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Case Studies
CASE STUDY (20
Marks)
In 1982, seven people in Chicago died after taking Tylenol due to an unknown suspect lacing the capsules with cyanide after the
products reached the shelves. In the immediate aftermath, Tylenol's commanding 37% market share dropped to just 7% nationwide,
despite the problem being contained to the Chicago area. Tylenol was not responsible for the tampering of the product, but to
maintain the product's reputation, Johnson & Johnson pulled all of the Tylenol from the shelves, absorbing a loss of more than $100
million dollars. Tylenol was successfully reintroduced with tamper resistant packaging, discounts, and sales presentations to the
medical community. The brand survived due to swift action and effective public relations from Johnson & Johnson.
Answer the following question.
Q1. Why the market share of Tylenols dropped despite no fault of their own?
Q2. Comment on the corrective actions taken by Johnson & Johnson.
CASE STUDY (20
Marks)
The case discusses Sweden-based furniture retailer, IKEA's re-entry into the Japanese market and the strategies it adopted on its reentry.
IKEA first entered Japan in 1974 through a joint venture with a Japanese company as a part of its plans to expand globally. It
exited from the country in 1986, after failing to develop a significant presence. IKEA decided to re-enter the market in 2002, and the
second time around, it conducted a thorough study of the markets and visited several Japanese homes to understand their
requirements better. IKEA then formulated its strategy for the Japanese market based on 'small space living', and brought in products
that were suitable to the Japanese -storage boxes, sofa beds, two-seater sofas, etc. As of 2008, IKEA operated through three stores in
the country. Sweden-based furniture retailer succeeded in the second time through market research, employee management,
localization, and promotional strategies in Japan
Answer the following question.
Q1. Discuss the furniture retail market in Japan.
CASE STUDY (20
Marks)
The case focuses on the UK-based retailer Tesco's entry and expansion strategies in the Japanese market. Tesco's succeeded in
international ventures that began in the 1990s and adopted some of the strategies that it followed in the non-UK markets. Tesco
entered Japan in 2003, after more than two years of research into the retail markets and consumer purchasing patterns in the country.
It acquired a local convenience store operator C Two Network that operated 78 discount supermarkets under the brand 'Tsurukame.'
It then expanded through a few more acquisitions. UK-based retailer Tesco subsequently launched Tesco Express stores in 2007.
Tesco adopted the different localization strategies and succeeded by identifying and solving the challenges faced by them in Japan.
Answer the following question.
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Q1. Analyze the entry and expansion strategies of Tesco in Japan.
Q2. Discuss the likely challenges faced by Tesco in Japan.
CASE STUDY (20
Marks)
This case is about the Australia endeavor of Starbucks Coffee International, one of the largest specialties coffee chains of the world.
In July 2008, the company closed down the majority of its stores in the island continent citing non-performance triggered by the
economic melt-down as a key reason behind the closures. The company said that the closures were a part of the transformation
strategy being undertaken by its founder Howard Schultz to revive the company's performance. It also clarified that such a step was
unique to Australia and that it would continue to enhance its presence in other international locations. Starbucks entered the
Australian market in July 2000 with its first store being set up in Sydney's business area. Australia was a market with a sophisticated
coffee culture and had numerous local cafés catering to its demand for premium coffee. Although the lack of ready acceptance and
the presence of various competitors hindered its progress, Starbucks expanded quickly by opening company-owned stores in various
towns and cities of Australia. This it did without much customization of its product, process, or promotional strategies. Experts felt
that Starbucks failed in the Australian market largely due to its inability to understand the Australian consumer and culture. Under
these circumstances Starbucks had to close majority of Starbucks stores in Australia in 2008. The decision to close down these stores
came right after the company had recorded a consolidated net loss for the quarter ended June 29, 2008. It aims at portraying the
reasons behind Starbucks ‘failure to allure the Australian coffee drinker. It also attempts to understand the company's objective and
rationale behind partially withdrawing from a coffee-drinking market while it continued to operate in European and other
international markets.
Answer the following question.
Q1. Ascertain the challenges the company is likely to face in the future and explore future strategies that the retailer
can adopt.
Organizational Behaviour ISBM ANSWER SHEETS PROVIDED
Case Studies
Introduction: XYZ -An Organizational Perspective (20
Marks)
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 shortterm
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 – 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 3 | P a g e approach to the aforementioned areas, in order to align more closely with the customer, business and
market requirements at an organizational level.
Answer the following question.
Q1. List the various reasons in Organization xyz , which lead to its development?
Q2. If the organization had not invested in its employee, would they have developed?
Q3. Site few examples of Indian companies, similar to XYZ mentioned above?
Q4. What would have been the drawback of the XYZ Company prior to 1991?
Case (20
Marks)
Mrs Jessy was recently promoted to head the accounting department in Souza manufacturing Company. She had worked in the same
department for 12 years and when Mr, Sewbert the previous manager retired, she was asked to all the position. It has now been about
3 months since Mrs. Jessy has been promoted, and there has been several misunderstandings between her and the Vice-President,
Accounting and Finance-Mr. Arun.The misunderstanding pertained to the way Mrs. Jessy “ran" the accounting department. The
Vice-President wanted Mrs. Jessy to handle all the day-to-day issues and felt that she was not assertive enough in assuming her new
responsibilities. There were instances where Mrs. Jessy failed to get things done on time: was not following up on other people's
duties; and always waiting to be told what to do instead of initiating action. You have been invited as a consultant and asked to look
into the problem and give your suggestions. Being an expert in the field of OB, you met Mrs. Jessy to and out what she feels about
Mr. Arun, the Vice-President and her new position as Manager Accounts. She says that the vice-president does not appreciate her
abilities and that what is lacking in her present job is the direction of her superior, Mr. Arun. She on her part is willing to do
whatever needs to be done. Mrs Jessy wants to do a good job but not becoming an autocrat that Mr. Arun wants her to be. Mrs. Jessy
says she likes her new job but does not know if her career is moving in the right direction. This comes from a person who has been
promoted just 3 months back. As an OB consultant, you have decided that it would be helpful to assess Mrs. Jessy's and Mr. Arum’s
personality type by administering the Myers-Briggs Type Indicator. Mrs. Jessy’s score indicate that she is more Sensing/Thinking
type and Mr. Arun is an intuiting/Thinking type.
Answer the following question.
Q1. What are the problems witnessed in the above case.
Q2. What is Myers Briggs Type indicator?
CASE (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: - Care for customers Obsession for quality Care deeply about people Do what's right
and not what's convenient Guarantee product leadership Responsible citizenship 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: - Grow Sales to 853 crores Improve PBIT by 10% over last year and achieve 25% ROANA 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.
Answer the following question.
Q1. Do the core values, really influence and have a impact on organizational development ?Explain.
Q2. Is organizational development depended internally on employees and externally influenced by customers? Discuss
Case (20
Marks)
Sunder singh had studied only up to high school. He was now 32 years of age, lived alone in a rented room, and worked together
eight hour shift at on e petrol pump, then went to the other one for another eight hour shift. He had a girlfriend and was planning to
marry. One day when he returned to work, he got a note from his girlfriend that she was getting married to someone else and he need
not bother her. This was a terrible shock to sunder singh and he fell apart. He stopped going to work, spent sleepless nights, and was
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very depressed. After a month, he was running low on his savings and approached his earlier employers to get back his job, but they
would not give him a second chance. He had to quit his rented room, and sold the few things that he had. He would do some odd
jobs at the railway station or the bus terminus. One day, nearly two years ago, he was very hungry and did not have any money and
saw a young man selling newspapers. He asked him what he was selling and he told him about Guzara(an independent, non profit,
independent newspaper sold by the homeless and economically disadvantaged men and women of this metro city). Sunder singh
approached the office and started selling the newspaper. He did not make lot of money, but was good at saving it. He started saving
money for a warm jacket for next winter. He was reasonably happy; he had money to buy food, and no longer homeless and shared a
room with two others. One day, with his savings he bought a pair of second hand Nike shoes from the flea market. Sunder singh is
not unique among low income consumers, especially in large cities, in wanting and buying Nike shoes. Some experts believe that
low income consumers too want the same products and service that other consumer wants. The working poor are forced to spend a
disproportionate percent of their income on food, housing, utilities and health care. They solely rely on public transportation, spend
very little on entertainment of any kind, and have no security of any kind. Their fight is mainly for day-to-day survival.
Answer the following question.
Q1. What are the features of low income consumers?
Q2. How would you differentiate a low income consumers and high income consumers?
Principles and Practice of Management ISBM ANSWER SHEETS PROVIDED
Case Studies
Case (20
Marks)
Mr Saddhana, the president of International Machine Company, leaned back in his chair and reflected on the success of his firm,
which produces and distributes a line of farm machines. That afternoon after the meeting with distributors from different territories,
Mr Saddhana was urged to introduce new models to satisfy the changing demands of the customers. The president, who had an
engineering background, recognized the implications of the suggestions that came from distributors. Their implementation would
require greater investments in research and development. Furthermore, the changes in the highly automated production line would be
very costly indeed. Also, having a wider variety of models would require stocking many more spare parts. Depending on the kinds of
changes, workers might need to be retrained. Reflecting on previous staff meetings, the president realized that sales and marketing
people always wanted a greater variety of models but never acknowledged the costs involved in changing models. Consequently, the
president decided against the introduction of new models. Instead, he considered improving the current models and reducing the cost
and price. He felt that what the customer really wanted was value. Nevertheless, to test his judgement, the president asked a
consultant for an opinion.
Answer the following question.
Q1. How would you state the mission of the enterprise?
Q2. What do you think are the opportunities and threats in the external environment?
Q3. How would you go about evaluating the strengths and weaknesses of the firm? What factors are critical to success
or failure?
Q4. It is often said that to be successful, an organization must be an open system. What does that mean and how does it
apply to this case?
International Case : Global Car Industry (20
Marks)
How the Lexus Was Born-and Continued Its Success in the United States, but will Lexus Succeed in Japan? One of the best
examples of global competition is in the car industry. As the Japanese gained market share in America, U.S. car makers required the
Japanese to self-impose quotas on cars exported to the United States. This encouraged Japanese firms not only to establish their
plants in the United States but also to build bigger and more luxurious cars to compete against the higher-priced U.S. cars- and the
expensive European cars such as the Mercedes and the BMW. One such Japanese car is the Lexus, by Toyota. This car is aimed at
customers who would like to buy a Mercedes or BMW but cannot afford either. With a sticker price of $35,000, the Lexus is
substantially less expensive than comparable European imports. In 1983, Toyota set out to develop the best car in the worldmeasured
against the Mercedes and the BMW. The aim was to produce a quiet, comfortable, and safe car that could travel at 150 miles per
hour and still avoid the gas guzzler tax imposed on cars getting less than 22.5 miles per gallon. This seemed to be an idea of
conflicting goals: cars being fast seemed irreconcilable with cars being at the same time fuel-efficient. To meet these conflicting
goals, each subsystem of the car had to be carefully scrutinized, improved whenever possible, and integrated with the total design.
The first version of the 32-valve V-8 engine did not meet the fuel economy requirement. The engineers applied a problem-solving
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technique called "thoroughgoing countermeasures at the source." This means an attempt to improve every component until the
design objectives are achieved. Not only the engine but also the transmission and other parts underwent close scrutiny to make the
car meet U.S. fuel requirements. Toyota's approach to achieving quality is different from that of German car manufacturers. The
latter use relatively labor-intensive production processes. In contrast, Toyota's advanced manufacturing technology aims at high
quality through automation requiring only a fraction of the work force used by German car makers. Indeed, this strategy, if
successful, may be the secret weapon to gain market share in the luxury car market.
Answer the following question.
Q1. Prepare a profile of the potential buyer of the Lexus.
Q2. What should Mercedes and BMW do to counteract the Japanese threat in the United States and Europe?
Q3. Why has the Lexus model been very successful in the U.S. but has not been marketed in Japan? (Suggestion:
Review the frequency of repair records of luxury cars. Also talk to Lexus dealers or Lexus owners).
Q4. Do you think Lexus will succeed in Japan? Why or why not?
Case (20
Marks)
Progressive Chemical Industries Ltd, is engaged in manufacturing and export of specialty chemicals, having turnover of Rs 300
crores. The Company is growing and having good export orders. The CEO is in mood to expand the business and aiming to reach
turnover of Rs 1000 crores in next 5 years. The CEO is worried about the increase in input costs and workers’ demands. Union has
threatened to go on strike indefinitely. Union has demanded 50% increase in salary and other benefits. But is not agreeing to link it
to productivity. It has also raised issues like unsafe, hazardous working conditions, leakage of poisons gases affecting the health of
workers. The consultant has advised the CEO to be strict and take strict action against the erring employees and be ready to declare
lock out if situation warrants.
Answer the following question.
Q1. What are the various laws which could be applicable in the above problems?
Q2. Do you feel management policies/practices are right? As a CEO how will you convince the union and workers?
Case (20
Marks)
The case ‘Mapro: Sustaining a Family Run Business’ is about Maharashtra, India-based food processing company, Mapro Foods
(Mapro). The company was started in the 1950s by a pharmacist Kishore Vora, who, with the intention of helping the local farmers,
started making jam with locally available strawberry. He soon started a food processing unit where jams and squashes were made
from different fruits. Later on, Kishore Vora’s nephew took up the reins of the company and developed Mapro. As the company
entered its third generation, it ventured into other products like chocolates and fruit-based jelly. The success of its fruit jelly brand
‘Falero’, along with growing competition from both domestic and MNC confectionery companies made the owners think about
establishing a pan-India presence. They chose to bring in professionals into the key management roles to run the company, with the
family not involving itself in day-to-day activities. The company also moved its headquarters to Mumbai and inducted a new sales
team. This left analysts wondering what lay ahead for the company that till then, had been run as a closely managed family venture.
On March 28, 2016, Mapro Foods (Mapro), Maharashtra, India-based manufacturer of jams, fruit beverage concentrates, crushes,
squashes, and fruit bars, announced that it was in the process of launching its own brand of premium chocolates and was in talks
with the world’s largest cocoa producers and grinders, Zurich-based Barry Callebaut. The company, which was headed and run by
the family of the founder, Kishore Vora, also announced that it was opening an office in Mumbai, which would be run by
professionals. According to Mayur Vora, (Mayur), Managing Director, Mapro, “We are setting in place a new team of seven
members. From this we will choose a CEO. If the business has to grow, it has to be run by professionals.” This marked a shift for a
quaint family-run company from Panchgani, near Mahabaleswar, Maharashtra, which till then had a limited presence across the
country.
Answer the following question.
Q1. Discuss the reasons of moving the business from a family-run to a professionally-run organization.
Q2. Explain the concept of concept of “Entrepreneurship”.
Q3. In your opinion what are the measures to be taken to ensure the growth and continuity of a family business.
Q4. Explain the importance of innovation.
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