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CRAP ASSIGNMENT

2017

Harsh Kumar Singh

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Table of Content

Part A: Consulting & Strategy 3

Part B: Marketing 8

Part C: Finance 17

Part D: Operation 19

Part E: Information Technology 24

Part F: Human Resource & Organizational Behavior 29

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Part A Consulting & Strategy

Question 1

Case Study A foreign firm wants to enter the Indian telecom sector. They are your client. Let us look at 2

scenarios. The first scenario is that the firm wants to enter the market and hasnt purchased any

license yet. The second scenario is that the client already has a 2G license. What will be your advice

to the client in both the scenarios?

Helping Aid:

Frame the case problem statement first, and treat it as a root to build the rest of the structure

Make reasonable assumptions. Think practically about each solution from a perspective of it being feasible and implementable

Ans

Strengths

Huge customer potential

Second largest and fastest growing network

High Foreign Direct Investment inflow

Huge private sector and small and medium business base

Booming semiconductor design industry

Weakness

Late adopters of new technology

High entry barrier due to huge investments

Lack of low cost long-term financing, soft loan

Low R&D; no patents and technology standards still evolving

Slow regulatory reforms

Opportunities

3G and 4G services

Enormous equipment export potential

Employment

Horizontal integration

Booming handset market

Threats

Regulatory and legal policies

Political instability due to scams

Competition from foreign players

Weak IPR protection

Indian tax levies and duties imposed

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In case of 2G scenario, SWOT analysis will be similar as the market already has 2G services. The

opportunity is for 3G and 4G service providers.

Question 2 a) Guesstimate the number of servings of Maggi that are consumed in India in a day. (Prior to

the lead/MSG fiasco)

Ans: Target population set:

1. India has total population of 1.2 billion. It has 70% population in rural area and remaining in

urban area. This makes rural population equivalent to 0.84 billion and urban population

equivalent to 0.36 billion

Assumption and valuation:

1. As rural population has proclivity towards food from fresh vegetable and grains. It is fair to

assume that only 5% of the rural population equivalent to 0.084 billion is going to consume

maggi.

2. Lets take the case of urban population.

Urban population can be divided on the basis of age.

Maximum age of individual is taken as 65 years almost same as Life expectancy of India.

Average age of the population is taken as 25 years almost same as average age of India.

3. It can be considered that in age group of 0-5 years and 40-65 years maggi consumption is

negligible. Maggi being an instant food is consumed by both males and females equally. Most

of the students lies in age block of 5-25, it is fair to assume that at least 40% consume a maggi

daily. In age block of 25-40, the penetration percent is lower than 5-25 age block and it can be

assumed to be around 15%.

Age Percentage of

Total Population

Urban Population

(in billion)

Maggi-consuming population in

Urban India (in billion)

0-5 10% 0.036 ----

5-25 40% 0.144 0.0576

25-40 37.5% 0.135 0.0202

40-65 12.5% 0.045 ----

Total Urban Population consuming Maggi daily = 0.0576+0.0202

= 0.0778 billion

Total Rural Population consuming Maggi daily = 0.05*0.84

= 0.0420 billion

Total Consumption of Maggi daily in India = 198 million

b) Guesstimate the annual market-size of Tupperware products in India.

(Make suitable assumptions and clearly state the assumptions)

Ans Assumption and reasoning

1. Rural population is not going to use Tupperware products because of its higher cost than

local manufactured boxes and bottles (major category of Tupperware).

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2. In Urban India, There might have been other competitors in market against Tupperware. We

can assume that it has 20% market share. Also, on the basis of income urban population can

be divided into 3 categories- lower income (30%), middle income (60%) and higher income

(10%).

3. It can be safely assume that higher income group generally inclined to other premium

quality products. Middle class urban population uses the Tupperware products most. It can

be taken as 40% of the set. For lower income group it can be around 15%.

Valuation:

Total Population of India = 1.2 billion

Total Urban Population of India (30% of the total) = 0.36 billion

Urban Population Percentage of urban

population (in %)

Total Urban Population in the

block (in billion)

Lower income 30 0.108

Middle income 60 0.252

Higher income 10 0.036

In India, mostly, a family has one box and one bottle for one person. Continuing with this

scenario we can find the Tupperware products in India.

Total volume of Tupperware in India = (0.252*0.4+0.036*.0.15)*0.20*2

= 40.54 million

Considering the product to be at rate of $ 1 per product.

Total market size of Tupperware in India = $ 40.54 million

Question 3 According to Michael Porter, how well a company will do (i.e how good its profit margins

and economic returns will be) in a particular industry depends on the following five factors:

threat of new entrants, threat of substitutes, bargaining power of suppliers, bargaining power

of buyers and competition among existing firms.

You are required to do a Porters Analysis for 3 industries. You have to select the industries based on

the last 3 distinct digits of your FMS Reg. No. For example, if your FMS Reg No is

FMS15D1234556, then youll have to choose the industries marked with 4, 5 and 6 (Retail, Oil &

Gas, Media & Entertainment)

(400 words per industry)

Ans: Information Technology

Threat of new entrants/ potential competitors: This is one sector which attracts

newcomers because of its rapid growth and huge customer base. But, it need to be noted that

it is quite difficult for the newcomers to enter the market because of hold of large scale

enterprises. Even it enters into the market it has to be attractive enough to start pulling

already existing users who has partnered with different sellers. Third party services are trying

to cater the need of newcomers at economical cost but still there is a prejudice when buyers

go for buying IT services and products.

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Bargaining power of buyers: In IT industry buyers can be a company or an individual.

Because of the boom in IT sector, we have thousands of IT service provider counting small

and big one. There are so many choices for a buyer and there are minimal switching cost.

Also, a lot of IT sales comes from companies that make large purchases in form of software,

IT infrastructure and cloud services. This provides buyers a chance to bid for the best and

economical. So, this provides an opportunity for customers to influence the market. Hence it

is suffice to say that customers have bargaining power in IT sector.

Bargaining power of suppliers: There we can say that the pressuring power is medium.

Most of the IT supplier firms are in existing relation with the buyers. The difference arises on

the performance standard e.g. speed, memory, search engine optimization. Suppliers

generally do not like to break this relationship by influencing buyers.

Threat from substitute: In todays modern and advanced world it is quite difficult to

substitute the existing technology. Even if there are opportunity, it requires a lot of advanced

research and development to replace the existing infrastructure and software platform. This

way we can say that it is difficult to substitute the existing structure but it is not impossible.

Rivalry among existing players: The evidence for this topic can be found out when one

goes to a site to download a simple media player. You can see list of hundreds of media

players .Though, there are ranking and people have prejudices, still the competition can be

seen openly. IT industry is known for its rapid growth, effectiveness and competition.

Economy of scale is pretty helpful for large companies. There are many legal and advertising

battles with one another.

Pharmaceutical

Threat of new entrants/ potential competitors:

Pharmaceutical industry is one of the most competitive industry in the country as the

medical products are almost same and all the players are fighting for the same. It can be

seen from the fact that top player has only 6% market share. The reason behind this is low

entry barriers. The fixed cost requirement is low but the working capital is pretty high. High

growth scenario has made this industry an attractive market for the new entrants. Along

with that, India follows process patents which allows new players to enter market. The fixed

asset turnover, which is one of the gauges of fixed cost requirements, tells us that in bigger

companies this ratio is in the range of 3.5 to 4 times. For smaller companies, it would be

even higher. Many smaller players that are focused on a particular region, have a better

hang of the distribution channel, making it easier to succeed, albeit in a limited way. An

important fact is that pharmaceutical is a stable market and its growth rate generally tracks

the economic growth of the country with some multiple (1.2 times average in India).

Though volume growth has been consistent over a period of time, value growth has not

followed in tandem.

Bargaining power of buyers:

In India National Pharmaceutical Pricing Authority (NPPA) keeps check on the pricing of

medical products. The consumer has no choice and it has to buy what the doctor prescribe.

Though, a doctor can influence the medical representative from the pharmaceutical

companies to keep the margin high. This can be observed across the country.

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Bargaining power of supply:

The pharmaceutical industry depends upon several organic chemicals. The chemical

industry is again very competitive and fragmented. The chemicals used in the

pharmaceutical industry are largely a commodity. The suppliers have very low bargaining

power and the companies in the pharmaceutical industry can switch from their suppliers

without incurring a very high cost.

Threat of substitutes:

This is one of the great advantages of the pharmaceutical industry. Whatever happens,

demand for pharmaceutical products continues and the industry thrives. One of the key

reasons for high competitiveness in the industry is that as an ongoing concern,

pharmaceutical industry seems to have an infinite future.

However, in recent times, the advances made in the field of biotechnology, can prove to be

a threat to the synthetic pharmaceutical industry.

FMCG

Industry Competition

Competitiveness among the Indian FMCG players is high. With more MNCs entering the

country, the industry is highly fragmented. Advertising spends continue to grow and

marketing budgets as well as strategies are becoming more aggressive. Private labels

offered by retailers at a discount to mainframe brands act as competition to undifferentiated

and weak brands

Barriers to Entry and Exit

The Indian FMCG Industry is characterized with modest entry and exit barriers. Integrated

business model and increasing capital requirement in the industry restrict new entrants.

Huge investments in setting up distribution networks and promoting brands and competition

from established companies.

Threat of substitutes

Being an essential commodity the demand for consumer products is elastic. Multiple brands

positioned with narrow product differentiation. Companies entering a category /trying to

gain market share compete on pricing which increases products substitution. Hence, threat

of substitute is high in the industry.

Buyer bargaining power

High brand loyalty for some products, thereby discouraging customers product shift. But

low switching cost and aggressive marketing strategies under intense competition within the

FMCG companies, induce customers to switch between products, thereby driving value for

money deals for consumers.

Supplier bargaining power

Prices are generally governed by international commodity markets, making most

FMCG companies price takers. Due to the long term relationships with suppliers etc.,

FMCG companies negotiate better rates during times of high input cost inflation.

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Part B Marketing

Question 1

Answer the questions based on the case below:

Paper boat: Back to basics, Meghna Sharma, Financial Express, April, 2015

How Paper Boat Packages Childhood Memories, Sonal Khetarpal,

MindYourBusiness

With nine flavours under its belt and five more in the pipeline, Paper Boat plans to

aggressively tap the Rs. 4,000 crore fruit juice industry in the country. Focusing on

the SEC A and B segment in the 20-40 years age group, primarily residing in Delhi,

Mumbai and Bangalore; it wants to appeal to their idea of home, speaking also to

people who have migrated away from their native places.

The brands strong ethos helped the founder trio define their core audience the

young adult who is working, always running on a treadmill and wouldve had these

drinks in the past, probably when growing up. They were apprehensive about limiting

their target consumer by defining it as a young demographic.

Instead of adopting an aggressive marketing strategy, the trio decided to leverage on

word- of-mouth. They wanted to understand if consumers would discover and

appreciate these new flavours on their own. They took the route of limited

distribution. But, they did so by entering into high-profile associations with Jet

Airways and IndiGo Airlines. Air travel has become frequent among the upper

middle class which Hector had identified as their key influencer community, mainly

because this segment isnt as price-conscious. Also, they tied up with modern trade

stores such as supermarket chain Food World, HyperCity, Nilgiris and Namdharis

Fresh and placed it in 500 stores across four Indian metros.

The brand so far has been active mainly in metro cities like Delhi, Mumbai, Bangalore etc.

The brand now wishes to expand into other towns/cities in India and wants you to design

the complete marketing strategy.

1. Perform an STP analysis of the brand that fits into these expansionary plans based on your secondary research (online) for similar products and the current marketing

campaigns of Paper Boat

Ans:

Segment

Geography Rural/Urban

Demographics Age /Occupation/ Income

Psychographic Lifestyle

Behavioral Benefits/ Usage

Targeting: Age group 20-35 years of all urban income groups who are working away from

home and looking out for a drink with health benefits containing natural and refreshing flavors

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Positioning: Drink and Memories: a drink with pure flavors that evades us into the glimpse

of our own pureness of childhood.

2. Identify the main competitors for your product Ans:

Main Competitors:

Dabur Real Juice

Tropicana Slice

Maaza

Frooti

Dabur Aam Panna

Carbonated drinks

3. Prepare a Marketing Mix for the brand in terms of: a. Which product flavours should they start with? Compare their product

attributes with those of carbonated drinks and fruit based beverages

b. Pricing strategy for Paper Boat in these cities c. Distribution channels d. Detailed promotion plan media, campaigns etc.

Ans Marketing Mix

a) They should start with Aamras and Jaljeera. The reason behind Jamras is because

mango juice has all season demand and it would help it compete with Maaza, Frooti,

Jumpin and Slice in this section. Jaljeera is to connect the product with the Drink and

Memories.

Paperboat is a healthy drink with natural flavors and the motive behind launching was to

provide a healthier drink rather than simple normal drinks. This is something that is unavailable

in carbonated drink. Let us take the case of Paperboat Aamras and Slice. The pulp percentage in

Aamras is 45% as compared to 12% in Slice. Also, Slice relies on sugar for sweetness but in

case of Paperboat it is natural ingredients which are giving the products so much publicity.

Paperboat also has condiments as an ingredient which is unavailable in other fruit based

products.

b) Pricing strategy

Product Price (in Rs.) Type

Slice (250ml ) 34 Pulp based (12%)

Aamras 35 Pulp based (45%)

Maaza (200 ml) 15 Juice

Frooti 250ml ) 15 Juice

A quick glance at the competitors reveals that quality along quantity is what paperboat is

assuring one. In pulp based section, Aamras is giving more than the established brand and

people are willing to pay this price for such a good product. I think there is no need to consider

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decreasing price.

c) Paperboat started with introduction in airlines such as Indigo and Jet Airways, from

there Paperboat is catering to the demand of 20,000 retail outlets, coffee chains, hotels

and pubs. The good thing that Paperboat did was to contact Kirana Stores and let them

display their product in cooler which are generally one in number. For catering to tier 1

cities Paperboat has started online site in collaboration with Amazon India. To grow

further, Paperboat need to continue the same path of pitching to Kirana stores more as

compared to retail outlets. Kirana has far more reach into the market in tier 1 and tier 2

cities as compared to retail outlets.

d) Detailed promotional plan:

1) Advertisement: Paperboat has nine flavors and five more flavors in the pipeline. It has

created a perception that drinks are memories from the past. To keep this spirit alive,

company has launched a multimedia campaign. These five commercials celebrate the

various flavors from traditional kitchen. First part of the advertisement received more than

one million views.

2) Paperboat is being served as beverage in airlines such as Indigo.

3) Paperboat reached out to kirana store to increase penetration depth in the market.

4) Merchandising: It is an essential part of advertisement and a slight look at the refrigerator in

the market can give u a glimpse of colorful Paperboat packet.

4. Comment on the possibility of market cannibalization between Paper Boat and Tzinga Ans Considering the fact that Tzinga belongs to completely different section of the drink

as compared to Paperboat, I think there will be negligible cannibalization. Tzinga is seen as

an energy drink and on the other hand Paperboat is simply healthy beverage which brings

back the memories of the childhood back.

Question 2

Choose any three famous brands amongst the following and answer the questions that follow:

1. Maggi

2. Axe

3. Coca Cola

4. Gillette

5. Sony

i.

ii.

Comment on the way these brands originated and how they have diversified over the years

(in terms of line or brand extensions)

Analyze the promotional campaigns of each brand and how they have evolved over the years

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Ans

3) Coca Cola

Origin: In 1886, Dr. John S. Pemberton was curious and this led him to create a

distinctive tasting soft drink that could be sold at soda fountains. He created a flavored

syrup. Dr. Pembertons partner and bookkeeper, Frank M. Robinson, gave the beverage

Coca-Cola its name.

Line or Brand extensions:

1) Coca-Cola

2) Coca-Cola Zero

3) Diet Coke

4) Fanta

5) Georgia

6) Kinley

7) Limca

8) Sprite

9) Thums Up

10) Sunfill

11) Minute main pulpy

12) Maaza

Timeline: Coca Cola

Source: Coca Cola archive

Source: Coca Cola archive

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13) Citra

14) Bonagua

15) Fanta

Promotional Caimpagn:

Coca Cola: the best way for uplifting and enhancing your everyday moments of happiness.

Coca Cola started its market in India in 1977, but was forced to exit the Indian Market. It

again entered back to India post liberalization. Then it opened a plothera of marketing

campaign which led to soaring sale in Coca-Cola. Few innovative advertising startegy has

been discussed below.

1) Jo Chaaho Ho Jaaye, this was Coca Colas first campaign in India. It appealed at a

emotional level. Main segment that it targeted was youth and it was a success. These ads

featured Hrithik Roshan and Aishwarya Rai.

2) Thanda Matlab Coca Cola, this was aimeed to connect Coca Cola to vast population.

3) Open happiness, with this campaign Coca Cola achieved both an emotional as well as a

mass appeal. This lays emphasis on the small moments of happiness of life. It portray

life is a collection of bits of happiness.

5) Sony

Origin: Masaru Ibuku started a radio repair shop in Tokyo on 7 may 1946. He was later joined

by Akio Morita and they founded a company called Tokyo Tsushin Kogyo. They built Japans

first tape recorder.

Brand or Line Extension:

Sony has a vast range of products. It is not possible to summarize the product extension in few

pages. But, I will try to cover as many products as well.

1) Television & Projector

2) Home Video

3) Home Audio

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4) Compact Digital Imaging

5) Lens-style Camera

6) Interchangable Lens Camera

7) Computer and Peripherals

8) Tablet

9) Personal Audio

10) Smartphones

11) In- Car Entertainment

12) Storage Media and batteries

Promotional Campaign

As already discussed, Sony has vast number of products. Here only two famous taglines are

taken into consideration for promotional cmapaign.

1) Make.believe, to unify the company's efforts at communication, and to reinvigorate the

Sony brand.

2) Color like.no.other, BRAVIA brand uses this slogan.

1) Maggi

Origin: Maggi is international brand from Nestle. In 1875, Julius Maggi took over his fathers

mill and he started combining machine with food products. Julius Maggi founded company

Maggi GmbH in 1947. Maggi entered Indian market in early 80s.

Line Extension:

1) Masala

2) Chicken

3) Vegetable

4) Aatta

5) Oat

Brand Extension:

1) Maggi kitchen Masala

2) Maggi Soup

3) Maggi Ketchup

Promotional Campaign:

1) Bas 2 minute, this is the main ad campaign of maggi and from this ad campaign only, it

built an empire

2) Taste bhi, health bhi, this is to promote the healthy side of the product

3) Fast to cook, Good to eat

Question 3

Read the paragraph below and then answer the questions that follow-

In July 2003, ITC forayed into the biscuits market with its Sunfeast

range of glucose, marie and cream biscuits. Twelve years since, ITC is

now well ensconced in the biscuits space. In recent years, the brand has

become much more than just a biscuits brand. ITCs Yumfills, Yippee

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Noodles and Pasta Treat sub-brands are under the Sunfeast umbrella.

When Pasta Treat was launched in 2005, the company believed that it

was a good fit with the Sunfeast brands Spread the Smile proposition.

At the same time, ITC sought to take advantage of the established

brands equity amongst both retailers and customers. Yippee noodles

was again launched as a sub-brand of Sunfeast because keeping pasta

and noodles as separate brands did not seem acceptable to the company.

The parent brand Sunfeast is present as a logo in most of the products. In

all the packaging and brand related communication, the primary driver is

the sub-brand. ITC expects that over a period of time, these sub-brands

will acquire equity and Sunfeast would just be a token endorser.

1. Using appropriate examples, elaborate on the advantages and

disadvantages of launching a new category as a sub-brand of an

existing one

2. Assume that ITC wishes to enter the soups category now

a. Analyse the Sunfeast brand and suggest whether soups should

be a sub-brand within the Sunfeast umbrella or a separate brand

b. Come up with a name and tagline for the brand/sub-brand with reasons for the same

c. Analyse the existing players in the category and suggest a

positioning for the ITC brand to make it stand out from the

competition

d. Elaborate on some of the features of your brand (example

packaging, variants, free gifts)

3. Answer the following for Yumfills:

a. Do an STP analysis for the brand based on secondary research

(online) for similar products and the current marketing

campaigns of Yumfills

b. Visit a supermarket and observe how Yumfills is arranged on shelves. Is the product

sold with biscuits or chocolates? Talk to the store manager and find out reasons for

the same (attach a picture of the assortment you observed)

c. How is Yumfills differentiated from competition at the point of sale (Focus on

packaging, merchandising solutions and shelf positioning)

Ans

Advantages:

ITC is always associated with tobacco because of its leading cigerette brand Gold Flake. The

main reason behind launching a sub-brand is to keep the parent company name away from the

consumers/ customers. It would have some negative impact on the society if a tobacco selling

company is going for sellig food products. This psychology would have definitely led to

decrement in sales of food product associated with ITC. To mitigate this issue, ITC launched a

sub-brand and made sure that it started with a clean image. That was a new inning for ITC as

Sunfeast in packaged food market. Apart from this, if sub-brand fails, there would have been

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almost no impact on parent brand.

Disadvantage:

The main issue that sub-branding can cause is similar to what happened to Maggi. Because of

issued of lead and MSG in Maggi, the sales of Nestle produucts declined. Also, the image of

Nestle products took a toll.

2 a) Sub-branding is a good idea if Sunfeast wants to start a new soap brand. This is because

Sunfeast is seen as a brand associated with biscuit and packaged food only. It would have been

really difficult to change image of Sunfeast from packaged food to cleaning products. Even if

the product fails, the name of the sunfeast would remain intact.

2 b) Sunfeast Ketchup : Tamatar nhi bolo Sunfeast Ketchup.

2 c) Existing players are Kisaan, Maggi Sauce, Heinz, Del Monte, Mrs Bectors etc. It is a

tricky market to crack but a lot depends on quality production. A good advertisement campaign

to establish the ketchup as equivalent to tomato is definitely necessary.

2 d) The pakcaging would be of red and yellow color something that represents brightness in

the life. Apart from this, the product will be started with combo pack with Sunfeast Yippee

noodles.

3) a)

Segmentation

Geography Rural/Urban

Demographic Age/Occupation/Income

Psychographic Lifestyle

Behavioural Benefits/Usage

Targeting

5-20 years age group, midle and upper class who are looking for a premium chocolate pie

Positioning:

A product with quality chocolate and delicious pie.

b)

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This picture was taken from nearby 24*7 outlet. This is a case of merchandising. The product

was placed in line of sight of customers . The products is placed such that it is visible when one

enters the store. It was placed with Chocho-Pie and Munchini. I talked to store manager

regarding this. He said that this is to make the product visible. This helps in selling of product

more easily.

c) Firstly, the packaging is in contrast with chocolate color. The purple color

contrast is somewhat similar to the dairy milk color contrast. This makes the

product more visible among red

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Part C Finance

Question 1

Company Assignment for the following question is as follows:

First Letter of First Name Company Assigned

B, J, Q VST Tillers

D, L, S, X Asian Paints

G, N, E, U Tata Motors

Pick the financial statements of the company assigned to you for Financial Years 2010 to 2014 and

calculate all the Ratios. Further, you are required to answer the following questions based on your

calculations. Be as comprehensive as possible in your analysis using only the relevant information.

a) In the Annual Report (2014) to the shareholders, the CEO wrote, 2014 was a good year for the company with respect to its ability to meet the short-term obligations. Is he correct? Justify

b) One important measure of companys Operating Efficiency is how efficiently is the company using its assets? Comment about the company's asset management

c) Provide the Shareholders with an assessment of the company's

o Solvency

o Leverage

o Profitability

Instructions for Question 1

- All calculations to be provided in an Excel file - Required formula should be clearly visible in the Excel file - Mandatory color-coding

Black font - Manually entered data/assumptions

Blue font - Formula Green font - Direct linkages

Question 2

Any amount of money is worth more the sooner it is received. With this context, answer the

following

a) What are the reasons to account for this concept?

(200 words)

H, O, V, Z TCS

F, M, T Nestle

C, K, R, Y Bharti Airtel

A, I, P, W ITC

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b) After five years, Ajit will receive a pension of Rs. X per month for 15 years. How much

can he borrow now (today) at 12% annual interest so that the borrowed amount can be paid

with 30% of the monthly pension amount? The interest will be accumulated till the first

pension amount becomes available. (Where X is the last 4 digits of your FMS registration

no.)

Project A Project B

CF0 -8000 -8000

CF1 100 9000

CF2 2000 300

CF3 4000 200

CF4 7000 100

c) Calculate NPV for Project A and Project B. Based only on NPV if you had to choose only

one of the projects, which one it would be? Why? (Take Discount Rate as 10%)

d) Calculate IRR for both the projects. Now which project would you choose based only on

this information? Why?

e) Which project will you choose if both NPV and IRR are known? Why?

f) What are some of the other methods to compare different projects?

(250 words)

Question 3

India has recently become the fastest growing major economy in the world. But, there are economists

questioning the validity of the numbers. Is the economy really firming up? In this context, answer the

following

a) What are the implications of revised GDP estimations on Indian Economy? Explain the

changes in method of GDP calculation.

b) What are the differences between Monetary policy and Fiscal policy? How is the recent rate

cut expected to impact the economy?

c) Explain CPI and WPI. What are the key reasons for adopting CPI as the key measure of

Inflation?

d) Explain three reforms (specific to financial sector) of the Union budget 2015-16.

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Part D Operations

Question 1

Each one of you must have done online shopping from Flipkart, Snapdeal and Amazon and

would have experienced the differences in their services. Compare and contrast each of these

platforms on following parameters:-

Business Model (Marketplace, Inventory, JIT,

Dropship)

Logistics (3rd Party Couriers, Delivery)

Operations (Warehousing, Fulfilment Centres)

Customer Service

Sellers Selection

Why do you think one of these platforms is struggling more than others? Please make some

suggestions to improve their operations. Your answer should be solely based on operational aspects

of the company.

1) A) Flipkart:

(i) Business Model:

Flipkart is initially started with the inventory based model, but later turned up to market

place model. On 6th April 2013, Flipkart announced Flipkart Marketplace.. Let us figure out

why Flipkart changed its strategy from inventory based to market place model... Right now

the model is almost applicable to all the goods whether it is electronics or clothing.

Logistics: Flipkart they started with dedicated logistics partner Ekart. Because of

marketplace model now the Ekart has started catering to the needs of other Ecommerce as

well. As of now, 85% of the products that are shipped by Ekart are from Flipkart. Rest of

the products are delivered by third-party logistics services namely Delhivery, DTDC, GATI,

Blue-Dart and FedEx.

Operations: It has 6 warehouses with 3 being in Delhi, and 1 each at Bangalore, Mumbai

and Kolkata. Flipkart is setting up regional warehouses and signing up more suppliers across

the country to ensure customers get orders delivered by the nearest supplier to mitigate the

cost of air shipments. It is looking at spaces in newer cities such as Chennai, Ahmedabad,

Hyderabad & Kochi.

Customer Service: A quick glance at the contact us page on Flipkart reveals that it has a

strong customer service culture and it puts customer first approach in every case. One can

get email assistance and telephone assistance.

Sellers Selection: It is decided by the performance of seller on Flipkart. This all boils down

to customer feedback, order cancellations, promise fulfillment, returns handling,

responsiveness etc. Flipkart scales the performance of sellers on the basis of 5 point rating

with 5 being the best.

20

B) Amazon

Business Model: Amazon started operation in India by acquiring Junglee.com, a site for

comparison of price of products. Amazon from starting focused on the implementation of

marketplace model. As already discussed beforehand, this helps in mitigating the inventory

cost and also provides a competing platform for sellers to pitch their product across nation.

Logistics: Amazon initially relied on third party logistics parties to deliver their products. It

involved GATI, Blue Dart, Delhivery and DHL. To enhance the last mile delivery, Amazon

has partnered with India Post which is known for its deep reach within the country. Recently,

Amazon has set up a logistics company to deliver products directly to customers.

Operations: Amazon has just started developing its warehousing. It has existing facilities on

the outskirts of Mumbai and Bangalore. Amazon had announced that it is going to establish

five more fulfillment centers in Delhi, Chennai, Jaipur, Ahmedabad and Gurgaon. It has

already leased 16,000 sq ft warehousing area in Delhis Mohan Cooperative area and

250,000 sq ft of space in Bhiwandi, Mumbai.

Customer Service: Typical like any other famed E-commerce, amazon has a strong

dedication to serve its customer. Even after sale options are simple and one can return the

product without any hassle.

Sellers Selection: Amazon similar to Flipkart relies on the feedback from customer, return

products, return handling and responsiveness.

C) Snapdeal

Business model: Like any other E-commerce, Snapdeal also is an example of online

marketplace.

Logistics: It doesnt have dedicated logistics service like Amazon and Flipkart. It relies on

third party logistics service providers including GoJavas and Blue Dart. Snapdeal has

announced to invest $200 million dollar to develop its own logistics network.

Operations: Currently, it has 50 warehouses in 20 cities. It is planning to increase it to 75 in

30 cities.

Customer Service: Several reports have been out in the public regarding callousness of the

after sale service provider.

Sellers selection: It is similar to others and based on 5 star performance indicator.

Amazon is suffering from the rules and regulations enforced by Indian Government. This case

developed when Karnatakas tax department received a notice regarding the tax issues. Amazon

operates on marketplace model. In a marketplace model, E-commerce has to pick up the product after

the order is placed and then deliver it to customer. In case of Amazon, it is alleged that it stored the

products from the sellers even before the order was placed. Karnatakas tax department barred Amazon

from selling products from its warehouse in state by cancelling the licenses of more than 100 third-

party merchants. Those were working with the local unit of the company. As it operates on a market

place model, Amazon keeps a cut and passes the remaining proceeds to its merchants, who then pay

VAT to the state government. Karnataka government has asked Amazon to pay the VAT on the

products that it has already stored in the warehouse. As per the Amazon, it is providing an assistance to

its sellers to sell their products easily and quickly to cut down the lead time. It has said that is does not

own the products so it does not have to pay any VAT on these products. A report from the Amazon

21

stated that Indian laws curb the growth of growing and changing business scenario. Ecommerce is

suffering from the absence of exact laws in Indian scenario. A more specific and transparent taxing

system known as Goods and Service Tax (GST) is needed to cater to the disputes arising in Ecommerce

sector. Until specific laws are laid out, ecommerce companies are still in the dilemma over their future

in the country.

Question 2

Demand forecasting is one of the critical tasks in manufacturing industries and the role of Sales and

Operations Planning is of utmost importance in these industries. Excess of production will result into

inventory and will be a cost to company while shortage in production will result in loss of sales and

customer confidence leading to future loss of customers.

Provide a demand forecast and production plan for each of the given industries keeping various

factors in mind like market growth for the product, export/import scenario for the product,

seasonality, inventory holding cost, production cost and supply chain network.

Your answer should touch each of these factors while formulating the plan. You are advised to research

on these industries to have a better understanding of the same before answering.

1. Automotiv

e

2. FMCG

3. Chemicals

(900 words)

Question 3

How different is the supply chain network of a retail company (Big Bazaar) different than an oil

company (IOCL). What operational challenges do you think each of these companies face while

ensuring that they place their products at the right place and at the right time in front of customers?

Draw supply chain network diagrams to illustrate your answer.

Ans

Supply Chain Management involves the network of all the processes from the movement and

storage of raw materials, work-in-process inventory, and finished goods from point of origin to

point of consumption.

The supply chain exists both in the service and manufacturing sector, although the complexity

of chain may vary greatly from industry to industry and from firm to firm. Lets take a look at

the supply chain network of two different organization. Firstly, we will discuss the supply chain

of Indian Oil Corporation and secondly, we will look into the supply chain of a retailer lets say

Big Bazaar.

a) Indian Oil Corporation

22

Petroleum refining being a material flow intensive industry has a significant importance in the

industry. The cost of supply chain can be as high as 40% to total refining and distribution cost.

Uninterrupted flow of inputs and outputs including byproducts and wastes with minimum

facilities are crucial to cost effective and efficient operation of capital intensive, process

oriented, tightly coupled system such as a refinery.

Figure 1 Typical Supply Chain in Oil industry for commercial purpose

Figure 2 Typical Supply Chain in Oil industry for retail marketing

Inbound logistics deals with the extraction of the crude oil to the storage after refinery. Internal

logistics deals with all the operations starting from crude oil tank to the pumping of refined

products to the tanks for final products. Outbound logistics deals with the distribution aspect of

the supply chain. It generally consists of selection of transport mode for distribution of products,

making arrangements for delivery of products, and distribution of products through the selected

Exploration ProductionCrude

PipelinesShipping

Trading RefiningProduct

PipelinesStorage Terminal

Product Distribution

Industrial Markets

Commercial Market

Exploration ProductionCrude

Pipelines

Shipping Trading Refining

Product Pipelines

Storage Terminal

Retail Market

23

mode of transport. In the case of petroleum industry, application of service and reverse logistics

is very limited because these two activities are not that common.

b) Big Bazaar

A typical supply chain in Big Bazaar involves the production of product from the raw materials

supplied by the supplier to factories. The estimate of how many products to be made is

forecasted by current demand and supply patterns. This is a tedious task and involves a lot of

calculation and anticipation. This might go wrong also. The chain consists of transfer of

products from factories to distribution centers. These are located strategically to curb the

expenditure on logistics. Then comes regional distribution centers. As the name suggests, these

procure goods at regional level. Then comes the retailers. We all must have seen Big Bazaar at

least once in our life. These retailers are the one who interact with the customer and are major

player of market. In case of Big Bazaar, reverse logistics also plays a significant part.

Operational Challenges

S No. Indian Oil Corporation Big Bazaar

1. Waiting:

Crude oil is imported moslty often

they have to wait for unloading at

harbor. This lead to increase in

inventory holding.

Lack of Infrastructure:

The distorted condition of

transportation infrastructure adds to the

grievance.

2. Quality Check:

Inventories:

Most of the retailer relies on push

mechanism which leads to inventory

build up

3. Huge Inventories

4. Over Production:

As it is a continuous process, there

is no way one can produce as per the

demand. This lead to addition to

inventory.

Supplier

Factory

Districution Center

Regional Distribution

Center

Retailer

Customer

24

Part E Information Technology

Question 1

E-C ommerce companies like Flipkart, MakeMyTrip, etc. are delighted by the growing base of

its mobile customers. From Mobile-First approach, now these e-Commerce giants are lured towards a

complete shut-down of their desktop websites to move to App-Only business. You know the Myntra

story. Do a critical analysis of how this attempt may be a bane or boon for the e-Commerce

players. Whats in it for the customers? Your answer should be focused only on the IT aspects.

(400 words)

Benchmark the Best-in-Class features in the mobile Apps of top e-Commerce players in the following

sectors:

(i) e-Tailing (e.g., Amazon)

(ii) Travel/OTA (e.g., goibibo)

(iii) Real estate (e.g., Housing)

How can some of these players increase the user experience through mobile Apps? In each of

the above categories, take 3 companies each.

Ans

1) Recently, Myntra shifted to only mobile platform. Before declaring it as a boon or a bane, one must

consider all the aspects of the rationale behind it. Following points have been mentioned to discuss

about the topic.

Boon:

a) Desktop website requires a lot of designing and maintenance. Moving to only mobile

platform reduces the maintenance required which in turn results in less requirement of

human resources and developing prospects.

b) Now customer does not need to sign in again and again on different laptops. Smartphones

have become an integral part of life. This provides customer all time connectivity to the app.

c) Push notification regarding sales, offers, discounts and stock arrival can be sent to you. This

surely provides information better than the promotional offers sent on email.

d) Now firms can analyze about the buying pattern of the customer. This helps by providing

selected offers to customers as per their buying or browsing pattern.

e) Mobile apps are more user friendly than websites. All the options are available in 4 or 5

space and it is easy to navigate on mobile phone as compared to website.

f) Through GPS, app can identify location of the buyer. This helps in curbing bogus buying of

products.

Bane:

a) Push notification becomes a spam when customer is not willing to purchase. This causes a

lot of irritation.

b) Customer sometimes just prefers to buy product through website only. People have their

own choices and one cannot do anything about it.

c) People who are not having smartphone will be cut out from the customer base.

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As one can see that shifting to totally mobile platform has many advantages. But, one must

consider the fact that habits takes time to change. For those who are too much into website will

find it difficult to buy product through apps. This is subjective and there is no absolute answer

whether it is a bane or boon. In future, when the smartphone penetration is going to be very

high then this concept of shift from website to app is definitely going to earn laurels. Right now

it is really judge the impact of the shift but future trends are positive and it will surely come out

to be a boon.

i. e-Tailing

Best in these categories are Flipkart, Amazon and Snapdeal. The browsing experience of the

customer on app determines the searching and buying pattern of the customer. This helps a

lot in providing offers, discounts, promotional coupons and sales to particular customer

according to his/her need. With app installed, one does not need to login into different

laptops to purchase a products. App also provides option to save credit or debit card to make

transaction easier for future purpose. Now one can easily share his skeptical choice with

ones peers and family through a single share the product option.

All the three market leader in this section collects data of customer about his/her

preferences, searching products and browsing pattern ; and then analyze it using big data to

predict the best item to be purchased by the customer. Also a customer can easily rate a

product without too much hassle. One thing that is till remaining is that the comment

section is not user friendly. Sometimes it suggests user to use website. Apart from that in

case of Flipkart, the page of Mi4i was not available on mobile platform.

ii. Travel/OTA

Three main players in this section are: goibibo, yatra, makemytrip.

Now the booking of flight, bus and hotel is as convenient as eating a pie and one need not to

worry about long queues for booking and information. It is even easier to cancel ticket.

Apart from providing assistance in booking of tickets, it also provides suggestion with the

best deal. Sometimes there are offers specifically for app based user. Promotional offers are

an integral part of these apps. This pattern is to increase the traffic on application. The ticket

that you get is E-ticket and it is convenient to carry without any worrying of getting lost.

One can simply show the message sent on mobile or E-ticket for verification. These apps

also have the option to save payment details so that you can easily transact without any

problem. After using the service, one can give feedback to hotel which you booked or bus

which you rode. Apart from these benefits, one can easily search for nearby items through

GPS. Travelling has never been this easier and convenient.

iii. Real Estate

Top three market players in real estate: housing.com, magicbricks.com and 99acres.com.

The rise of ecommerce can be seen in real estate sector as well. This has allowed the people

to stay at home and search put for affordable property within the range. One does not need

to run around to look out for property. With the help of these apps, one can rent, hire, sell or

buy a property. The user interface of these apps is absolutely user friendly. One glance is

good enough. There are pictures shared as well as total description of the locality with a

map is also provided on the apps. It can also use GPS to search properties for desired

locations. Most important feature of these apps is that they provide locality review and

ratings for the desired properties. One can also check past price trends for a specific locality.

Some of them also provide financial helps to seeking buyer.

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Question 2

Everyone is well versed with the fierce competition among e-Tailers. However, they may be

overseeing a potential risk that may surface and pose a threat to the industry in general, for data,

payment etc. List down a few of these risks that you feel would be nightmares for the e-Tailers. Out

of the many risks, analyze any one and propose a logical solution to mitigate such risks in future?

How can these e-Tailers use technology to cope with such threats?

Ans: India is a developing country and with developing status comes the growth in need of products.

This is where the e-tailers have captured the market and provided an alternative to general brick-

mortar retailers. Now the customers have wider choices at their fingertips. The world is converting

into a global market bazaar. There have been n numbers of e-tailers catering to needs of millions of

Indians. Flipkart, Amazon and Snapdeal have imprinted their mark on the online market. On moving

to recharge section, Paytm and Freecharge are prominent players. Apart from these, we have Make

My Trip, Healthkart, Lenskart etc. Though it has opened a totally new channel for purchasing, there

are limitations associated with these as well. Consider the case of Paytm, they have saved card for

ones future transactions. This leaves it to a threat from hackers who are developing innovating skills

to get access to protected data. Flipkart, Amazon and Snapdeal all have your full information saved.

In case of any attack, this would lead to release of confidential data about customers to potential users.

One must be sure of what the actual process and how it can be molded to access your private

information. In our case, we are discussing the potential threat to debit and credit card information. As

per McKinsey&Company, Indias payment industry is approaching $14 billion in revenues. The

electronic payment has grown from 5 percent of total value to 48 percent in 2008. On regulatory front,

Reserve Bank of India established the National Payments Council to spearhead the development of

retail payment and collections systems. On global level, all five international payment card brand

(VISA, MasterCard, JCB, AMEX and Discover) follows Payment Card Industry Data Security

Standard (PCI DSS). This is the data security standard that multilaterally specifies requirements of

security management, policies, procedures and methods, network configurations and software design

to protect other cardholder data. This ensures that all the Ecommerce companies comply with the

standards set by NPC as well as PCI DSS. These major regulation prevents our data from leaking and

mitigate the risk. On personal front, keep an eye on shoulder surfing plus avoid emails and calls

asking about card details. In this era of technology advancements, e-tailer has to keep pace with the

new threats to their customers.

Question 3

Explore the use of open source technologies in Operating Systems, Frameworks, Databases and

Programming Languages for new entrants.

Ans Definition: As per the entrepreneurhandbook.co.uk, Open source software is generally free software

than you can use in your business. E.g. Mozilla Firefox, Wikipedia, GNU/Linux operating system

The most important thing about them is that they are free to use and saves a lot of money. These are

continuously evolving in real time. A developer can modify and append it as per his/her business

requirement which feature is not available in specifically designed software. In case of any difficulty,

OSS can be easily modified because of their transparency in the coding as well as large online support.

On the other hand, there are disadvantages of using OSS as well. Mainly these depends on the

willingness of a developer to further continuing its operation. This is not driven by needs of end user.

As these are free software, the user interface is not as user friendly. There are security issues because of

transparency of the coding. These types of software are not advised to be used for highly secured

functions e.g. financial or private data. Sometimes, it requires external support for which we have to

27

pay extra.

Question 4

Information systems or IT enabled services are increasingly sought after by government bodies.

Attempts to incorporate e-Governance in the best possible way are crucial for the success of any

government. Suggest innovations in e-governance or use of SMAC, which can be adopted by the

Indian government or its applied services, with respect to the following sectors (Map global best

practices models for references)

a. Transport

b. Micro, Small and Medium Enterprises

c. Skill Development and Entrepreneurship

Ans: Transport:

Indias transport sector is characterized by delay services, inefficiency in operation, tedious clearance

process and mediocre level infrastructure. This factors contribute to the logistics performance index

raking of 46th. This shows that there is a lot of scope of development in this sector. Following are the

suggested IT enabled support system.

a) Radio Frequency Identification Devices (RFID): This service provides the real time tracking

and tracing of vehicles, consignment, containers and other equipment. It along with vehicle

tracking systems keep track of vehicles.

b) Enterprise Resource Planning (ERP): It integrates the communication between corporate and

business functions of an organization.

c) Warehouse management system (WMS): It links different systems to monitor incoming goods,

customer order and stock levels. It helps in achievement of efficient storage and movement of

goods.

d) Fleet Management System: These types of system help the companies to track and control the

maintenance cost of their vehicles.

e) Scheduling Systems: Planning and routing of vehicles is a tedious job. Through the help of this,

we can implement computerized scheduling system with complete data pertaining to consignee

and consignor.

Micro, Small and Medium Enterprises:

The contribution of the MSME sector to the entire output of the country is 40%.The contribution of

the MSME sector to the entire output of the country is 40%. How IT can help in development of

MSMEs.

a) Mobile Technology: India has accepted this change at a really significant rate. Currently around 900 million people have access to mobile phones in India. This is one aspect we must pay

attention to. Mobile offers a really deep penetration which is highly required in Micro, Small

and Medium Enterprises. It can help in distribution of best practices to almost all the Micro,

Small and Medium Enterprises.

b) Enterprise Resource Planning: This can help in removing the extraneous work of paper and pen. With the help of this, there would be no need to go through tedious process of paper and pen. It

will also make sure that the data is secured for future references as well as can be accessed from

anywhere.

28

c) Online Market: This might be not a feasible idea but this can help in providing a push to the MSMEs products. Urban areas as well as Tier 1 cities can get the essence of MSMEs from this

platform.

Skill Development and Entrepreneurship

No country can grow without the help of development of its people. IT can help in providing and

promoting skill development program at a grass root level. As a part of ambitious project, Ministry of

Human Resource Development started National Programme on Technology Enhanced Learning

(NPTEL). NPTEL was started to provide quality technical education to general public of India. It has

lecture videos and notes from professors of IITs and IISc. National Mission on Education through

Information and Communication Technology has been started to to create accurate text transcriptions

of all NPTEL video lectures in engineering sciences. Similar program with providing training can be

started and its implementation can be done through rural info-centres.

A big push can be provided to entrepreneurship through IT. This includes providing education to

aspiring entrepreneurs and digitizing the business process of starting a firm. Red-tapism is taking a toll

on nascent entrepreneur programs. This can be only avoided when the bureaucracy factor is reduced to

minimal level. Implementation of IT can help in removing this redundancy. Though there is a long way

to go. Apart from that IT can help in organizing the laborer workforce.

29

Part F Human Resources and Organizational Behaviour

Question 1

G&C is a multinational FMCG company that is rapidly expanding throughout the globe. The

companys mission is to be the leading FMCG company globally. They see a lot of potential in the

Indian market and are planning to enter the space. Their management is going to personally oversee

the operations. But to understand the Indian market they need a sales manager who has significant

understanding of the market and can manage a team of sales representatives.

G&C needs your help to design a job description and a job specification to attract and hire the right

candidates.

1) Job Description

Job title: Regional Sales Manager

Job Location: Gurgaon, India

Reporting to: Area Sales Manager

Job Summary:

Forecasts annual and gross profit plans by executing marketing strategies, analyzing

market trends and reports.

Determines the sales objectives by developing sales quota for region; showing the

expected sales volume and profit for existing and new products.

Maintains a record of sales, product mix and selling price by understanding the supply and

demand of the products.

Determines the cost of the product as per the market trends, competitive products and

supply and demand.

Builds a team of professional sales staff with cunning and shrewd marketing background;

recruiting, orienting and training employees.

Understands the regional player and develop a model to promote sales in the region.

Keeps update with the current market scheme, new concepts; reviewing professional

publications; establishing personal as well as professional networks.

Leads from the front in case of unprecedented circumstances; motivates team to keep

going.

Job Specification

Qualifications:

Studied from reputed college; fluent in business communications

Vast knowledge of the market, product, demand, supply and sector

Firmly determined and sound psychology to lead team

Experience:

Proven track record in a proactive sales role

Understanding of targeted market

Experience in market analysis and econometric methods

Skills & Abilities

Anticipate the supply and demand of the products

Excellent presentation skills to inspire audience

30

Excellent relationship building charisma; manage relationship with existing customers

as well as proactively developing new customer technology

Confident and positive in attitude

Ability to recruit and handle new team

Financially astute

Demonstrates excellent verbal and written communication skills

Role models good team behavior

Ability to multitask

Strong organismal and planning skills

Logical thinker and decision maker

Acquainted with Word, Excel and Outlook

Any other requirements

Must be flexible with the office hours to meet the needs of the business

A passion for good service

A good and infectious personality and be able to portray this in professional manner

Question 2

The marketing department of the 'XYZ' firm, an oil company is not performing well for last few

quarters. The department manager has interacted with a few marketers and realised that the

motivation levels of employees are low. Also, they are dissatisfied with the working conditions.

How can the manager use motivational theory to raise the motivation levels of employees at

individual level? What are the various motivating and demotivating factors he has to consider from

the organisations point of view?

Ans

2) Herzbergs motivation-hygiene theory or the dual factor theory can give us insight and solution to

the demotivated employees.

a) Motivators ( satisfiers): that give positive satisfaction, arising from intrinsic conditions of

the job itself,

Providing them challenging work instead of monotonous ritual work; make sure the

work doesnt elevate their demotivation

Add a level of achievement and appreciation in case of good work by the employees;

this acts like an impetus to the employees

Provide them with the opportunity of advancement so that they does not feel struck in

single mindset

Appraise them in case of good work; this is good for the company as well for the

personal growth

More emphasis on the personal growth

Add taste of challenges to the already boring job

b) Hygiene (dissatisfies): Elements of life or work that do not increase satisfaction but that can

lead to dissatisfaction if they are missing.

31

Provide them with good and motivated office environment. This can be done putting up

thoughts on the blank walls. A dedicated leisure room and hang out place to keep one

away from demotivation

Office should not be too cramped; workers should get a sense of freedom when they

walk and breath

Proper lightening as it helps in creating a pleasant ambient

Environment should be on creating a pleasance; for this we should have more relaxing

furniture and tell them to use them from time to time to avoid exhaustion

Put a bulletin or notice board for important details, employee of the month, events and

other information

Fair and transparent work ethics to keep the work going on in a fair manner

Salary should be according to the market; No competitor should be giving more than

that for the same job profile

Perks and benefits add an extra icing on the cake for the employees. Benefits can be

good food, transportation facilities, game room, informal discussion room, voucher for

the families, half yearly trips etc.

An office without a tea or coffee room is not considered one. Make sure one has coffee

or tea room to allow employee to sip some energy when exhausted

Organize a mask party or superheroes day to create a sense of being a part of family

Recognize your team and their work; appraise them and in case of wrongdoing, guide

them

Question 3

Advancement in technology has meant that the world has become a global village and brought

people of different nationalities closer together. People of different cultural inclinations are now

working together more and more, associating and communicating on a daily basis. While this may be

exciting and interesting, it may be challenging, frustrating and uncertain too. Challenges emanate

from uncertainty on how one should relate to a person of another culture. Failure to understand these

cultural dimensions can lead to disharmony in the workplace which will have a negative impact on

productivity.

Kanto College staff can be categorised into three distinct nationalities namely India, Botswana, and

Zimbabwe. Such a diverse background is necessary for any reputable higher education institution as

it leads to the production of graduates with a global perspective.

Compare and contrast the three cultures on the metrics of Hofstedes cultural dimensions theory.

Ans Hofstede argues that people carry ``mental programs that are developed and reinforced through

their experience, and that these ``mental programs contain a component of national culture. After

analyzing the data from more than 40 countries, Hofstede concludes that these mental programs denote

the existence of four underlying value dimensions along which these countries could be positioned into

culture areas.

32

Table Source: Information and Knowledge Management ISSN 2224-5758 (Paper) ISSN 2224-

896X

Variable Indians Botswana Zimbabweans

Power Distance High Low-Medium Very Low

Individualism Low High High

Masculinity High Low High

Uncertainty

Avoidance

Low High Very High

Long Term

Orientation

High Low-Medium Low

Power Distance:

a) India: In this case, a high number shows that the unequal distribution of power is acceptable in

the society. This is evident from the fact that our leaders enjoy great extent of power and

nobody seems to care why.

b) Botswana: It puts a lot of emphasis on team work and committees rather than becoming placent

about the fact that there is a leader. It is actually a good perception for the society for all round

growth

c) Zimbabweans: Similar to Botswana, people of this country cares a lot about team work rather

than individual work.

Individualism:

a) India: A low individualism signifies that Indians lay more emphasis on harmony of the society.

The factor of whole society as a family can be considered as a good indicator for society

development.

b) Botswana: High ranking indicates that people of Botswana have loose connection among

themselves. There is a lack of interpersonal relation and little sharing of responsibility among

members of society.

c) Zimbabweans: Similar to case of Botswana, Zimbabweans believes in the concept of

professional relationship more than interpersonal relationship with fellow students. They show

more importance to privacy and prefer not to be asked too many personal questions.

Masculinity:

a) India: This shows that males act as the bread-earner of the family and female plays supporting

role. There is still inequality among boy and girl child. Females are often treated harshly by

males.

b) Botswana: Low ranking is evident from the fact that Botswana has equal status for both male-

female. The onus of responsibilities of male or female is still blurred. People are more

towards the harmony and equality of genders.

c) Zimbabweans: Like India, there is a difference between status of male and female.

Uncertainty Avoidance:

a) India: Indians are governed by rules and order and they seek a collective truth. While

addressing Indians, one must make sure what gestures they are using and in what context.

b) Botswana and Zimbabweans: In case of these two, there should clearly and concisely outline

management expectations and this is need to be clearly stated what will happen if such

expectations are met or not met.

Long Term Orientation:

33

a) India: In case of India, a lot more emphasis is given on future prospects. This says that future

benefits of Indian outweighs there current benefits. This is how Indians are brought up.

b) Botswana: There people relies on what is present, matters the most. Thats why employees in

Botswana are on weekly basis.

c) Zimbabweans: Similar to Botswana, Zimbabweans are more into current conditions as

compared to Indians.

Question 4

As a manager you will often encounter difficult situations that require rather uncomfortable

conversations. The following are a few such scenarios. Please indicate how you would respond to

such situations. Please ensure you provide examples. Be as specific as possible in your response.

Case 1:

You have worked with Steve on a number of projects and frankly, his attitude can

sometimes be abrasive. Steve seems to be a pessimist, always assuming the worst, constantly

complaining if things arent perfect, saying sarcastic remarks, and generally he brings the

team down. He is the senior on your project and yesterday he made a couple of sarcastic

remarks (which were uncalled for) about how a team member was ten minutes late to the

office. That afternoon, that team member came to you very upset about Steves remarks. You

are not officially Steves manager but you may need to give him some advice. What do you

do?

Ans

Firstly, to go with a case of this type requires a lot of careful handling and understanding. Why

we should be careful? Because we dont want the person to take this on his ego. This might lead

to a sore relation between Steve and I. To take a go at Steve, we need a conducive environment

where he can be receptive of whatever knowledge I am going to share. This might be a coffee

outing or a beer game. After this, I would like to start with how the office is going and how are

you doing in office. If Steve mentions this, then fine. If he doesnt I would try to mold our

conversation towards that incident where he commented on a team member. When we will

reach on that topic, then he will get an idea what I am going to talk about. To not let him go into

defensive mode, I would share my own experience on such events. Now when he is comfortable

with the topic, I will ask him to explain what goes in his mind when he comments sarcastically

on someone. If he tells, thats fine and if he doesnt then also it is fine. Then I will share how it

would have been felt when he would have been on the place of the person on whom he

commented about being late. I will also share how I feel bad for the ones whose fun I have

made. The rationale behind this method is that one should not let the other go in defensive

mode and let them be aware of the feelings of the person on the other hand.

Case 2:

You are a new manager and are just starting to coach others. One month ago you were

assigned two new employees to coach. One had pervious relevant work experience and

seemed to catch on to things very quickly while the other is not succeeding. He doesnt ask

questions, he rarely completes a task on time, and has a habit of calling in sick on Fridays.

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Youve pretty much determined that hes a lost cause and that hell never be a good

worker. Already youve noticed that hes being passed over for certain projects and that most

managers entirely refuse to work with him.

Yesterday you saw him leave the office at noon for lunch and return three hours later. What

first steps should you take?

Ans

As already discussed in case I, this case also requires careful handling. A slightest hint about

the discussion of the matter would make the person go defensive and he will definitely try to

evade from the conversation. Firstly, I would mingle around with the person. This will take a

few days to build a rapport with the person. Nobody wants to discuss his/her shortcomings in

the first meet. After mingling with the person, I would ask him about the work and personal life

and discuss my own life as well. The reason behind discussing personal life is that this makes

the person comfortable for future talks on almost every topic. After laying this foundation, I

would ask him about the problem faced in the workplace. I will discuss about how I felt when I

first started working with my seniors who had experience already. I will try to bridge between

his problem and my own experience. Then, I will tell him how I cooperated with these kind of

problems. To be speaking objectively, I will ask him to face the issue instead of avoiding the

issue. I will tell him that the best can come through tackling the problem not evading from the

problems. If one avoids it now then it is going to haunt him for the rest of his life. I will

personally guide him and help him in any difficulty. I will make sure that he discussed his

problems openly with me. This will be my strategy to guide him across this predicament.

Question 5

Discuss two major Industrial Relations disputes which have occurred in India in the last decade and

compare them on the following parameters

a) Reason for the dispute & role of stakeholders

b) Impact on the company (employer and worker)

c) Impact on the sector

d) HR policies adopted to prevent labour unrest at workplace

Ans :

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5) I) Maruti dispute

a) Reason for the dispute & role of stakeholders

There were three reasons that contributed to the Maruti dispute. Firstly, the main reason

was the stringent Japanese management. The conditions of the workers were pathetic and

the time given to them for leisure activities was negligible. Even a slightest delay in

returning from lunch attracted half a days pay cut. What aggravate the situation was that

overtime was a compulsion for every worker. Paid leave was like a fantasy to the workers.

One day leave attracted Rs 1500 pay cut though the total salary was about only Rs 15000.

Apart from this, the company wasnt paying attention to the need for the formation of

representative union which would have ensured the rights of the workers. It also laid down

the demand of contract workers to become permanent employees.

b) Impact on the company (employer and worker)

The unrest took a violent turn when thousands of workers gathered in Manesar. Initially it

appeared like strike but then workforce turned hostile. They targeted HR manager of the

company. In the presence of police, one HR manager was charred to death by violent

workers. Apart from this, 93 HR manager received major and minor injuries altogether.

Along with HR managers nine policeman were also injured. In the wake of event, police

arrested 147 workers from the Manesar plant and charged with murder and around 2000

workers from Manesar were dismissed.

c) Impact on the sector

The incident received a strong reaction from The Confederation of Indian Industry (CII)

and Automotive Manufacturers Association of India (ACMA). This also led to decline in

investment for automobile sector. Marutis downfall in the production led to transfer of

ball of opportunity in favor of rivals. On a different note, contract workers lost some shine.

It comprises 40% of the working strength in manufacturing sector. In wake of Manesar

imbroglio, Maruti decided to review its recruitment policy and said that all the recruitment

work would be done through the HR department to remove any distortions.

d) HR policies adopted to prevent labour unrest at workplace

The unrest at Manesar left a scar on the company as well as workers. Maruti decided to fire

its 2000 workforce whom were charged in murder for the HR manager. It also agreed to

revise wages of the workers but it maintained it stance on approval of permanent

employees in the workforce. Maruti also changed its recruitment policy. It started to

oversee the recruitment process through the HR department to make sure further

distortions not happen in future. The carmakers move attracted attention from the auto

industry in specific and the global manufacturing sector.

II) Volvo Dispute

a) Reason for the dispute & role of stakeholders

The dispute between the Volvo and workers was a classic example of mismanagement and

harassment of workforces by the management of the company. The dispute started when

workers demanded a hike in salary of Rs 5000. This led to a round of strikes, negotiations

and settlements. This ended when Volvo agreed to increase salary by approximately Rs.

3000. This subsequently led to harassment of workers by management. They denied them

transportation and implemented strict leave policy which denied workers any paid leave,

trainees were not regularized and there was an increase in the number of contract workers

used.

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c) Impact on the company (employer and worker) On 23, 2010, the negotiations between management and workers turned sore when

management decided to let the bus (which were to take workers) go before time. This led to

outcry from workers and subsequently management suspended the representatives of the union

and two others. This led to further harassment of workers form management as they were

declined any paid leaves and they were accused of sabotaging. The workers went on a full-

strike demanding the required wage hike that had never materialized and the reinstatement of

their union representatives. The company had lost 50-60 units of output in terms of the number

of buses produced during the strike period

d) Impact on the sector Incessant strikes led to production loss of the Swedish Bus-maker. This subsequently led to

money loss and time loss. The dispute attracted the attention of Karnataka Government which

ultimately had to jump declare the strike illegal and asked the workers to go back to work after

72 days long strike. The industrial dispute remained far from being solved. Volvo Bus

Workers Union challenged Government decision. This incident affected the investment when

India was trying to become a manufacturing hub for many of the foreign automobile

manufacturers.

e) HR policies adopted to prevent labour unrest at workplace The management decided to regularize temporary workers or probationers at the factory. This

also included many of them who had been on probation for over a year. The management also

agreed to pay them an advance of Rs. 10,000 for the wages they lost during the strike duration

and with the remaining wages paid in 12 instalments.