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Business Strategy
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Section A
Case – 1 Marks-16
Leisure and entertainment usually gain prominence in an economy that is growing; fast and provides leeway
to the consumer to spend on things other than necessities India’s entertainment and media industry is one
of the sunrise industries, growing at a Compound annual growth rate of 18 per cent, much faster than the 9
per cent national economic growth rate. According to a study conducted by the Federation of Indian
Chambers of Commerce and Industry and PricewaterhouseCoopers the industry size is Rs. 437 billion
presently and is projected to grow to Rs. 1 trillion by 2010. Positive measures taken by the government,
technological advancement and entry of large corporate houses in all the segments of the industry are
fuelling the impressive growth.
Among the various segments of the industry, there, are radio, television, films, out-of-home advertising arid
live entertainment While radio and television make up the fastest growing segments, film entertainment
growing at 16 per cent annually, is another potential segment. The film entertainment segment of the
entertainment and media industry has several strategic groups that could be roughly categorized along the
value chain of film making and distribution These strategic groups could be production, distribution, retail,
music and home video. While many of the companies operate in more than one activity area on the value
chain, such as Yash Raj Films operating in all activity areas except retail, there are a few that concentrate
on just one or two activity areas, such as RGV Film Factory that operates only in production of films. Size
based on revenue could be another basis for categorization of the film entertainment companies in India.
Among the large size companies are Adlabs, Sahara, Percept, Yash Raj Films and UTV, that could touch or
exceed Rs. 1000 revenues by 2010. The middle-rung is of companies of revenue size of Rs. 300 — 500
crore, such as pure retail distribution companies such as lnox Leisure, P’SR Cinemas, Pyramid Saimira and
Valuable Group pure content companies such as Pritish Nan Communications Vishesh Films or RGV F
Factory. The third category is of emerging companies in the revenue size range of Rs. 1OC — 300 crore,
such as Real Image, Red Ice and Seven Entertainment Major investments in the media and entertainment
industry in recent years have been ploughed into infrastructure, largely into multiplex chains and digital
theatre chains. These investments are made by companies that are pure retail and distribution companies.
Among the major ones in this strategic group is the Chennai-based Pyramid Saimira Theatre Limited (PSTL)
- India’s largest theatre chain company with over 29 multiplexes operation, with over 371 screens in 2007,
project to increase to 2000 screens by 2010. It was incorporated in 1997 as Pyramid Films international
Private Limited and has gone through severe changes of name to emerge as Pyramid Saimira Theatre
Limited, reflecting its concentration on the theatre business, though it operated in film production and TV
content production in the past Film making and distribution in India has been traditionally an unorganized
and fragmented industry, managed through experience rather than systems. In recent years, one trend in
the film industry is corporatization Under corporatization the traditional organizations dealing with the
various aspects of film making’ and distribution. Become formal organizations registered under the legal
process, such as the Companies Act, 1956. Along with corporatization comes increasing professionalization
in the management of organizations. Technology, especially information and communication technology, has
played its part in heightening the chances of making corporatization and professionalization successful A
new breed of organization has emerged on the horizon that deals with the various activities in an organized
and Systematic manner. Pyramid Saimira intends to be of such organizations. The people behind Pyramid
Saimira include Mr. V. Natarajan, a Gemini-studio’s veteran of the Tamil film industry, Mr. P. S.
Saminathan, the finance and technology brain behind the flagship project and Mr. N.Narayanan, the
management man. The financials for the year 2006-2007, show net sales of Rs 1661.52 crore and net profit
of Rs. 158.82 crore on equity capital of Rs. 282.76 crore.
The flagship project of the Pyramid Saimira is the mega digital. Theatre chain project being implemented in
two phases, with a total cost of Rs. 414.5 crore. This is an information technology driven venture that is a
first-mover in the film industry in India. The basic idea is to have a chain of theatres for exhibition of films
that have been encrypted in the digital medium. The theatres are linked through a satellite-based
communication network. The films are released in the digital format and simultaneously exhibited in the
digitally- enabled theatres through the satellite network. The one-stroke release and exhibition of films is
claimed to reduce the chances of films being pirated, which is the Achilles’ heel of the film
industry in the world. It also avoids the use of costly film rolls and reels now used to photograph and
distribute films. The digitized theatres also offer the potential of developing them as value-added service
providers, enlarging their role from that of entertainment providers to commercial infrastructure providers
such as shopping malls, exhibition spaces and education and training venues.
The business model of the digital theatre concept is based on a vertically-integrated theatre chain on longterm
lease, where the revenue streams emanate mainly from the ticket sales at the individual theatres at
the demand end, much like it does now. The critical difference is on the supply side where the distribution,
retailing and exhibition of films are done in an integrated manner through digital means connected through
a communication network. This effectively eliminates the film distributor and tries to achieve economies of
scale through volume sales. The centralized network operating centre is the nodal supply point.
A standardized delivery process makes the process operationally low-cost, albeit at a high initial investment.
Additional revenue streams, generated through exploitation of the theatre infrastructure to provide other
services than entertainment, help to recoup the high initial investment. Creating a franchise system for a
long-term lease enables sharing of the initial high costs7 of realty by engaging partners who own the
theatre space but use Pyramid Saimira’s digital distribution and exhibition facilities at a price. There are
additional possibilities of creating content library of films, extending networks abroad and building
integrated family entertainment centers.
The digital theatre is a compact model, having various elements such as digital projectors, servers,
connectivity equipments, high-definition recorder and telecine, system integration and software solution
providers. For each of these, there are in-house and external agencies in partnership. For instance,
connectivity equipments are being provided by Tata Net while servers are arranged by a partnership of
Saimira Access Technologies with Real Image Media.
Pyramid Saimira’s SWOT analysis indicates the following factors:
• Strengths Established organization, experienced promoters and networking with financially strong and
capable partners.
• Weaknesses Lack of in-depth technological experience, risks of being the first-mover and limited financial
capability.
• Opportunities Favorable demographics, increasing spending on entertainment, potential expatriate
demand, availability of technological infrastructure such as broadband and digitized films a regenerative
asset that has multiple uses.
• Threats Unorganized film industry, fickle nature of demand for films, powerful industry bodies with political
lobbying capabilities, high entertainment taxes, piracy, high cost of infrastructure and faulty governmental
policy implementation.
Pyramid Saimira’s global ambitions are reflected in its vision statement, which is ‘to be the largest vertically
integrated theatre chain in the world carving a unique space in mass access using theatre infrastructure to
deliver education, entertainment and information at affordable cost to all sections of society’. The digital
theatre project is being implemented in Tamil Nadu and is planned to be expanded throughout India and
abroad in areas where there are a large number of Indian expatriates such as South East Asia, Europe and
the U.S. The acquisition of the Texas-based Fun Asia made through the subsidiary Pyramid Saimira
Entertainment America, targeting the Asian film market, marked the entry of Pyramid Sairnira in the U.S.
and Canada. There are subsidiaries operating in Singapore and Malaysia, where there is a substantial
number of people of Indian origin.
Questions:- (Any Two)
1. Attempt a Porter’s five- forces analysis for the Indian film industry, highlighting the factors relevant for
Pyramid Saimira’s strategic planning.
2. Attempt a strategic groups analysis highlighting the factors relevant for Pyramid Saimira’s strategic
planning.
3. Identify the subjective factors that may have an impact on the strategic choice made Pyramid Saimira.
Case –2 Marks-16
The origins of Deepak Nitrite—the flagship comp any of the Deepak group of industries-go back to 1970
when Chimanlal K. Mehta, an entrepreneur, sensing an opportunity in India’s drive towards self- sufficiency
and import substitution and relying on his trading and manufacturing experience, ventured into the
chemicals industry. The Company was originally incorporated as Deepak Nitrite Private Limited in 1970,
under the Companies Act, 1956 and was subsequently converted into a public limited company in the name
of Deepak Nitrite Limited in 1971. The company’s registered office is at Vadodara and its corporate office is
at Pune with manufacturing plants in Gujarat and Maharashtra. Net sales for the year ending March 2007
are about Rs. 4172 million and net profit is Rs. 357 million. Exports constitute nearly half of the sales.
Overt he years, Deepak Nitrite has grown impressively through a judicious use of integration, related
diversification and internationalization strategies, using the means of acquisition and restructuring. In 1983,
adopting a horizontal integration strategy, the company used foreign collaboration to start commercial
production of ammonia. In 1989, the group employed ammonia-based forward integration and also
diversified into the chemicals related area of methanol. In 1992 came the commercial production of lowdensity
ammonium nitrate, nitro phosphate and nitric acid, resulting in a multi-product portfolio consisting
of organic, inorganic, fine and specialty chemicals. Deepak Nitrite has made tremendous progress over the
years and has posted impressive financial results as well as excellent export performance. It (the growth of
the company), was born out of a process of deep thinking, strategy and planning,’ said the managing
director Deepak Mehta, who claims that planned strategy has led to growth. Environmental scanning led to
foreseeing the threats coming from a dismantled duty regime. Anticipating this, the company went about
implementing strategies that would convert these threats into opportunities. The strategic approach was to
build on its strengths in niche areas of the chemicals market, leverage strong R & D and a robust lab to
product ion skills, bring the strengths up to global levels and work towards a leadership position.
The success of Deepak Nitrite could be attributed to its focused strategy. Implementation capabilities. A
series of plans, programmes and project have been initiated and implemented over the years, in alignment
with its corporate and business strategies. For instance, it has worked on a number of R&D projects over
the years to develop its skills to swiftly transfer products from the labs through production to the markets.
It has effectively developed differentiating capabilities by planning and implementing projects for handling
bulk products to handling batch products, transforming from a commodity supplier to a value-added,
branded product supplier with customization skills. Projects in supply chain management have helped the
company in extending its ability to source its own raw material to tracking customers’ delivery and
inventory scheduling. Cost control has been attempted through wider sourcing; including international vend
ors, and investing in energy-saving equipments.
In the course of strategy implementation, Deepak Nitrite has to deal with a host of government agencies for
procedural implementation. For example, raising finance has taken it to SEBI. A continual interaction takes
place with the export and import regulatory authorities. For instance, anti-dumping duties have been levied
on the comp any for sourcing cheap materials from China. Being in the chemical processing industry, the
company is under the scrutiny of environmental protection agencies. It has been a signatory to the
‘Responsible Care’ initiative of the global chemical industry. It has also achieved the ISO 14001 certification.
Dealing with explosives, the company has to seek licenses from the Department of Explosives, Industrial
Safety and Health Departments and State Pollution Boards of Gujarat and Maharashtra. Apart from these
are the regulatory requirements dealing with taxation purposes. Resource generation has been through
raising money in the capital markets on the basis of its good reputation, internal accruals, loans from
commercial banks and financial institutions and sale of factory land at Pune.28
Questions:-
1. Identify and discuss briefly, the three themes of strategy implementation of activating strategies,
managing change and achieving effectiveness in the case of Deepak Nitrite.
2. picking up data from the case, demonstrate how formulation and implementation of strategy are
interdependent.
Case –3 Marks-16
Synergos# is a young management and strategy consulting firm based at Mumbai. It was established in
1992 at a time when there were a lot of expectations among the industry people from the liberalization
policies that were started the previous year by the Government of India.
The consulting firm is an entrepreneurial venture started by Urmish Patel, a dynamic person who worked
with a multinational consulting-firm at the He left his comfortable position there to venture into the
management consultancy industry the motivation was to be ‘the master of his own destiny’ rather than
being an employee working for others. Urmish comes from an upper middle-class Gujarati family, settled in
a small town in Rajasthan. His father was a government servant who retired with a meagre pension. His
mother is a housewife. His other siblings are all educated and well-settled in their respective careers and
professions. Urmish is a creative individual, uncomfortable with the status-quo. During his student days at a
college at Jaipur, he was continually coming up with bright ideas that some of his friends found to be
preposterous. To him, however, these were perfectly achievable ideas. He studied biotechnology and then
went to the US on a scholarship to do his Masters. After a semester at a well-known university there, he lost
interest and switched to pursue an MBA. He liked it and soon settled down to work with n American
consultancy firm and toured several countries on varied assignments during the seven years he worked
there. In 1992 came the urge to Urmish to chuck his job and be on his own. It was a risky, yet an exciting
step to take. His accumulated capital was limited— just enough to rent office space, buy a few computers
and hire an assistant. There were no consultancy assignments for the first three months. But an
acquaintance soon came to his aid, introducing him to the CFO of a major family business group who
needed advice on a performance improvement project they wanted to launch. The opportunity came in
handy though the returns were nothing to write home about. That project was the first step to many more
that came gradually. Synergos started gaining presence in the competitive management consultancy
industry and attracting attention from the people whom they worked for. Word-of-mouth publicity led them
from one project lo another for the first three years till 1995. Synergos took up whatever came its way,
delivering a cost-effective solution to its clients. A team of four had formed by now, each member of the
team specializing in services rendered to the clients. For instance, one of the members is a specialist in
engineering projects, while another has expertise in finance. The third one is a service sector specialist, also
having experience in dealing with government matters.
The phase of rapid growth started some time in 1995 when the Synergos team decided to focus on the
small and medium enterprises (SMEs). These were firms that realized they had problems needing specialist
advice; but were apprehensive to app roach the big firms on account of their limited outlay and
inexperience of dealing with such firms. Synergos came to their aid by tailoring their services as near as
possible to their needs. Another differentiation platform Synergos offered to its client was a fully-integrated
consultancy service where it got involved right from the stage of planning down to its implementation and
monitoring.
Presently, Synergos has grown to be a medium- sized consultancy firm, serving clients in India and abroad,
working for industries ranging from auto components to financial services and for manufacturing
organizations to service providers. Somehow, nearly half of the assignments it has worked on have been for
mid-sized, upcoming family- owned businesses, a niche it has served well. These organizations typically
need a boutique sort of consultancy that can offer customized services dealing with a broad range of
practices related to strategy, organization design, mergers and acquisitions and operational matters such as
logistics and supply-chain management. Synergos fits in with their requirements owing to its personalised
service and reasonable-commission structure. The organizational structure at Synergos has a board at the
top, consisting of seven people, including the four founding members and three independent directors. One
of the independent directors is the chairman of the board. Urmish, as the founder CEO, also heads an
executive management committee with each of the founding. Members, leading three other top-level
committees dealing with business portfolio, service management and executive recruitment.
The management team is called the professional group. The rest of the employees are ref erred to as the -
staff. -The professional group has young women and men who are graduates from some of the best
institutions in India and abroad. They are assigned to taskforces based on their qualifications, experience
and interests. The departmentation at Synergos is flexible, based on -an interplay of the three categories:
skill, service and specialty. For instance, a professional may have IT skills, may have worked to provide
supply- chain management services and developed expertise in handling operational assignments for
medium-sized food and beverage firms. There is a lot of multi-tasking however, to utilise the wide - range
of skills and special expertise that the professionals have For administrative matters the professionals are
assigned to client-service departments of industry solutions, enterprise solutions and technology solutions.
The flexibility that such an organisational arrangement affords seems to have been the major reason for the
evolution of the organization structure at Synergos over the years.
The staff group of employees consists of the support people who provide a variety of services to the
professionals. Among these are research assistants, industry analysts, documentation experts and
secretarial staff. There is no set pattern for assignment of staff to the administrative departments and
generally, a need-based approach is followed, depending on the workload at a particular time.
Recruitment for professionals is stringent. Synergos typically looks for a good combination of education and
experience and lays much emphasis on the compatibility of the prospective employee with the shared
values. Creativity, broad range of professional interests, intellectual acumen, team- working and physical
fitness to undertake demanding tasks and work for long hours are the criteria for hiring. There are not many
training opportunities except the on-the-job learning. New professionals are assigned to a mentor for some
time till they a ready to handle assignments autonomously. The staff members are usually recruited from
fresh graduates, with good degrees from reputed institutions, in arts, sciences and commerce. The staff
positions are also open for persons wanting to work on part-time or project-bases. Emphasis is given to the
ability of the prospective staff to undertake multi-tasking and work with documentation and word processing
and presentation software packages.
The compensation system consists of a base salary with commission and bonus depending on performance.
There are other usual elements such as medical reimbursement, loan facility and gratuity and retirement
benefits. The performance appraisal is informal, with at least one of the four founding members being part
of the evaluation committee for a professional. Usually, the found-c member closest to the work area of the
employee is involved in determining the rewards to be give’. The time-cycle for appraisal is one year.
Management control is discreet and performance-based rather than behavior-based. The means for control
are informal, such as direct supervision. Urmish is a strong proponent of the emergent strategy and is not in
favor of tying Synergos to a fixed strategic posture. So are the other founder members, though at times
they do talk about deciding on a niche such as the SME organizations as clients and enterprise solutions as
the core competence. In the highly fragmented consultancy industry where it is possible for even one
person to s up an office in a commercial area and leverage corrections to secure projects, Synergos is open
opportunities as they emerge, while trying to maintain the flexibility that has made it successful till no
Questions :- (Any Two)
1. Identify the type of organization structure being used at Synergos and explain how t works. What are the
benefits of using this type of structure? What are the pitfalls?
2. Express your opinion about whether the structure is in line with the requirements of the strategy that
Synergos is implementing.
3. Based on the information related to the information, control and reward systems available in the case,
examine whether these systems are appropriate for the type of strategy being implemented.
Section B
1. Select any organization of your choice. Identify the high priority environmental factors in its
relevant environment. Use the information to prepare a summary ETOP for the organization.
2. Which sector of environment is currently relatively more important, In general, in the Indian
context? What sectors are likely to gain importance in the near future?
3. Describe the different ways in which digitalization can help organizations in achieving cost
leadership, differentiation and focus.
4. Describe the contents of a good and workable strategic plan for a large business group or a
public sector enterprise in India.
KAZIAN GLOBAL SCHOOL OF BUSINESS MANAGEMENT
MARKS: 80
COURSE: EMBA Sem-I
SUBJECT: Consumer Behavior
___________________________
Section A
Case – 1 -Fashion Statement through Khadi
As India’s traditional hand-spun cotton fabric, khadi feels coarse and unrefined. But the feelings it evokes
in anyone with any empathy in India’s heroic struggle for emancipation from colonial rule, is anything but
that.
Till date the fabric bears the invisible-but-indelible imprint of the charkha (spinning wheel), the late
M.K. Gandhi’s revolutionary symbol for self-reliance and emancipation (through unity, expressed in the
refusal to kneel before insolent might). Instead of exporting raw cotton and importing fine Manchestermade
cloth, freedom fighters wanted all Indians to spin their own clothing and boycott imports to weaken
the British Raj.
With the end of Colonial Rule in 1947, the congress government headed by Jawaharlal Nehru opted
for state-led large-scale industrialization, instead of Gandhi’s idea of rule hut-industry development. But it
also decided to provide employment to thousands of spinners by selling their output through a vast
network of retails stores.
Thus was formed the Khadi and Village Industries Commission (KVIC), a nodal agency to promote
the fabric, with its Khadi Bhandar outlets in urban India.
Over the years, KIVC set up thousand of outlets across India. Sales were good. But with the
evolution of technology, perhaps it was inevitable that the sentimental dreams of village self-reliance
would be disrupted. And so it was. Modern machines of Europe’s industrial revolution were soon to arrive.
Indian industrialists set up capital-intensive textile mills and began the mass-production of fine cloth. As
the mills gained volume, they achieved economies of scale and started lowering prices. And so, the
labour-intensive homespun fabric losing out to mill fabric.
Driven by its sentimental attachment to Khadi, and concern for mass-scale-sector employment, the
government started subsidizing India’s traditional spinners. This was an extension of its ‘tax-the-rich’ and
‘feed-the-poor’ outlook, and was projected via the media as a good thing. In any case, KVIC was intended
to be a noble organization, motivated by lofty ideals instead of profit. For decades, all was fine behind the
‘khadi’ curtain of socialism’. The reason behind the support mechanism even acquired a holiness of its
own. Institutionalized, it became immune to doubt. But alas, the system was artificial and its main flaw lay
in the very ‘certain’. Public information was lacking, and so it escaped proper scrutiny. In the real would,
even the best-international projects can fail, or worse, degenerate into instruments for patronage.
But the 1990s, the vision of clothing the masses with khadi was beginning to look absurd. Despite
all policy incentives to the sector, people were buying efficiently machine-made textiles. The forces of
mass production were making polyester, which had gained economies of scale at the raw materials stage
(made from petrochemicals), cheaper still. Yet KVIC continued to produce huge quantities and sell khadi
clothes through its extensive retail chain. By now, khadi was more expensive than other fabrics and had
acquired the image of an outdated clothing material worm chiefly by politicians and social workers.
Ordinary people preferred cheaper alternatives.
Was khadi a lost cause-stuck in the time wrap? Clearly, if KVIC continued the way it was; it was
headed for trouble. Given India’s poor fiscal health, subsidies had become untenable. Yet, the fabric
couldn’t be torn out from consciousness of caring Indian. Something needed to be done. And fast.
By the start of the new century, KVIC discovered a pragmatic solution based on using modern
marketing to revive the fabric. After all, the Free Market can also accommodate common sentiments.
Instead of directing taxpayers’ money towards the cause, it was thought that private citizen should
contribute on their own volition (by buying khadi at premium prices).
The strategy? Refurbish the range, acquire an upscale image, aim the cloths at the well off and
reposition khadi as a fashion statements. Given KVIC’s lineage, the idea was radical. But it was worth a
try. KVIC started with a single-outlet experiment in Delhi’s Khan Market. The first air-conditioned shop
opened here in May 2001, selling khadi muslin garments designed by high-profile designers (Rohit Bal and
Malini Ramani), in addition to a well-packaged range of Ayurvedic products. It was a runaway success,
with Delhi’s elite thronging the shop.
KVIC started marketing two brands, Khadi and Sarvodaya, to which it owns the rights. The former
caters to the premium and export segments, and include essential oils, herbal oil soaps, face scrubs, and
dry fruits honey. Sarvodaya, the mass-market brand, sells mass items such as toilet soap, honey, pickles,
spices and incense sticks.
The move has also sparked off a controversy. Some Gandhians, troubled by the glamour, are
aghast at this ‘betrayal of ideals’. Realists, however, criticize them for failing to free themselves of their
dearly held ‘khadi mindset’. Don’t get them wrong. The latter love the old idealism too. But they also
realize that a product with great symbolic value deserve to be marketed as such, if it is to reach out, and
with mind-space for the poor weaver’s child who might have something to offer if given a chance. Holding
Gandhi’s method (or tools) as sacred amounts to confusing the means with the end.
The capital’s response to Khan Market shop has been so good that KVIC wants to upgrade a
significant fraction of its network. The transformation is to be entrusted to a new marketing company that
will function as any other professional firm. Plans to extend the concept include display units at airports
and modern outlets at Delhi’s Ashoka Hotel, Nehru Place, Hauz Khas, and Kamla Nagar. Next on the
agenda: Jaipur, Chandigarh and Lucknow. What’s more, the sales personnel are to be retrained for
customer orientation at the shop-floor level. The sale boost is expected to be substantial. The Khadi Gram
Udyog store at Connaught Place, New Delhi does an annual turnover o Rs. 10 crore. After renovation, this
is expected to touch close to Rs. 25 crore.
The product range will be widened too. Ahmedabad’s National Institute of Design (NID) has
proposed a special cell for design support, while Delhi’s National Institute of Fashion Technology (NIFT)
may also pitch in.
KVIC has hired three and agencies to promote its brands: Appeal for Khadi; Market Missionaries for
Sarvodaya and Pressman for the corporate and promotional schemes. The budget is about 25 crore. Khadi
campaign is likely to start by highlighting the brand’s eco-friendly credentials, before turning attitudes
towards it and portraying it as a lifestyle insignia.
Vivek Sahni has been roped in to do the packing graphics and retail outlets. E-commerce options
are also being weighed, with KVIC having already booked khadi.com and khadi.org as its domain names.
The export thrust will also be sharpened. Right the around 200 production units, which cater
exclusively to the export to the market. KVIC wants to identify new markets and tap them with its
products. Test marketing efforts are already underway in South Africa, Dubai, and a few other overseas
markets.
QUESTIONS:-
1. Would marketing in foreign countries require study of a popular country’s culture aspects and
buyer behaviour before marketing Khadi there? What aspects would need to be studied?
2. Suggest an approach to make Khadi garments popular among Indian youth.
Case-2- Purchase of a Microwave Oven
Ramesh Sikand and his family lived a comfortable two-bedroom flat in a respectable locality in a large
city. He was employed with a general insurance company in a supervisory capacity. His wife, Sumita was
a teacher in an English medium public school. Both their children, Rachit aged 10 and Sarita aged 8
years, were studying in the same school where Sumita was employed.
Just before Diwali in 2002, one Friday evening the family went shopping. Besides clothes for
children and few other things, they bought a 27 liter. Excel microwave from an outlet with good
reputation. Sumita was very happy and the children were excited with this new purchase. Both the
children were anticipating quick cooking of a variety of dishes they liked. They were expecting that
everyday their mom would give them school Tiffin-boxes packed with noodles other Chinese food.
To celebrate, Sumita invited two of her school colleagues for dinner and prepared a few dishes in
her brand new microwave. Both her friends observed her cooking with great interest. On the dinner table
most talk was around difficulties of both spouses being employed and the shortage of time to attend to so
many household chores. The friends, Ramesh and the kids profusely praised the dishes and how quickly
everything for the dinner was ready. What really took most time was cooking the Chapatis. Sumita said,
“ How nice and convenient it can be if some portable chappati-preparing gadget was available.”
Ramesh said, “It was my idea to buy a microwave. “Sumita said, “Why? You have forgotten. It
was I who two years ago during exam time suggested that it would be good if we buy a microwave.” Both
of them were trying to take credit for the purchase. Finally, both of them agreed that the idea to buy a
microwave was discussed after they attended the dinner at a friend’s place where for the first time they
saw a microwave in operation.
One of Sumita’s friends asked, “why did you buy this particular brand? I have read in the
newspaper just a few days back that there are attractive schemes on some brands.” Sumita and Ramesh
spoke simultaneously,” In fact, both of us have read advertisements and articles in magazines within the
last six months about what features and benefits every brand offers. “Sumita said, “As and when I got
the opportunity, I consulted some of my knowledgeable friends who have owned microwaves for quite
some time, what to look for and what brands to consider.” “You know, I came across some scaring
information about the safety of microwaves. Now the technology is so advanced that all those scaring tit
bits of information are quite baseless. ”Ramesh said, “Whatever we learned from magazine articles and
experienced friends has helped us quite a lot in buying this brand.” Sumita said, “About schemes, you are
right. We too got a set of three bowls to be used for microwave cooking. Besides, we have paid just a
thousand rupees and the rest would be paid in fifteen interest free installments. There is an extended
warranty of three years, and if we are not satisfied with the machine, we can return it within the first 30
days of purchase, and no questions asked. Our Rs.1,000 would be refunded in cash.”
One of Sumita’s friend said, “Recently, one of my relations in Delhi told me her bad experience with
this brand. She went to the extent of suggesting me never to buy this brand of microwave.” Ramesh said,
“I don’t know what to say about your relation’s experience. What information we could collect goes quite
in favor of this brand. Those who recommended it have had few years use experience without any
complaints.” Sumita’s friend said, “You may be right Bhaisaheb. But one thing we all know is that these
are machines and they are not perfect. Excellent cars with unmatched reputations like BMW, Rolls Royce,
and Mercedes too, need repairs.” She smiled, and said, “Haven’t you heard of Murphy’s Law “If a thing
can go wrong, it will”.
At about 10.30 pm, the friends thanked Sumita and Ramesh, and congratulated them for owning a
microwave and left. Sumita and Ramesh were a bit pensive after their departure. They felt somewhat
uneasy about the correctness of their decision in choosing this particular brand of microwave. They knew
their money was safe, but it would be embarrassing if they had made a mistake. They agreed to discuss
the matter with some of their eexperience3d friends.
QUESTIONS:-
1. Discuss whose decision it was to buy a microwave and when was the purchase decision made.
2. What factors influenced the purchase of the microwave?
3. What is likely to be the post-purchase behavior in this case and what is the significance of such
behavior?
4. What is the significance of post-purchase behavior for the marketer?
Case-3- Fancy Dreams
The boardroom was filled with the voice of marketing manager, Ashutosh Kant. He was addressing the
meeting of senior managers of Fancy Dreams. “The last three months were spent by our market research
team in finding out the reasons and patterns of sales at stores. Let me emphasize that retail sales is
showing growth all over the country and in the process, competitions is intensifying. We can no longer
afford to sit and relax, instead we need to put ourselves fully to retain our market leadership.” There facts
revealed by the survey were particularly disturbing.
1. People found Fancy Dreams service staff bordering on aggressiveness and not really helpful, as
customers were never left to browse.
2. Children got bored and hence parents often left the store within minutes after finishing essential
shopping. They never browsed or spent leisure time at Fancy Dreams store, which could otherwise
help promote sales.
3. With many choices available in the market, consumers stopped treating Fancy Dreams store as
unique and exclusive anymore.
Rehman, an entrepreneur, had set up a garment shop in one of Delhi’s busy up market area about 10
years ago. He realized that to attract customers, he must do something new. With this in mind, he
chalked out a detailed plan to open a chain of stores called Fancy Dreams. Some major features of this
store were:
1. Complete dress range for kids, parents and teenagers.
2. Full accessories for women and in footwear, purses, jewelry and cosmetics.
3. A play center where kids could spend time when the parents shopped.
The stores were opened in two locations in Delhi on an area of 10,000 sq.feet each. Within six
months, the stores became popular and the business grew rapidly and in three years the turnover crossed
Rs.6 crore. The promotion plans included advertising in print media and through cable operators. The
store also conducted festivals such as children’s carnival, and Valentine special etc., to attract crowds of
customers.
Stress on store ambience was high as Rehman wanted to create an image of a complete shopping
experience for the entire family. The sales personnel were carefully selected and trained to promote, not
push, any product and to encourage customers to browse through.
The women’s section was given a feminine touch and the men’s section had polished wood and leather
all over. The garments, the accessories, and the gifts were displayed in large racks and
Full-length mirrors were placed in multiple places. Sales personnel present on all the three floors often
advised the customers but never showed around everything. The kid’s section included garments, toys,
books, and was manned by more staff. The play center for the kids was a major attraction. The parents
could safely leave their children in the place, situated on the ground floor itself. The place had separate
section of toys and books for children and was supervised by trained staff. They felt comfortable that
their children would be taken care off properly and the parents, therefore, could leave the children and
shop in a relaxed manner. This concept was unique and highly appreciated by customers and became the
major attraction for them.
The stores were one of a kind in the early 1990s and grew rapidly. The new sections on books, gifts,
and handicrafts were launched gradually and at any time the store had more than 200 categories of
products. During this time, the competition started intensifying as three similar ventures were launched in
the city. This didn’t bother Rehman much, because he felt he had built and image of Fancy Dreams being
the ultimate store. By 1996, multi-storey, one-stop stores became the trend in Delhi and many such
stores came up.
Rehman had expanded his stores in three other cities as well and the turnover had crossed Rs.40
crore. The total manpower rose to 500 and several new management and non-management cadres were
introduced in the company.
Last year during Diwali festival season, the store attracted nearly 40,000 customers in the entire
month. This worried Rehman as it was almost 20 percent less than their estimates. His marketing
manager, after ling discussions, hired a market research firm to study the buying pattern and preferences
of people walking in the store.
QUESTIONS:-
1. Identify the relevant major problems and issues in this case.
2. Suggest a strategy to rectify the problems.
Section B
1. You are the brand manager of a new line of light weight autofocus, economically priced digital cameras.
Describe how an understanding of consumer behaviour will help you in your segmentation strategy and
promotion strategy. What are the consumer behaviour variables that are crucial to your understanding of
this market?
2. Gillette, an established market leader in shaving products, is planning a foray into skin care products
for men. How can the company use stimulus generalisation to market these products? Can instrumental
conditioning also be applied in this marketing situation? How?
3. Which of the stages of the family life cycle would constitute the most lucrative segment/segments for
the following products and services?
(a) Domino's pizza
(b) Mobile telephones
(c) Mutual funds
Justify your answer.
4. What do you understand by extensive problem solving, limited problem solving and routinised response
behaviour? What kind of decision process can you expect in the following cases and why?
(a) Purchase of a greeting card for a close friend.
(b) Purchase of an after shave lotion/moisturizer.
KAZIAN GLOBAL SCHOOL OF BUSINESS MANAGEMENT
MARKS: 80
COURSE: EMBA (Sem-I)
SUBJECT: General Management
_____________________________________________________________________________
Section A
Case – 1
'That's not my job' - Learning delegation at Cin-made
When Robert Frey purchased Cin – Made in 1984, the company was near ruin. The Cincinnati, Ohi-based
manufacturer of paper packaging had not altered its product line in 20 years. Labor costs had hit the
ceiling, while profits were falling through the floor. A solid quarter of the company's shipments were late
and absenteeism was high. Management and workers were at each other's throats.
Ten years later, Cin – Made is producing a new assortment of highly differentiated composite
cans, and pre-tax profits have increased more than five times. The Cin – Made
workforce is both flexible and deeply committed to the success of the company. On-time delivery of
products has reached 98 percent, and absenteeism has virtually disappeared. There are even plans to
form two spin – off companies to be owned and operated by Cin-Made employees. In fact, at the one day
"Future of the American Workforce" conference held in July 1993, Cin-Made was recognized by President
Clinton as one of the best – run companies in the United States.
“How did we achieve this startling turnaround?" Mused Frey. "Employee empowerment is one
part of the answer. Profit sharing is another."
In the late spring of 1986, relations between management and labor had reached rock bottom.
Having recently suffered a pay cut, employees at Cin- Made came to work each day, performed the duties
required of their particular positions, and returned home-nothing more. Frey could see that his company
was suffering. "To survive we needed to stop being worthy adversaries and start being worthy partners,"
he realized. Toward this end, Frey decided to call a meeting with the union. He offered to restore worker
pay to its previous level by the end of the year. On top of that, he offered something no one expected: a
15 percent share of Cin-Made's pre-tax profits. " I do not choose to own a company that has an
adversarial relationship with its employees." Frey proclaimed at the meeting. He therefore proposed a
new arrangement that would encourage a collaborative employee-management relationship “Employee
participation will play an essential role in management."
Managers within the company were among the first people to oppose Frey's new idea of employee
involvement. "My three managers felt they were paid to be worthy adversaries of the unions." Frey
recalled. It's what they'd been trained for. It's what made them good managers. Moreover, they were
not used to participation in any form, certainly not in decision making." The workers also resisted the
idea of extending themselves beyond the written requirements of their jobs. " (Employees) wanted
generous wages and benefits, of course, but they did not want to take responsibility for anything more
than doing their own jobs the way they had always done them," Frey noted. Employees were therefore
skeptical of Frey's overtures toward "employee participation." "We thought he was trying to rip us off
and shaft us," explained Ocelia Williams, one of many Cin-Made employees who distrusted Frey's plans.
Frey, however, did not give up, and he eventually convinced the union to agree to his terms. " I
wouldn't take no for an answer," he asserted. "Once I had made my two grand pronouncements, I was
determined to press ahead and make them come true." But still ahead lay the considerable challenge of
convincing employees to take charge :
I made people meet with me, then instead
Of telling them what to do, I asked them.
They resisted.
" How can we cut the waste on his run ?" I'd say, or "How are we going to allocate the
overtime on this order ?"
"That's not my job," they'd say.
"But I need your input," I'd say. "How in the
World can we have participative management
If you won't participate?
"I don't know," they'd say. "Because that's
not my job either. That's your job. ?"
Gradually, Frey made progress. Managers began sharing more information with employees.
Frey was able slowly to expand the responsibilities workers would carry. Managers who were unable to
work with employees left, and union relations began to improve. Empowerment began to happen. By
1993, Cin Made employees were taking responsibility for numerous tasks. Williams, for example, used to
operate a tin-slitting machine on the company's factory floor. She still runs that same machine, but now
is also responsible for ordering almost $ 100,000 in supplies.
Williams is just one example of how job roles and duties have been redefined throughout Cin-
Made. Joyce Bell, president of the local union, still runs the punch press she always has, but now also
serves as Cin- Made's corporate safety director. The company's scheduling team, composed of one
manager and five lead workers from various plant areas, is charged with setting hours, designating
layoffs, and deciding when temporary help is needed. The hiring review team, staffed by three hourly
employees and two managers, is responsible for interviewing applicants and deciding whom to hire. An
employee committee performs both short – and long – term planning of labor, materials, equipment,
production runs, packing, and delivery. Employees even meet daily in order to set their own production
schedules. "We empower employees to make decisions, not just have input," Frey remarked. "I just
coach."
Under Frey's new management regime, company secrets have virtually disappeared. All Cin-
Made employees, from entry-level employees all the way to the top, take part in running the company. In
fact, Frey has delegated so much of the company's operations to its workers that he now feels little in the
dark. "I now know very little about what's going on, on a day-to-day basis," he confessed.
At Cin-Made, empowerment and delegation are more than mere buzzwords; they are the way of
doing business – good business. "We, as workers, have a lot of opportunities," said Williams. "If we want
to take leadership, it's offered to us."
Question & Answers:
Q 1. How were principles of delegation and decentralization incorporated into Cine – Made operations?
Q 2. What are the sources and uses of power at Cin – Made?
Q 3. What were some of the barriers to delegation and empowerment at Cin –Made?
Case – 2
Culture Shock
Warren Oats was a highly successful executive for American Auto Suppliers, a Chicago-based company
that makes original-equipment specialty parts for Ford, GM, and Chrysler. Rather than retreat before the
onslaught of Japanese automakers, AAS decided to counterattack and use its reputation for quality and
dependability to win over customers in Japan. Oats had started in the company as an engineer and
worked his way up to become one of a handful of senior managers who had a shot at the next open vicepresidential
position. He knew he needed to distinguish himself somehow, so when he was given a chance
to lead the AAS attack on the Japanese market, he jumped at it.
Oats knew he did not have time to learn Japanese, but he had heard that many Japanese executives
speak English, and the company would hire a translator anyway. The toughest part about leaving the
United States was persuading his wife, Carol, to take an eighteen-month leave from her career as an
attorney with a prestigious Chicago law firm. Carol finally persuaded herself that she did not want to miss
an opportunity to learn a new culture. So, armed with all the information they could gather about Japan
from their local library, the Oats headed for Tokyo.
Known as an energetic, aggressive salesperson back home, Warren Oats wasted little time getting started.
As soon as his office had a telephone—and well before all his files had arrived from the States—Oats made
an appointment to meet with executives of one of Japan’s leading automakers. Oats reasoned that if he
was going to overcome the famous Japanese resistance to foreign companies, he should get started as
soon as possible.
Oats felt very uncomfortable at that first meeting. He got the feeling that the Japanese executives were
waiting for something. It seemed that everyone but Oats was in slow motion. The Japanese did not speak
English well and appeared grateful for the presence of the interpreter, but even the interpreter seemed to
take her time in translating each phrase. Frustrated by this seeming lethargy and beginning to doubt the
much-touted Japanese efficiency, Oats got right to the point. He made an oral presentation of his
proposal, waiting patiently for the translation of each sentence. Then he handed the leader of the
Japanese delegation a packet containing the specifics of his proposal, got up, and left. The translator
trailed behind him as if wanting to drag out the process even further.
By the end of their first week, both Oats and his wife were frustrated. Oats’s office phone had not rung
once, which did not make him optimistic about his meeting with another top company the following week.
Carol could scarcely contain her irritation with what she had perceived of the Japanese way of life. She
had been sure that a well-respected U.S. lawyer would have little trouble securing a job with a Japanese
multinational corporation, but the executives she had met with seemed insulted that she was asking them
for a job. And the way they treated their secretaries! After only a week in Japan, both Carol and Warren
Oats were ready to go home.
A month later, their perspective had changed radically, and both looked back on those first meetings with
embarrassment. Within that month, they had learned a lot about the Japanese sense of protocol and
attitudes toward women. Warren Oats believed he was beginning to get the knack of doing business with
the Japanese in their manner: establishing a relationship slowly, almost ritualistically, waiting through a
number of meetings before bringing up the real business at hand, and then doing so circumspectly. It was
difficult for Oats to slow his pace, and it made him nervous to be so indirect, but he was beginning to see
some value in the sometimes humbling learning process he was going through. Perhaps, he thought, he
and Carol could become consultants for other executives who needed to learn the lessons he was
beginning to understand.
Case Questions
1. What specific errors did Warren and Carol Oats make during their first week in Japan?
2. If you were talking to a non-U.S. businessperson making a first contact with an American
company, what advice would you give?
CASE 3 :
COKE’S EUROPEAN SCARE
What seemed like an isolated incident of a few bad cans of Coca-cola at a school in Belgium turned into
near disaster for the soft drink giant’s European operations. In June 1999, Coke experienced its worst
nightmare-acontamination scare resulting in the recall of 14 million cases of Coke products in five European
countries and a huge blow to consumer confidence in the quality and safety of the world’s most recognizable
brand.
After the initial scare in Bornem, Belgium, Coke and Coca-Cola Enterprises (CCE), a bottler 40 per
cent owned by Coca-Cola, thought they had isolated the problem. Scientists at the CCE bottling plant in
Antwerp found that lapses in quality control had led to contaminated carbon dioxide that were used in the
bottling of a recent batch of Coke. Company officials saw the contamination as minor problem and they
issued an apology to the school.
At the same time that the problems were being dealt with in Antwerp, things were breaking down at
Coke’s Dunkirk, France, bottling plant. In Belsele,10 miles from Bornem. Children and teachers were
complaining of illnesses related to drinking Coke products. The vending machines at the school were
stocked with Coke from the company’s Dunkirk plant and were thought to be safe. Now a second bottling
plant’s practices were being questioned. What initially seemed like an isolated incident was now a crisis.
On June, 15,1999. 11 days after the initial scare in Bornem, Coke finally issued an explanation to the
public. Most Europeans were not satisfied, Coca-cola officials used vague language and often contradicted
one another when making statements. France’s health minister, Bernard Kouchner, stated “That a
company so very expert in advertising and marketing should be so poor in communicating on this matter
is astonishing”.
After three weeks of testing by both Coke officials and French government scientists, it was concluded
that the plants were safe and that their was no immediate threat to the health of concluded that the
plants were safe and that there was no immediate threat to the health of consumers. Coke has destroyed
all of the pallets in Dunkirk and tightened quality control on CO2.
How could this happen to the company that is revered worldwide for its quality control and the
European market now represents 73 per cent of total profits.14 While the scare has had some effect on
Coke’s profits in Europe, the company is more concerned with damages to its reputation and consumer
confidence in its products.
Many critics say that Coke’s slow response time, insisting that no real problem existed and belated
apology have severely damaged the company’s reputation in Europe. Some would disagree and feel that
Coke handled the situation as best it could. “I think that Coke acted in a responsible, diligent way,” says
John Sitcher, editor of Beverage Digest. “Their first responsibility was to ascertain the facts in a clear and
unequivocal way. And as soon as Coke knew what the facts were, they put out a statement to the Belgium
people.”
The character and quality of a company can often be measured by how it responds to adversity. Coca-
Cola believes that this crisis has forced the company to re-examine both its marketing and management
strategies in Europe. Coke executives in Brussels are predicting that the company will double its European
sales in the next decade and that this setback will only make the company stronger. Wall Street analysts
seem to agree. Only time will tell.
Questions:-
1. What are the management issues in this case
2. What did Coke do and what could have been done differently?
3. What are the key factors that were or should have been considered by management?
Section B
Q .1: Think back to the executive who recognized employees with motivational stickers, such as
“Dynamite.” What impact might such a sticker have on your job performance and satisfaction?
Q. 2: How might understanding the steps in the communication process help managers and staff
professionals do a better job?
Q. 3: In what way is participating on a spots team, in a musical band, or in an orchestra good
participation for being a member of a work group on the job?
Q. 4: Why don’t managers who are great controllers generally receive as much publicity as managers who
are great leaders?
CONTACT;
DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com
Business Strategy
N.B: 1} Attempt all questions
Section A
Case – 1 Marks-16
Leisure and entertainment usually gain prominence in an economy that is growing; fast and provides leeway
to the consumer to spend on things other than necessities India’s entertainment and media industry is one
of the sunrise industries, growing at a Compound annual growth rate of 18 per cent, much faster than the 9
per cent national economic growth rate. According to a study conducted by the Federation of Indian
Chambers of Commerce and Industry and PricewaterhouseCoopers the industry size is Rs. 437 billion
presently and is projected to grow to Rs. 1 trillion by 2010. Positive measures taken by the government,
technological advancement and entry of large corporate houses in all the segments of the industry are
fuelling the impressive growth.
Among the various segments of the industry, there, are radio, television, films, out-of-home advertising arid
live entertainment While radio and television make up the fastest growing segments, film entertainment
growing at 16 per cent annually, is another potential segment. The film entertainment segment of the
entertainment and media industry has several strategic groups that could be roughly categorized along the
value chain of film making and distribution These strategic groups could be production, distribution, retail,
music and home video. While many of the companies operate in more than one activity area on the value
chain, such as Yash Raj Films operating in all activity areas except retail, there are a few that concentrate
on just one or two activity areas, such as RGV Film Factory that operates only in production of films. Size
based on revenue could be another basis for categorization of the film entertainment companies in India.
Among the large size companies are Adlabs, Sahara, Percept, Yash Raj Films and UTV, that could touch or
exceed Rs. 1000 revenues by 2010. The middle-rung is of companies of revenue size of Rs. 300 — 500
crore, such as pure retail distribution companies such as lnox Leisure, P’SR Cinemas, Pyramid Saimira and
Valuable Group pure content companies such as Pritish Nan Communications Vishesh Films or RGV F
Factory. The third category is of emerging companies in the revenue size range of Rs. 1OC — 300 crore,
such as Real Image, Red Ice and Seven Entertainment Major investments in the media and entertainment
industry in recent years have been ploughed into infrastructure, largely into multiplex chains and digital
theatre chains. These investments are made by companies that are pure retail and distribution companies.
Among the major ones in this strategic group is the Chennai-based Pyramid Saimira Theatre Limited (PSTL)
- India’s largest theatre chain company with over 29 multiplexes operation, with over 371 screens in 2007,
project to increase to 2000 screens by 2010. It was incorporated in 1997 as Pyramid Films international
Private Limited and has gone through severe changes of name to emerge as Pyramid Saimira Theatre
Limited, reflecting its concentration on the theatre business, though it operated in film production and TV
content production in the past Film making and distribution in India has been traditionally an unorganized
and fragmented industry, managed through experience rather than systems. In recent years, one trend in
the film industry is corporatization Under corporatization the traditional organizations dealing with the
various aspects of film making’ and distribution. Become formal organizations registered under the legal
process, such as the Companies Act, 1956. Along with corporatization comes increasing professionalization
in the management of organizations. Technology, especially information and communication technology, has
played its part in heightening the chances of making corporatization and professionalization successful A
new breed of organization has emerged on the horizon that deals with the various activities in an organized
and Systematic manner. Pyramid Saimira intends to be of such organizations. The people behind Pyramid
Saimira include Mr. V. Natarajan, a Gemini-studio’s veteran of the Tamil film industry, Mr. P. S.
Saminathan, the finance and technology brain behind the flagship project and Mr. N.Narayanan, the
management man. The financials for the year 2006-2007, show net sales of Rs 1661.52 crore and net profit
of Rs. 158.82 crore on equity capital of Rs. 282.76 crore.
The flagship project of the Pyramid Saimira is the mega digital. Theatre chain project being implemented in
two phases, with a total cost of Rs. 414.5 crore. This is an information technology driven venture that is a
first-mover in the film industry in India. The basic idea is to have a chain of theatres for exhibition of films
that have been encrypted in the digital medium. The theatres are linked through a satellite-based
communication network. The films are released in the digital format and simultaneously exhibited in the
digitally- enabled theatres through the satellite network. The one-stroke release and exhibition of films is
claimed to reduce the chances of films being pirated, which is the Achilles’ heel of the film
industry in the world. It also avoids the use of costly film rolls and reels now used to photograph and
distribute films. The digitized theatres also offer the potential of developing them as value-added service
providers, enlarging their role from that of entertainment providers to commercial infrastructure providers
such as shopping malls, exhibition spaces and education and training venues.
The business model of the digital theatre concept is based on a vertically-integrated theatre chain on longterm
lease, where the revenue streams emanate mainly from the ticket sales at the individual theatres at
the demand end, much like it does now. The critical difference is on the supply side where the distribution,
retailing and exhibition of films are done in an integrated manner through digital means connected through
a communication network. This effectively eliminates the film distributor and tries to achieve economies of
scale through volume sales. The centralized network operating centre is the nodal supply point.
A standardized delivery process makes the process operationally low-cost, albeit at a high initial investment.
Additional revenue streams, generated through exploitation of the theatre infrastructure to provide other
services than entertainment, help to recoup the high initial investment. Creating a franchise system for a
long-term lease enables sharing of the initial high costs7 of realty by engaging partners who own the
theatre space but use Pyramid Saimira’s digital distribution and exhibition facilities at a price. There are
additional possibilities of creating content library of films, extending networks abroad and building
integrated family entertainment centers.
The digital theatre is a compact model, having various elements such as digital projectors, servers,
connectivity equipments, high-definition recorder and telecine, system integration and software solution
providers. For each of these, there are in-house and external agencies in partnership. For instance,
connectivity equipments are being provided by Tata Net while servers are arranged by a partnership of
Saimira Access Technologies with Real Image Media.
Pyramid Saimira’s SWOT analysis indicates the following factors:
• Strengths Established organization, experienced promoters and networking with financially strong and
capable partners.
• Weaknesses Lack of in-depth technological experience, risks of being the first-mover and limited financial
capability.
• Opportunities Favorable demographics, increasing spending on entertainment, potential expatriate
demand, availability of technological infrastructure such as broadband and digitized films a regenerative
asset that has multiple uses.
• Threats Unorganized film industry, fickle nature of demand for films, powerful industry bodies with political
lobbying capabilities, high entertainment taxes, piracy, high cost of infrastructure and faulty governmental
policy implementation.
Pyramid Saimira’s global ambitions are reflected in its vision statement, which is ‘to be the largest vertically
integrated theatre chain in the world carving a unique space in mass access using theatre infrastructure to
deliver education, entertainment and information at affordable cost to all sections of society’. The digital
theatre project is being implemented in Tamil Nadu and is planned to be expanded throughout India and
abroad in areas where there are a large number of Indian expatriates such as South East Asia, Europe and
the U.S. The acquisition of the Texas-based Fun Asia made through the subsidiary Pyramid Saimira
Entertainment America, targeting the Asian film market, marked the entry of Pyramid Sairnira in the U.S.
and Canada. There are subsidiaries operating in Singapore and Malaysia, where there is a substantial
number of people of Indian origin.
Questions:- (Any Two)
1. Attempt a Porter’s five- forces analysis for the Indian film industry, highlighting the factors relevant for
Pyramid Saimira’s strategic planning.
2. Attempt a strategic groups analysis highlighting the factors relevant for Pyramid Saimira’s strategic
planning.
3. Identify the subjective factors that may have an impact on the strategic choice made Pyramid Saimira.
Case –2 Marks-16
The origins of Deepak Nitrite—the flagship comp any of the Deepak group of industries-go back to 1970
when Chimanlal K. Mehta, an entrepreneur, sensing an opportunity in India’s drive towards self- sufficiency
and import substitution and relying on his trading and manufacturing experience, ventured into the
chemicals industry. The Company was originally incorporated as Deepak Nitrite Private Limited in 1970,
under the Companies Act, 1956 and was subsequently converted into a public limited company in the name
of Deepak Nitrite Limited in 1971. The company’s registered office is at Vadodara and its corporate office is
at Pune with manufacturing plants in Gujarat and Maharashtra. Net sales for the year ending March 2007
are about Rs. 4172 million and net profit is Rs. 357 million. Exports constitute nearly half of the sales.
Overt he years, Deepak Nitrite has grown impressively through a judicious use of integration, related
diversification and internationalization strategies, using the means of acquisition and restructuring. In 1983,
adopting a horizontal integration strategy, the company used foreign collaboration to start commercial
production of ammonia. In 1989, the group employed ammonia-based forward integration and also
diversified into the chemicals related area of methanol. In 1992 came the commercial production of lowdensity
ammonium nitrate, nitro phosphate and nitric acid, resulting in a multi-product portfolio consisting
of organic, inorganic, fine and specialty chemicals. Deepak Nitrite has made tremendous progress over the
years and has posted impressive financial results as well as excellent export performance. It (the growth of
the company), was born out of a process of deep thinking, strategy and planning,’ said the managing
director Deepak Mehta, who claims that planned strategy has led to growth. Environmental scanning led to
foreseeing the threats coming from a dismantled duty regime. Anticipating this, the company went about
implementing strategies that would convert these threats into opportunities. The strategic approach was to
build on its strengths in niche areas of the chemicals market, leverage strong R & D and a robust lab to
product ion skills, bring the strengths up to global levels and work towards a leadership position.
The success of Deepak Nitrite could be attributed to its focused strategy. Implementation capabilities. A
series of plans, programmes and project have been initiated and implemented over the years, in alignment
with its corporate and business strategies. For instance, it has worked on a number of R&D projects over
the years to develop its skills to swiftly transfer products from the labs through production to the markets.
It has effectively developed differentiating capabilities by planning and implementing projects for handling
bulk products to handling batch products, transforming from a commodity supplier to a value-added,
branded product supplier with customization skills. Projects in supply chain management have helped the
company in extending its ability to source its own raw material to tracking customers’ delivery and
inventory scheduling. Cost control has been attempted through wider sourcing; including international vend
ors, and investing in energy-saving equipments.
In the course of strategy implementation, Deepak Nitrite has to deal with a host of government agencies for
procedural implementation. For example, raising finance has taken it to SEBI. A continual interaction takes
place with the export and import regulatory authorities. For instance, anti-dumping duties have been levied
on the comp any for sourcing cheap materials from China. Being in the chemical processing industry, the
company is under the scrutiny of environmental protection agencies. It has been a signatory to the
‘Responsible Care’ initiative of the global chemical industry. It has also achieved the ISO 14001 certification.
Dealing with explosives, the company has to seek licenses from the Department of Explosives, Industrial
Safety and Health Departments and State Pollution Boards of Gujarat and Maharashtra. Apart from these
are the regulatory requirements dealing with taxation purposes. Resource generation has been through
raising money in the capital markets on the basis of its good reputation, internal accruals, loans from
commercial banks and financial institutions and sale of factory land at Pune.28
Questions:-
1. Identify and discuss briefly, the three themes of strategy implementation of activating strategies,
managing change and achieving effectiveness in the case of Deepak Nitrite.
2. picking up data from the case, demonstrate how formulation and implementation of strategy are
interdependent.
Case –3 Marks-16
Synergos# is a young management and strategy consulting firm based at Mumbai. It was established in
1992 at a time when there were a lot of expectations among the industry people from the liberalization
policies that were started the previous year by the Government of India.
The consulting firm is an entrepreneurial venture started by Urmish Patel, a dynamic person who worked
with a multinational consulting-firm at the He left his comfortable position there to venture into the
management consultancy industry the motivation was to be ‘the master of his own destiny’ rather than
being an employee working for others. Urmish comes from an upper middle-class Gujarati family, settled in
a small town in Rajasthan. His father was a government servant who retired with a meagre pension. His
mother is a housewife. His other siblings are all educated and well-settled in their respective careers and
professions. Urmish is a creative individual, uncomfortable with the status-quo. During his student days at a
college at Jaipur, he was continually coming up with bright ideas that some of his friends found to be
preposterous. To him, however, these were perfectly achievable ideas. He studied biotechnology and then
went to the US on a scholarship to do his Masters. After a semester at a well-known university there, he lost
interest and switched to pursue an MBA. He liked it and soon settled down to work with n American
consultancy firm and toured several countries on varied assignments during the seven years he worked
there. In 1992 came the urge to Urmish to chuck his job and be on his own. It was a risky, yet an exciting
step to take. His accumulated capital was limited— just enough to rent office space, buy a few computers
and hire an assistant. There were no consultancy assignments for the first three months. But an
acquaintance soon came to his aid, introducing him to the CFO of a major family business group who
needed advice on a performance improvement project they wanted to launch. The opportunity came in
handy though the returns were nothing to write home about. That project was the first step to many more
that came gradually. Synergos started gaining presence in the competitive management consultancy
industry and attracting attention from the people whom they worked for. Word-of-mouth publicity led them
from one project lo another for the first three years till 1995. Synergos took up whatever came its way,
delivering a cost-effective solution to its clients. A team of four had formed by now, each member of the
team specializing in services rendered to the clients. For instance, one of the members is a specialist in
engineering projects, while another has expertise in finance. The third one is a service sector specialist, also
having experience in dealing with government matters.
The phase of rapid growth started some time in 1995 when the Synergos team decided to focus on the
small and medium enterprises (SMEs). These were firms that realized they had problems needing specialist
advice; but were apprehensive to app roach the big firms on account of their limited outlay and
inexperience of dealing with such firms. Synergos came to their aid by tailoring their services as near as
possible to their needs. Another differentiation platform Synergos offered to its client was a fully-integrated
consultancy service where it got involved right from the stage of planning down to its implementation and
monitoring.
Presently, Synergos has grown to be a medium- sized consultancy firm, serving clients in India and abroad,
working for industries ranging from auto components to financial services and for manufacturing
organizations to service providers. Somehow, nearly half of the assignments it has worked on have been for
mid-sized, upcoming family- owned businesses, a niche it has served well. These organizations typically
need a boutique sort of consultancy that can offer customized services dealing with a broad range of
practices related to strategy, organization design, mergers and acquisitions and operational matters such as
logistics and supply-chain management. Synergos fits in with their requirements owing to its personalised
service and reasonable-commission structure. The organizational structure at Synergos has a board at the
top, consisting of seven people, including the four founding members and three independent directors. One
of the independent directors is the chairman of the board. Urmish, as the founder CEO, also heads an
executive management committee with each of the founding. Members, leading three other top-level
committees dealing with business portfolio, service management and executive recruitment.
The management team is called the professional group. The rest of the employees are ref erred to as the -
staff. -The professional group has young women and men who are graduates from some of the best
institutions in India and abroad. They are assigned to taskforces based on their qualifications, experience
and interests. The departmentation at Synergos is flexible, based on -an interplay of the three categories:
skill, service and specialty. For instance, a professional may have IT skills, may have worked to provide
supply- chain management services and developed expertise in handling operational assignments for
medium-sized food and beverage firms. There is a lot of multi-tasking however, to utilise the wide - range
of skills and special expertise that the professionals have For administrative matters the professionals are
assigned to client-service departments of industry solutions, enterprise solutions and technology solutions.
The flexibility that such an organisational arrangement affords seems to have been the major reason for the
evolution of the organization structure at Synergos over the years.
The staff group of employees consists of the support people who provide a variety of services to the
professionals. Among these are research assistants, industry analysts, documentation experts and
secretarial staff. There is no set pattern for assignment of staff to the administrative departments and
generally, a need-based approach is followed, depending on the workload at a particular time.
Recruitment for professionals is stringent. Synergos typically looks for a good combination of education and
experience and lays much emphasis on the compatibility of the prospective employee with the shared
values. Creativity, broad range of professional interests, intellectual acumen, team- working and physical
fitness to undertake demanding tasks and work for long hours are the criteria for hiring. There are not many
training opportunities except the on-the-job learning. New professionals are assigned to a mentor for some
time till they a ready to handle assignments autonomously. The staff members are usually recruited from
fresh graduates, with good degrees from reputed institutions, in arts, sciences and commerce. The staff
positions are also open for persons wanting to work on part-time or project-bases. Emphasis is given to the
ability of the prospective staff to undertake multi-tasking and work with documentation and word processing
and presentation software packages.
The compensation system consists of a base salary with commission and bonus depending on performance.
There are other usual elements such as medical reimbursement, loan facility and gratuity and retirement
benefits. The performance appraisal is informal, with at least one of the four founding members being part
of the evaluation committee for a professional. Usually, the found-c member closest to the work area of the
employee is involved in determining the rewards to be give’. The time-cycle for appraisal is one year.
Management control is discreet and performance-based rather than behavior-based. The means for control
are informal, such as direct supervision. Urmish is a strong proponent of the emergent strategy and is not in
favor of tying Synergos to a fixed strategic posture. So are the other founder members, though at times
they do talk about deciding on a niche such as the SME organizations as clients and enterprise solutions as
the core competence. In the highly fragmented consultancy industry where it is possible for even one
person to s up an office in a commercial area and leverage corrections to secure projects, Synergos is open
opportunities as they emerge, while trying to maintain the flexibility that has made it successful till no
Questions :- (Any Two)
1. Identify the type of organization structure being used at Synergos and explain how t works. What are the
benefits of using this type of structure? What are the pitfalls?
2. Express your opinion about whether the structure is in line with the requirements of the strategy that
Synergos is implementing.
3. Based on the information related to the information, control and reward systems available in the case,
examine whether these systems are appropriate for the type of strategy being implemented.
Section B
1. Select any organization of your choice. Identify the high priority environmental factors in its
relevant environment. Use the information to prepare a summary ETOP for the organization.
2. Which sector of environment is currently relatively more important, In general, in the Indian
context? What sectors are likely to gain importance in the near future?
3. Describe the different ways in which digitalization can help organizations in achieving cost
leadership, differentiation and focus.
4. Describe the contents of a good and workable strategic plan for a large business group or a
public sector enterprise in India.
KAZIAN GLOBAL SCHOOL OF BUSINESS MANAGEMENT
MARKS: 80
COURSE: EMBA Sem-I
SUBJECT: Consumer Behavior
___________________________
Section A
Case – 1 -Fashion Statement through Khadi
As India’s traditional hand-spun cotton fabric, khadi feels coarse and unrefined. But the feelings it evokes
in anyone with any empathy in India’s heroic struggle for emancipation from colonial rule, is anything but
that.
Till date the fabric bears the invisible-but-indelible imprint of the charkha (spinning wheel), the late
M.K. Gandhi’s revolutionary symbol for self-reliance and emancipation (through unity, expressed in the
refusal to kneel before insolent might). Instead of exporting raw cotton and importing fine Manchestermade
cloth, freedom fighters wanted all Indians to spin their own clothing and boycott imports to weaken
the British Raj.
With the end of Colonial Rule in 1947, the congress government headed by Jawaharlal Nehru opted
for state-led large-scale industrialization, instead of Gandhi’s idea of rule hut-industry development. But it
also decided to provide employment to thousands of spinners by selling their output through a vast
network of retails stores.
Thus was formed the Khadi and Village Industries Commission (KVIC), a nodal agency to promote
the fabric, with its Khadi Bhandar outlets in urban India.
Over the years, KIVC set up thousand of outlets across India. Sales were good. But with the
evolution of technology, perhaps it was inevitable that the sentimental dreams of village self-reliance
would be disrupted. And so it was. Modern machines of Europe’s industrial revolution were soon to arrive.
Indian industrialists set up capital-intensive textile mills and began the mass-production of fine cloth. As
the mills gained volume, they achieved economies of scale and started lowering prices. And so, the
labour-intensive homespun fabric losing out to mill fabric.
Driven by its sentimental attachment to Khadi, and concern for mass-scale-sector employment, the
government started subsidizing India’s traditional spinners. This was an extension of its ‘tax-the-rich’ and
‘feed-the-poor’ outlook, and was projected via the media as a good thing. In any case, KVIC was intended
to be a noble organization, motivated by lofty ideals instead of profit. For decades, all was fine behind the
‘khadi’ curtain of socialism’. The reason behind the support mechanism even acquired a holiness of its
own. Institutionalized, it became immune to doubt. But alas, the system was artificial and its main flaw lay
in the very ‘certain’. Public information was lacking, and so it escaped proper scrutiny. In the real would,
even the best-international projects can fail, or worse, degenerate into instruments for patronage.
But the 1990s, the vision of clothing the masses with khadi was beginning to look absurd. Despite
all policy incentives to the sector, people were buying efficiently machine-made textiles. The forces of
mass production were making polyester, which had gained economies of scale at the raw materials stage
(made from petrochemicals), cheaper still. Yet KVIC continued to produce huge quantities and sell khadi
clothes through its extensive retail chain. By now, khadi was more expensive than other fabrics and had
acquired the image of an outdated clothing material worm chiefly by politicians and social workers.
Ordinary people preferred cheaper alternatives.
Was khadi a lost cause-stuck in the time wrap? Clearly, if KVIC continued the way it was; it was
headed for trouble. Given India’s poor fiscal health, subsidies had become untenable. Yet, the fabric
couldn’t be torn out from consciousness of caring Indian. Something needed to be done. And fast.
By the start of the new century, KVIC discovered a pragmatic solution based on using modern
marketing to revive the fabric. After all, the Free Market can also accommodate common sentiments.
Instead of directing taxpayers’ money towards the cause, it was thought that private citizen should
contribute on their own volition (by buying khadi at premium prices).
The strategy? Refurbish the range, acquire an upscale image, aim the cloths at the well off and
reposition khadi as a fashion statements. Given KVIC’s lineage, the idea was radical. But it was worth a
try. KVIC started with a single-outlet experiment in Delhi’s Khan Market. The first air-conditioned shop
opened here in May 2001, selling khadi muslin garments designed by high-profile designers (Rohit Bal and
Malini Ramani), in addition to a well-packaged range of Ayurvedic products. It was a runaway success,
with Delhi’s elite thronging the shop.
KVIC started marketing two brands, Khadi and Sarvodaya, to which it owns the rights. The former
caters to the premium and export segments, and include essential oils, herbal oil soaps, face scrubs, and
dry fruits honey. Sarvodaya, the mass-market brand, sells mass items such as toilet soap, honey, pickles,
spices and incense sticks.
The move has also sparked off a controversy. Some Gandhians, troubled by the glamour, are
aghast at this ‘betrayal of ideals’. Realists, however, criticize them for failing to free themselves of their
dearly held ‘khadi mindset’. Don’t get them wrong. The latter love the old idealism too. But they also
realize that a product with great symbolic value deserve to be marketed as such, if it is to reach out, and
with mind-space for the poor weaver’s child who might have something to offer if given a chance. Holding
Gandhi’s method (or tools) as sacred amounts to confusing the means with the end.
The capital’s response to Khan Market shop has been so good that KVIC wants to upgrade a
significant fraction of its network. The transformation is to be entrusted to a new marketing company that
will function as any other professional firm. Plans to extend the concept include display units at airports
and modern outlets at Delhi’s Ashoka Hotel, Nehru Place, Hauz Khas, and Kamla Nagar. Next on the
agenda: Jaipur, Chandigarh and Lucknow. What’s more, the sales personnel are to be retrained for
customer orientation at the shop-floor level. The sale boost is expected to be substantial. The Khadi Gram
Udyog store at Connaught Place, New Delhi does an annual turnover o Rs. 10 crore. After renovation, this
is expected to touch close to Rs. 25 crore.
The product range will be widened too. Ahmedabad’s National Institute of Design (NID) has
proposed a special cell for design support, while Delhi’s National Institute of Fashion Technology (NIFT)
may also pitch in.
KVIC has hired three and agencies to promote its brands: Appeal for Khadi; Market Missionaries for
Sarvodaya and Pressman for the corporate and promotional schemes. The budget is about 25 crore. Khadi
campaign is likely to start by highlighting the brand’s eco-friendly credentials, before turning attitudes
towards it and portraying it as a lifestyle insignia.
Vivek Sahni has been roped in to do the packing graphics and retail outlets. E-commerce options
are also being weighed, with KVIC having already booked khadi.com and khadi.org as its domain names.
The export thrust will also be sharpened. Right the around 200 production units, which cater
exclusively to the export to the market. KVIC wants to identify new markets and tap them with its
products. Test marketing efforts are already underway in South Africa, Dubai, and a few other overseas
markets.
QUESTIONS:-
1. Would marketing in foreign countries require study of a popular country’s culture aspects and
buyer behaviour before marketing Khadi there? What aspects would need to be studied?
2. Suggest an approach to make Khadi garments popular among Indian youth.
Case-2- Purchase of a Microwave Oven
Ramesh Sikand and his family lived a comfortable two-bedroom flat in a respectable locality in a large
city. He was employed with a general insurance company in a supervisory capacity. His wife, Sumita was
a teacher in an English medium public school. Both their children, Rachit aged 10 and Sarita aged 8
years, were studying in the same school where Sumita was employed.
Just before Diwali in 2002, one Friday evening the family went shopping. Besides clothes for
children and few other things, they bought a 27 liter. Excel microwave from an outlet with good
reputation. Sumita was very happy and the children were excited with this new purchase. Both the
children were anticipating quick cooking of a variety of dishes they liked. They were expecting that
everyday their mom would give them school Tiffin-boxes packed with noodles other Chinese food.
To celebrate, Sumita invited two of her school colleagues for dinner and prepared a few dishes in
her brand new microwave. Both her friends observed her cooking with great interest. On the dinner table
most talk was around difficulties of both spouses being employed and the shortage of time to attend to so
many household chores. The friends, Ramesh and the kids profusely praised the dishes and how quickly
everything for the dinner was ready. What really took most time was cooking the Chapatis. Sumita said,
“ How nice and convenient it can be if some portable chappati-preparing gadget was available.”
Ramesh said, “It was my idea to buy a microwave. “Sumita said, “Why? You have forgotten. It
was I who two years ago during exam time suggested that it would be good if we buy a microwave.” Both
of them were trying to take credit for the purchase. Finally, both of them agreed that the idea to buy a
microwave was discussed after they attended the dinner at a friend’s place where for the first time they
saw a microwave in operation.
One of Sumita’s friends asked, “why did you buy this particular brand? I have read in the
newspaper just a few days back that there are attractive schemes on some brands.” Sumita and Ramesh
spoke simultaneously,” In fact, both of us have read advertisements and articles in magazines within the
last six months about what features and benefits every brand offers. “Sumita said, “As and when I got
the opportunity, I consulted some of my knowledgeable friends who have owned microwaves for quite
some time, what to look for and what brands to consider.” “You know, I came across some scaring
information about the safety of microwaves. Now the technology is so advanced that all those scaring tit
bits of information are quite baseless. ”Ramesh said, “Whatever we learned from magazine articles and
experienced friends has helped us quite a lot in buying this brand.” Sumita said, “About schemes, you are
right. We too got a set of three bowls to be used for microwave cooking. Besides, we have paid just a
thousand rupees and the rest would be paid in fifteen interest free installments. There is an extended
warranty of three years, and if we are not satisfied with the machine, we can return it within the first 30
days of purchase, and no questions asked. Our Rs.1,000 would be refunded in cash.”
One of Sumita’s friend said, “Recently, one of my relations in Delhi told me her bad experience with
this brand. She went to the extent of suggesting me never to buy this brand of microwave.” Ramesh said,
“I don’t know what to say about your relation’s experience. What information we could collect goes quite
in favor of this brand. Those who recommended it have had few years use experience without any
complaints.” Sumita’s friend said, “You may be right Bhaisaheb. But one thing we all know is that these
are machines and they are not perfect. Excellent cars with unmatched reputations like BMW, Rolls Royce,
and Mercedes too, need repairs.” She smiled, and said, “Haven’t you heard of Murphy’s Law “If a thing
can go wrong, it will”.
At about 10.30 pm, the friends thanked Sumita and Ramesh, and congratulated them for owning a
microwave and left. Sumita and Ramesh were a bit pensive after their departure. They felt somewhat
uneasy about the correctness of their decision in choosing this particular brand of microwave. They knew
their money was safe, but it would be embarrassing if they had made a mistake. They agreed to discuss
the matter with some of their eexperience3d friends.
QUESTIONS:-
1. Discuss whose decision it was to buy a microwave and when was the purchase decision made.
2. What factors influenced the purchase of the microwave?
3. What is likely to be the post-purchase behavior in this case and what is the significance of such
behavior?
4. What is the significance of post-purchase behavior for the marketer?
Case-3- Fancy Dreams
The boardroom was filled with the voice of marketing manager, Ashutosh Kant. He was addressing the
meeting of senior managers of Fancy Dreams. “The last three months were spent by our market research
team in finding out the reasons and patterns of sales at stores. Let me emphasize that retail sales is
showing growth all over the country and in the process, competitions is intensifying. We can no longer
afford to sit and relax, instead we need to put ourselves fully to retain our market leadership.” There facts
revealed by the survey were particularly disturbing.
1. People found Fancy Dreams service staff bordering on aggressiveness and not really helpful, as
customers were never left to browse.
2. Children got bored and hence parents often left the store within minutes after finishing essential
shopping. They never browsed or spent leisure time at Fancy Dreams store, which could otherwise
help promote sales.
3. With many choices available in the market, consumers stopped treating Fancy Dreams store as
unique and exclusive anymore.
Rehman, an entrepreneur, had set up a garment shop in one of Delhi’s busy up market area about 10
years ago. He realized that to attract customers, he must do something new. With this in mind, he
chalked out a detailed plan to open a chain of stores called Fancy Dreams. Some major features of this
store were:
1. Complete dress range for kids, parents and teenagers.
2. Full accessories for women and in footwear, purses, jewelry and cosmetics.
3. A play center where kids could spend time when the parents shopped.
The stores were opened in two locations in Delhi on an area of 10,000 sq.feet each. Within six
months, the stores became popular and the business grew rapidly and in three years the turnover crossed
Rs.6 crore. The promotion plans included advertising in print media and through cable operators. The
store also conducted festivals such as children’s carnival, and Valentine special etc., to attract crowds of
customers.
Stress on store ambience was high as Rehman wanted to create an image of a complete shopping
experience for the entire family. The sales personnel were carefully selected and trained to promote, not
push, any product and to encourage customers to browse through.
The women’s section was given a feminine touch and the men’s section had polished wood and leather
all over. The garments, the accessories, and the gifts were displayed in large racks and
Full-length mirrors were placed in multiple places. Sales personnel present on all the three floors often
advised the customers but never showed around everything. The kid’s section included garments, toys,
books, and was manned by more staff. The play center for the kids was a major attraction. The parents
could safely leave their children in the place, situated on the ground floor itself. The place had separate
section of toys and books for children and was supervised by trained staff. They felt comfortable that
their children would be taken care off properly and the parents, therefore, could leave the children and
shop in a relaxed manner. This concept was unique and highly appreciated by customers and became the
major attraction for them.
The stores were one of a kind in the early 1990s and grew rapidly. The new sections on books, gifts,
and handicrafts were launched gradually and at any time the store had more than 200 categories of
products. During this time, the competition started intensifying as three similar ventures were launched in
the city. This didn’t bother Rehman much, because he felt he had built and image of Fancy Dreams being
the ultimate store. By 1996, multi-storey, one-stop stores became the trend in Delhi and many such
stores came up.
Rehman had expanded his stores in three other cities as well and the turnover had crossed Rs.40
crore. The total manpower rose to 500 and several new management and non-management cadres were
introduced in the company.
Last year during Diwali festival season, the store attracted nearly 40,000 customers in the entire
month. This worried Rehman as it was almost 20 percent less than their estimates. His marketing
manager, after ling discussions, hired a market research firm to study the buying pattern and preferences
of people walking in the store.
QUESTIONS:-
1. Identify the relevant major problems and issues in this case.
2. Suggest a strategy to rectify the problems.
Section B
1. You are the brand manager of a new line of light weight autofocus, economically priced digital cameras.
Describe how an understanding of consumer behaviour will help you in your segmentation strategy and
promotion strategy. What are the consumer behaviour variables that are crucial to your understanding of
this market?
2. Gillette, an established market leader in shaving products, is planning a foray into skin care products
for men. How can the company use stimulus generalisation to market these products? Can instrumental
conditioning also be applied in this marketing situation? How?
3. Which of the stages of the family life cycle would constitute the most lucrative segment/segments for
the following products and services?
(a) Domino's pizza
(b) Mobile telephones
(c) Mutual funds
Justify your answer.
4. What do you understand by extensive problem solving, limited problem solving and routinised response
behaviour? What kind of decision process can you expect in the following cases and why?
(a) Purchase of a greeting card for a close friend.
(b) Purchase of an after shave lotion/moisturizer.
KAZIAN GLOBAL SCHOOL OF BUSINESS MANAGEMENT
MARKS: 80
COURSE: EMBA (Sem-I)
SUBJECT: General Management
_____________________________________________________________________________
Section A
Case – 1
'That's not my job' - Learning delegation at Cin-made
When Robert Frey purchased Cin – Made in 1984, the company was near ruin. The Cincinnati, Ohi-based
manufacturer of paper packaging had not altered its product line in 20 years. Labor costs had hit the
ceiling, while profits were falling through the floor. A solid quarter of the company's shipments were late
and absenteeism was high. Management and workers were at each other's throats.
Ten years later, Cin – Made is producing a new assortment of highly differentiated composite
cans, and pre-tax profits have increased more than five times. The Cin – Made
workforce is both flexible and deeply committed to the success of the company. On-time delivery of
products has reached 98 percent, and absenteeism has virtually disappeared. There are even plans to
form two spin – off companies to be owned and operated by Cin-Made employees. In fact, at the one day
"Future of the American Workforce" conference held in July 1993, Cin-Made was recognized by President
Clinton as one of the best – run companies in the United States.
“How did we achieve this startling turnaround?" Mused Frey. "Employee empowerment is one
part of the answer. Profit sharing is another."
In the late spring of 1986, relations between management and labor had reached rock bottom.
Having recently suffered a pay cut, employees at Cin- Made came to work each day, performed the duties
required of their particular positions, and returned home-nothing more. Frey could see that his company
was suffering. "To survive we needed to stop being worthy adversaries and start being worthy partners,"
he realized. Toward this end, Frey decided to call a meeting with the union. He offered to restore worker
pay to its previous level by the end of the year. On top of that, he offered something no one expected: a
15 percent share of Cin-Made's pre-tax profits. " I do not choose to own a company that has an
adversarial relationship with its employees." Frey proclaimed at the meeting. He therefore proposed a
new arrangement that would encourage a collaborative employee-management relationship “Employee
participation will play an essential role in management."
Managers within the company were among the first people to oppose Frey's new idea of employee
involvement. "My three managers felt they were paid to be worthy adversaries of the unions." Frey
recalled. It's what they'd been trained for. It's what made them good managers. Moreover, they were
not used to participation in any form, certainly not in decision making." The workers also resisted the
idea of extending themselves beyond the written requirements of their jobs. " (Employees) wanted
generous wages and benefits, of course, but they did not want to take responsibility for anything more
than doing their own jobs the way they had always done them," Frey noted. Employees were therefore
skeptical of Frey's overtures toward "employee participation." "We thought he was trying to rip us off
and shaft us," explained Ocelia Williams, one of many Cin-Made employees who distrusted Frey's plans.
Frey, however, did not give up, and he eventually convinced the union to agree to his terms. " I
wouldn't take no for an answer," he asserted. "Once I had made my two grand pronouncements, I was
determined to press ahead and make them come true." But still ahead lay the considerable challenge of
convincing employees to take charge :
I made people meet with me, then instead
Of telling them what to do, I asked them.
They resisted.
" How can we cut the waste on his run ?" I'd say, or "How are we going to allocate the
overtime on this order ?"
"That's not my job," they'd say.
"But I need your input," I'd say. "How in the
World can we have participative management
If you won't participate?
"I don't know," they'd say. "Because that's
not my job either. That's your job. ?"
Gradually, Frey made progress. Managers began sharing more information with employees.
Frey was able slowly to expand the responsibilities workers would carry. Managers who were unable to
work with employees left, and union relations began to improve. Empowerment began to happen. By
1993, Cin Made employees were taking responsibility for numerous tasks. Williams, for example, used to
operate a tin-slitting machine on the company's factory floor. She still runs that same machine, but now
is also responsible for ordering almost $ 100,000 in supplies.
Williams is just one example of how job roles and duties have been redefined throughout Cin-
Made. Joyce Bell, president of the local union, still runs the punch press she always has, but now also
serves as Cin- Made's corporate safety director. The company's scheduling team, composed of one
manager and five lead workers from various plant areas, is charged with setting hours, designating
layoffs, and deciding when temporary help is needed. The hiring review team, staffed by three hourly
employees and two managers, is responsible for interviewing applicants and deciding whom to hire. An
employee committee performs both short – and long – term planning of labor, materials, equipment,
production runs, packing, and delivery. Employees even meet daily in order to set their own production
schedules. "We empower employees to make decisions, not just have input," Frey remarked. "I just
coach."
Under Frey's new management regime, company secrets have virtually disappeared. All Cin-
Made employees, from entry-level employees all the way to the top, take part in running the company. In
fact, Frey has delegated so much of the company's operations to its workers that he now feels little in the
dark. "I now know very little about what's going on, on a day-to-day basis," he confessed.
At Cin-Made, empowerment and delegation are more than mere buzzwords; they are the way of
doing business – good business. "We, as workers, have a lot of opportunities," said Williams. "If we want
to take leadership, it's offered to us."
Question & Answers:
Q 1. How were principles of delegation and decentralization incorporated into Cine – Made operations?
Q 2. What are the sources and uses of power at Cin – Made?
Q 3. What were some of the barriers to delegation and empowerment at Cin –Made?
Case – 2
Culture Shock
Warren Oats was a highly successful executive for American Auto Suppliers, a Chicago-based company
that makes original-equipment specialty parts for Ford, GM, and Chrysler. Rather than retreat before the
onslaught of Japanese automakers, AAS decided to counterattack and use its reputation for quality and
dependability to win over customers in Japan. Oats had started in the company as an engineer and
worked his way up to become one of a handful of senior managers who had a shot at the next open vicepresidential
position. He knew he needed to distinguish himself somehow, so when he was given a chance
to lead the AAS attack on the Japanese market, he jumped at it.
Oats knew he did not have time to learn Japanese, but he had heard that many Japanese executives
speak English, and the company would hire a translator anyway. The toughest part about leaving the
United States was persuading his wife, Carol, to take an eighteen-month leave from her career as an
attorney with a prestigious Chicago law firm. Carol finally persuaded herself that she did not want to miss
an opportunity to learn a new culture. So, armed with all the information they could gather about Japan
from their local library, the Oats headed for Tokyo.
Known as an energetic, aggressive salesperson back home, Warren Oats wasted little time getting started.
As soon as his office had a telephone—and well before all his files had arrived from the States—Oats made
an appointment to meet with executives of one of Japan’s leading automakers. Oats reasoned that if he
was going to overcome the famous Japanese resistance to foreign companies, he should get started as
soon as possible.
Oats felt very uncomfortable at that first meeting. He got the feeling that the Japanese executives were
waiting for something. It seemed that everyone but Oats was in slow motion. The Japanese did not speak
English well and appeared grateful for the presence of the interpreter, but even the interpreter seemed to
take her time in translating each phrase. Frustrated by this seeming lethargy and beginning to doubt the
much-touted Japanese efficiency, Oats got right to the point. He made an oral presentation of his
proposal, waiting patiently for the translation of each sentence. Then he handed the leader of the
Japanese delegation a packet containing the specifics of his proposal, got up, and left. The translator
trailed behind him as if wanting to drag out the process even further.
By the end of their first week, both Oats and his wife were frustrated. Oats’s office phone had not rung
once, which did not make him optimistic about his meeting with another top company the following week.
Carol could scarcely contain her irritation with what she had perceived of the Japanese way of life. She
had been sure that a well-respected U.S. lawyer would have little trouble securing a job with a Japanese
multinational corporation, but the executives she had met with seemed insulted that she was asking them
for a job. And the way they treated their secretaries! After only a week in Japan, both Carol and Warren
Oats were ready to go home.
A month later, their perspective had changed radically, and both looked back on those first meetings with
embarrassment. Within that month, they had learned a lot about the Japanese sense of protocol and
attitudes toward women. Warren Oats believed he was beginning to get the knack of doing business with
the Japanese in their manner: establishing a relationship slowly, almost ritualistically, waiting through a
number of meetings before bringing up the real business at hand, and then doing so circumspectly. It was
difficult for Oats to slow his pace, and it made him nervous to be so indirect, but he was beginning to see
some value in the sometimes humbling learning process he was going through. Perhaps, he thought, he
and Carol could become consultants for other executives who needed to learn the lessons he was
beginning to understand.
Case Questions
1. What specific errors did Warren and Carol Oats make during their first week in Japan?
2. If you were talking to a non-U.S. businessperson making a first contact with an American
company, what advice would you give?
CASE 3 :
COKE’S EUROPEAN SCARE
What seemed like an isolated incident of a few bad cans of Coca-cola at a school in Belgium turned into
near disaster for the soft drink giant’s European operations. In June 1999, Coke experienced its worst
nightmare-acontamination scare resulting in the recall of 14 million cases of Coke products in five European
countries and a huge blow to consumer confidence in the quality and safety of the world’s most recognizable
brand.
After the initial scare in Bornem, Belgium, Coke and Coca-Cola Enterprises (CCE), a bottler 40 per
cent owned by Coca-Cola, thought they had isolated the problem. Scientists at the CCE bottling plant in
Antwerp found that lapses in quality control had led to contaminated carbon dioxide that were used in the
bottling of a recent batch of Coke. Company officials saw the contamination as minor problem and they
issued an apology to the school.
At the same time that the problems were being dealt with in Antwerp, things were breaking down at
Coke’s Dunkirk, France, bottling plant. In Belsele,10 miles from Bornem. Children and teachers were
complaining of illnesses related to drinking Coke products. The vending machines at the school were
stocked with Coke from the company’s Dunkirk plant and were thought to be safe. Now a second bottling
plant’s practices were being questioned. What initially seemed like an isolated incident was now a crisis.
On June, 15,1999. 11 days after the initial scare in Bornem, Coke finally issued an explanation to the
public. Most Europeans were not satisfied, Coca-cola officials used vague language and often contradicted
one another when making statements. France’s health minister, Bernard Kouchner, stated “That a
company so very expert in advertising and marketing should be so poor in communicating on this matter
is astonishing”.
After three weeks of testing by both Coke officials and French government scientists, it was concluded
that the plants were safe and that their was no immediate threat to the health of concluded that the
plants were safe and that there was no immediate threat to the health of consumers. Coke has destroyed
all of the pallets in Dunkirk and tightened quality control on CO2.
How could this happen to the company that is revered worldwide for its quality control and the
European market now represents 73 per cent of total profits.14 While the scare has had some effect on
Coke’s profits in Europe, the company is more concerned with damages to its reputation and consumer
confidence in its products.
Many critics say that Coke’s slow response time, insisting that no real problem existed and belated
apology have severely damaged the company’s reputation in Europe. Some would disagree and feel that
Coke handled the situation as best it could. “I think that Coke acted in a responsible, diligent way,” says
John Sitcher, editor of Beverage Digest. “Their first responsibility was to ascertain the facts in a clear and
unequivocal way. And as soon as Coke knew what the facts were, they put out a statement to the Belgium
people.”
The character and quality of a company can often be measured by how it responds to adversity. Coca-
Cola believes that this crisis has forced the company to re-examine both its marketing and management
strategies in Europe. Coke executives in Brussels are predicting that the company will double its European
sales in the next decade and that this setback will only make the company stronger. Wall Street analysts
seem to agree. Only time will tell.
Questions:-
1. What are the management issues in this case
2. What did Coke do and what could have been done differently?
3. What are the key factors that were or should have been considered by management?
Section B
Q .1: Think back to the executive who recognized employees with motivational stickers, such as
“Dynamite.” What impact might such a sticker have on your job performance and satisfaction?
Q. 2: How might understanding the steps in the communication process help managers and staff
professionals do a better job?
Q. 3: In what way is participating on a spots team, in a musical band, or in an orchestra good
participation for being a member of a work group on the job?
Q. 4: Why don’t managers who are great controllers generally receive as much publicity as managers who
are great leaders?
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