ISMS BBA EXAM CASE STUDY ANSWERS PROVIDED WHATSAPP 91 9924764558
CONTACT
DR. PRASANTH BE BBA MBA PH.D. MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com
CONTACT
DR. PRASANTH BE BBA MBA PH.D. MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com
Bachelors Program in Business Management (BBA) Year-II
Specialization: - Business
Administration
Note
:-
(i)
Attempt any four Cases
(ii) All Cases carry equal marks.
(ii) All Cases carry equal marks.
Case
1 :-
“
Left or Right?”
Rajinder Kumar was a production worker at
Competent Motors Limited (CML), which made components and accessories for the
automotive industry. He had worked at CML for almost seven years as a welder,
along with fifteen other men in the plant. All had received training in welding,
both on the job and through company-sponsored external programmes. They had
friendly relations and got along very well with one another. They played
volleyball in the playground regularly before retiring to the quarters allotted
by the company. They ate together in the company canteen, cutting jokes on each
other and making fun of anyone who dared to peep into their privacy during
lunch hour. Most of the fellows had been there for quite some time, except for
two men who had joined the ranks only two months back.
Rajinder was generally considered to be the leader of the group, so it
was no surprise that when the foreman of the department was transferred and his
vacancy was announced, Rajinder applied for the job and got it.
There were only four other applicants for the job, two from mechanical
section and two from outside. When there was a formal announcement of the
appointment on a Friday afternoon, everyone in the group congratulated
Rajinder. They literally carried him snacks and celebrated the event
enthusiastically.
On Monday morning, Rajinder joined duty as Foreman. It was company
practice for all foremen to wear blue jacket and a white shirt. Each man’s coat
had his name badge sewn onto the left side pocket. The company had given two
pairs to Raijnder. He was proud to wear the coat to work on Monday.
People who saw him from a distance went upto him and admired the new
blue coat. There was a lot of kidding around calling Rajinder as ‘Hero’, ‘Raja
Babu’ and ‘Officer’ etc. One of the guys went back to his locker and returned
with a long brush and acted as though he were removing dust particles on the
new coat. After about five minutes of horseplay, all of the men went back to
work.
Rajinder went back to his office to get more familiar with his new job
and environment there.
At noon, all the men broke for lunch and went to the canteen to eat and
enjoy fun as usual. Rajinder was busy when they left but followed after them a
few minutes, later. He bought the food coupon, took the snacks and tea and
turned to face the open canteen. Back in the left side corner of the room was
his old work group; on the right hand side of the canteen sat all the other
foremen in the plant all observed in their blue coats.
At that point of time, silence descended on the canteen. Suddenly both
groups looked at Rajinder anxiously, waiting to see which group he would eat
with.
QUESTIONS:
1.
Whom do you think Rajinder
will eat with? Why?
2.
If you were one of the
other foremen, what could you do to make Rajinder’s transition easier?
3.
What would you have done if
you were in Rajinder’s shoes? Why?
Case
2 :-
“Naughty
Rule”
Dr. Reddy Instruments is a medium-sized the
Industrial Estate on the outskirts of Hyderabad. The company is basically
involved with manufacturing surgical instruments and supplies for medical
professionals and hospitals.
About a year ago, Madhuri, aged 23, niece of the firm’s founder, Dr.
Raja Reddy, was hired to replace Ranga Rao quality control inspector, who had
reached the age of retirement. Madhuri had recently graduated from the Delhi
College of Engineering where she had majored in Industrial Engineering.
Balraj Gupta, aged 52, is the production manager of the prosthesis
dept., where artificial devices designed to replace missing parts of the human
body are manufactured. Gupta has worked for Dr. Reddy Instruments for 20 years,
having previously been a production line supervisor and, prior to that, a
worker on the production line. Gupta, being the eldest in his family, has taken
up the job quite early in life and completed his education mostly through
correspondence courses.
From their first meeting, it looked as though Gupta and Madhuri could
not get along together. There seemed to be an underlying animosity between
them, but it was never too clear what the problem was.
Venkat Kumar, age 44, is the plant manager of Dr. Reddy instruments. He
has occasionally observed disagreements between Madhuri and Gupta on the
production line, Absenteeism has risen in Gupta’s department since Madhuri was
hired as quality control inspector. Venkat secretly decided to issue a circular
calling for a meeting of all supervisory personnel in the production and twelve
quality control departments. The circular was worked thus:
Attention:
All Supervisors Production Quality Control Departments
A meeting is schedule on
Monday, Feb 20, at 10 a.m. in room 18. The purpose is to sort out
misunderstanding and differences that seem to exist between production and QC
personnel.
Sd. Venkat Kumar
Plant
Manager
Venkat
starred the meeting by explaining why he had called it and then asked Gupta for
his opinion of the problem. The conversation took the following shape:
Gupta:
That Delhi girl you recruited is a ‘fault finding
machine’ in our dept. Until she was hired, we hardly even stopped production.
And when we did, it was only because of a mechanical defect. But Madhuri has
been stopping everything even if ‘one’ defective part comes down the line.
Madhuri: That’s not true. You have fabricated the story well.
Gupta:
Venkat, our quality has not undergone any change in
recent times. It’s still the same, consistently good quality it was before she
came but all she wants to do is to trouble us.
Madhuri:
May I clarify my position at this stage? Mr. Gupta,
you have never relished my presence in the company. I still remember some of
the derisive remarks you used to make behind my back. I did take note of them
quite clearly!
Suresh
(another quality control supervisor): I agree with
Madhuri Venkat. I think that everyone knows that the rules permit quality
control to stop production if rejections exceed three an hour. This is all
Madhuri has been doing.
Gupta:
Now listen to me. Madhuri starts counting the hour
from the moment she gets the first reject. Ranga Rao never really worried about
absolute reject rule when he was here. She wants to paint my department in
black. Is not that true Riaz Ahmed?
Ahmed
(another production supervisor): It sure is Gupta.
Every time Maduri stops production, she is virtually putting the company on
fire. The production losses would affect our bonuses as well. How long can we
allow this ‘nuisance’ to continue?
Thirty minutes later Madhuri and Gupta were still lashing out at each
other. Venkat decided that ending the meeting might be appropriate under the
circumstances. He promised to clarify the issue, after discussion with
management, sometime next weel.
QUESTIONS:
1.
Should Venkat have called a
meeting to sort out this problem? Why or Why not?
2.
What do you say about the
rule calling for production to halt if there are more than three rejects in an
hour? Should it have been enforced? Explain.
3.
What do you feel is the
major problem in this case? The solution?
Bachelors
Program in Business Management (BBA) Year-I
Note :- Solve any 4 case study
All case carries equal marks
Case
No : 1
PUBLIUS
Although
many people believe that the World Wide Web is anonymous and secure from
censorship, the reality is very different. Governments, law courts, and
other officials who want to censor, examine, or trace a file of materials on
the Web need merely go to the server (the online computer) where they think the
file is stored. Using their subpoena power, they can comb through the
server’s drives to find the files they are looking for and the identify of the
person who created the files.
On Friday June 30, 2000, however, researches at AT & T Labs announced the creation
of Publius, a software program that enables Web users to encrypt (translate
into a secret code) their files – text, pictures, or music – break them up like
the pieces of a jigsaw puzzle, and store the encrypted pieces on many different
servers scattered all over the globe on the World Wide Web. As a result,
any one wanting to examine or censor the files or wanting to trace the original
transaction that produced the file would find it impossible to succeed because
they would have to examine the contents of dozens of different
servers all over the world, and the files in the servers would be encrypted and
fragmented in a way that would make the pieces impossible to identify without
the help of the person who created the file. A person authorized to
retrieve the file, however, would look through a directory of his files posted
on a Publius – affiliated website, and the Publius network would reassemble the
file for him at his request. Researchers published a description of
Publius at www.cs.nyu.edu/waldman/publius.
Although many people welcomed the way that the new software would enhance
freedom of speech on the Web, many others were dismayed. Bruce Taylor, an
antipornography activist for the National Law Center for Children and Families,
stated : “It’s nice to be anonymous, but who wants to be more anonymous than
criminals, terrorists, child molesters, child pornographers, hackers and e-mail
virus punks.” Aviel Rubin and Lorrie Cranor, the creators of Publius,
however, hoped that their program would help people in countries where freedom
of speech was repressed and individuals were punished for speaking out.
The ideal user of Publius, they stated, was “a person in China observing abuses
of human rights on a day – to – day basis.”
Questions
:
1. Analyze
the ethics of marketing Publius using utilitarianism,
rights, justice, and caring.
In your judgement, is it ethical to market
Publius ? Explain.
2. Are
the creators of Publius in any way morally responsible for any
criminal acts that
criminals are able to carry out and keep secret by relying
on Publius ? Is AT & T in any way morally
responsible for these ?
Explain your answers.
3. In
your judgment, should governments allow the implementation of Publius ?
Why or why not ?
Case
NO. 2
A
JAPANESE BRIBE
In
July 1976, Kukeo Tanaka, former prime minister of Japan , was arrested on
charges of taking bribes ($ 1.8 million) from Locjheed Aircraft Company to
secure the purchase of several Lockheed jets. Tanaka’s secretary and
serial other government officials were arrested with him. The Japanese
public reacted with angry demands for a complete disclosure of Tanaka’s
dealings. By the end of the year, they had ousted Tanaka’s successor, Takeo
Miki, who was widely believed to have been trying to conceal Tanaka’s actions.
In Holland that same year, Prince Bernhard, husband of Queen Juliana, resigned
from 300 hundred positions he held in government, military, and private
organizations. The reason : He was alleged to have accepted $ 1.1 million
in bribes from Lockheed in connection with the sale of 138 F – 104 Starfighter
jets.
In Italy , Giovani Leone, president in 1970, and Aldo Moro and Mariano Rumor,
both prime ministers, were accused of accepting bribes from Lockheed in
connection with the purchase of $ 100 million worth of aircraft in the late
1960s. All were excluded from government.
Scandinavia , South Africa , Turkey , Greece , and Nigeria were also among the
15 countries in which Lockheed admitted to having handed out payments and at
least $ 202 million in commissions since 1970.
Lockheed Aircraft’s involvement in the Japanese bribes was revealed to have
begun in 1958 when Lockheed and Grumman Aircraft (also an American firm) were
competing for a Japanese Air Force jet aircraft contract. According to
the testimony of Mr. William Findley, a partner in Arthur Young & Co.
(auditors for Lockheed), in 1958 Lockheed engaged the services of Yoshio
Kodama, an ultra right – wing war criminal and reputed underworld figure with
strong political ties to officials in the ruling Liberal Democratic
Party. With Kodama’s help, Lockheed secured the Government
contract. Seventeen years later, it was revealed that the CIA had been
informed at the time (by an American embassy employee) that Lockheed had made
several bribes while negotiating the contract.
In 1972, Lockheed again hired Kodama as a consultant to help secure the sale of
its aircraft in Japan . Lockheed was desperate to sell planes to any
major Japanese airline because it was scrambling to recover from a series of
financial disasters. Cost overruns on a government contract had
pushed Lockheed to the brink of bankruptcy in 1970. Only through a
controversial emergency government loan guarantee of $ 250 million in
1971 did the company narrowly avert disaster. Mr. A. Carl Kotchian, president
of Lockheed from 1967 to 1975, was especially anxious to make the sales because
the company had been unable to get as many contracts in other parts of the
world as it had wanted.
This bleak situation all but dictated a strong push for sales in the biggest
untapped
market left-Japan. This push, if successful, might well bring in
revenues upward of $ 400 million. Such a cash inflow would
go a long way
towards
helping to restore Lockheed’s fiscal health, and it would, of
course, save the jobs of thousands of firm’s
employees. (Statement of Carl Kotchian)
Kodama eventually succeeded in engineering a contract for Lockhed with All –
Nippon Airways, even beating out McDonnell Douglas, which was actively
competing with Lockheed for the same sales. To ensure the sale, Kodama
asked for and received from Lockheed about $9 million during the period from
1972 to 1975. Much of money allegedly went to then – prime minister Kukeo
Tanaka and other government officials, who were supposed to intercede with All
– Nippon Airlines on behalf of Lockheed.
According to Mr. Carl Kotchian, “ I knew from the beginning that this money was
going to the office of the Prime Minister.” He was, however,
persuaded that, by paying the money, he was sure to get the contract from
All-Nippon Airways. The negotiations eventually netted over $1.3 billion
in contracts for Lockheed.
In addition to Kodama, Lockheed had also been advised by Toshiharu Okubo, an official
of the private trading company, Marubeni, which acted as Lockheed’s
official representative. Mr. A. Carl Kotchian later defended the
payments, which he saw as one of many “Japanese business practices” that he had
accepted on the advice of his local consultants. The payments, the
company was convinced, were in keeping with local “ business practices.”
Further, as I’ve noted, such disbursements did not violate American laws.
I should also like to stress that my
decision to make such payments
stemmed from my
judgment that the (contracts) …… would provided Lockheed workers with
jobs and thus redound to the benefit of their
dependents, their communities,
and stockholders of the corporation. I should like to emphasize that the
payments to the so-called “ high
Japanese government
officials” were all requested y Okubo and were not
brought up from my side. When he told me “ five hundred million yen is
necessary for such sales,” from a purely ethical and moral standpoint I
would have declined such a request.
However, in that case, I would most certainly have sacrificed
commercial success….. (If) Lockheed had not remained competitive by the rules
of the game as then played, we would not have
sold (our planes) ……… I knew that if we wanted our product to have a chance to
win on its own merits, we had to follow the functioning
system. (Statement
of A. Carl Kotchian)
In August, 1975, investigations by the U.S. government led Lockheed to admit it
had made $ 22 million in secret payoffs. Subsequent senate
investigations in February 1976 made Lockheed’s involvement with Japanese
government officials public. Japan subsequently canceled their billion dollar
contract with Lockheed.
In June 1979, Lockheed pleaded guilty to concealing the Japanese bribes from
the government by falsely writing them off as “marketing costs”. The
Internal Revenue Code states, in part. “ No deduction shall be allowed…..
for any payment made, directly or indirectly, to an official or employee of any
government …. If the payment constitutes an illegal bribe or kickback.’
Lockheed was not charged specifically with bribery because the U.S. law
forbidding bribery was not enacted until 1978. Lockheed pleaded guilty to
four counts of fraud and four counts of making false statements to the
government. Mr. Kotchian was not indicated, but under pressure from the
board of directors, he was forced to resign from Lockheed. In Japan ,
Kodama was arrested along with Tanaka.
Questions
:
1. Fully
explain the effects that payment like those which Lockheed
made to the
Japanese have on the structure of a market.
2. In
your view, were Lockheed’s payments to the various Japanese
parties “bribes”
or “extortions” ? Explain your response fully.
3. In
your judgment, did Mr. A. Carl Kotchian act rightly from a
moral point of view ? (Your answer
should take into account the effects of the payments on the welfare of the
societies affected, on the
right and duties of the various parties involved, and on the
distribution of benefits and
burdens among the groups involved.)
In your judgment, was Mr. Kotchian morally
responsible for his
actions ? Was he, in the end, treated
fairly ?
4. In
its October 27, 1980, issue, Business Week argued that every
corporation
has a corporate culture – that is, values that set a pattern
for its employee’s activities, opinions and actions and that
are instilled in
succeeding generations of employees (pp.148-60)
Describe, if you can, the corporate
culture of Lockheed and relate that culture to Mr. Kotchian’s actions.
Describe some strategies
for changing that
culture in ways that might make foreign payments less
likely.
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