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Case No : 1
VENKY’S OF VENKATESHWARA HATCHERIES
Venkateshwara Hatcheries which went public recently is one of the most modern plants in poultry business
in Asia. They have 60 p.c. market share of chicken marketed in the country. Dr. B.V. Rao of Venkateshwara
Hatcheries expired in 1996. His daughter Anuradha Desai is now the Chairperson and M.D. of VHL. In the
beginning they had an Executive Director Gulam Harjanwalla who professionalized chicken marketing.
Sajid Peerbhoy’s Speer ad agency was chosen. The brief given to Speer was “to market raw chicken in the
form of a full bird. Further, to market legs. To market legs and breast. To market curried pieces. And halfbird.”
The company also planned to market ready-to-fly pre-spiced chicken and to operate a chain of fast-food
outlets serving chicken fast food on the lines of McDonald’s.
Speer did some marketing research by focus group studies in Mumbai and then in Pune. The qualitative
reseaci1 (QR) findings were followed by quantitative research.
The following summarises the findings.
Occasions to use chicken:
(a) On special occasions
(b) On Sundays
(c) As a special treat
(d) Cook it for guests
(e) First non-veg food to which vegetay1ans graduated.
(f) Each mother cherishes her own special recipe for a chicken dish. She prides herself on it.
The ideal chicken was: Freshly chicken.
The convenient option was: Frozen chicken.
The following are the demerits of the frozen chicken:
(a) It does not taste good.
(b) It does not cook fast.
(c) It requires a lot of water to cook.
The Inconveniences in getting fresh chicken were:
(a) It is more and more difficult to get it near-by.
(b) The search consumes time.
(c) It involves transportation cost.
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On deep probing, the consumer psychology while buying fresh chicken was one of guilt and disgust. The
birds look so cute, as they are young. Just a minute ago, they were alive. It is so awful. Those poor
creatures! Imagine them alive one minute, and then being eaten the next. It is so difficult to get used to this
process.
Advertising Strategy
It is not necessary to remind about live chicken. It is not necessary to see and think about raw chicken,
dressed or otherwise. The communication strategy should be to treat chicken as a vegetable. They are not to
be shown alive or in their ugly raw dressed form. The client was led step-by-step and was supportive.
Long-run Objective
Though chicken has high standing as a special food, we have to make it an almost twice or thrice a week
food item.
Positioning
It was necessary to overcome the negative barrier to frozen food. In the market, fresh chicken was in fact
frozen chicken vulnerable to bacterial contamination. The answer was a fact frozen chicken product.
Venky’s chickens were chilled by a special process: blast freezing. The position taken was that of
technological superiority. Venky’s unique freezing process makes it taste better and cook faster and melt
quickly.
Differentiation
It was a special breed of chicken, that was extra delicious to eat. It scores over ordinary frozen chicken and
even the freshly killed chicken. Brand Name
In spite of the Agency’s reservations, the Venky’s was chosen as brand name, since it was the name of the
M.D.’s son. The Agency had considered fifty other optional brand names. Marketing research showed
Venky’s connoted a South Indian image and was associated with vegetarian food. There were also
connections with Lord Venkateshwara.
Headlines
These worked hard to ward off negatives:
‘Chicken so fresh, it simply melts in your mouth. Reason: Superior blast freezing process.”
“Chicken so fresh, it’s only minutes old.”
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Promotion of Special Parts
The special parts were promoted as:
“The part you want are the parts you get.”
Execution
A simple mnemonic was used. Chicken was shown in a graphic from; one that did not turn off the house
wife, and yet looked modern.
The colour scheme used was of yellow and red colours, being happy and bright food colours. These colours
are appetising too.
For quick identification, a common symbol was used on all hoardings. ad material and at POP.
Success of the Launch
The launch created tremendous demand but the distribution was weak. There was the problem of spurious
brands.
The company strengthened the distribution network later. However consumer supplies were diverted to
institutional buyers leading to non-availability and spurious brands passing off as Venky’s.
The Agency advised premium pricing and quality policy. Instead, the company lowered the price. So many
persons dealt with the Agency. Each questioned and disagreed with the thinking of earlier persons. Gulam,
their E.D. left Venky’s. The number of out left were increased dramatically.
New Ad Agency
New agency was selected. It brought chicken again to a commodity position A good chicken that makes
tasty chicken dishes). Emphasis on blast freezing was dropped. Emphasis on blast freezing was dropped.
Raw chicken again appeared in the ads, contrary to research findings. Brand or product differentiation
strategy was dropped. Instead, emphasis was on different recipes.
Present Thinking
Venky’s is moving closer and closer to a commodity than a brand. It is fine as long as there is no
competition. The company perhaps believes that no one has the backing or volume of production to be a
threat to them. It is satisfied with a marginal price premium. Being a chicken monopoly, it can afford not to
have a marketing cutting edge. The following is their present ad copy:
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Questions (A)
(a) Comment on the advertising strategy adopted previously and currently.
(b) Comment on branding of food products, and their promotion.
(c) Can you think of a different creative strategy for a product like chicken?
Lip-sticks with permitted colours can also damage the lips since the stainers are tetra-bromo-fluorosine.
When rubbed against the palm, darkness of the stain will indicate the quantity of stainer present.
Darkening of lip colour also depends upon the bio-chemistry of individual’s lips.
Questions (B)
(a) The complete product knowledge is given in the above write-up. What do you think should be the copy
platform for these products? Indicate the theme, the appeal and the buying motives.
(b) Indicate a suitable media mix for advertising these products. Give your reasoning.
Case No : 2
ALEMBIC CHEMICAL WORKS LTD.
DIRECT MAILINGS OF ALCEPHIN: THE LEGEND
AMONG ANTIBIOTICS
The pharmaceutical companies have to do direct marketing by necessity as they cannot advertise ethical
products in layman's media for him, but are required to promote only to the medical profession. They
produce fine visual aids and product literature which could either be sent as direct mailings to the medical
profession or can be delivered to them through medical representatives.
The Living Legends
What does one say about Lata Mangeshkar? That she has dominated the Indian film music scene for almost
four decades and promises to do so for atleast another decade? That she became a legend in her own life
time? That here is a musical genius which comes about just once in many centuries? One could say all
these things and yet be merely repeating what has been said a million times over. And yet there is so much
more to one is capturing one more vital as poet which one did not realize had existed in her. Such is the
quality of her singing.
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Very few of those who see her at the pinnacle of her success realise the amount of effort, hard work end
deprivation that have gone into building the facade which is so enviable. Born In Induce on September 28,
1929. Late Mangeshkar is the eldest in family of four sister, and a brother, all of whom have made a name in
the field of music. Daughter of the noted Marathi stage actor-singer Master Dinnanath Mangeshkar, Lata
revealed her musical genius at the tender age of five. Her first guru wee her own father and she avidly
followed his musical stage plays.
Late's mother Mai Mangeshkar ha, one vivid memory of Lata as a child. It would seen that the young Late,
one day, was singing a song from one of her father's. plays when she bumped against something. All rushed
toward the unconscious child and tried to revive her. When she came to, however, Lata continued with the
singing of the song as if nothing had happened. This dedication to music led to her debut on stage.
However, her father's productive shadow was not to last for long. On April 24, 1942 Master Dinanath
passed away reportedly telling her "Except for the tanpura in the corner and these notebooks filled with
classical music and songs and God's blessings. I have nothing elseto give you. "The family'spenury
compelled Lata to sign a contract with MasterVinayak's Huna Pictures as an actress-singer. In the same
year,1942, she made her debut as a playback singer with Vasant Joglekar's Kia Hasool in Marathi under the
baton of shripad Nevrekar .But taking up a career as a playback singer was still impossible. She continued
with her acting career, acting in Pahili Mangeshgar (Marathi 42) Chimna Sansar (Marathi43) More Bal
(Marathi 43) Gajadhan (Marathi 44) Badi Mao (Hindi 45) and Mandir (Hindi 48) With Mandir Lata seemed
to have reached a dead end. Mandir was Master Vinayak's last film, after which he passed away. She was
no great shakes as an actress and her career in playback singing had not really taken off. Two Years earlier
she had made her debut in Hindi playback singing with Vasant Joglekar's Aap Ki Sewa Afein under the
baton of composor Dutta Dawjekar but nothing much had happened. However, stars served more
benevolent. Ghulam Haider, who was then acoring the music for Majboor and who had seen and heard lata
in the early. Forties, signed her up to sing a song for the film. Within a week of singing this song. Lata
became the talk of the music world and was signed up by three other musical giants. Khemchand Prakash
for Mahal.
The most important thing is to make the mundane promotion outstanding by creative ideas. Promotion of
S.S. Oberoi came out with a set of 10 four-page folders for Alcephin based on the theme 'The Living
Legends.' The folders are extremely well-executed - well-designed and printed. The graphics and
typography and illustrations are appealing. The idea is outstanding. Ten living legends are chosen and
include names like Satyajit Ray (since then deceased), Mother Teresa, Baba Ainte, Lata Mangeshkar, Sunil
Gavaskar, R.K. Laxman, Abdul Kalain and Shivram Karanth. Each folder deals exclusively with one
legend. The selection covers a wide cross-section of interests.
Each folder is well-researched. It brings out the circumstances that inspired the magic in each of them. It
becomes a collector's series. The centre-spread has the manufacturer's plug. A short write-up on the
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characteristics of Alcephin and the line 'The Legend Among Antibiotics.' It is not intrusive at all. Yet it is
effective.
Questions
(a) Which other businesses/products can be suitable candidates for direct marketing? What promotional
techniques can be employed?
(b) Please do some research of your own on direct mailings of pharmaceutical companies. What are your
reactions?
(c) Put on your thinking cap. Identify a there for a campaign of one general tonic.
CASE : 3 : IS SUPER BOWL ADVERTISING SUPER EFFECTIVE ?
About 140 million Americans and 700 million total global viewers tune in to Super Bowl Sunday, making
the event one of the largest occasions for home entertainment. Advertising time during the Super Bowl is
limited and priced at a premium. The fight for the prime spots starts months in advance of the actual
airtime. In 1993, the cost for a 30 – second time slot was a high $850,000, but by 1997 the cost had shot to
$1.2 million for the same short time frame. In 1998, a 30-second spot during the Super Bowl cost $1.3
million. In 2000, a 30-second spot during the Super bowl cost companies a record average of $2.2 million.
Dot.com companies that have since failed or are struggling to keep their heads above water purchased forty
percent of the Super Bowl ad slots in 2000. For the 2001 Super Bowl XXXVI, the average rate for an
advertising spot was approximately 2.1 million.
In 2002, during Super Bowl XXXVI, Fox Network offered 60 commercial spots for a total of 30
minutes of advertising time. The average selling price for each 30-second spot was just under $2 million, at
$ 1.9 million each. Companies who paid for commercial time during Super Bowl XXXVI included
Anheuser- Busch, who purchased ten 30 – second spots, Pepsi Co, who featured one 90-second commercial
starring Britney Spears, E-trade, M & M/Mars, AT & T Wireless, Levi Strauss, Yahoo, Visa and fast food
chains Quizno’s Taco Bell, and Subway are among others.
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Although Fox did end up selling all of the available ad spots, the network did not sell the final ad
until the Thursday before the game. There are several reasons for the selling delay and for the reduced rates
in 2002. First, marketers were facing the “worst advertising recession in recent memory.” This caused
companies to carefully monitor how they spent their advertising budgets and many decided that the money
could be better applied elsewhere. Many companies chose to advertise during other prime time events that
were more affordable. The average rate for a 30-second spot during the early evening news in 2002 was
$45,900. Even events such as the Golden Globes (estimated price $45,000 per 30-second spot), the
Grammies (estimated price $57,000 per 30-second spot), and the Academy Awards (estimated price $1.6
million per 30-second spot) offer companies ad time at lower rates. However, these events do not draw as
many viewers as the Super Bowl. Secondly, the NFL, for the first time, sponsored a pre-game show on the
Friday night before the Super Bowl. Some companies, such as AOL Time Warner, Phillip Morris, Miller
Brewing Co., and Motorola chose to avoid paying “television’s highest commercial prices” and bought ad
time for lower rates during the pre-game show. A final reason for lower rates and less marketer interest in
Super Bowl ad time was competition from the 2002 Olympic Winter Games. The games began just five
days after the Super Bowl and offered 17 days of events during which advertisers could buy commercial
time. The average selling rate for a 30-second prime time spot during the Olympics was only $600,000, a
bargain compared to the Super Bowl.
Is Super Bowl advertising worth the cost? For many advertisers who bought time slots in previous
games the answer was a resounding no. Nissan, Porsche, Fila and MCI passed on the chance to advertise
during the game. According to marketing consultant Jack Trout, the increasing rates made buying Super
Bowl ad time difficult to justify. Nissan marketing Chief Brad Bradshaw stated that although the company
had intended to advertise during the game, it came to the conclusion that the resources could be better used
to sell its vehicles in other ways.
In addition to the cost factor, many question what effect advertising actually has on the audience.
The purpose of an advertisement is to increase customer awareness for a particular brand. For Super Bowl
ads, however, the brand name often becomes secondary to the commercial itself in terms of viewer
attention. Super Bowl ads have become events in and of themselves, with each firm trying to put out the
next earth-shattering commercial that will stir talk about the commercial itself. Ever since Apple
computer’s classic “1984” ad, firms have been trying to top previous years’ ads. Ad agencies and clients
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often seem to shoot for ads that are extraordinary for the sake or creativity, rather than their intended
purpose, with many attention-getting promotions not translating into product purchases. It is questionable
whether brand name is retained, and so despite having an incredible commercial, many advertisers’ ad
dollars possibly goes into just providing new fodder for water cooler conversation for the week instead of
forming a lasting brand image in the minds of consumers. Without new research into the effectiveness of
Super Bowl advertising and its effect on consumers, many advertisers may be better off avoiding buying
Super Bowl ad time and abandoning the world’s biggest television audience.
Some advertisers like Purina Cat Chow have taken a slightly different approach by purchasing
airtime on the show directly following the Super Bowl. They obtained airtime at one-sixth of the cost
during the game and they believe that they retain approximately 40 percent of the audience. Which
advertiser got the biggest bang for the bucks: M & M/Mars that advertised during Super Bowl 2002, or
Purina Cat Chow that advertised after the game? Without systematic marketing research aimed at
measuring Super Bowl advertising effectiveness, questions such as these beg answers. It remains to be
established that Super Bowl advertising is super effective?
Questions:
1. What kind of research design would you recommend for determining the effectiveness of M &
M/Mars advertising during the Super Bowl?
2. If the research design involves a survey of households, which survey method would you
recommend and why?
3. What kind of measures and scales will you employ in your survey?
4. Can the observation method be used to determine the effectiveness of M & M/Mars advertising
during the Super Bowl? If so, which observation method would you recommend and why?
5. Which syndicated services discussed in the book can provide useful information ?
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CASE NO : 4 : NIKE SPRINTS AHEAD OF THE COMPETITION,
YET HAS A LONG WAY TO RUN
Nike, Inc.(www.nike.com), located in Beaverton, Oregon, is the number one U.S. athletic footwear
company and one of the most recognized American brands among foreign consumers. This high degree of
recognition is one of the main reasons Nike has been so successful. For the 2001 fiscal year ended May 31,
2001, the company continued to soar, with sales of over $9.5 billion.
Perhaps such success could be attributed to its concept - based advertising campaigns. The company
uses a process that is often called “image transfer”. Nike ads traditionally did not specifically place a
product – or mention the brand name. A mood or atmosphere was created and then the brand is associated
with that mood. “We don’t set out to make ads. The ultimate goal is to make a connection,” states Dan
Weiden, executive of one of Nike’s ad agencies. One ad featured the Beatles and clips of Nike athletes,
Michael Jordan and John McEnroe, juxtaposed with pictures of regular folks also engaged in sports. It was
used to infer that real athletes prefer Nike and that perhaps if the general audience buys the brand they will
play better too. Nike’s unpredictable image-based ads have ranged from shocking, such as its portrayal of
real blood and guts in a “Search and Destroy” campaign usesd during the 1996 Olympic games, to
humorous, such as the first ad used to launch Michael Jordan’s Jordan brand wear. The latter advertising
made the tongue – in – cheek suggestion that Jordan himself had a hand in production by slipping away
from a Bulls’ game at half time to run over to his company and then return in time for the game’s second
half.
In 1998, Nike shifted to a new phase in its marketing strategy. Nike emphasized more of its product
innovation skills than the jockey, edgy attitude that it displayed in previous years. “We recognize that our
ads need to tell consumers that we’re about product innovation and not just athletes and exposure. We need
to prove to consumers that we’re not just slapping a swoosh (the company trademark) on stuff to make a
buck,” said Chris Zimmerman, director of Nike’s U.S. advertising. With the launch of the “I can”
campaign, Nike showed less of the celebrity athletes that previously adorned its marketing output and
showed more product usage than in the previous “Just Do It” campaign. Competitors Reebok and Adidas
recently featured more product-focused ads and were met with a great deal of success. Despite this
rearranged focus, Nike did not back away from innovative marketing.
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Nike continues to excel in the advertising arena. Nike was named one of 2001’s best in advertising
by Time magazine for its ad featuring expert dribblers doing trick moves. Time is quoted as saying the ad
conveyed a message that “Sport is music. Sport is dance. Sport is art.” Nike states that this ad was their
most popular ad in 20 years. Another popular ad from 2001 was known as the “Take Me Out to the
Ballgame” ad. This particular ad featured professional athletes from varying sports singing one line of the
song. “Take Me Out to the Ballgame” in their native language.
As the company looks ahead to 2010, at the heart of Nike’s future strategy is the international arena,
which could prove to be the most difficult element for Nike to undertake. There seemed to be a pretty
strong recognition that by 2010, Nike would be larger outside of the U.S. than inside. As of 2003,
international sales comprised one-third of Nike’s business. Nike would like to expand into the soccer and
international sports arena, but to do so, it would have to refocus its marketing and distribution in order to reestablish
itself as an authentic, technically superior sports shoe.
In February 2001, Nike unveiled its latest technological revolution, the Nike Shox, to United
Kingdom consumers. This shoe was in development for 16 years, and Nike hoped it would revolutionize
the sports shoe market in much the same way that NikeAir did when it was launched in the UK in the 1980s.
One reporter in London states that his pair of Nike Shox makes him feel like he is “walking on cloud nine
with a spring in (his) step.” The shoes are reported to provide support, comfort, shock absorbency, and style
all at the same time. The Nike Shox line of athletic shoes is shaping up to be very popular in both the U.S.
and the U.K.
Most recently, Nike bought out many of its worldwide distribution centers in order to achieve greater
control of its operations. In the future, Nike would like to build up its presence in the key markets of China,
Germany, Mexico, and Japan. Nike will focus its advertising on sports, and will feature sports that are of a
particular interest in specific regions. Nike realizes that while it is ahead of competition, it still has a long,
long way to run.
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Questions:
1. Should Nike switch from a focus on celebrities to a focus on its products in its advertising?
Discuss the role of marketing research in helping Nike management make this decision. What
kind of research should be undertaken /
2. How would you describe the buying behavior of consumers with respect to athletic footwear?
3. What is the management decision problem facing Nike as it attempts to retain its leadership
position?
4. Define the marketing research problem facing Nike, given the management decision problem
you have identified.
5. Develop two suitable research questions and formulate two hypotheses for each.
6. How can the Internet be used to help Nike in conducting marketing research, and in marketing
its products?
BUSINESS ETHICS
Page 2 of 3
CASE -1 (20 Marks)
Joan, an employee of Great American Market, was warned about her excessive absenteeism several
times, both verbally and in writing. The written warning included notice that "further violations will
result in disciplinary actions," including suspension or discharge.
A short time after the written warning was issued, Joan called work to say she was not going to be in
because her babysitter had called in sick and she had to stay home and care for her young child. Joan's
supervisor, Sylvia, told her that she had already exceeded the allowed number of absences and warned
that if she did not report to work, she could be suspended. When Joan did not report for her shift,
Sylvia suspended her for fifteen days.
In a subsequent hearing, Joan argued that it was not her fault that the babysitter had canceled, and
protested that she had no other choice but to stay home. Sylvia pointed out that Joan had not made a
good faith effort to find an alternate babysitter, nor had she tried to swap shifts with a co-worker.
Furthermore, Sylvia said that the lack of a babysitter was not a justifiable excuse for being absent.
Questions:
1. Was the suspension fair?
2. Did Joan act responsibly?
3. Should she be fired?
CASE-2 (20 Marks)
You own a cement company, and deal with most the local contractors for cement, sand, etc. You have
a reputation of high quality products, and for good customer service with your customers. Your
foreman has just run the standard quality control tests you have performed regularly on your products.
When the test results are ready, you discover that the new batch of product is 9% less durable than
your usual material. It is still well above all industry standards and meets all building codes and
requirements for the purposes for which it is intended, but it is, nevertheless, not up to your usual
standards. Throwing it away would cost your company many thousands of dollars.
You decide to sell the cement anyway.
Questions:
1) Should you tell your customers?
2) Should you discount the price?
3) Should you tell your employees, so they will be knowledgeable with the customers?
4) Would you use this cement on foundations for your own house?
Page 2 of 3
CASE-3 (20 Marks)
Fred, a 17-year employee with Sam's Sauna, was fired for poor job performance and poor attendance,
after accruing five disciplinary penalties within a 12-month period under the company's progressive
disciplinary policy. A week later, Fred told his former supervisor that he had a substance abuse
problem.
Although there was no employee assistance program in place and the company had not been aware of
Fred's condition, their personnel director assisted Fred in obtaining treatment by allowing him to
continue receiving insurance benefits and approved his unemployment insurance claim.
Fred subsequently requested reinstatement, maintaining that he had been rehabilitated since his
discharge and was fully capable of being a productive employee. He pointed to a letter written by his
treatment counselor, which said that his prognosis for leading a "clean, sober lifestyle" was a big
incentive for him. Fred pleaded for another chance, arguing that his past problems resulted from drug
addiction and that Sam's Saunas should have recognized and provided treatment for the problem.
Sam's Saunas countered that Fred should have notified his supervisor of his drug problem, and that
everything possible had been done to help him receive treatment. Moreover, the company stressed that
the employee had been fired for poor performance and absenteeism. Use of the progressive discipline
policy had been necessary because the employee had committed a string of offenses over the course of
a year, including careless workmanship, distracting others, wasting time, and disregarding safety rules.
Questions:
1) Should Fred be reinstated?
2) Was the company fair to Fred in helping him receive treatment?
3) Did the personnel director behave ethically toward Fred?
4) Did he act ethically for his company?
5) Would it be fair to other employees to reinstate Fred?
CASE-4 (20 Marks)
In January of last year, the S.S. Vulgass, an oil tanker of the Big Dirty Oil Company ran around in the
area just north of Vancouver, spilling millions of gallons of crude into the waters and onto the beaches
of British Columbia and southern Alaska. The damage to the beaches and wildlife and consequently to
the tourist industry, the ecology and the quality of life of the local residents is incalculable, but in any
case will require many millions of dollars for even the most minimal clean-up.
The ship struck a small atoll, well-marked on the navigational maps, but it was a dark night and the
boat was well off course. On further investigation, it was discovered that the Captain of the Vulgass,
Mr. Slosh, had been drinking heavily. Leaving the navigation of the ship to his first mate, Mr. Mudd,
he retired to his cabin, to "sleep it off." Mr. Mudd had never taken charge of the ship before, and it is
now clear that he misread the maps, misjudged the waters, maintained a speed that was inappropriate
and the accident occurred. Subsequent inquiries showed that Captain Slosh had been arrested on two
drunk driving convictions within months of the accident. The Vulgass itself, a double-hulled tanker,
was long due for renovation and, it was suggested, would not have cracked up if the hull had been
trebly reinforced, as some current tankers were.
Page 2 of 3
R. U. Rich, the Chief Executive Officer of Big Dirty Oil declared the accident a "tragedy" and offered
two million dollars to aid in the clean up. The Premier of British Columbia was outraged.
Environmental groups began a consumer campaign against Big Dirty Oil, urging customers to cut up
and send in their Big Dirty Oil credit cards in protest. In a meeting to the shareholders just last month,
CEO Rich proudly announced the largest quarterly profit in the history of the Big Dirty Oil Company.
He dismissed the protests as "the outpourings of Greenies and other fanatics" and assured the
shareholders that his obligation was, and would always be, to assure the highest profits possible in the
turmoil of today's market.
Questions:
1) The question is, who is responsible?
2) Against whom should criminal charges be leveled?
3) What should be done, if anything, to punish the corporation itself?
4) What about the CEO?
OPERATIONS MANAGEMENT
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CASE-1 (16 Marks)
Bloomsday Outfitters produces T-shirts for road races. They need to acquire some new stamping
machines to produce 30,000 good T-shirts per month. Their plant operates 200 hours per month, but
the new machines will be used for T-shirts only 60 percent of the time and the output usually includes
5 percent that are "seconds" and unusable. The stamping operation takes 1 minute per T-shirt, and the
stamping machines are expected to have 90 percent efficiency considering adjustments, changeover of
patterns, and unavoidable downtime. How many stamping machines are required?
CASE-2 (16 Marks)
In the table given below the Distribution Manager is expected to service these DCs as per the demands
placed. If the actual sales after completing week one is as follows, what would be the quantities that
would need amendment as far as Distribution Manager is concerned to service for week two and
onwards?
After week one the actual sales to Forecasted sales for week one ratio is as under: Mumbai did 80 % of
forecast , Lucknow did 75 % of forecast Kolkata did 60 % of week one forecast Chennai did 125 % of
forecast and Delhi did 150 % of week one forecast
Note : Kolkata will receive transit stocks in week 2 .
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CASE-3 (16 Marks)
After working for 30 years, Ramjee Somjee Dutt opted for VRS and started a courier company and did
very well in the first four years. He was now looking for expansion of his business and decided to
venture into Road transportation business between Chennai and Mumbai and Mumbai and Delhi as he
felt that he could do well on this line. However before taking a final decision he hires your
Management Consultant firm formed by yourself. He has requested you to work out the Price to quote
his clients for these two routes considering the costs involved. He expects to earn a minimum profit of
Rs 1000 per day per truck after meeting all expenses. Your analysis of market conditions tell you the
following:
Vehicle cost Rs 7 lacs Depreciation 15 % Maintenance costs per day Rs 150 Drivers monthly Salary
Rs 5000 : Attendants monthly salary Rs 3000 . Misc expenses Rs 200 per day. Driver allowance is Rs
125 per day and attendant gets Rs 75. Diesel cost per liter is Rs 25 and the vehicle gives an average
mileage of 4 km to a liter. The Financial institutions offer loans at 10 % interest pa, which Ramjee has
been negotiating. It has been observed that on an average the vehicle covers 400 km per day. The
distance between Mumbai to Delhi is 1500 km and Mumbai to Chennai is 1350 km. The driver gets
rest day in Mumbai only for one day after they return from any trip.
CASE-4 (16 Marks)
A company is operating in two unrelated businesses. The first one is making common salt, which is
sold in one-kilogram consumer packs. The second business is making readymade garments. The owner
of the businesses has decided to implement Materials Requirement Planning (MRP) in one of the two
businesses, which is likely to give him greater benefit. Assuming that the current turnover and profits
of both the units are comparable, compare the relative benefits and limitations of Materials
Requirement Planning (MRP) for these two businesses.
CASE-5 (16 Marks)
A Manufacturer of motorcycles buys spark plugs at Rs.15 each. Now he wishes to manufacture the
plugs in his own factory. The estimated cost for the manufacture of spark plugs is around
Rs.50,000=00 and the variable cost comes to Rs.5 per spark plug. The Production Manager advises the
Manufacturer that the factory should go for manufacturing instead of procuring them from the open
market.
List out reasons for the decision of the Production Manager backed up by the necessary data.
PROJECT MANAGEMENT
Attempt all questions
1. Give a detailed description on “Detailed Project Report”. Indicate the Pros and Cons of it also.
(10 Marks)
2. What is Project Management Information System? Why is a Project Management Information
System considered to be of immense importance in a project? In designing a Project Management
Information System what parameters are to be spelt out clearly in line with the objectives of the
Project management Information System? (20 Marks)
3. Technology and processes play crucial role in certain projects. What the key issues are in regards
to choice of technology, equipment and processes at the stage of formulation of Detailed Project
Report?
(10 Marks)
4. Given the activity mean and Standard Deviation, Find the probability that the project will take
more than 10 weeks to complete. (20 Marks)
Activity
Mean Standard Deviation
1 – 2 5 1
2 – 3 4 1
1 - 3 8 1
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
5. For the following network data ,
(20 Marks)
(a) Identify the Critical Path and its duration
(b) Calculate the total network slack time.
Job
(Activity)
Network
Initial Node
Network
Final Node
Estimated Time(days)
A 1 2 2
B 1 3 3
C 1 4 3
D 2 5 3
E 2 9 3
F 3 5 1
G 3 6 2
H 3 7 3
I 4 7 5
J 4 8 3
K 5 6 3
L 6 9 4
M 7 9 4
N 8 9 3
O 9 10 2
CONTACT:
DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com
ADVERTISING MANAGEMENT
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Case No : 1
VENKY’S OF VENKATESHWARA HATCHERIES
Venkateshwara Hatcheries which went public recently is one of the most modern plants in poultry business
in Asia. They have 60 p.c. market share of chicken marketed in the country. Dr. B.V. Rao of Venkateshwara
Hatcheries expired in 1996. His daughter Anuradha Desai is now the Chairperson and M.D. of VHL. In the
beginning they had an Executive Director Gulam Harjanwalla who professionalized chicken marketing.
Sajid Peerbhoy’s Speer ad agency was chosen. The brief given to Speer was “to market raw chicken in the
form of a full bird. Further, to market legs. To market legs and breast. To market curried pieces. And halfbird.”
The company also planned to market ready-to-fly pre-spiced chicken and to operate a chain of fast-food
outlets serving chicken fast food on the lines of McDonald’s.
Speer did some marketing research by focus group studies in Mumbai and then in Pune. The qualitative
reseaci1 (QR) findings were followed by quantitative research.
The following summarises the findings.
Occasions to use chicken:
(a) On special occasions
(b) On Sundays
(c) As a special treat
(d) Cook it for guests
(e) First non-veg food to which vegetay1ans graduated.
(f) Each mother cherishes her own special recipe for a chicken dish. She prides herself on it.
The ideal chicken was: Freshly chicken.
The convenient option was: Frozen chicken.
The following are the demerits of the frozen chicken:
(a) It does not taste good.
(b) It does not cook fast.
(c) It requires a lot of water to cook.
The Inconveniences in getting fresh chicken were:
(a) It is more and more difficult to get it near-by.
(b) The search consumes time.
(c) It involves transportation cost.
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On deep probing, the consumer psychology while buying fresh chicken was one of guilt and disgust. The
birds look so cute, as they are young. Just a minute ago, they were alive. It is so awful. Those poor
creatures! Imagine them alive one minute, and then being eaten the next. It is so difficult to get used to this
process.
Advertising Strategy
It is not necessary to remind about live chicken. It is not necessary to see and think about raw chicken,
dressed or otherwise. The communication strategy should be to treat chicken as a vegetable. They are not to
be shown alive or in their ugly raw dressed form. The client was led step-by-step and was supportive.
Long-run Objective
Though chicken has high standing as a special food, we have to make it an almost twice or thrice a week
food item.
Positioning
It was necessary to overcome the negative barrier to frozen food. In the market, fresh chicken was in fact
frozen chicken vulnerable to bacterial contamination. The answer was a fact frozen chicken product.
Venky’s chickens were chilled by a special process: blast freezing. The position taken was that of
technological superiority. Venky’s unique freezing process makes it taste better and cook faster and melt
quickly.
Differentiation
It was a special breed of chicken, that was extra delicious to eat. It scores over ordinary frozen chicken and
even the freshly killed chicken. Brand Name
In spite of the Agency’s reservations, the Venky’s was chosen as brand name, since it was the name of the
M.D.’s son. The Agency had considered fifty other optional brand names. Marketing research showed
Venky’s connoted a South Indian image and was associated with vegetarian food. There were also
connections with Lord Venkateshwara.
Headlines
These worked hard to ward off negatives:
‘Chicken so fresh, it simply melts in your mouth. Reason: Superior blast freezing process.”
“Chicken so fresh, it’s only minutes old.”
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Promotion of Special Parts
The special parts were promoted as:
“The part you want are the parts you get.”
Execution
A simple mnemonic was used. Chicken was shown in a graphic from; one that did not turn off the house
wife, and yet looked modern.
The colour scheme used was of yellow and red colours, being happy and bright food colours. These colours
are appetising too.
For quick identification, a common symbol was used on all hoardings. ad material and at POP.
Success of the Launch
The launch created tremendous demand but the distribution was weak. There was the problem of spurious
brands.
The company strengthened the distribution network later. However consumer supplies were diverted to
institutional buyers leading to non-availability and spurious brands passing off as Venky’s.
The Agency advised premium pricing and quality policy. Instead, the company lowered the price. So many
persons dealt with the Agency. Each questioned and disagreed with the thinking of earlier persons. Gulam,
their E.D. left Venky’s. The number of out left were increased dramatically.
New Ad Agency
New agency was selected. It brought chicken again to a commodity position A good chicken that makes
tasty chicken dishes). Emphasis on blast freezing was dropped. Emphasis on blast freezing was dropped.
Raw chicken again appeared in the ads, contrary to research findings. Brand or product differentiation
strategy was dropped. Instead, emphasis was on different recipes.
Present Thinking
Venky’s is moving closer and closer to a commodity than a brand. It is fine as long as there is no
competition. The company perhaps believes that no one has the backing or volume of production to be a
threat to them. It is satisfied with a marginal price premium. Being a chicken monopoly, it can afford not to
have a marketing cutting edge. The following is their present ad copy:
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Questions (A)
(a) Comment on the advertising strategy adopted previously and currently.
(b) Comment on branding of food products, and their promotion.
(c) Can you think of a different creative strategy for a product like chicken?
Lip-sticks with permitted colours can also damage the lips since the stainers are tetra-bromo-fluorosine.
When rubbed against the palm, darkness of the stain will indicate the quantity of stainer present.
Darkening of lip colour also depends upon the bio-chemistry of individual’s lips.
Questions (B)
(a) The complete product knowledge is given in the above write-up. What do you think should be the copy
platform for these products? Indicate the theme, the appeal and the buying motives.
(b) Indicate a suitable media mix for advertising these products. Give your reasoning.
Case No : 2
ALEMBIC CHEMICAL WORKS LTD.
DIRECT MAILINGS OF ALCEPHIN: THE LEGEND
AMONG ANTIBIOTICS
The pharmaceutical companies have to do direct marketing by necessity as they cannot advertise ethical
products in layman's media for him, but are required to promote only to the medical profession. They
produce fine visual aids and product literature which could either be sent as direct mailings to the medical
profession or can be delivered to them through medical representatives.
The Living Legends
What does one say about Lata Mangeshkar? That she has dominated the Indian film music scene for almost
four decades and promises to do so for atleast another decade? That she became a legend in her own life
time? That here is a musical genius which comes about just once in many centuries? One could say all
these things and yet be merely repeating what has been said a million times over. And yet there is so much
more to one is capturing one more vital as poet which one did not realize had existed in her. Such is the
quality of her singing.
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Very few of those who see her at the pinnacle of her success realise the amount of effort, hard work end
deprivation that have gone into building the facade which is so enviable. Born In Induce on September 28,
1929. Late Mangeshkar is the eldest in family of four sister, and a brother, all of whom have made a name in
the field of music. Daughter of the noted Marathi stage actor-singer Master Dinnanath Mangeshkar, Lata
revealed her musical genius at the tender age of five. Her first guru wee her own father and she avidly
followed his musical stage plays.
Late's mother Mai Mangeshkar ha, one vivid memory of Lata as a child. It would seen that the young Late,
one day, was singing a song from one of her father's. plays when she bumped against something. All rushed
toward the unconscious child and tried to revive her. When she came to, however, Lata continued with the
singing of the song as if nothing had happened. This dedication to music led to her debut on stage.
However, her father's productive shadow was not to last for long. On April 24, 1942 Master Dinanath
passed away reportedly telling her "Except for the tanpura in the corner and these notebooks filled with
classical music and songs and God's blessings. I have nothing elseto give you. "The family'spenury
compelled Lata to sign a contract with MasterVinayak's Huna Pictures as an actress-singer. In the same
year,1942, she made her debut as a playback singer with Vasant Joglekar's Kia Hasool in Marathi under the
baton of shripad Nevrekar .But taking up a career as a playback singer was still impossible. She continued
with her acting career, acting in Pahili Mangeshgar (Marathi 42) Chimna Sansar (Marathi43) More Bal
(Marathi 43) Gajadhan (Marathi 44) Badi Mao (Hindi 45) and Mandir (Hindi 48) With Mandir Lata seemed
to have reached a dead end. Mandir was Master Vinayak's last film, after which he passed away. She was
no great shakes as an actress and her career in playback singing had not really taken off. Two Years earlier
she had made her debut in Hindi playback singing with Vasant Joglekar's Aap Ki Sewa Afein under the
baton of composor Dutta Dawjekar but nothing much had happened. However, stars served more
benevolent. Ghulam Haider, who was then acoring the music for Majboor and who had seen and heard lata
in the early. Forties, signed her up to sing a song for the film. Within a week of singing this song. Lata
became the talk of the music world and was signed up by three other musical giants. Khemchand Prakash
for Mahal.
The most important thing is to make the mundane promotion outstanding by creative ideas. Promotion of
S.S. Oberoi came out with a set of 10 four-page folders for Alcephin based on the theme 'The Living
Legends.' The folders are extremely well-executed - well-designed and printed. The graphics and
typography and illustrations are appealing. The idea is outstanding. Ten living legends are chosen and
include names like Satyajit Ray (since then deceased), Mother Teresa, Baba Ainte, Lata Mangeshkar, Sunil
Gavaskar, R.K. Laxman, Abdul Kalain and Shivram Karanth. Each folder deals exclusively with one
legend. The selection covers a wide cross-section of interests.
Each folder is well-researched. It brings out the circumstances that inspired the magic in each of them. It
becomes a collector's series. The centre-spread has the manufacturer's plug. A short write-up on the
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characteristics of Alcephin and the line 'The Legend Among Antibiotics.' It is not intrusive at all. Yet it is
effective.
Questions
(a) Which other businesses/products can be suitable candidates for direct marketing? What promotional
techniques can be employed?
(b) Please do some research of your own on direct mailings of pharmaceutical companies. What are your
reactions?
(c) Put on your thinking cap. Identify a there for a campaign of one general tonic.
CASE : 3 : IS SUPER BOWL ADVERTISING SUPER EFFECTIVE ?
About 140 million Americans and 700 million total global viewers tune in to Super Bowl Sunday, making
the event one of the largest occasions for home entertainment. Advertising time during the Super Bowl is
limited and priced at a premium. The fight for the prime spots starts months in advance of the actual
airtime. In 1993, the cost for a 30 – second time slot was a high $850,000, but by 1997 the cost had shot to
$1.2 million for the same short time frame. In 1998, a 30-second spot during the Super Bowl cost $1.3
million. In 2000, a 30-second spot during the Super bowl cost companies a record average of $2.2 million.
Dot.com companies that have since failed or are struggling to keep their heads above water purchased forty
percent of the Super Bowl ad slots in 2000. For the 2001 Super Bowl XXXVI, the average rate for an
advertising spot was approximately 2.1 million.
In 2002, during Super Bowl XXXVI, Fox Network offered 60 commercial spots for a total of 30
minutes of advertising time. The average selling price for each 30-second spot was just under $2 million, at
$ 1.9 million each. Companies who paid for commercial time during Super Bowl XXXVI included
Anheuser- Busch, who purchased ten 30 – second spots, Pepsi Co, who featured one 90-second commercial
starring Britney Spears, E-trade, M & M/Mars, AT & T Wireless, Levi Strauss, Yahoo, Visa and fast food
chains Quizno’s Taco Bell, and Subway are among others.
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Although Fox did end up selling all of the available ad spots, the network did not sell the final ad
until the Thursday before the game. There are several reasons for the selling delay and for the reduced rates
in 2002. First, marketers were facing the “worst advertising recession in recent memory.” This caused
companies to carefully monitor how they spent their advertising budgets and many decided that the money
could be better applied elsewhere. Many companies chose to advertise during other prime time events that
were more affordable. The average rate for a 30-second spot during the early evening news in 2002 was
$45,900. Even events such as the Golden Globes (estimated price $45,000 per 30-second spot), the
Grammies (estimated price $57,000 per 30-second spot), and the Academy Awards (estimated price $1.6
million per 30-second spot) offer companies ad time at lower rates. However, these events do not draw as
many viewers as the Super Bowl. Secondly, the NFL, for the first time, sponsored a pre-game show on the
Friday night before the Super Bowl. Some companies, such as AOL Time Warner, Phillip Morris, Miller
Brewing Co., and Motorola chose to avoid paying “television’s highest commercial prices” and bought ad
time for lower rates during the pre-game show. A final reason for lower rates and less marketer interest in
Super Bowl ad time was competition from the 2002 Olympic Winter Games. The games began just five
days after the Super Bowl and offered 17 days of events during which advertisers could buy commercial
time. The average selling rate for a 30-second prime time spot during the Olympics was only $600,000, a
bargain compared to the Super Bowl.
Is Super Bowl advertising worth the cost? For many advertisers who bought time slots in previous
games the answer was a resounding no. Nissan, Porsche, Fila and MCI passed on the chance to advertise
during the game. According to marketing consultant Jack Trout, the increasing rates made buying Super
Bowl ad time difficult to justify. Nissan marketing Chief Brad Bradshaw stated that although the company
had intended to advertise during the game, it came to the conclusion that the resources could be better used
to sell its vehicles in other ways.
In addition to the cost factor, many question what effect advertising actually has on the audience.
The purpose of an advertisement is to increase customer awareness for a particular brand. For Super Bowl
ads, however, the brand name often becomes secondary to the commercial itself in terms of viewer
attention. Super Bowl ads have become events in and of themselves, with each firm trying to put out the
next earth-shattering commercial that will stir talk about the commercial itself. Ever since Apple
computer’s classic “1984” ad, firms have been trying to top previous years’ ads. Ad agencies and clients
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often seem to shoot for ads that are extraordinary for the sake or creativity, rather than their intended
purpose, with many attention-getting promotions not translating into product purchases. It is questionable
whether brand name is retained, and so despite having an incredible commercial, many advertisers’ ad
dollars possibly goes into just providing new fodder for water cooler conversation for the week instead of
forming a lasting brand image in the minds of consumers. Without new research into the effectiveness of
Super Bowl advertising and its effect on consumers, many advertisers may be better off avoiding buying
Super Bowl ad time and abandoning the world’s biggest television audience.
Some advertisers like Purina Cat Chow have taken a slightly different approach by purchasing
airtime on the show directly following the Super Bowl. They obtained airtime at one-sixth of the cost
during the game and they believe that they retain approximately 40 percent of the audience. Which
advertiser got the biggest bang for the bucks: M & M/Mars that advertised during Super Bowl 2002, or
Purina Cat Chow that advertised after the game? Without systematic marketing research aimed at
measuring Super Bowl advertising effectiveness, questions such as these beg answers. It remains to be
established that Super Bowl advertising is super effective?
Questions:
1. What kind of research design would you recommend for determining the effectiveness of M &
M/Mars advertising during the Super Bowl?
2. If the research design involves a survey of households, which survey method would you
recommend and why?
3. What kind of measures and scales will you employ in your survey?
4. Can the observation method be used to determine the effectiveness of M & M/Mars advertising
during the Super Bowl? If so, which observation method would you recommend and why?
5. Which syndicated services discussed in the book can provide useful information ?
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CASE NO : 4 : NIKE SPRINTS AHEAD OF THE COMPETITION,
YET HAS A LONG WAY TO RUN
Nike, Inc.(www.nike.com), located in Beaverton, Oregon, is the number one U.S. athletic footwear
company and one of the most recognized American brands among foreign consumers. This high degree of
recognition is one of the main reasons Nike has been so successful. For the 2001 fiscal year ended May 31,
2001, the company continued to soar, with sales of over $9.5 billion.
Perhaps such success could be attributed to its concept - based advertising campaigns. The company
uses a process that is often called “image transfer”. Nike ads traditionally did not specifically place a
product – or mention the brand name. A mood or atmosphere was created and then the brand is associated
with that mood. “We don’t set out to make ads. The ultimate goal is to make a connection,” states Dan
Weiden, executive of one of Nike’s ad agencies. One ad featured the Beatles and clips of Nike athletes,
Michael Jordan and John McEnroe, juxtaposed with pictures of regular folks also engaged in sports. It was
used to infer that real athletes prefer Nike and that perhaps if the general audience buys the brand they will
play better too. Nike’s unpredictable image-based ads have ranged from shocking, such as its portrayal of
real blood and guts in a “Search and Destroy” campaign usesd during the 1996 Olympic games, to
humorous, such as the first ad used to launch Michael Jordan’s Jordan brand wear. The latter advertising
made the tongue – in – cheek suggestion that Jordan himself had a hand in production by slipping away
from a Bulls’ game at half time to run over to his company and then return in time for the game’s second
half.
In 1998, Nike shifted to a new phase in its marketing strategy. Nike emphasized more of its product
innovation skills than the jockey, edgy attitude that it displayed in previous years. “We recognize that our
ads need to tell consumers that we’re about product innovation and not just athletes and exposure. We need
to prove to consumers that we’re not just slapping a swoosh (the company trademark) on stuff to make a
buck,” said Chris Zimmerman, director of Nike’s U.S. advertising. With the launch of the “I can”
campaign, Nike showed less of the celebrity athletes that previously adorned its marketing output and
showed more product usage than in the previous “Just Do It” campaign. Competitors Reebok and Adidas
recently featured more product-focused ads and were met with a great deal of success. Despite this
rearranged focus, Nike did not back away from innovative marketing.
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Nike continues to excel in the advertising arena. Nike was named one of 2001’s best in advertising
by Time magazine for its ad featuring expert dribblers doing trick moves. Time is quoted as saying the ad
conveyed a message that “Sport is music. Sport is dance. Sport is art.” Nike states that this ad was their
most popular ad in 20 years. Another popular ad from 2001 was known as the “Take Me Out to the
Ballgame” ad. This particular ad featured professional athletes from varying sports singing one line of the
song. “Take Me Out to the Ballgame” in their native language.
As the company looks ahead to 2010, at the heart of Nike’s future strategy is the international arena,
which could prove to be the most difficult element for Nike to undertake. There seemed to be a pretty
strong recognition that by 2010, Nike would be larger outside of the U.S. than inside. As of 2003,
international sales comprised one-third of Nike’s business. Nike would like to expand into the soccer and
international sports arena, but to do so, it would have to refocus its marketing and distribution in order to reestablish
itself as an authentic, technically superior sports shoe.
In February 2001, Nike unveiled its latest technological revolution, the Nike Shox, to United
Kingdom consumers. This shoe was in development for 16 years, and Nike hoped it would revolutionize
the sports shoe market in much the same way that NikeAir did when it was launched in the UK in the 1980s.
One reporter in London states that his pair of Nike Shox makes him feel like he is “walking on cloud nine
with a spring in (his) step.” The shoes are reported to provide support, comfort, shock absorbency, and style
all at the same time. The Nike Shox line of athletic shoes is shaping up to be very popular in both the U.S.
and the U.K.
Most recently, Nike bought out many of its worldwide distribution centers in order to achieve greater
control of its operations. In the future, Nike would like to build up its presence in the key markets of China,
Germany, Mexico, and Japan. Nike will focus its advertising on sports, and will feature sports that are of a
particular interest in specific regions. Nike realizes that while it is ahead of competition, it still has a long,
long way to run.
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Questions:
1. Should Nike switch from a focus on celebrities to a focus on its products in its advertising?
Discuss the role of marketing research in helping Nike management make this decision. What
kind of research should be undertaken /
2. How would you describe the buying behavior of consumers with respect to athletic footwear?
3. What is the management decision problem facing Nike as it attempts to retain its leadership
position?
4. Define the marketing research problem facing Nike, given the management decision problem
you have identified.
5. Develop two suitable research questions and formulate two hypotheses for each.
6. How can the Internet be used to help Nike in conducting marketing research, and in marketing
its products?
BUSINESS ETHICS
Page 2 of 3
CASE -1 (20 Marks)
Joan, an employee of Great American Market, was warned about her excessive absenteeism several
times, both verbally and in writing. The written warning included notice that "further violations will
result in disciplinary actions," including suspension or discharge.
A short time after the written warning was issued, Joan called work to say she was not going to be in
because her babysitter had called in sick and she had to stay home and care for her young child. Joan's
supervisor, Sylvia, told her that she had already exceeded the allowed number of absences and warned
that if she did not report to work, she could be suspended. When Joan did not report for her shift,
Sylvia suspended her for fifteen days.
In a subsequent hearing, Joan argued that it was not her fault that the babysitter had canceled, and
protested that she had no other choice but to stay home. Sylvia pointed out that Joan had not made a
good faith effort to find an alternate babysitter, nor had she tried to swap shifts with a co-worker.
Furthermore, Sylvia said that the lack of a babysitter was not a justifiable excuse for being absent.
Questions:
1. Was the suspension fair?
2. Did Joan act responsibly?
3. Should she be fired?
CASE-2 (20 Marks)
You own a cement company, and deal with most the local contractors for cement, sand, etc. You have
a reputation of high quality products, and for good customer service with your customers. Your
foreman has just run the standard quality control tests you have performed regularly on your products.
When the test results are ready, you discover that the new batch of product is 9% less durable than
your usual material. It is still well above all industry standards and meets all building codes and
requirements for the purposes for which it is intended, but it is, nevertheless, not up to your usual
standards. Throwing it away would cost your company many thousands of dollars.
You decide to sell the cement anyway.
Questions:
1) Should you tell your customers?
2) Should you discount the price?
3) Should you tell your employees, so they will be knowledgeable with the customers?
4) Would you use this cement on foundations for your own house?
Page 2 of 3
CASE-3 (20 Marks)
Fred, a 17-year employee with Sam's Sauna, was fired for poor job performance and poor attendance,
after accruing five disciplinary penalties within a 12-month period under the company's progressive
disciplinary policy. A week later, Fred told his former supervisor that he had a substance abuse
problem.
Although there was no employee assistance program in place and the company had not been aware of
Fred's condition, their personnel director assisted Fred in obtaining treatment by allowing him to
continue receiving insurance benefits and approved his unemployment insurance claim.
Fred subsequently requested reinstatement, maintaining that he had been rehabilitated since his
discharge and was fully capable of being a productive employee. He pointed to a letter written by his
treatment counselor, which said that his prognosis for leading a "clean, sober lifestyle" was a big
incentive for him. Fred pleaded for another chance, arguing that his past problems resulted from drug
addiction and that Sam's Saunas should have recognized and provided treatment for the problem.
Sam's Saunas countered that Fred should have notified his supervisor of his drug problem, and that
everything possible had been done to help him receive treatment. Moreover, the company stressed that
the employee had been fired for poor performance and absenteeism. Use of the progressive discipline
policy had been necessary because the employee had committed a string of offenses over the course of
a year, including careless workmanship, distracting others, wasting time, and disregarding safety rules.
Questions:
1) Should Fred be reinstated?
2) Was the company fair to Fred in helping him receive treatment?
3) Did the personnel director behave ethically toward Fred?
4) Did he act ethically for his company?
5) Would it be fair to other employees to reinstate Fred?
CASE-4 (20 Marks)
In January of last year, the S.S. Vulgass, an oil tanker of the Big Dirty Oil Company ran around in the
area just north of Vancouver, spilling millions of gallons of crude into the waters and onto the beaches
of British Columbia and southern Alaska. The damage to the beaches and wildlife and consequently to
the tourist industry, the ecology and the quality of life of the local residents is incalculable, but in any
case will require many millions of dollars for even the most minimal clean-up.
The ship struck a small atoll, well-marked on the navigational maps, but it was a dark night and the
boat was well off course. On further investigation, it was discovered that the Captain of the Vulgass,
Mr. Slosh, had been drinking heavily. Leaving the navigation of the ship to his first mate, Mr. Mudd,
he retired to his cabin, to "sleep it off." Mr. Mudd had never taken charge of the ship before, and it is
now clear that he misread the maps, misjudged the waters, maintained a speed that was inappropriate
and the accident occurred. Subsequent inquiries showed that Captain Slosh had been arrested on two
drunk driving convictions within months of the accident. The Vulgass itself, a double-hulled tanker,
was long due for renovation and, it was suggested, would not have cracked up if the hull had been
trebly reinforced, as some current tankers were.
Page 2 of 3
R. U. Rich, the Chief Executive Officer of Big Dirty Oil declared the accident a "tragedy" and offered
two million dollars to aid in the clean up. The Premier of British Columbia was outraged.
Environmental groups began a consumer campaign against Big Dirty Oil, urging customers to cut up
and send in their Big Dirty Oil credit cards in protest. In a meeting to the shareholders just last month,
CEO Rich proudly announced the largest quarterly profit in the history of the Big Dirty Oil Company.
He dismissed the protests as "the outpourings of Greenies and other fanatics" and assured the
shareholders that his obligation was, and would always be, to assure the highest profits possible in the
turmoil of today's market.
Questions:
1) The question is, who is responsible?
2) Against whom should criminal charges be leveled?
3) What should be done, if anything, to punish the corporation itself?
4) What about the CEO?
OPERATIONS MANAGEMENT
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CASE-1 (16 Marks)
Bloomsday Outfitters produces T-shirts for road races. They need to acquire some new stamping
machines to produce 30,000 good T-shirts per month. Their plant operates 200 hours per month, but
the new machines will be used for T-shirts only 60 percent of the time and the output usually includes
5 percent that are "seconds" and unusable. The stamping operation takes 1 minute per T-shirt, and the
stamping machines are expected to have 90 percent efficiency considering adjustments, changeover of
patterns, and unavoidable downtime. How many stamping machines are required?
CASE-2 (16 Marks)
In the table given below the Distribution Manager is expected to service these DCs as per the demands
placed. If the actual sales after completing week one is as follows, what would be the quantities that
would need amendment as far as Distribution Manager is concerned to service for week two and
onwards?
After week one the actual sales to Forecasted sales for week one ratio is as under: Mumbai did 80 % of
forecast , Lucknow did 75 % of forecast Kolkata did 60 % of week one forecast Chennai did 125 % of
forecast and Delhi did 150 % of week one forecast
Note : Kolkata will receive transit stocks in week 2 .
3 | P a g e
CASE-3 (16 Marks)
After working for 30 years, Ramjee Somjee Dutt opted for VRS and started a courier company and did
very well in the first four years. He was now looking for expansion of his business and decided to
venture into Road transportation business between Chennai and Mumbai and Mumbai and Delhi as he
felt that he could do well on this line. However before taking a final decision he hires your
Management Consultant firm formed by yourself. He has requested you to work out the Price to quote
his clients for these two routes considering the costs involved. He expects to earn a minimum profit of
Rs 1000 per day per truck after meeting all expenses. Your analysis of market conditions tell you the
following:
Vehicle cost Rs 7 lacs Depreciation 15 % Maintenance costs per day Rs 150 Drivers monthly Salary
Rs 5000 : Attendants monthly salary Rs 3000 . Misc expenses Rs 200 per day. Driver allowance is Rs
125 per day and attendant gets Rs 75. Diesel cost per liter is Rs 25 and the vehicle gives an average
mileage of 4 km to a liter. The Financial institutions offer loans at 10 % interest pa, which Ramjee has
been negotiating. It has been observed that on an average the vehicle covers 400 km per day. The
distance between Mumbai to Delhi is 1500 km and Mumbai to Chennai is 1350 km. The driver gets
rest day in Mumbai only for one day after they return from any trip.
CASE-4 (16 Marks)
A company is operating in two unrelated businesses. The first one is making common salt, which is
sold in one-kilogram consumer packs. The second business is making readymade garments. The owner
of the businesses has decided to implement Materials Requirement Planning (MRP) in one of the two
businesses, which is likely to give him greater benefit. Assuming that the current turnover and profits
of both the units are comparable, compare the relative benefits and limitations of Materials
Requirement Planning (MRP) for these two businesses.
CASE-5 (16 Marks)
A Manufacturer of motorcycles buys spark plugs at Rs.15 each. Now he wishes to manufacture the
plugs in his own factory. The estimated cost for the manufacture of spark plugs is around
Rs.50,000=00 and the variable cost comes to Rs.5 per spark plug. The Production Manager advises the
Manufacturer that the factory should go for manufacturing instead of procuring them from the open
market.
List out reasons for the decision of the Production Manager backed up by the necessary data.
PROJECT MANAGEMENT
Attempt all questions
1. Give a detailed description on “Detailed Project Report”. Indicate the Pros and Cons of it also.
(10 Marks)
2. What is Project Management Information System? Why is a Project Management Information
System considered to be of immense importance in a project? In designing a Project Management
Information System what parameters are to be spelt out clearly in line with the objectives of the
Project management Information System? (20 Marks)
3. Technology and processes play crucial role in certain projects. What the key issues are in regards
to choice of technology, equipment and processes at the stage of formulation of Detailed Project
Report?
(10 Marks)
4. Given the activity mean and Standard Deviation, Find the probability that the project will take
more than 10 weeks to complete. (20 Marks)
Activity
Mean Standard Deviation
1 – 2 5 1
2 – 3 4 1
1 - 3 8 1
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
5. For the following network data ,
(20 Marks)
(a) Identify the Critical Path and its duration
(b) Calculate the total network slack time.
Job
(Activity)
Network
Initial Node
Network
Final Node
Estimated Time(days)
A 1 2 2
B 1 3 3
C 1 4 3
D 2 5 3
E 2 9 3
F 3 5 1
G 3 6 2
H 3 7 3
I 4 7 5
J 4 8 3
K 5 6 3
L 6 9 4
M 7 9 4
N 8 9 3
O 9 10 2
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