is exactly what I meant earlier when I said,
given the expertise we have, why don’t we use it to expand our customer base? Of course,
we may have to develop suitable pricing strategies, promotion strategies for these market
segments which is according to me, not a big thing to do.”
Dev: “Let’s first consult with our marketing hero and ask their opinion or suggestions as
well”
Dev takes out his cell phone to dial Mr. Sunil’s number and he immediately gets the
connection. Sunil is the head of the marketing section and he is very efficient in his job. He
also has an acceptable humour quotient. Dev asks Sunil to come over to Neerav’s office.
Sunil enters the office:
Sunil: “What’s up, Bosses?”
Dev gives a brief explanation to Sunil about the potential market.
Sunil: “that’s a welcome sign actually... we have the necessary resources and we are
available to any customer at any given point... So, I think it‟s a good idea that we update our
customer profiles also... Only thing is we have to make sure we are targeting and positioning
our customer segment in the way they feel comfortable to approach us...”
Pratham: “Nicely said Sunil... You are our man in this task.... We rely on you to make our
markets bigger and customer segments broader...”
Sunil: “Always thinking in the interests of Profiles Group, Mr. Gupta... Not to worry... You
tell me the confirmed plans and leave the execution on me...”
Neerav: “Well, what can I say? If we are sure about managing the newer segments which is
existing out there, then our work is just to target them and position our product as per the
given requirements”
Dev: “There is one important suggestion I would like to present here.... We need to ensure
that we properly differentiate our existing customers from the newer ones so that we are not
overriding one another or our customers don’t feel compromised at any point.”
Stanley: “That’s a really valuable suggestion, Dev... I completely agree with this point”
Sunil: “Me too... Mr. Suri has stated an absolute theory... But, it’s not that we can’t take
the benefits from the two and use it for our purpose... Somewhere, we can link the newer
segments with the existing ones and gradually Profiles Group will mean the same to every
one. That is however applicable in the long term... For now, we need to attend our customer
base on a one-to-one basis... So, we do it slow and steady”
Neerav: “Sunil, I don’t understand, but whenever you speak you visualize the big picture as
well... I admire your quality and also that you are very loyal to Profiles Group”
Sunil: “Anytime Mr. Gupta, I am at your service....Just give the command and it will be
done”
All of them laugh at that comment and decide to have an official meeting regarding the
Segmenting, Targeting and Positioning strategies for the potential market. Within a month,
the scheduled meeting is done with the involvement of key people and various points are
noted down for implementation.
The marketing team after a brainstorming session also comes up with a collective idea about
introducing Re-decorating and re-designing to be offered as a part of Profile’s group’s
services. This meant that clients or customers can think about re-designing or re-decorating
their homes/offices with the already available possessions and existing furniture. This also
meant less cost to the clients. This idea was taken up seriously and plans to implement such
services were already underway.
The Progress:
The next six months in the Profiles Group has made everyone busy with different tasks and
agendas to be accomplished. Sunil is the busiest person around and he is actively engaged in
marketing activities related to the targeting and positioning of their product to the new
customer base.
Very soon, the results are noticeable in the Profiles Group. After a considerable amount of
planning and hard work, the subsequent months showed positive results as given below:
The markets are segmented based on the income level of the household customers
Their needs, wants and demands are analyzed
These markets are targeted based on their desire, willingness and capabilities to attain the
required interiors and furnishings.
Sunil headed a separate section namely Re-designing and Re-decorating Services at the
firm’s main office. Sunil was immediately involved in making special centers for Redesigning
and re-decorating services in different parts of the country.
Marketing section was taken over by a competent person - Ms. Sneha Agarwal who has
over 8 years of experience in interior designing. She was chosen on the recommendation of
Stanley Pereira as Sneha had been a merit student previously and Stanley had been her
teacher.
Neerav had even managed to get some MNC‟s as the firm’s clients.
Positioning of Profiles Group’s product and services was done in three ways –
For the already existing customer base which include the corporate and business houses,
film industry and celebrities and other big units who spend huge amounts on the interior
decorations.
For the newer segments also termed as the individual household segments who have
limited spending abilities but have a desire for elegant interiors at reasonable rates.
For the collective market – re-design and re-decor services were offered.
The structure of the firm’s web-site was made more user-friendly and included several
videos showing how proper layout and interiors increased efficiency, easy movement,
allowed more lighting and ventilation and created a feeling of well-being and comfort.
A CD was also launched which included these videos and the necessary information of the
Profile’s firm with the contact addresses and numbers. The CD also included interview with
certain well-known clients who were highly satisfied with the firm’s services. This
established trust and good communication in the market.
Soon enough, the firm launches into environmental friendly interiors and develops „Go
Green‟ initiatives that uses more re-cycled and renewable substances.
There was a plan to begin annual contests and games which involved household customer
segments to give their ideas or suggestions for a well laid out interiors using eco-friendly
materials and “Go-Green‟ initiatives.
The Partners and the interview:
It’s been two years now since Profile’s Group had moved into individual household
segments.
All four partners are seated on the sofa inside Neerav‟s office except this time the sofa is of
cream shade and a press reporter namely Namitha Goel is sitting on a single sofa across them.
Namitha Goel had scheduled this interview and later will be published in the “Living
Designs”, a new monthly magazine that deals with interiors. She begins with a direct
question to Neerav –
Namitha: “Mr. Neerav Gupta, do you think the reason for the substantial increase in your
customer base is due to the Redesign and re-decoration services?
Neerav: “Well, to a considerable extent, I believe it is so. Re-design is not about my taste or
your taste. It’s about working with what the client owns and making them happy. Most
people are good in re-arranging their stuff but they don’t have time or energy to do it. So,
we offer them this assistance.”
Namitha: “How come you got this thought about making these household segments as your
customers? I mean, your firm is associated with the influential clientele base and considering
that, why did you feel that these household segments would prove to be a lucrative market for
you?”
Neerav: “The entire credit for making individual household segments as our customers goes
to my business partners here, my workforce and their efforts. Around two and a half years
back, we had just got into a conversation in this very same office and Pratham suggested
about tapping these markets with our available resources. Let me clarify that we decided to
target this segment not for profits but we felt they too would benefit from our expertise in this
field.”
Namitha: “According to the market survey, it seems that there is no close competitor for you
in this business. So, your firm stands at the top like it’s been from a long time. What do you
say in this matter?”
Neerav is about to answer but his cell phone rings and he attends to it quickly.
Neerav: “Excuse me, Ms. Namitha.., I have urgent business call that can’t wait..., Carry on
with your questions and my team mates will answer. I have to go now.” He addresses his
partners and leaves the office in a hurry.
The interview proceeds and remaining partners contribute their views. The interview takes
another 45 minutes and Namitha Goel is satisfied with her work as a press reporter. She
leaves the Profile’s Group office with a sense of achievement.
The next month’s issue of “Living Designs” carries the cover story of the Profiles Group
with the partners‟ exclusive interview placed in the shaded column of the magazine pages.
Questions: 1 Examine the progress of Profile’s Group as a leading interior designer and
decorator.
Questions: 2 What kind of change was observed in the STP strategy of the firm and how was
it useful?
Questions: 3 Evaluate the working of Profile’s group with respect to the Segmenting,
Targeting and Positioning of markets. Do you have any suggestions for the firm?
Principles & Practice of Management
Marks - 80
(Please attempt any 4 of the below mentioned case studies. Each Case study is for 20 marks)
Read the following case and answer the questions given at the end of the case.
LOSING A GOOD MAN
Sundar Steel Limited was a medium-sized steel company manufacturing special steels of
various types and grades. It employed 5,000 workers and 450 executives.
Under the General Manager operation, maintenance, and headed by a chief. The Chief of
and under him Mukherjee Maintenance Engineer. The total was 500 workers, 25
executives, (Production), there were services groups, each Maintenance was Shukla was
working as the strength of Maintenance and 50 supervisors.
Chatterjee was working in Maintenance as a worker for three years. He was efficient. He
had initiative and drive. He performed his duties in a near perfect manner. He was a
man of proven technical ability with utmost drive and dash. He was promoted as
Supervisor. Chattejee, now a Supervisor, was one day passing through the Maintenance
Shop on his routine inspection. He found a certain worker sitting idle. He pulled him up
for this. The worker retaliated by abusing him with filthy words. With a grim face and
utter frustration, Chatterjee reported the matter to Mukherjee. The worker who insulted
Chatterjee was a "notorious character" , and no supervisor dared to confront him.
Mukherjee took a serious view of the incident and served a strong warning letter to the
worker. Nothing very particular about Chatterjee or from him came to the knowledge of
Mukherjee. Things were moving smoothly. Chatterjee was getting along well with others
But after about three years, another serious incident took place. A worker came drunk to
duty, began playing cards, and using very filthy language. When Chatterjee strongly
objected to this, the worker got up and slapped Chatterjee. Later, the worker went to his
union - and reported that Chatterjee had assaulted him while he was performing his
duties.
Chatterjee had no idea that the situation would take such a turn. He, therefore, never
bothered to report the matter to his boss or collect evidence in support of his case.
The union took the case to Shukla and prevailed over him to take stern action against
Chatterjee. Shukla instructed Mukherjee to demote Chatterjee to the rank of a worker.
Mukherjee expressed his apprehension that in such a case Chatterjee will be of no use to
the department, and. the demotion would adversely affect the morale of all sincere and
efficient supervisors. But Chatterjee was demoted.
Chatterjee continued working in the organisation with all his efficiency, competence, and
ability for two months. Then he resigned stating that he had secured better employment
elsewhere. Mukherjee was perturbed at this turn of events. While placing Chatterjee's
resignation letter before Shukla, he expressed deep concern at this development.
Shukla called Chief of Personnel for advice on this delicate issue. The Chief of Personnel
said, "l think the incident should help us to appreciate the essential qualification required
for a successful supervisor. An honest and hardworking man need not necessarily prove
to be an effective supervisor. Something more is required for this as he has to get things
done rather than do himself." Mukherjee said, "l have a high opinion of Chatterjee. He
proved his technical competence and was sincere at his work. Given some guidance on
how to deal, with the type of persons he had to work with, the sad situation could h.ave
been avoided." Shukla said, "l am really sorry to lose Chatterjee, He was very honest
and painstaking in his work. But I do not know how I could have helped him; I wonder
how he always managed to get into trouble with workers. we know they are illiterates
and some of them are tough. But a supervisor must have the ability and presence of
mind to deal with such men. I have numerous supervisors, but I never had to teach
anybody how to supervise his men."
Questions:
(a) Identify the problems in this case.
(b) Do you think the decision taken by shukla is in keeping with the faith, trust and
creating developmental climate in the organisation? Critically evaluate
(c) How would you help in improving rough and tough behavior of employees?
Marks - 80
(Please attempt any 4 of the below mentioned case studies. Each Case study is for 20 marks)
Read the following case and answer the questions given at the end of the case.
LOSING A GOOD MAN
Sundar Steel Limited was a medium-sized steel company manufacturing special steels of
various types and grades. It employed 5,000 workers and 450 executives.
Under the General Manager operation, maintenance, and headed by a chief. The Chief of
and under him Mukherjee Maintenance Engineer. The total was 500 workers, 25
executives, (Production), there were services groups, each Maintenance was Shukla was
working as the strength of Maintenance and 50 supervisors.
Chatterjee was working in Maintenance as a worker for three years. He was efficient. He
had initiative and drive. He performed his duties in a near perfect manner. He was a
man of proven technical ability with utmost drive and dash. He was promoted as
Supervisor. Chattejee, now a Supervisor, was one day passing through the Maintenance
Shop on his routine inspection. He found a certain worker sitting idle. He pulled him up
for this. The worker retaliated by abusing him with filthy words. With a grim face and
utter frustration, Chatterjee reported the matter to Mukherjee. The worker who insulted
Chatterjee was a "notorious character" , and no supervisor dared to confront him.
Mukherjee took a serious view of the incident and served a strong warning letter to the
worker. Nothing very particular about Chatterjee or from him came to the knowledge of
Mukherjee. Things were moving smoothly. Chatterjee was getting along well with others
But after about three years, another serious incident took place. A worker came drunk to
duty, began playing cards, and using very filthy language. When Chatterjee strongly
objected to this, the worker got up and slapped Chatterjee. Later, the worker went to his
union - and reported that Chatterjee had assaulted him while he was performing his
duties.
Chatterjee had no idea that the situation would take such a turn. He, therefore, never
bothered to report the matter to his boss or collect evidence in support of his case.
The union took the case to Shukla and prevailed over him to take stern action against
Chatterjee. Shukla instructed Mukherjee to demote Chatterjee to the rank of a worker.
Mukherjee expressed his apprehension that in such a case Chatterjee will be of no use to
the department, and. the demotion would adversely affect the morale of all sincere and
efficient supervisors. But Chatterjee was demoted.
Chatterjee continued working in the organisation with all his efficiency, competence, and
ability for two months. Then he resigned stating that he had secured better employment
elsewhere. Mukherjee was perturbed at this turn of events. While placing Chatterjee's
resignation letter before Shukla, he expressed deep concern at this development.
Shukla called Chief of Personnel for advice on this delicate issue. The Chief of Personnel
said, "l think the incident should help us to appreciate the essential qualification required
for a successful supervisor. An honest and hardworking man need not necessarily prove
to be an effective supervisor. Something more is required for this as he has to get things
done rather than do himself." Mukherjee said, "l have a high opinion of Chatterjee. He
proved his technical competence and was sincere at his work. Given some guidance on
how to deal, with the type of persons he had to work with, the sad situation could h.ave
been avoided." Shukla said, "l am really sorry to lose Chatterjee, He was very honest
and painstaking in his work. But I do not know how I could have helped him; I wonder
how he always managed to get into trouble with workers. we know they are illiterates
and some of them are tough. But a supervisor must have the ability and presence of
mind to deal with such men. I have numerous supervisors, but I never had to teach
anybody how to supervise his men."
Questions:
(a) Identify the problems in this case.
(b) Do you think the decision taken by shukla is in keeping with the faith, trust and
creating developmental climate in the organisation? Critically evaluate
(c) How would you help in improving rough and tough behavior of employees?
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