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International Business
Answer the following question.
Q1. Describe European Investment Bank (EIB) ? (10
marks)
Q2. Describe concept of countries risk in FDI. (10
marks)
Q3. Why do you need international trade ? (10
marks)
Q4. How do you define international business ? (10
marks)
Q5. What are the disadvantages of globalisation ? (10
marks)
Q6. What are the advantages of globalisation ? (10
marks)
Q7. List out organizations related with international economic environment affiliated with UN. (10
marks)
Q8. How the rupee value is determined in foreign exchange market? Examine the effects of undervaluation and
overvaluation of Current on trade and investments flows of a country?
(10
marks)
Marketing Management
Case Studies
CASE STUDY (20
Marks)
In 2002, Luxor Writing Instruments Private Limited (LWIPL) had emerged as the market leader in the premium pens segment in
India, with a market share of 60%. The company held a 10% share in the writing instruments industry, next only to the market
leader, Reynolds that held 12%. LWIPL had been in the pen industry for nearly four decades. The company adopted innovative
marketing strategies that had made it one of the most popular pen manufacturers in India. LWIPL offered a widest range of pens with
leading brands including Luxor, Pilot, Papermate and Parker. In December 2002, LWIPL launched the world renowned 'Waterman'
brand of premium pens in India. This was possible after LWIPL's acquisition of a 50% stake in the Indian operations of Newell
Rubbermaid3. The company planned to sell imported 'Waterman' pens for the next couple of years and then start indigenous
production for these pens. The price of these pens ranged between Rs.3,500 to Rs.50,000 and was made available in nine sub-brands.
LWIPL planned to sell these pens to corporate customers. Commenting on the prospects of the 'Waterman' brand, DK Jain, Chairman
of LWIPL said, "Because of its price and brand name, Waterman will certainly have an edge over other premium brands in India."4
The company planned to launch an international advertising campaign for these pens. LWIPL was known for its heavy spending on
advertising its products. It had entered into several tie-ups with multinational pen companies that helped in leveraging its current
position in the industry. The fact that LWIPL was a debt-free company was another significant achievement. However, with the
rising competition and negligible presence in the faster growing gel pens segment, analysts felt that LWIPL had an uncertain future.
Analysts also feared that LWIPL's decision to diversify into the hospitality and packaged foods business in 2001-02, might lead to a
loss in market share in its core business.
Answer the following question.
Q1. Give an overview of the case.
Q2. Explain in details the marketing strategy adopted by Luxor Writing Instruments Private Limited (LWIPL).
CASE STUDY (20
Marks)
This case study's primary objective is to debate and discuss on: Does it make sense for a single-business firm from an emerging
country like India, to transform itself into a conglomerate when the reverse trend is witnessed in other countries – both developed as
well as developing? With the inception of Bharti Telecom (Bharti) in 1985, Sunil Bharti Mittal laid the foundations of an
organisation that would emerge as India's 'telecom conglomerate giant'. The company made a humble beginning with the
manufacture of push button handsets. However, 1992 marked the turn of events for Bharti. The liberalization of the Indian telecom
sector in that year unleashed numerous opportunities for domestic and international players to tap the lucrative Indian telecom
market Notwithstanding its small size, Bharti plunged into the bidding war for cellular licenses, successfully capturing the license for
providing cellular network service in New Delhi (Delhi). Making a mark with its brand, Airtel, in the Delhi market, Bharti was
confident of a triumphant journey. Contradictory to its aspirations, this early victory was followed by a string of downturns. The
company lost most of the subsequent cellular bids and found itself in troubled waters. Nevertheless, competitors' inability to exploit
their winning cellular bids proved a boon to Bharti. The eagerness of these companies to sell their cellular licenses to Bharti brought
the company back into limelight. Bnking on the opportunity, the company spread its cellular service to new regions in the country.
2/10/2018 Aeren Foundation
2/2
From being a handset manufacturer, Bharti transformed itself into a full cellular service provider with a whopping 4.5 million
customers in March 2003. However, the company is not content with being only a 'telecom conglomerate'. In 2008, to gratify its
growing aspirations, Bharti declared its intentions of becoming India's 'finest conglomerate by 2020'. Equipped with a youthful logo
and new brand identity, Bharti is determined to unveil another success story. However, many challenges lie ahead.
Answer the following question.
Q1. Analyze the critical success factors in building conglomerates and to understand the role of brand building in a
conglomerate.
Q2. Examine the challenges that Bharti would face in operating as a conglomerate when a reverse trend is being
witnessed all across the globe.
CASE STUDY (20
Marks)
Davidson (Harley) is the leading motorcycle manufacturer in the US with over 50% market share. Hailed as the classic example of a
cult brand, Harley depends on innovative product, premium pricing, unique retail environment and experiential and relationship
marketing to maintain its status as a cult brand. It enjoys huge brand loyalty. Deeply connected to American culture and values,
Harley has become a symbol of rugged individualism, freedom and rebellion. Harley has cultivated its image and relationships over
a long period of time and effectively wrapped itself around its customers using multiple marketing techniques. Every touch point –
the product itself, its distribution channels, sales, customer service, design, communications and brand extensions has been
harnessed to enhance the company's brand identity. Harley has historically controlled the demand – supply gap of its products to
create a scarcity value for the brand With the changing demographic and market scenario, Harley is slowly hanging its strategy on all
fronts. In 2005, all the eyes are trained on Harley as it made the transition from operating in the unique, high growth selling
environment that it experienced in the 1990s and early 2000s, to one that is sustainable on an ongoing basis. In the recent times, the
scarcity value has reduced as a result of its aggressive strategy to match demand and supply. Although the company's efforts to
correct the demand – supply gap are going in the right direction, they are also leading to rising dealer inventory and reduced value of
pre-owned vehicles. The case discusses Harley's product development strategy, brand merchandising, pricing, its promotion Brands
and Branding
Answer the following question.
Q1. Discuss the emergence of Harley Davidson as a cult brand.
Q2. Explain the challenges that Harley Davidson faced from competitors, over the years
Q3. Discuss the strategies adopted by Harley to maintain its status as a cult brand.
Q4. Give an overview of the case.
CASE STUDY (20
Marks)
Fizzy Fruit is a carbonated fruit which intensifies a particular fruit's flavor with effervescences without altering its nutritional value.
Neurobiologist Galen Kaufman with the help of a food scientist perfected the method of carbonating fruit and established the Fizzy
Fruit Company in 2005. The company had the mission to promote health, wellness and fitness among children thereby reducing
childhood obesity. Fizzy Fruit was launched in US in 2005 and the initial feedback was very heartening. The company made many
strategic promotional tie-ups and had plans to make Fizzy Fruit available throughout US in a short time. Worldwide, 22 million
children were overweight among which the share of US was the highest. Some of the factors that had led to increasing obesity
among kids in US were unhealthy eating habits, peer pressure and influence of television advertising. Marketers were increasingly
targeting kids, as kids influenced the spending of over $1.88 trillion globally in 2002 and the figure was rapidly increasing. While
the consumption of snack and junk food was ever increasing, many healthy and 'good-for-you' products were also being launched
due to the rising awareness and pressure to curb obesity. The case initiates discussion on the future marketing strategies of The Fizzy
Fruit Company to popularize Fizzy Fruit given the dynamic challenges involved in marketing to kids.
Answer the following question.
Q1. Analyze the buying behavior of kids and their growing influence in making purchase decisions
Q2. Debate on the role of ethics in marketing to kids.
Q3. Discuss the opportunities and challenges involved in marketing Fizzy fruits to kids.
Q4. Give an overview of the case.
Operation Management
Answer the following question.
Q1. Describe the steps involved in considering a time study and discuss any difficulties you might envision at various
steps?
(10
marks)
Q2. How are the location decisions for service operations and manufacturing operations similar, and how are they
different?
(10
marks)
Q3. What is ISO-9000 Series Standards? List key quality awards. (10
marks)
Q4. Contrast the world class view with the traditional view in quality control. (10
marks)
Q5. How does productivity measurement differ between manufacturing and service operations? (10
marks)
Q6. What are the major components of a production system? Give two examples. (10
marks)
Q7. Describe briefly the “Delphi Method”. (10
marks)
Q8. Describe briefly the steps to develop a forecasting system. (10
marks)
Principles and Practice of Management
Case Studies
Case (20
Marks)
You are the head of a large department and several supervisors report to you. Recently you were confronted with a knotty problem. It
seems that one of the supervisors had gotten into a loud and disagreeable argument with an employee. You called the supervisor to
your office to hear his story. The supervisor admitted losing his temper and shouting at the employee, but he believed it was justified.
He had been observing the employee over the year the man had been with the company. During this period the employee had been
frequently late, and his absentee rate was above average. In addition, the supervisor went on to say that the employee was a
socializer on the job, frequently leaving his work to talk to other employees and to use the telephone for personal calls. The
supervisor then said that the proverbial last straw caused his outburst. The employee had come in late, and after about an hour of
work he made a telephone call which the supervisor had timed as lasting 14 minutes. The supervisor then started his tirade. The
employee denied being on the telephone that long, the supervisor called him a liar, and they continued the vituperative exchange
which ended when you called the supervisor to your office. After listening to the supervisor, you asked him if he had disciplined the
employee before, since apparently he had a poor record. You also asked if the employee had been placed on probation or had been
warned. The supervisor looked at you sheepishly and seemed reluctant to answer. You pressed him, for an answer, and he finally
blurted out that he was afraid to discipline the employee because he was black. He stated that the impression he had from you and
higher management was that black employees should be given special treatment so that they would feel welcome and not
discriminated against. He felt the company wanted to impress the public with its forward-looking employment practices and didn’t
want any trouble with the black community. As a result, he was lax in discipline and had kept a hands-off approach with all black
employees until his outburst. He said he couldn’t stand it anymore, and the 14-mintue telephone call caused him to lose his temper.
Answer the following question.
Q1. Why would a supervisor find it difficult to communicate with a black employee?
Q2. Could the company have done anything to offset the misunderstanding the supervisor apparently had about the
treatment of black employees?
Q3. To what extent did the supervisor’s lack of communication encourage the employee to think his behavior was
satisfactory? Explain.
Q4. What would you now tell the supervisor?
Case (20
Marks)
The modern Corporation Limited produces and distributes packaged food products, such as cereals, spices, puddings, jellies,
crackers, salad dressings, etc. The company sells nationwide and conducts a very large national advertising campaign. It has 75
plants located throughout the country and markets 65 different products, each under its own trademark. These are all food products,
but are not otherwise closely related. They vary from long-margin specialities with comparatively small volume to larger volume
items with similar profit margins. Different raw materials and commodities are used in their processing. All products, however, have
the common factor of being sold throughout retail grocery stores. Gross sales are Rs. 2,500 lakhs and total assets are Rs. 1,250 lakhs.
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Management is centralized. The chairman of the board, the President, and four Vice-Presidents with responsibility for sales,
production, purchasing, and law, make up the executive top of the company and operate as a committee on all general policy matters.
Sales, advertising, and sales promotion are all under the jurisdiction of the sales Vice-President. All plant operations, as well as
research and engineering, report to the production Vice-President. Purchasing is the responsibility of its Vice-President, Who also
governs traffic. Public relations, law and corporate functions are under the general counsel. Financial responsibilities are handled by
the president, and employee relations are covered by each Vice-President in his own area of responsibility. Each plant is operated by
a superintendent whose authority is over wages, maintenance cost, output, quality, hiring, inspection and the other normal plant
operation responsibilities. Superintendents report to 8 regional production managers who are responsible to the production Vice-
President. The volume of production in each plant is scheduled by the production control group reporting to the operating Vice-
President. Final Schedules are set after consulting the sales Vice-president. Opportunities for increasing the line of products and
expanding the business are being lost because of lack of executive’s time to study them to manage new products. In any business
where specialties sold under trademark brands are the major business of a company, it is necessary for that company to continually
bring out new products and to study old ones to determine, the point of no return with regard to promotion and advertising expenses.
The Modern Corporation management feels that, in addition to lost opportunities for sound expansion, profit opportunities in present
products are not being fully recognized. The business may have grown too big for the form of management.
Answer the following question.
Q1. How have changed conditions in this company affected the appropriateness of its organization structures?
Q2. What changes do you recommend to be made in the company organization structure?
Case (20
Marks)
General Electric Company (GE) was a major conglomerate and one of the biggest companies in the world. One of the factors that
was believed to be responsible for the company's steady growth for more than a century was its tradition of stable and long term
leadership. One of the most successful phases in GE's history began when Jack Welch became its CEO in 1981. Welch attempted to
make GE one of the top companies in every segment in which it operated. He also supervised several acquisitions that added value
to the business portfolio and was instrumental in creating a performance oriented culture at the company. Welch retired in 2001 after
20 years at the helm. He was succeeded by Jeffrey Immelt, who was chosen by GE's board after a long and careful succession
planning activity supervised by Welch himself. In September 2001, Jeffrey Immelt (Immelt) became the Chief Executive Officer
(CEO) of the General Electric Company (GE). He succeeded Jack Welch (Welch), who was acknowledged as one of the most
successful CEOs in business history for his management of GE in the twenty years he headed the company (1981 to 2001). Welch
studied chemical engineering at the University of Massachusetts, from where he graduated in 1957. He then moved to the University
of Illinois, where he received his Masters and PhD in chemical engineering. Welch joined GE in 1960 as a junior engineer. After a
year, Welch wanted to leave the company, unhappy with the bureaucratic culture of the company, but was convinced by his superior
to stay back... This case discusses the strategic and cultural changes at GE as a result of the change in leadership. It compares GE's
strategy and operations under Welch, with those under Immelt. It also talks about the changes in the company's culture under Immelt.
The case concludes with a discussion on the challenges facing Immelt, as of mid-2006.
Answer the following question.
Q1. Discuss the relationship between leadership and growth in large and diversified companies.
Q2. Debate the effects of a change in leadership on company strategy and culture.
Q3. Compare the leadership styles of two leaders in the above case.
Q4. Analyze the effectiveness of their individual styles.
Case (20
Marks)
Cliff Morton, a recent college graduate, was hired by the Capital Casualty Company as a trainee in the safety engineering
department. After completing a six-month training program, his function would be to conduct inspections of prospective
policyholders’ places of business to determine whether or not safety practices and equipment were in use and to make appropriate
recommendations to the Capital underwriters about the extent of the risk involved. Morton progressed through the program
effectively and was now in the last stage. He was being introduced to the territory he would take over by an experienced safety
engineer who was being transferred to a larger territory. Each engineer worked out of his home, appearing at the office only on
Mondays for a departmental discussion meeting. The requests for inspections were mailed to the experienced engineer’s home, and
rush inspections were telephoned to him. Each engineer planned his own daily itinerary of inspections, completing the reports at
home and mailing them in to the office each day. Cliff Morton found that by carefully planning his daily route in the territory, he
could easily make 16 to 18 inspections and complete the reports in a normal work day. During his first week alone in the territory, he
averaged 16 inspections a days. The following Monday, at the departmental discussion meeting the engineer who had introduced him
to the territory called him aside and admonished him for turning in so many inspections each. “You’ll ruin it for us; we only turn in 8
or 10 each day. If you want to do 16 or 18 a day, go ahead, but only turn in 8 and then take a day off. No one will know”. Cliff didn’t
know what to say or do. He was ambitious, but he also knew he had to get along with his fellow employees.
Answer the following question.
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Q1. How should Cliff Morton handle this situation?
Q2. Is peer pressure to slow down something that management can control? Explain.
Q3. How can such a situation arise?
Q4. Can a new employee be effective if he resists group pressure? Justify your answer.
International Business
Answer the following question.
Q1. Describe European Investment Bank (EIB) ? (10
marks)
Q2. Describe concept of countries risk in FDI. (10
marks)
Q3. Why do you need international trade ? (10
marks)
Q4. How do you define international business ? (10
marks)
Q5. What are the disadvantages of globalisation ? (10
marks)
Q6. What are the advantages of globalisation ? (10
marks)
Q7. List out organizations related with international economic environment affiliated with UN. (10
marks)
Q8. How the rupee value is determined in foreign exchange market? Examine the effects of undervaluation and
overvaluation of Current on trade and investments flows of a country?
(10
marks)
Marketing Management
Case Studies
CASE STUDY (20
Marks)
In 2002, Luxor Writing Instruments Private Limited (LWIPL) had emerged as the market leader in the premium pens segment in
India, with a market share of 60%. The company held a 10% share in the writing instruments industry, next only to the market
leader, Reynolds that held 12%. LWIPL had been in the pen industry for nearly four decades. The company adopted innovative
marketing strategies that had made it one of the most popular pen manufacturers in India. LWIPL offered a widest range of pens with
leading brands including Luxor, Pilot, Papermate and Parker. In December 2002, LWIPL launched the world renowned 'Waterman'
brand of premium pens in India. This was possible after LWIPL's acquisition of a 50% stake in the Indian operations of Newell
Rubbermaid3. The company planned to sell imported 'Waterman' pens for the next couple of years and then start indigenous
production for these pens. The price of these pens ranged between Rs.3,500 to Rs.50,000 and was made available in nine sub-brands.
LWIPL planned to sell these pens to corporate customers. Commenting on the prospects of the 'Waterman' brand, DK Jain, Chairman
of LWIPL said, "Because of its price and brand name, Waterman will certainly have an edge over other premium brands in India."4
The company planned to launch an international advertising campaign for these pens. LWIPL was known for its heavy spending on
advertising its products. It had entered into several tie-ups with multinational pen companies that helped in leveraging its current
position in the industry. The fact that LWIPL was a debt-free company was another significant achievement. However, with the
rising competition and negligible presence in the faster growing gel pens segment, analysts felt that LWIPL had an uncertain future.
Analysts also feared that LWIPL's decision to diversify into the hospitality and packaged foods business in 2001-02, might lead to a
loss in market share in its core business.
Answer the following question.
Q1. Give an overview of the case.
Q2. Explain in details the marketing strategy adopted by Luxor Writing Instruments Private Limited (LWIPL).
CASE STUDY (20
Marks)
This case study's primary objective is to debate and discuss on: Does it make sense for a single-business firm from an emerging
country like India, to transform itself into a conglomerate when the reverse trend is witnessed in other countries – both developed as
well as developing? With the inception of Bharti Telecom (Bharti) in 1985, Sunil Bharti Mittal laid the foundations of an
organisation that would emerge as India's 'telecom conglomerate giant'. The company made a humble beginning with the
manufacture of push button handsets. However, 1992 marked the turn of events for Bharti. The liberalization of the Indian telecom
sector in that year unleashed numerous opportunities for domestic and international players to tap the lucrative Indian telecom
market Notwithstanding its small size, Bharti plunged into the bidding war for cellular licenses, successfully capturing the license for
providing cellular network service in New Delhi (Delhi). Making a mark with its brand, Airtel, in the Delhi market, Bharti was
confident of a triumphant journey. Contradictory to its aspirations, this early victory was followed by a string of downturns. The
company lost most of the subsequent cellular bids and found itself in troubled waters. Nevertheless, competitors' inability to exploit
their winning cellular bids proved a boon to Bharti. The eagerness of these companies to sell their cellular licenses to Bharti brought
the company back into limelight. Bnking on the opportunity, the company spread its cellular service to new regions in the country.
2/10/2018 Aeren Foundation
2/2
From being a handset manufacturer, Bharti transformed itself into a full cellular service provider with a whopping 4.5 million
customers in March 2003. However, the company is not content with being only a 'telecom conglomerate'. In 2008, to gratify its
growing aspirations, Bharti declared its intentions of becoming India's 'finest conglomerate by 2020'. Equipped with a youthful logo
and new brand identity, Bharti is determined to unveil another success story. However, many challenges lie ahead.
Answer the following question.
Q1. Analyze the critical success factors in building conglomerates and to understand the role of brand building in a
conglomerate.
Q2. Examine the challenges that Bharti would face in operating as a conglomerate when a reverse trend is being
witnessed all across the globe.
CASE STUDY (20
Marks)
Davidson (Harley) is the leading motorcycle manufacturer in the US with over 50% market share. Hailed as the classic example of a
cult brand, Harley depends on innovative product, premium pricing, unique retail environment and experiential and relationship
marketing to maintain its status as a cult brand. It enjoys huge brand loyalty. Deeply connected to American culture and values,
Harley has become a symbol of rugged individualism, freedom and rebellion. Harley has cultivated its image and relationships over
a long period of time and effectively wrapped itself around its customers using multiple marketing techniques. Every touch point –
the product itself, its distribution channels, sales, customer service, design, communications and brand extensions has been
harnessed to enhance the company's brand identity. Harley has historically controlled the demand – supply gap of its products to
create a scarcity value for the brand With the changing demographic and market scenario, Harley is slowly hanging its strategy on all
fronts. In 2005, all the eyes are trained on Harley as it made the transition from operating in the unique, high growth selling
environment that it experienced in the 1990s and early 2000s, to one that is sustainable on an ongoing basis. In the recent times, the
scarcity value has reduced as a result of its aggressive strategy to match demand and supply. Although the company's efforts to
correct the demand – supply gap are going in the right direction, they are also leading to rising dealer inventory and reduced value of
pre-owned vehicles. The case discusses Harley's product development strategy, brand merchandising, pricing, its promotion Brands
and Branding
Answer the following question.
Q1. Discuss the emergence of Harley Davidson as a cult brand.
Q2. Explain the challenges that Harley Davidson faced from competitors, over the years
Q3. Discuss the strategies adopted by Harley to maintain its status as a cult brand.
Q4. Give an overview of the case.
CASE STUDY (20
Marks)
Fizzy Fruit is a carbonated fruit which intensifies a particular fruit's flavor with effervescences without altering its nutritional value.
Neurobiologist Galen Kaufman with the help of a food scientist perfected the method of carbonating fruit and established the Fizzy
Fruit Company in 2005. The company had the mission to promote health, wellness and fitness among children thereby reducing
childhood obesity. Fizzy Fruit was launched in US in 2005 and the initial feedback was very heartening. The company made many
strategic promotional tie-ups and had plans to make Fizzy Fruit available throughout US in a short time. Worldwide, 22 million
children were overweight among which the share of US was the highest. Some of the factors that had led to increasing obesity
among kids in US were unhealthy eating habits, peer pressure and influence of television advertising. Marketers were increasingly
targeting kids, as kids influenced the spending of over $1.88 trillion globally in 2002 and the figure was rapidly increasing. While
the consumption of snack and junk food was ever increasing, many healthy and 'good-for-you' products were also being launched
due to the rising awareness and pressure to curb obesity. The case initiates discussion on the future marketing strategies of The Fizzy
Fruit Company to popularize Fizzy Fruit given the dynamic challenges involved in marketing to kids.
Answer the following question.
Q1. Analyze the buying behavior of kids and their growing influence in making purchase decisions
Q2. Debate on the role of ethics in marketing to kids.
Q3. Discuss the opportunities and challenges involved in marketing Fizzy fruits to kids.
Q4. Give an overview of the case.
Operation Management
Answer the following question.
Q1. Describe the steps involved in considering a time study and discuss any difficulties you might envision at various
steps?
(10
marks)
Q2. How are the location decisions for service operations and manufacturing operations similar, and how are they
different?
(10
marks)
Q3. What is ISO-9000 Series Standards? List key quality awards. (10
marks)
Q4. Contrast the world class view with the traditional view in quality control. (10
marks)
Q5. How does productivity measurement differ between manufacturing and service operations? (10
marks)
Q6. What are the major components of a production system? Give two examples. (10
marks)
Q7. Describe briefly the “Delphi Method”. (10
marks)
Q8. Describe briefly the steps to develop a forecasting system. (10
marks)
Principles and Practice of Management
Case Studies
Case (20
Marks)
You are the head of a large department and several supervisors report to you. Recently you were confronted with a knotty problem. It
seems that one of the supervisors had gotten into a loud and disagreeable argument with an employee. You called the supervisor to
your office to hear his story. The supervisor admitted losing his temper and shouting at the employee, but he believed it was justified.
He had been observing the employee over the year the man had been with the company. During this period the employee had been
frequently late, and his absentee rate was above average. In addition, the supervisor went on to say that the employee was a
socializer on the job, frequently leaving his work to talk to other employees and to use the telephone for personal calls. The
supervisor then said that the proverbial last straw caused his outburst. The employee had come in late, and after about an hour of
work he made a telephone call which the supervisor had timed as lasting 14 minutes. The supervisor then started his tirade. The
employee denied being on the telephone that long, the supervisor called him a liar, and they continued the vituperative exchange
which ended when you called the supervisor to your office. After listening to the supervisor, you asked him if he had disciplined the
employee before, since apparently he had a poor record. You also asked if the employee had been placed on probation or had been
warned. The supervisor looked at you sheepishly and seemed reluctant to answer. You pressed him, for an answer, and he finally
blurted out that he was afraid to discipline the employee because he was black. He stated that the impression he had from you and
higher management was that black employees should be given special treatment so that they would feel welcome and not
discriminated against. He felt the company wanted to impress the public with its forward-looking employment practices and didn’t
want any trouble with the black community. As a result, he was lax in discipline and had kept a hands-off approach with all black
employees until his outburst. He said he couldn’t stand it anymore, and the 14-mintue telephone call caused him to lose his temper.
Answer the following question.
Q1. Why would a supervisor find it difficult to communicate with a black employee?
Q2. Could the company have done anything to offset the misunderstanding the supervisor apparently had about the
treatment of black employees?
Q3. To what extent did the supervisor’s lack of communication encourage the employee to think his behavior was
satisfactory? Explain.
Q4. What would you now tell the supervisor?
Case (20
Marks)
The modern Corporation Limited produces and distributes packaged food products, such as cereals, spices, puddings, jellies,
crackers, salad dressings, etc. The company sells nationwide and conducts a very large national advertising campaign. It has 75
plants located throughout the country and markets 65 different products, each under its own trademark. These are all food products,
but are not otherwise closely related. They vary from long-margin specialities with comparatively small volume to larger volume
items with similar profit margins. Different raw materials and commodities are used in their processing. All products, however, have
the common factor of being sold throughout retail grocery stores. Gross sales are Rs. 2,500 lakhs and total assets are Rs. 1,250 lakhs.
2/10/2018 Aeren Foundation
2/3
Management is centralized. The chairman of the board, the President, and four Vice-Presidents with responsibility for sales,
production, purchasing, and law, make up the executive top of the company and operate as a committee on all general policy matters.
Sales, advertising, and sales promotion are all under the jurisdiction of the sales Vice-President. All plant operations, as well as
research and engineering, report to the production Vice-President. Purchasing is the responsibility of its Vice-President, Who also
governs traffic. Public relations, law and corporate functions are under the general counsel. Financial responsibilities are handled by
the president, and employee relations are covered by each Vice-President in his own area of responsibility. Each plant is operated by
a superintendent whose authority is over wages, maintenance cost, output, quality, hiring, inspection and the other normal plant
operation responsibilities. Superintendents report to 8 regional production managers who are responsible to the production Vice-
President. The volume of production in each plant is scheduled by the production control group reporting to the operating Vice-
President. Final Schedules are set after consulting the sales Vice-president. Opportunities for increasing the line of products and
expanding the business are being lost because of lack of executive’s time to study them to manage new products. In any business
where specialties sold under trademark brands are the major business of a company, it is necessary for that company to continually
bring out new products and to study old ones to determine, the point of no return with regard to promotion and advertising expenses.
The Modern Corporation management feels that, in addition to lost opportunities for sound expansion, profit opportunities in present
products are not being fully recognized. The business may have grown too big for the form of management.
Answer the following question.
Q1. How have changed conditions in this company affected the appropriateness of its organization structures?
Q2. What changes do you recommend to be made in the company organization structure?
Case (20
Marks)
General Electric Company (GE) was a major conglomerate and one of the biggest companies in the world. One of the factors that
was believed to be responsible for the company's steady growth for more than a century was its tradition of stable and long term
leadership. One of the most successful phases in GE's history began when Jack Welch became its CEO in 1981. Welch attempted to
make GE one of the top companies in every segment in which it operated. He also supervised several acquisitions that added value
to the business portfolio and was instrumental in creating a performance oriented culture at the company. Welch retired in 2001 after
20 years at the helm. He was succeeded by Jeffrey Immelt, who was chosen by GE's board after a long and careful succession
planning activity supervised by Welch himself. In September 2001, Jeffrey Immelt (Immelt) became the Chief Executive Officer
(CEO) of the General Electric Company (GE). He succeeded Jack Welch (Welch), who was acknowledged as one of the most
successful CEOs in business history for his management of GE in the twenty years he headed the company (1981 to 2001). Welch
studied chemical engineering at the University of Massachusetts, from where he graduated in 1957. He then moved to the University
of Illinois, where he received his Masters and PhD in chemical engineering. Welch joined GE in 1960 as a junior engineer. After a
year, Welch wanted to leave the company, unhappy with the bureaucratic culture of the company, but was convinced by his superior
to stay back... This case discusses the strategic and cultural changes at GE as a result of the change in leadership. It compares GE's
strategy and operations under Welch, with those under Immelt. It also talks about the changes in the company's culture under Immelt.
The case concludes with a discussion on the challenges facing Immelt, as of mid-2006.
Answer the following question.
Q1. Discuss the relationship between leadership and growth in large and diversified companies.
Q2. Debate the effects of a change in leadership on company strategy and culture.
Q3. Compare the leadership styles of two leaders in the above case.
Q4. Analyze the effectiveness of their individual styles.
Case (20
Marks)
Cliff Morton, a recent college graduate, was hired by the Capital Casualty Company as a trainee in the safety engineering
department. After completing a six-month training program, his function would be to conduct inspections of prospective
policyholders’ places of business to determine whether or not safety practices and equipment were in use and to make appropriate
recommendations to the Capital underwriters about the extent of the risk involved. Morton progressed through the program
effectively and was now in the last stage. He was being introduced to the territory he would take over by an experienced safety
engineer who was being transferred to a larger territory. Each engineer worked out of his home, appearing at the office only on
Mondays for a departmental discussion meeting. The requests for inspections were mailed to the experienced engineer’s home, and
rush inspections were telephoned to him. Each engineer planned his own daily itinerary of inspections, completing the reports at
home and mailing them in to the office each day. Cliff Morton found that by carefully planning his daily route in the territory, he
could easily make 16 to 18 inspections and complete the reports in a normal work day. During his first week alone in the territory, he
averaged 16 inspections a days. The following Monday, at the departmental discussion meeting the engineer who had introduced him
to the territory called him aside and admonished him for turning in so many inspections each. “You’ll ruin it for us; we only turn in 8
or 10 each day. If you want to do 16 or 18 a day, go ahead, but only turn in 8 and then take a day off. No one will know”. Cliff didn’t
know what to say or do. He was ambitious, but he also knew he had to get along with his fellow employees.
Answer the following question.
2/10/2018 Aeren Foundation
3/3
Q1. How should Cliff Morton handle this situation?
Q2. Is peer pressure to slow down something that management can control? Explain.
Q3. How can such a situation arise?
Q4. Can a new employee be effective if he resists group pressure? Justify your answer.
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