Description
IC MIND ANSWER SHEETS.docx
CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS
PROJECT REPORTS AND THESIS
ISBM / IIBMS / IIBM / ISMS / KSBM /
NIPM
SMU / SYMBIOSIS / XAVIER / NIRM /
PSBM / NSBM / ISM / IGNOU / IICT / ISBS
/ LPU / ISM&RC/ LPU / NMIMS / ISBS /
MANIPAL / GARUDA / HIMALAYA / UPES /
IMT / iact
IC MIND
MBA - EMBA - BMS - GDM - MIS - MIB
DMS - DBM - PGDM - DBM – DBA - PGDM
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Banking Management
CASE-01:BANKING ON RELATIONSHIP
The birth of ABC Bank took place after the RBI issued guidelines for the entry of new private
sector banks in January 199! "ubse#uently$ the pro%oter of ABC Bank sought per%ission to
establish a co%%ercial bank and retained &'()$ a %anage%ent consultant of international repute$
to prepare the groundwork for establishing a co%%ercial bank! The Reserve Bank of India conveyed
its approval in principle to establish ABC Bank on *ebruary 11$ 199+! Thereafter$ the Bank was
incorporated under The Co%panies Act in "epte%ber 199+! The bank started its operations in
,ove%ber 199-! The ABC Bank was pro%oted by the tenth largest develop%ent bank in the world$
which had a %agnificent record of pro%oting world.class institutions in India! The pro%oter was a
strategic investor in a plethora of institutions$ which had revolutioni/ed the Indian financial %arkets!
QUESTIONS OR !ISCUSSION
1! Analy/e the case$ using "01T!
2! Co%%ent on the strategies used by the bank for penetrating the ,agpur %arket!
! "uggest strategies for sustenance and growth of the bank in view of the changing scenario of
the ,agpur region!
Se"ti#n II
An$%e& An' Si
1! 34plain buyers credit and suppliers credit by giving e4a%ples of each type of credit! Also
e4plain with a case study!
2! 0hat is correspondent banking5 34plain briefly the services offered by correspondent
banking5 34plain briefly the services offered by correspondent banks to the banks having
account relationship with the%5 )ive so%e e4a%ples5
! 34plain in brief$ the role of Reserve bank of India in Indian 34change control! 34plain the role
of 36I( bank in pro%otion e4ports$ and describe briefly facilities given by 36I( bank5 )ive
e4a%ples!
+! The organi/ational career is a responsibility of the organi/ation and the individual! 7iscuss!
-! 34plain the general architecture of an integrated banking syste%! 8ow is it useful5 34plain
with e4a%ples!
9! 0hat do you understand by (ICR5 8ow does it help in clearing of instructions5 34plain the
field structure of (ICR che#ue!
:! 34plain how a digital signature is generated5 34plain its use with e4a%ples!
;! 8ow can Indian banks use legal recognition of digital signature for develop%ent of business!
9! 0hat is %arket seg%entation5 0hy is it i%portant to advertisers5 8ow is it useful for banking!
Se"ti#n I
An$%e& an' Si
1<! 34plain role of different parties to a docu%entary credit with a case e4a%ple!
34plain buyers credit and suppliers credit by giving e4a%ples of each type of credit! Also
e4plain with a case study!
11! 0hat is correspondent banking5 34plain briefly the services offered by correspondent
banking5 34plain briefly the services offered by correspondent banks to the banks having
account relationship with the%5 )ive so%e e4a%ples5
12! 34plain in brief$ the role of Reserve bank of India in Indian 34change control! 34plain the role
of 36I( bank in pro%otion e4ports$ and describe briefly facilities given by 36I( bank5 )ive
e4a%ples!
1! The organi/ational career is a responsibility of the organi/ation and the individual discuss!
1+! 34plain with case e4a%ples
a! Role space conflicts
b! Role set conflicts
1-! 34plain the general architecture of an integrated banking syste%! 8ow is it useful5 34plain
with e4a%ples!
19! 0hat do you understand by (ICR5 8ow does it help in clearing of instructions5 34plain the
field structure of (ICR che#ue!
1:! 34plain different e.co%%erce activities and functions! 0hat are the building blocks of e.
co%%erce solution5 34plain with e4a%ples!
1;! 34plain the concept of transfer pricing in banks and its relevance on pricing=profit! 34plain
briefly various %ethods of pricing products!
An$%e& an' T)&ee:
19! 34plain briefly the product life cycle concept with reference to a banks product! "election
develop%ent and launching a product are e#ually i%portant co%%ent!
2<!0hat are the advantages of packaging5 Illustrate in banking conte4t!
21! 34plain the concept of transfer pricing in banks and its relevance on pricing=profit! 34plain
briefly various %ethods of pricing products!
22! 7raw an approach for e.banking deploy%ent for retail custo%ers and e4plain!
2! 34plain how a digital signature is generated5 34plain its use with e4a%ples!
2+! 8ow can Indian banks use legal recognition of digital signature for develop%ent of business!
2-! 0hat is %arket seg%entation5 0hy is it i%portant to advertisers5 8ow is it useful for banking!
29! 34plain briefly the product life cycle concept with reference to a banks product! "election
develop%ent and launching a product are e#ually i%portant co%%ent!
2:! 0hat are the advantages of packaging5 Illustrate in banking conte4t!
B*$ine$$ Et)i"$
1+ Analy/e the ethics of %arketing 'ublius using utilitarianis%$ rights$ >ustice$ and caring! In your
>udg%ents$ is it ethical to %arket 'ublius5 34plain!
,+ Are the creators of 'ublius in any way %orally responsible for any cri%inal acts that cri%inals are
able to carry out and keep secret by relying on 'ublius5 Is AT?T in any way %orally responsible
for these5 34plain your answers!
-+ In your >udg%ent$ should govern%ents allow the i%ple%entation of 'ublius5 0hy or why not5
1+ *ully e4plain the effects that pay%ent like those which @ockheed %ade to the Japanese have on
the structure of a %arket!
,+ In your view$ were @ockheedAs pay%ents to the various Japanese parties BbribesC or Be4tortionsC5
34plain your response fully!
-+ In your >udg%ent$ did (r! A! Carl &otchian act rightly fro% a %oral point of view5 DEour answer
should take into account the effects of the pay%ents 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
a%ong the groups involved!F In your >udg%ent$ was (r! &otchian %orally responsible for his
Actions5 0as he$ in the end$ treated fairly5
.+ In its 1ctober 2:$ 19;<$ issue$ Business 0eek argued that every corporation has a corporate
culture Gthat is$ values that set a pattern for its e%ployeeAs activities$ opinions and actions and
that are instilled in succeeding generations of e%ployees Dpp!1+;.9<F 7escribe$ if you can$ the
corporate culture of @ockheed and relate that culture to (r! &otchianAs actions! 7escribe so%e
strategies for changing that culture in ways that %ight %ake foreign pay%ents less likely!
1+ In your >udg%ent$ is it wrong$ fro% an ethical point of view$ for the auto co%panies to sub%it
plans for an auto%obile to China5 34plain your answer5
,+ 1f the various approaches to environ%ental ethics outlined in this chapter$ which approach
sheds %ost light on the ethical issues raised by this case5 34plain your answer!
-+ "hould the H!"! govern%ent intervene in any way in the negotiations between H!"! auto co%panies
and the Chinese govern%ent5 34plain!
1+ In your >udg%ent$ do the %anagers of the Robert 8all store have any ethical obligations to change
their salary policies5 If you do not think they should change$ then e4plain why they have an
obligation to change and describe the kinds of changes they should %ake! 0ould it %ake
any difference to your analysis if$ instead of two depart%ents in the sa%e store$ it involved two
different Robert 8all "tores$ one for %en and one for wo%en5 0ould it %ake a difference if two
stores Done for %en and one for wo%enF owned by different co%panies were involved5 34plain
each of your answers in ter%s of the relevant ethical principles upon which you are relying!
,+ "uppose that there were very few %ales applying for clerksA >obs in 0il%ington while fe%ales were
flooding the clerking >ob %arket! 0ould this co%petitive factor >ustify paying %ales %ore than
fe%ales5 0hy5 "uppose that 9- percent of the wo%en in 0il%ington who were applying for
clerksA >obs were single wo%en with children who were on welfare while 9- percent of the %en
were single with no fa%ilies to support! 0ould this need factor >ustify paying fe%ales %ore than
%ales5 0hy5 "uppose for the sake of argu%ent that %en were better at selling than wo%enI
would this >ustify different salaries5
-+ If you think the %anagers of the Robert 8all store should pay their %ale and fe%ale clerks e#ual
wages because they do Bsubstantially the sa%e workC then do you also think that ideally each
workerAs salary should be pegged to the work he or she individually perfor%s Dsuch as by having
each worker sell on co%%issionF5 0hy5 0ould a co%%ission syste% be preferable fro% a
utilitarian point of view considering the substantial book keeping e4penses it would involve5
*ro% the point of view of >ustice5 0hat does the phrase substantially the sa%e %ean to you5
1+ 0hat are the legal issues involved in this case$ and what are the %oral issues5 8ow are the two
different kinds of issues different fro% each other$ and how are they related to each other5
Identify and distinguish the Bsyste%ic$ corporate and individual issuesC involved in this case!
,+ In your >udg%ent$ was it %orally wrong for "hawn *anning to develop and release his technology
to the world given its possible conse#uences5 0as it %orally wrong for an individual to use
,apsterAs website and software to copy for free the copy righted %usic on another personAs
hard drive5 If you believe it was wrong$ then e4plain e4actly why it was wrong! If you believe it
was not %orally wrong$ then how would you defend your views against the clai% that such copying
is stealing5 Assu%e that it was not illegal for an individual to copy %usic using ,apster! 0ould
there be anything i%%oral with doing so5 34plain5
-+ Assu%e that it is %orally wrong for a person to use ,apsterAs website and software to %ake a copy
of copyrighted %usic! 0ho$ then$ would be %orally responsible for this personAs wrong doing5
0ould only the person hi%self be %orally responsible5 0as ,apster$ the co%pany$ %orally
responsible5 0ash shawn *anning %orally responsible5 0as any e%ployee of ,apster$ the
co%pany$ %orally responsible5 0as the operator of the server or that portion of the Internet that
the person used %orally responsible5 0hat if the person did not know that the %usic was
copyrighted or did not think that it was illegal to copy copyrighted %usic5
.+ 7o the %usic co%panies share any of the %oral responsibility for what has happened5 8ow do you
think technology like ,apster is likely to change the %usic industry5 In your >udg%ent$ are
these changes ethically good or ethically bad5
1! 7iscuss this case fro% the perspective of utilitarianis%$ rights$ >ustice and caring! 0hat insight
does virtue theory shed on the ethics of the events described in this case5
2! BIn a free enterprise society all adults should be allowed to %ake their own decisions about how
they choose to earn their living!C 7iscuss the state%ent in light of the @ily case!
! In your >udg%ent$ is the policy of using ho%eless alcoholics for test sub>ects %orally
appropriate5 34plain the reasons for your >udg%ent! 0hat does your >udg%ent i%ply about the
%oral legiti%acy of a free %arket in labor5
+! 8ow should the %anagers of @ily handle this issue5
CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS
PROJECT REPORTS AND THESIS
ISBM / IIBMS / IIBM / ISMS / KSBM /
NIPM
SMU / SYMBIOSIS / XAVIER / NIRM /
PSBM / NSBM / ISM / IGNOU / IICT / ISBS
/ LPU / ISM&RC/ LPU / NMIMS / ISBS /
MANIPAL / GARUDA / HIMALAYA / UPES /
IMT / iact
IC MIND
MBA - EMBA - BMS - GDM - MIS - MIB
DMS - DBM - PGDM - DBM – DBA - PGDM
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B&an/ Management
CA"3 <1J C1(I,) BAC& A)AI,
CA"3 <2J BRA,7I,) BE "3,"I,)
CA"3 <J "TR3TC8I,) 710, 1R 7R10,I,) T83 BRA,7
CA"3<+J 'C (A&3R" "A,70IC837 I, B3T033,
CA"3 <-J 08IC8 7IR3CTI1, "81H@7 T83 BRA,7 TA&35
CA"3 <1J C1(I,) BAC& A)AI,
B'@ na%e re%inds one of a pheno%enal Indian brand in electronics and appliance
%arket space that once topped in ubi#uity and estee%! "tarting fro% the south$ it
went on to beco%e a household na%e! The group dates back to the Ksi4ties$ when the
founder$ T') ,a%biar began %anufacturing her%etically sealed precision panels in
&erala! It was then known as British 'hysical @aboratories! Back then$ industrial
activity was under tight govern%ent control though reservations and licensing! B'@
ca%e to the forefront in the Keighties when industrial licensing began to give way to a
pro.%arket regi%e! The group got further i%petus in the Knineties$ when
globali/ation and liberali/ation beca%e key policy initiatives for achieving econo%ic
growth! B'@ forged alliances with foreign co%panies to access technology to
i%prove product #uality and innovation$ to %anufacture electronic products! This
way$ the co%pany went on to beco%e a powerful brand in televisions and other
electronic products!
The B'@ brand has been a pioneer in the electronic products industry in the initial
years of liberali/ation! The brand evolved with changing custo%er and co%petitive
conditions! It offered state.of.the.art products like televisions$ refrigerators and
audio products backed by an e4cellent service network! 1nce$ the brand actually
topped the list in ter%s of custo%er trust and loyalty$ at a ti%e when the field was
crowded with a host of pro%inent players like crown$ Beltek and Lideocon! Till the
late Knineties$ the brand won accolades fro% various #uarters!
The co%pany was voted as the K%ost ad%ired %arketing co%panyA in the electronics
and ho%e appliances category in A?( "urvey of 1999! The prestigious *ar 3astern
3cono%ic Review rated the co%pany as the ,o! 1 co%pany in Kinnovativeness in
responding to consu%er needsA in Jan 2<<<! Eoung custo%ers also identified with
this Indian co%pany in high tech space! Accordingly$ B'@ was featured in Ktop ten
%ost preferred brands a%ong youthA in the Brand 3#uity survey of (arch 2<<<$ the
brand featured as one of the Ktop five coolest brands a%ong youthA! In consu%er
electronics$ resonance with the youth is a very i%portant asset! Eoung people act as
purchase initiators$ influencers and ulti%ate buyers! Connecting with the youth has
been instru%ental in the brand success!
The brand owes its re%arkable success to careful brand %anage%ent initiatives! The
B'@ brand has been nurtured and %anaged by e%ploying strategic brand
%anage%ent tools! The %arketing initiatives were controlled in line with the brand
identity! This way$ the co%pany never allowed %arketing efforts to dissipate in
different directions without a grand sche%e! The brand was a%ong the pioneers to
e%ploy identity state%ent! The brandAs soul described two levels of values! The core
set was defined as inherent values! These included trust$ solidity$ reliability$ pride$
progressiveness$ dignity$ #uality$ and intelligence! The other set of Kadded valuesA
sought to e4tend the brandAs soul by values like flair$ gla%our$ style$ youthfulness$
e4cite%ent and cutting edge!
The brand has been so well navigated that it was voted as the K,u%ber 1ne durable
brandA in Brand 3#uity in the year 2<<2! The brand topped in the Indian
ho%egrown durable brand list!
Brand 2<<2 2<<1
B'@
)odre>
8(T
'hilips
Titan
"ony
Lideocon
LI'
Asian 'aints
1nida 1
2
+
-
9
:
;
9
1<
1
2
+
-
;
9
:
,A
9
"ourceJ Brand 3#uity$ The 3cono%ic Ti%es$ 1+ Aug 2<<2
The brandAs achieve%ents do not end here! In a survey designed to discover the
%ost trusted brands$ the brand again e%erged victorious! This survey ai%ed to
identify brands that bond with custo%ers! The survey went beyond the basic brand
fa%iliarity paradig% to include a brandAs perfor%ance on a nu%ber of di%ensions!
These are brands that consu%ers believe to provide #uality and assurance! The
brands are %easured on attributes likeJ #uality$ value for %oney$ intention to buy$
current and future popularity$ uni#ueness$ confidence$ price$ and special feeling and
associations!
The brand e%erged as the K(ost preferred color television brandA in Consu%er
1utlook$ 2<<2! 1n the para%eter of brand preference$ it was rated as the strongest
color television brand$ with : percent score on Kintention to buyA! The brand scored
better than %any %ultinational brands like @) D12MF$ "a%sung D9MF$ 1nida D9MF$
'hilips D9MF$ and Lideocon D;MF! The brand even scored high on the flat television
seg%ent in co%parison to foreign D&oreanF brands like "a%sung and @)!
In the last couple of years$ the brand has taken a severe beating! The %ultinational
brands fro% Japan$ &orea and the H" were initially placed far behind to the brand!
The Indian brands B'@$ 1nida and Lideocon stood the ground fir%ly! They
appeared unassailable! Japanese brands like "ony$ "harp$ 'anasonic and "ansui G
along with &orean counterparts like @) and "a%sung G did not appear to pose a
serious challenge! But in the last five years$ the color televisions %arket has
undergone a co%plete change! The &oreans have overtaken all the other players!
The two &orean brands do%inate the %arket$ followed by ho%egrown players 1nida
and Lideocon!
The Brand 3#uity "urvey of the trusted brands for the year 2<<- reveals a
disappointing result for the brand B'@! The brand appears at the 9; spot on the list!
ahead of it are brands like 'hilips D2F$ 1nida D-9F$ @) D-:F and Lideocon D91F! The
%arket share figures also reveal a disappointing picture for the brand! In the color
televisions$ @) leads with 2-!- percent %arket share followed by "a%sung with 1-!1
percent share! The refrigerator category is also do%inated by @) and 0hirlpool$
with %arket shares of 2:!2 and 21!2 percent share respectively! In washing
%achines$ @) stands strong with + per cent hold followed by 0hirlpool with 1!;
%arket share!
The consu%er electronics %arket has undergone a %a>or transfor%ation in the post
2<<< period! (ultinational brands have gradually cultivated %arket share by
%ounting attacks on the ho%egrown brands! The %arket$ that stood at the take off
stage in the Knineties$ has now %oved to the %aturity stage! The color television
%arket has frag%ented into sub groups! At the top end$ brands offer high tech$
costly plas%a sets! The %iddle seg%ent is %oving towards big.si/e flat screen
televisions! The botto% of the pyra%id now is located in rural areas where niche
brands like 1scar$ Citi/en$ 0eston and Te4la co%pete on price and low
functionality!
In this scenario$ the B'@ brand is %aking a co%eback after receiving transfusion by
way of technological vigour fro% technical collaborator "anyo! Although the brand
en>oys high recognition and recall with custo%ers in the <.plus age group$ the
youth see% to be at the loss so far as the brand is concerned! Technology
environ%ent is now radically different fro% the prevailing in the Knineties! The
issues facing the brand includeJ with brands like @)$ "a%sung$ 'anasonic$ 1nida$
and Lideocon fir%ly entrenched in the %arket$ can B'@ leverage its e#uity5
Technology alone does not appear to be sufficient hot button to create brand power
in the current scenario! Is it a fact that the brand %ust hasten to redefine its
identity$ in order to differentiate and bond with chosen custo%er5
CA"3 <2J BRA,7I,) BE "3,"I,)
There is one co%pany that is silently winning branding battles! "lowly and steadily$
it has %anaged to corner over Rs 2<< crores turnover in the 1TC Dover the counterF
drug %arket! The co%pany in #uestion is none other than 'aras 'har%a!
8ead#uartered in Ah%edabad$ the co%pany is owned by three brothers )irish$
7arshan and 7evendra! ,ot %any know it by its corporate identity! It is held in the
background! But its products and brands en>oy not only high awareness in ter%s of
recall and recognitionI they also stand out for their category ownership!
The list of brands created by this closely held co%pany is as followsJ
N (oov
N &rack
N 7er%i Cool
N Boro ,atural
N Boro "oft
N Itch )uard
N Ring )uard
N @ivon
N ,u%is
N "et 0et
N After Bath
N Recova
N (rs (arino
N 7ACold
N *reshia
0hat sets these brands apart is that they are the outco%e of deep understanding of
needs of Indian custo%ers! The value proposition e%bodied in each one of the%
offers solutions to custo%er needs that have been lying dor%ant for long$ but none
of the other %arketers ventured to uncover the%! All these brands entered the
cluttered %arket space and %anaged to create a uni#ue i%age for the%selves! 0hen
cutting across to the custo%er is really a serious issue even for %ultinational
co%panies with deep pockets$ 'aras has %anaged to carve out a niche for each of its
brands! The %antra that perhaps is at work in this co%pany is to be able to see
everyday proble%s faced by the custo%ers and convert the% into powerful product
ideas and create strong brands in the process!
(any of the products fro% this ni%ble player in the 1TC drugs space places it in
head on co%petition with the established %ultinational players! *or instance$ (oov
Dlaunched in 19;9F directly assaulted the then leading body pain reliever brand
Iode4$ fro% )la4o"%ith&line! It recogni/ed the potential of the rub.efficient
category and entered with a national brand! The %arket was cluttered with both
do%estic and international players! Instead of focusing on all kinds of pain$ the
brand narrowed its scope to only the >oints pains$ including backache! It successfully
attacked the leader by attending to a specific need! It narrowed its focus on the
backaches of wo%en and appropriated that position! It instead of fighting
co%petition in the sprain and %uscle pull$ headache bal%s$ and %ulti.purpose pain
reliever seg%ents$ it narrowed its appeal to wo%en with fre#uently occurring
backaches and positioned itself as a backache specialist!
&rack$ another power brand$ was born in 199 and went on to beco%e category
leader! The brand attended to the acute proble% of dry skin on the heels$ especially
a%ong Indian wo%en! Cracks in the heels are caused by winter dryness$ prolonged
e4posure to water$ su%%er dryness$ and barefoot walking! Though the need solution
ca%e in the for% of petroleu% >elly$ there was no specific brand which addressed
this proble%! The product was specially created to cure cracks in the heels! "ince the
ti%e the brand was launched$ it grew by leaps and bounds to beco%e an over.-
crores brand! The brand attacked the generic products then e4isting in the %arket
and offered a uni#ue solution by isolating a specific proble%! The skin dryness
proble% area is viewed as one single %ass$ but within it$ there are specific types of
dryness needs that are prevalent! &rack could see one$ and create a brand out of it!
Borosoft brand ca%e in the space that was do%inated by 8i%ani DBoroplusF and )7
'har%aceuticals DBorolineF! Back in 199-$ the antiseptic crea% %arket was worth Rs
-< crores of which crea%s for dry and chopped skin held about half the %arket
share! The KBoroA word segregates the product into the sub.category of ine4pensive
Kvalue for %oneyA crea%s %eant for dry and chapped skin! The non.Boro crea%s are
perceived to be %eant for cuts and wounds! 'aras discovered user dissatisfaction
with the then e4isting Boro crea%s for their stickiness and oiliness! (ounted on this
insight$ Borosoft was created as a non.sticky crea% with %oisturi/ing properties!
The brand %anaged to carve out a niche for itself! @ater$ Boro ,atural brand was
launched in the antiseptic %arket! This way$ Boroline was directly attacked!
After the creation of Boro ,atural and Boro "oft$ the co%pany created 7er%i Cool
brand! This brand put the co%pany ne4t to the then do%inant player ,ycil$ fro%
8ein/! It offered a solution to the proble% of prickly heat caused by prolonged
e4posure to perspiration! The product category lacked e4cite%ent and product
innovation! ,ycilAs advertising and product for%ulation re%ained sa%e! 7er%i Cool
challenged this inactivity and silence! The brand was positioned with cool sensation
platfor% DKthanda thanda powderAF! Its high decibel and peppy advertising
contributed e4cite%ent and infused energy into the category!
'aras$ as a co%pany$ have a uni#ue ability to sense custo%er proble%s and convert
the% into a %ega %arketing opportunities! Two of its brands$ Itch )uard and Ring
)uard$ are targeted at the skin proble%s co%%on in hot$ %oisture.laden weather!
"kin areas not e4posed to sun and at%osphere typically get affected by this proble%!
Itch )uard is a speciali/ed product for%ulated to address a specific proble% caused
by sweat itch! Ringwor% or tinea is proble% %ostly occurs in the lower socio.
econo%ic seg%ent! 8u%idity$ e4cessive sweating$ unhygienic conditions and skin
erosion are the root causes! 'aras launched its anti.fungal specialist re%edy brand
Ring )uard in 199;!
The other brands in 'arasA portfolio include cold and headache re%edy 7ACold!
There are legions of brands ai%ed at the headache %arket! 'aras narrowed focus
and positioned itself as a specific re%edy for aches caused by co%%on cold! 7ACold
1pen Hp is a variant targeted against nasal congestion! The brand ca%e in other
variations like 7ACold 7ouble and 7ACold Total as a co%plete package of re%edies
against heavy.headedness$ blocked nose and blocked sinuses!
The unstoppable brand.spinning %achine is showing no sign of slowing down! The
latest brand additions include @ivon$ ,u%is$ "etwet$ Afterbath and Recova! @ivon
and ,u%is brands are first.of.its.kind products! They are ai%ed to solve tangle in
the hair caused by washing! The process of detangling involves heavy co%bing$
which causes hair loss! This is an i%portant proble% faced by Indian wo%en who
nor%ally wear their hair long! ,u%is is a hair care product designed to nourish hair
and lend shine! "et 0et is a hair styling brand targeted at the young %ale seg%ent!
Afterbath brand follows application ti%e oriented positioning! It is to be applied on
body after bath$ as the na%e suggests!
'aras has had its own share of debacles! These include "topache$ 0inter "hield and
*reshia! These brands were all withdrawn because of poor perfor%ance! 'aras
follow a brand %odel that lays e%phasis of individual brand creation! It takes a lot
of effort to create successful brands both in ter%s of research and develop%ent and
cultivating brand e#uity! "erious conte%plation now is doing the rounds of the
co%pany to develop and concreti/e brand architecture! @aunching brands one after
another without a plan %ay create proble%s for the co%pany in the long run$ as it
happened with %any (,Cs! The issue at hand that needs to be addressed isJ what
architecture should be followed so that brandsA e#uity is %a4i%i/ed and leverage to
the fullest e4tent5
CA"3 <J "TR3TC8I,) 710, 1R 7R10,I,) T83 BRA,7
0ay back in 1;;;$ in 0isconsin$ H"A$ a %an na%ed )eorge "afford 'arker was
overwhel%ed with the a%ount of repairs that were needed to keep fountains pens
working! This inspired hi% to invent his own fountain pen$ one that worked better!
In 1;9<$ 'arker patented his first pen! @ater$ in 1;9+$ 'arker received another
patent for so%ething called K@ucky CurveA feed that drew e4cess ink back into the
pen body when the pen was not being used! This technology re%ained co%%on until
the late nineteen twenties! 'arker pens retained their position a%ong the top pen in
the writing instru%ent industry! 'arker is credited with another land%ark in writing
technology by creating a #uick drying ink DOuinkF that eli%inated the need for
constant blotting! "ince then$ the co%pany set up by 'arker has co%e a long way!
'arker re%ains a brand with strong heritage connotations and aspirational value!
'arker ca%e to India through the @u4or 0riting Instru%ent Co%pany! @u4or was
founded in 199 and has evolved into a do%inant player in the writing instru%ent
%arket in India! It en>oys about 1- percent %arket share$ and offers products to suit
varying needs of different seg%ents! The co%panyAs product line includes brands
like @u4or$ 'ilot$ 'aper%ate$ 'arker and the recently introduced 0ater%an!
The writing instru%ent industry is esti%ated to be worth over Rs 1-<< crores! It is a
huge opportunity! But a large portion of the %arket is occupied by players fro% the
unorgani/ed sector! "o%e put the si/e of this unorgani/ed %arket at around Rs 12<<
crores! This portion of %arket offers scope for branded players to consolidate their
positions! The pen %arketed by the unorgani/ed players lack #uality and brand
value! 8owever$ the biggest barriers to conversion are low involve%ent and brand
loyalty!
At the super pre%iu% level operated brands like (ont Blanc$ Cartier$ 0ater%an
and 7unhill! This niche is high value and low volu%e! The pre%iu% seg%ent is
targeted by brands like Cross$ 'arker and 'ierre Cardin! Then co%es the popular
seg%ent$ where the ho%egrown brands like *lair and @u4or co%pete! At the botto%
of the pyra%id is the econo%y seg%ent or %ass seg%ent Dsub.Rs -<F$ which is the
target of action between the organi/ed$ branded players like Cello$ Today$ A77$
Roto%ac$ "tic$ (onte4 and Reynolds! (uch of the turnover co%es fro% the lower
seg%ent!
A pen to %ost people is a functional product! And what %atters in %arketing pens is
the availability$ price and acceptable #uality DKit should writeAF! Custo%ers in the
%ass seg%ent generally try before buying and do not attach i%portance to brand
na%e! The situation is reversed in the top layers of the pyra%id! The higher one
cli%bs up the pyra%id$ the %ore the pen beco%es a source of sy%bolic satisfaction!
Its writing ability or functionality is taken for granted$ but what %atters is the na%e$
a pen beco%es a device for signaling style$ class$ power and sophistication! It
assu%es a psycho.social character! Brands at the top end do precisely this with their
uni#ue %otifs like 'arkerAs distinctive clip and (ont BlancAs flower like tip of the
cap!
In keeping with the stature of the brand when 'arker ca%e to India$ no less a
personage than A%itabh Bachchan hi%self pro%oted the product! The endorse%ent
worked in sync with the brandAs established heritage and pre%iu% i%age! The Big
B$ being an icon in the Indian fil% industry and hailing fro% a literary fa%ily$
infused the brand with the right kind of values$ %aking it appealing to a wide
spectru% of the %arket! The brandAs initial ca%paign pro%oted the central idea of
love of writing with a 'arker! Through the association with Big B$ the brand has
developed an aura of success$ elegance$ e4clusivity and sophistication!
'arker offers pens suited for distinct %arket seg%ents$ with sub brands! But what
runs co%%on across these ranges is the class and sophistication! These co%bine
heritage and %odernity$ high functionality and sign value! "o%e of these areJ
N 'arker 7ufoldJ brandAs identity is captured in words like opulence$ iconography$
e4ceptional character and outstanding work%anship! )enerally li%ited edition and
highly priced!
N 'arker 1<<J this range signifies understated status and sharp individual style!
Co%bines conventional and avant.garde! 'rice ranges fro% Rs 1<<<< to 1-<<<!
N 'arker "onnetJ the brand brings together achieve%ent$ distinction$ balanced style
and classic di%ensions! 'rice ranges between Rs ;9<< and Rs +2<<!
N 'arker @atitudeJ e%bodies original non.confor%ist individuality$ rebels against
tradition and convention!
N 'arker InsigniaJ the brand is a classic accessory for discerning individuals! 1ffers
authentic #uality and effortless style! 'rice ranges between Rs ;-< to Rs 1<<!
N 'arker RialtoJ defined as a pen with character$ grace and char%$ crafted with a
veneer of taste and tradition! 'rice ranges between Rs 2:<< and Rs 1-<<!
N 'arker +-J this well known brand signifies 'arker tradition$ originality and
nostalgia! It is a high perfor%ance$ ti%e.tested and trustworthy instru%ent! 'rice
ranges between Rs 1+<< and Rs9<<!
N 'arker *rontierJ the brand co%bines functional utility with innovation$
conservatis% and forward thinking! 'rice ranges between Rs 19-< and Rs 9-<!
N 'arker 7ia%anteJ wears a sophisticated look and futuristic design for young$
urban$ design conscious consu%ers! 'riced around Rs :<<!
In its bid to gain volu%es$ the brand has launched two variants by the na%e of
Lector and Beta! The price of the Lector line varies between one hundred and five
hundred! But parker Beta has pushed the brand down below the hundred.rupee
threshold! 'arker Beta is stated to co%bine superb technology and %odern designs
at a highly affordable price! The product is fitted with >otter refill and co%es in
e4citing colors with a co%fortable grip! The brand seeks to cash on the trend of
increasing brand consciousness a%ong consu%ers! Beta has brought a highly
aspirational brand like 'arker within the reach of %asses! The Beta range co%es in a
plastic body and sports the sa%e arrow clip$ albeit not as well designed and chiseled
as higher ranges have!
0ith the Beta line$ 'arkerAs range starts fro% a price level of less than hundred
rupees to e4ceed well over ten thousand! (any believe this downward stretch of a
brand like 'arker is good for generating volu%es! It is an easy path to succeed and
%ake inroads in the lower %arket seg%ent! 'resent consu%ers would be able to
possess an aspirational brand that otherwise re%ained a drea% for the%! 1thers
believe that this downward stretch would do %ore har% to the brand in the long
run! The %assification of the brand %ay rob it of its e4clusivity and pre%iu% aura
and degrade its i%age!
CA"3 <+J 'C (A&3R" "A,70IC837 I, B3T033,
The 'ersonal Co%puter industry in India has been a testing ground of %arketing
acu%en for players that play the branding ga%e! The %arket is broadly divided into
three groups! 1n the one hand is the plethora of players in the unorgani/ed sector!
1n the other hand are established %ultinational brands that operate globally in a
nu%ber of countries! "o%ewhere in between these two are Indian co%panies
staking a clai% with their brands!
The (,C players in the %arket include 8'$ Co%pa# Dthe two have since %ergedF$
Apple$ 7ell$ 3.sys$ Acer$ @) and @enovo Dthat bought IB(As 'C business in 2<<-F!
The ho%e grown co%panies in the field include players like 8C@$ 0ipro$ 'ertec$
Penith and Lintron! All the three sets of players co%pete on different strategic
platfor%s! The (,C products are priced relatively higher and signal #uality i%age!
The Indian players$ on the other hand$ pro%ise product #uality as good as (,C
product besides offering so%e price advantage! Co%puter co%pany Penith often
advertises their product as K(,CA #uality at Indian pricesA! The players that
constitute the unorgani/ed sector co%pete on price and custo%er inti%acy!
In this %arket structure$ the branded players have been engaged in a severely fought
battle with unbranded players! And so far$ they have been losing this battle! The
local players beat their branded counterparts on two counts! *irst of all$ their wares
are priced significantly lower and secondly$ they are widely available! ,owadays$ it
does not re#uire great technical e4pertise to asse%ble a 'C! The e4plosion in the
co%puter %arket has attracted a lot of entrepreneurs to >oin the industry as
asse%blers! There is wide availability of co%puter asse%blers Das well as
econo%ically.priced co%ponents and sub.asse%bliesF in the %arket! The 'C
co%puter %anufacturers that for% the organi/ed sector$ on the other hand$ bank
upon their re.sellers$ and they are not so widely located as to %ake their products
easily accessible to prospects! Thus$ on the accessibility front$ branded players scale
poorly!
The %arket for personal co%puter is seg%ented along the lines of price and users!
There is the office seg%ent$ consisting of large corporate houses$ and the s%all
business seg%ent %ade up of s%all co%panies and sole proprietorships! And then
there is the ho%e seg%ent! Co%puter education in schools has opened up this
seg%ent in a big way! The school.going children need to have co%puters at ho%e to
pursue studies! These seg%ents also reflect the co%ple4ity of configuration suitable
for the%! *or instance$ the s%all office and ho%e D"181F seg%ent does not re#uire
co%plicated %achines and software! But the business seg%ent certainly re#uires
higher configured co%puters in a networked environ%ent!
The %a>or factor that works in favour of unbranded co%puters is the price
advantage! The local players pass on the benefit of various levies and ta4es to their
custo%ers$ hence their product costs relatively less! *urther$ the pro4i%ity of the
vender with the custo%er and easy two.way dialogue provides a strong basis for
relationship for%ation! A typical co%puter buyer in "181 seg%ent lacks co%puter
literacy! It is this lack of product knowledge that %akes hi% look for ways to reduce
uncertainty and risk surrounding the purchase! Hnder such circu%stances$ brands
typically are called to fill this role of advisor and after.sale provider.an area where
they do not pass with distinction! But in the "181 seg%ent$ the search process for
co%puters involves talking with friends who$ in turn introduce these prospects to
local vendors! The local vendors$ through better pro4i%ity$ direct contact and
convincing power are able to convert these prospects into buyers! 7ue to the sa%e
factors$ their after.sales response is also better$ since they largely rely on networking
with custo%ers for business e4pansion and lucrative annual %aintenance contracts!
Hnlike other lu4ury or conspicuous products$ co%puters are not bought or %ade for
sy%bolic purposes! They are typically bought rationally to solve a proble%! The
cognitive %ode of approaching the purchase creates openness to infor%ation as well
as utility assess%ent! It is at this stage that the local co%puter vendor is able to
convince the potential buyer that a co%puter is nothing but asse%bly of parts
%anufactured by established original e#uip%ent %anufacturers like "a%sung$ Intel$
@)$ "eagate and TL"! The asse%bly of their parts into a %achine does not re#uire
%uch skillJ it is %ostly screwdriver technology! (ost branded players do not e%ploy
any uni#ue technology in their co%puter %aking$ therefore the perfor%ance
outco%es do not vary between the two categories! The local vendors attribute the
price pre%iu% charged by the branded players to advertising and overhead costs$
thus %aking out a powerful case against the purchase of branded co%puters!
Recent duty structure changes have worked in favour of the organi/ed seg%ent$ and
the prices of branded %achines have seen a downward trend owing to lower landed
costs of products! Besides$ the distribution strategies have been reworked! The
nu%ber of outlets offering branded products has been increased! "i%ply raising the
technical product specification is not viewed as a crucial differentiator! The
specifications can be %atched point by point by all kinds of players! *or instance$
8C@ has +<< e4clusive stores across 2<< cities and around 1<<< other selling points
or s%aller for%ats! "i%ilarly$ Acer also works on a two.for%at fra%ework! There are
e4clusive Acer %alls that stock Acer products e4clusively$ besides other selling
points where its products are sold along with rival brands!
The %arket for unbranded 'Cs used to be above ; percent in 2<<$ but now it has
co%e down to about -- percent! The downward trend still continues! The organi/ed
sector see%s to be eating into the unorgani/ed sector! This growth is$ by and large$
attributable to duty reduction! In a study of consu%er behaviour$ it was discovered
that co%puters are inti%idating products for buyers who buy the% for ho%e use!
Children are the %a>or drivers of purchase! The need is often initiated at their level!
Co%puters are used both for educational and entertain%ent purposes! *urther$
co%puters are perceived to be a high tech area$ and an average custo%er finds
hi%self grossly ill.e#uipped to handle the co%puter.buying task! The process of
e#uipping the%selves to effectively handle the purchase leaves the% open to
infor%ational influence$ i!e!$ networking friends and colleagues! Co%puters are
undifferentiated products for custo%ers in ter%s of technical specifications! All they
crave is the confidence to %ake a purchase decision$ and will gravitate towards a
source of this wherever they are convinced the support is genuine!
As such$ one of the %a>or challenges that %ost branded players face is how to %ake
a dent in the %arket do%inated by the unorgani/ed players! Trapped in between are
the Indian players like "hiv ,adarAs 8C@$ an i%portant player in the desktop
seg%ent! Its position at present is fir%ly established but it can drift into the line of
fire fro% the (,C brands! (,C brands are consolidating their position$ having
grown at the cost of %ostly Indian brands! These brands have been registering
robust growth! Caught in between grey %arket and (,Cs are the hapless Indian
co%panies! The lower end is do%inated by the players fro% the unorgani/ed sector
who operate on wafer.thin %argins! 1n the top are (,C brands that push i%age
and #uality to lure upper layers of the %arket! "o%e (,C players have even roped
in celebrities like "aif Ali and "hah Rukh &han in their brand building efforts!
@enovo is banking upon the char% of "aif Ali$ and "hah Rukh endorses Co%pa#!
The net effect is that (,C brands are gradually building %arket share pri%arily at
the e4pense of Indian players! The downward trend of prices is eroding the price
advantage that %any Indian %akers so far relied upon to develop their brands! They
co%bined acceptable #uality with appreciably lower prices to gain %arket share!
Indian brands are now finding the%selves s#uee/ed in between the unorgani/ed
players and (,C brands! This is leaving the% looking for ways to create %eaningful
differentiation in their products! The conventional %arkets like %etros and top
cities have already beco%e a battle.ground$ where fierce battles are raging as
saturation points are nearing! In this scenario$ even the top players are beginning to
e4plore non.traditional$ non.%etro %arkets!
34perts are divided on the issue whether Indian co%puter %akers would be
co%pletely wiped off the %ap! "o%e feel that Indian %akers do not offer
differentiated product! The (,C brands$ on the one hand$ for% the top end$ while
unorgani/ed players at the botto% leave very little scope for differentiation! Indian
brands see% to losing ground every year! "o%e players are shifting their attention to
non.%etro %arkets in B and C category cities! But the real issue isJ how long the
(,C brands be prevented fro% getting into these %arkets as well5 They have the
resources and the i%age to do this with relative ease! Hlti%ately$ brands have to
develop strategies to co%bat co%petition! It is not i%%ediately apparent what
Indian %arketers ought to be doing to carve out a survival niche for the%selves!
CA"3 <-J 08IC8 7IR3CTI1, "81H@7 T83 BRA,7 TA&35
@iril %ade a big splash in the toilet soaps category in the late Kseventies! The %arket
then was not very co%petitive! The %i4ed econo%y %odel did not yet fulfil the
drea% of prosperity and affluence! The Klicence ra>A tightly controlled industrial
activity! @ike %ost of the industry sectors$ the toilet soap industry was do%inated by
only a handful of players like 8industan @ever$ Calcutta Che%icals and To%co!
These three players %arketed a co%plete portfolio with brands ai%ed at different
seg%ents and offering different benefits! The other players catered to s%all niches$
as did Johnson ? Johnson$ which li%ited its range to infant and kids$ with
appropriate product offering including %ild soap and sha%poos! 1ther local players
included the likes of Chandrika$ "wastik$ &eshnikhar$ (ysore "andal and (edi%i4$
besides a host of s%all players that operated locally!
This was during the Kseventies$ when %arketing as we know it today had not co%e
into its ownI it had yet to harden into a serious discipline! *ir%s still followed
traditional practices in conducting business$ and %arketing personnel could not be
said to co%%and high estee%I their >ob was to hunt out fresh avenues for enhancing
sales opportunities! Lery few co%panies differentiated between sales and %arketing
functions$ preferring to club the% under a single depart%ent$ and few indeed were
the ones who adopted a seriously technical approach to the activity! 7e%and still
chased supply and$ it being a supplierAs %arket$ things were easier to sell$ whatever
their #uality! Advertising did not use sophisticated tools both to e4plore consu%er
%otivation and create e4ecutions! @ike %any other categories$ brands used rational
appeals to woo consu%ers! The proble% G solution the%es do%inated the
%arketing arena! "oap fragrance$ si/e$ colour$ na%e$ etc!$ were seen to be %a>or bait
for hooking custo%ers! The brand co%%unication and ingredients as %eans to
influence buying! The %arkets were still clubbed into the large %asses of custo%ers
with little e4press differentiation! The whole econo%y see%ed to have been stuck in
a ti%e warp$ with a little cla%our when it ca%e to grappling with the co%petition.
what there was of it!
@iril arrived on the soap space with the pro%ise to transfor% bathing fro% proble%
coping to providing e4perience! 0ith its KfreshnessA platfor%$ the brand sought to
add a psychological di%ension of feeling good! The brand uni#uely co%%unicated
and connected with its prospects through a bold advertise%ent by then prevalent
values! In 19:-$ the brand co%%unications showed a beautiful %odel in a bikini
under a natural waterfall! The e4cite%ent and freshness so conveyed by the
advertise%ent struck an e%otional connect with the people! The sound track of the
TL Dthen$ alas$ only black and whiteF co%%ercial used a K@a!!la!!la!!A tune that
concreti/ed the delivery pro%ised by the brand! In no ti%e$ the brand beca%e
hugely successful! The brand headline invited the potential uses as Kco%e alive with
@iril freshnessA! The brand advertising showed floating >uicy sliced le%on to back up
its freshness clai%! It was the first brand that sought to play on inherent freshness
associated with li%e!
Brand co%%unication
N 'otential custo%erJ young wo%en
N BackgroundJ natural high energy waterfall
N The%eJ young$ vivacious$ attractive girl having bath
N 'ro%ised benefit. freshness e4perience
N 'ro%ise supportJ floating >uicy slices of le%on
N Loice overJ Co%e alive with @iril freshness
@iril cornered 1+ percent %arket share$ good enough to give it a slot in first three
positions! It established the pre%iu% seg%ent in soap category! The brand was a top
perfor%er in the toilet soaps category until 199-$ when it began to lose %arket
share! 7uring this period$ the brand lost big volu%e. over - percent G and its
%arket share slid to below five percent! The e4cite%ent and innovation created by
the brand could not be sustained! The later brand co%%unication deviated fro% the
original brand positioning! *urther$ the brand benefits of li%e and freshness
responsible for its success lost novelty! (any other brands began to focus on li%e as
ingredient and the clai%ed benefits of freshness! 0hat was once a uni#ue$
pioneering benefit was beco%ing generic! *urther$ the brandAs original custo%ers
who grew up with it$ were aging! 1ver ti%e$ the need structure of this group was
shifting fro% e4perience and e%otional delivery to functionality! This way$ the
brand began to lose its grip over the %arket!
The net result of loyal custo%ers %igrating to functionality$ and the brandAs uni#ue
positioning getting cluttered$ were typical challenges associated with the life cycle!
@ack of differentiation and resonance with the potential custo%ers began to take is
toll on the brand! The brand persona$ that centred on li%e and freshness no longer
offered the uni#ueness that the brand now re#uired to revitali/e itself! The issue
facing @iril was how to resurrect the once very strong brand and regain its for%er
glory! (any thought of launching variations and re.doing the brandAs
co%%unication in order to %ake it %ore attuned with the ti%es$ so that young
custo%ers could be included in the brandAs fold!
Challenged at the brand was$ @ever did %ake a heroic atte%pt to in>ect fresh blood
into the brand! The period of change and e4peri%entation began in 199-! The brand
first rode on the e4tension %ode! *irst$ the brand saw the launch of a shower gel in
199+$ followed by a cologne variant in 1999! @ater$ in 1999$ another variation saw
the light of the day by the na%e of Rainfresh! Then ca%e icy blue @iril! The brand
was hooked into a nu%ber of variants$ all of the% trying to play around with the
the%e of freshness in different conte4ts!
The brand co%%unication that once created history of sorts G with se4y$ bikini.clad
&aren @unel splashing about gleefully under a natural waterfall changed radically!
The original &aren @unel ads ran for twelve years$ fir%ly establishing the brandAs
associations with li%e freshness! The girl in the waterfall the%e was finally
abandoned in favour of so%ething called an Kunusual water e4perienceA! Instead of
Kthe girl under the waterfallA the%e$ the girl ca%e out to bathe in the open$ whether
in a car wash or by dancing in front of a fire tanker hose! In a bid to lure youth$ a set
of co%%ercials were launched on (TL! Then ca%e the pissing boy$ the girl in the
desert$ and the @iril Icy co%%ercial! The brand co%%unication began to take %any
routes$ as if the idea was to shoot off arrows in all direction in the hope that one
would hit the target! But that did not see% to happen! The advertising initiatives and
line e4tensions failed to infuse any energy into brandAs perfor%ance!
@ike the brand co%%unication$ even the product looks and for%s deviated fro% its
uni#ue green$ streaked appearance! Icy blue gave way to a blue variant that
contained %enthol! 0ith line e4tensions$ the brand sought to deliver bathing
e4perience! The brandAs bold co%%ercial of the green bikini clad %odel$ %ade way
for a %odel in a green swi%suit! @ater$ the swi%suit of the @iril %odel %oved on to
beco%e a pair of hot pants! The brand faced intense co%petitive pressures in
nineties$ fro% other li%e soaps ai%ing to copy the freshness platfor%!
34perts feel differently about the fall of @iril fro% its pri%a donna status! 1ne e4pert
ascribes the fall of the brand to the confusion between the brand idea and its
e4ecution! (any believe that the central brand idea was never really clear! It
appeared that the Kgirl in the waterfallA was the central brand idea and it should not
have been touched! But is it this creative e4pression of the central idea of freshness
G or the ideas itself G that was sacrosanct5
1thers believe that @iril drew its success fro% the brand personality created by the
first %odel$ &aren @unel! "he epito%ised not only youth but also other traits like
e4uberance$ vivacity$ innocence and fun! The %odels that replaced &aren were only$
young pretty things! They were lacking across all the other personality aspects of the
first %odel that launched the brand! @ever was never been able to find another
&aren @unel to so uni#uely capture and reflect the brand essence!
The %anagers at the co%pany believed that the brandAs creative e4pression of Kgirl in
the waterfallA hand beco%e outdated! It had lived its life! But actually$ the hangover
persists to this very day! To give the% credit$ they have not altogether deviated fro%
it! Be it @iril calendar or advertise%ents$ the sy%bols of the waterfall and the girl
would always be visible! Beyond co%%unication$ the brand has also see%ed to have
suffered on account of @everAs inability to co%e up with the right product line in the
case of @iril$ as they did for @u4 and @ifebuoy! It is suggested that the brand has to
discover new$ audacious paradig%s and reach out to new hori/ons! It %ust
transcend its current e4pression$ only then is there so%e hope for revival!
(any believe that he brand failed to progress with ti%e! The raped changes e4ecuted
in the co%%unications a%ount to influencing the superficial! The funda%ental
proble%s plaguing the brand were never unearthed! The tactics to correct
i%%ediate proble%s began to drive the strategy! ,ew variations and
co%%unications %ade the picture rosy for so%e ti%e$ but once the e4cite%ent
period passes$ the sales tu%ble to their previous levels!
Aly#ue 'ada%see$ who initially created the brand$ believes that @irilAs proble%s lie
in the fact that its original bathing e4perience has been replaced with unusual water
e4perience! The later ads like the pissing boy and the desert ad use the the%e of
water$ but he #uestions$ Kwhere is the bathing e4perience in this5 Is it central to the
idea of freshness5 The brand see%s to have withered Dand %eanderedF too far
beyond its original core idea! All the co%%ercials are good to view$ but they fail to
touch the heart! (any industry people believe that bringing back those original
co%%ercials %ay be a good idea!
But how would that help5 A %a>ority of the brandAs current custo%ers do not have
any idea or recollections of those %agical advertise%ents fro% the Kseventies! 1ver
thirty years have passed$ and few are the nostalgic that have survived! The
custo%ers to today are funda%entally different fro% those of the pastI they have a
%ore actively e4periential outlook on life! They seek %ore active participation in
everything! They donAt e4pect a brand to passively deliver a benefit! Rather$ they
want to create an e4perience by active participation! 'resently$ @iril has three
variantsJ @iril Aloe Lera$ Icy Cool and @iril 1range!
BUSINESS COMMUNICATION
CASE I: A Rep! Se"t t# a" E$$i"% C&'t#(e$
Dear Sir,
Your letter of the 23rd, with a cheque for Rs. 25,000/- on account, is to hand.
We note what you say as to the diculty you e!"erience in collectin# your outstandin#
accounts, $ut we are co%"elled to re%ar& that we do not thin& you are treatin# us with
the consideration we ha'e a ri#ht to e!"ect.
(t is true that s%all re%ittances ha'e $een forwarded fro% ti%e to ti%e, $ut the de$it
$alance a#ainst you has $een steadily increasin# durin# the "ast twel'e %onths until it
now stands at the considera$le total of Rs. )5,000/-
*a'in# re#ard to the %any years durin# which you ha'e $een a custo%er of this house
and the, #enerally s"ea&in#, satisfactory character of your account, we are reluctant to
resort to harsh %easures.
We %ust, howe'er, insist that the e!istin# $alance should $e cleared o+ $y re#ular
install%ents of say Rs. ,0,000/- "er %onth, the -rst install%ent to reach us $y the .th.
(n the %eanti%e you shall "ay cash for all further #oods/ we are allowin# you an e!tra
30 discount in lieu of credit.
We shall $e #lad to hear fro% you a$out this arran#e%ent, as otherwise we shall ha'e no
alternati'e $ut de-nitely to close your account and "lace the %atter in other hands.
Yours truly.
)&e'ti#"':
*+ C#((e"t #" t,e app$#p$iate"e'' #- t,e 'e".e$/' t#"e t# a c&'t#(e$+
0+ P#i"t #&t t,e #. 1 -a',i#"e. p,$a'e' a". e2p$e''i#"'+
3+ Re4$ite t,e $ep! acc#$.i"% t# t,e p$i"cipe' #- e5ecti6e 4$iti"% i" 7&'i"e''+
CASE II: ADVERTISING RADIO 8M BRAND
1 youn#, #or#eous wo%an is standin# in front of her a"art%ent window dancin# to the
,2.0s tune, 31ll Ri#ht 4ow5 $y the one 6 hit $and free. 1cross the street a youn# %an
loo&s out of his a"art%ent window and notices her. *e %o'es closer to the window,
ta&in# interest. She cran&s u" the 'olu%e and continues dancin#, loo&in# out the
window at the fellow, who s%iles ho"efully and wa'es %ee&ly. *e holds u" a $ottle of
wine and wa'es it, a""arently in'itin# her o'er for a drin&. 7he lady wa'es $ac&. *e
&isses the $ottle and e!citedly says, 3Yesss.5 7hen, he #a8es around his a"art%ent and
reali8es that it is a %ess. 34o95 he e!clai%s in a worried tone of 'oice.
:rantically, he does his $est to quic&ly clean u" the "lace, stun# "a"ers under the sofa
and "uttin# old food $ac& in the refri#erator, *e sli"s on a $lac& shirt, slic&s $ac& his
hair, sni+s his ar%"it, and lets out an e!cited , 3Yeahhh95 in ea#er antici"ation of
entertainin# the youn# lady. *e #oes $ac& to the window and sees the wo%an still
dancin# away. *e "oints to his watch, as if to say 3;o%e on. (t is #ettin# late.5 1s she
<ust continues dancin#, he loo&s confused. 7hen a loo& of sudden insi#ht a""ears on his
face, 3:i'e,5 he says to hi%self. *e turns on his radio, and it too is "layin# 31ll Ri#ht
4ow.5 7he %an #oes to his window and starts dancin# as he watches his lady friend
continue ste""in#. 3:i'e, yeah,5 he says as he %a&es the 3o&ay5 si#n with his thu%$
and fore-n#er. *e wa'es a#ain. ='eryone in the a"art%ent $uildin# is dancin# $y their
window to 31ll Ri#ht 4ow.5 1 su"er a""ears on the screen> 31re you on the ri#ht
wa'elen#th?5
)&e'ti#"':
*+ 9,at i' "#" 1 6e$7a c#((&"icati#": 9,! .# !#& '&pp#'e t,at t,i'
c#((e$cia $eie' p$i(a$i! #" "#";6e$7a c#((&"icati#" 7et4ee" a !#&"%
(a" a". a %#$%e#&' 4#(a": 9,at t!pe' #- "#" 1 6e$7a c#((&"icati#" a$e
7ei"% &'e. i" t,i' ca'e:
0+ 9#&. a"! #- t,e "#";6e$7a c#((&"icati#"' i" t,i' 'p#t <a.= "#t 4#$> 4e
i" a"#t,e$ c&t&$e:
3+ 9,at $#e .#e' (&'ic pa! i" t,i' 'p#t: 9,# i' t,e ta$%et (a$>et:
?+ I' t,e (&'ic at a .i't$acti"% -$#( t,e (e''a%e:
@+ H#4 e'e a$e $a.i# 'tati#"' a.6e$ti'e. #" TV:
CASE III: A$6i". Pa".e! Ca&%,t i" B&'i"e'' 9e7
1r'ind @andey is a "ro<ect %ana#er at 1l Sa$a ;onstruction ;o%"any in Auscat. (t s a
Bourishin# co%"any with se'eral construction "ro<ects in Auscat and a$road. (t is &nown
for co%"letin# "ro<ects on ti%e and with hi#h quantity construction. 7he co%"anyCs
;hair%an is a rich and a hi#hly educated D%ani. 1 Eer%an en#ineer is 1r'indCs Fice 6
@resident for ur$an and forei#n construction "ro<ects.
7hree %onths a#o, 1l Sa$a had su$%itted a tender for a %a<or construction "ro<ect in
Guwait. (ts quotation was for H 25 %illion. (n Guwait the "ro<ect was s"onsored and
announced $y a IS 6 $ased construction co%"any called :u%a. 1ccordin# to 1l Sa$a,
their $id of H 25 %illion was %odest $ut had included a hi#h %ar#in of "ro-t.
Dn 25 1"ril, 1r'ind was as&ed to #o to Guwait to -nd out fro% the :u%a "ro<ect %ana#er
the status of their construction "ro"osal. 1r'ind was deli#hted to &now that :u%a had
decided to #i'e his co%"any, J1l Sa$aK the construction "ro<ect wor&. 7he "ro<ect %eant
a lot of e+ort and %oney in "lannin# the "ro"osed construction in Guwait.
Lut $efore 1r'ind could tan& the :u%a "ro<ect %ana#er, he was told that their $ird
should $e raised to H 2) %illion. 1r'ind was sur"rised. *e tried to con'ince the :u%a
"ro<ect %ana#er that his J1r'ind co%"any had the $ast re"utation for doin# construction
wor& in a cost e+ecti'e way. *owe'er, he could always raise the $id $y H 3 %illion. Lut
he wanted to &now why he was required to do so.
7he :u%a %ana#erCs re"ly was, 37hatCs the way we do our $usiness in this "art of the
world, H , %illion will #o to our Aana#in# Director in the IS, ( shall #et H , %illion, you,
Ar. @andey, will #et H , %illion in a s"eci-ed account in Swiss Lan&.
1r'ind as&ed, 3Lut why %e?5
3So that you ne'er tal& a$out it to any one.5 7he :u%a @ro<ect Aana#er said.
1r'ind "ro%ised ne'er to lea& it out to any one else. 1nd he tried to $ar#ain to raise the
$id $y H 2 %illion.
r 1r'ind was fa%iliar with the "ractice of 3"ay 6 o+s5 in'ol'ed in
any such thin#. *e thou#ht it was a#ainst his loyalty to his co%"any and his "ersonal
ethics. 1r'ind "ro%ised the :u%a "ro<ect %ana#er that the $id would $e raised to H 2)
%illion and fresh "a"ers would $e "ut in. *e did not want to lose the <o$.
*e ca%e $ac& to Auscat and &e"t tryin# to -#ure out how he should "lace the whole
thin# $efore his Eer%an Fice @resident. *e o$'iously was at a loss.
)&e'ti#"':
*+ A"a!'e t,e $ea'#"' -#$ A$6i". Pa".e!/' .ie((a+
0+ D#e' A$6i". Pa".e! $ea! -ace a .ie((a:
3+ I" !#&$ 6ie4 4,at ',#&. A$6i". Pa".e! .#: S,#&. ,e .i'c#'e it t# ,i'
Ge$(a" Vice P$e'i.e"t:
CASE IV: C#(pa"! Accepti"% a C#"t$act
1 co%"uter co%"any was ne#otiatin# a 'ery lar#e order with a lar#e si8e cor"oration.
7hey had a 'ery #ood trac& record with this client.
(n this cor"oration, -'e di+erent de"art%ents had "ooled their require%ents and
$ud#ets. 1 co%%ittee was for%ed which had re"resentation fro% all the de"art%ents.
7he cor"oration wanted the equi"%ent on a lon# lease and not outri#ht "urchase.
:urther, they wanted the entire hardware and software for% one su""lier. 7his %eant
that there should $e $ou#ht 6 out ite%s fro% %any su""liers since no one su""lier could
%eet all the require%ents of su""ly fro% its ran#e of "roducts.
7he cor"oration "ro'ided an e!hausti'e list of 'ery dicult ter%s and conditions and
"ressuri8ed the 'endors to acce"t. 7he co%"uter co%"any who was -nally awarded the
contract had a#reed to o'erall ter%s that were -ne as far as their own "roducts were
concerned $ut had also acce"ted the sa%e ter%s for the $rou#ht 6 out ite%s. (n this
case, the $ou#ht 6 out ite%s were to $e i%"orted throu#h a letter of credit. 7he
"ercenta#e of the $ou#ht 6 out ite%s 'ersus their own %anufacture was also 'ery hi#h.
Dne of the ter%s acce"ted was that the 3syste%5 would $e acce"ted o'er a "eriod of ,0
days after all the hardware had $een lin&ed u" and software loaded.
7he co%"uter co%"any started facin# trou$le i%%ediately on su""ly. 7here were o'er
,00 co%"uters o'er a distance connected with one another with software on it.r the
acce"tance tests, it had $een a#reed that the co%"uter co%"any would de%onstrate as
a "re-requisite the features they had clai%ed durin# technical discussions.
4ow, as you are aware, if a *ero *onda %otorcycle clai%s )0 &% to a litre of "etrol, it is
under ideal test conditions and if a %otorcycle fro% the showroo% were to $e tried for
this test $efore $ein# acce"ted, it would ne'er "ass the test. (n cor"orationCs case, due
to internal "olitics, the cor"oration "ersons fro% one de"art%ent 6 who insisted on #oin#
e!actly $y the contract 6 did not si#n acce"tance since the 3syste%5 could not %eet the
ideal test conditions.
:urther, in a classic case of, 3for want of a horse 6 shoe, "ay%ent for the horse was held
u"5, the co%"uter co%"any tried to #et the syste% acce"ted and "ay%ent released.
7he syste% was so lar#e that at any "oint of ti%e o'er a "eriod of ,0 days so%ethin#
s%all or the other always #a'e "ro$le%s. Lut the cor"oration too& the stand that as far
as they were concerned the contracts clearly were concerned the contract clearly
%entioned that the 3syste%5 had to $e tested as a whole and not %odule $y %odule.
)&e'ti#"':
*+ C#((e"t #" t,e te$(' a". c#".iti#"' pace. 7! t,e c#$p#$ati#"+
0+ 9,at -act#$' i"A&e"ce. t,e c#(p&te$ c#(pa"!/' .eci'i#" t# accept t,e
c#"t$act:
3+ 9a' it a 4i" 1 4i" a%$ee(e"t: Di'c&'':
Ca'e V: HABARDS O8 HILLS
INTRODUCTION
7his case is $ased on an actual incident which too& "lace in an 1r%y Init de"loyed in
-eld area. 1 "art of a Lattery Ja$out M of an 1rtillery Re#i%entK was de"loyed in a snow
$ound hi#h altitude area of Gash%ir. 7his was the -rst ti%e, an artillery unit was
de"loyed in an area with roads and trac&s still under de'elo"%ent. @re"aration of this
area for such a de'elo"%ent needed a lot of di##in# for #uns, "its for a%%unition
stora#e, li'in# "lace of the "ersonnel, slit trenches and wea"on "its for local defence
a#ainst any "ossi$le ene%y/terroristsC attac& on the "osition, "lace for stora#e of rations,
coo&-house and co%%unication trenches, etc.
7he total stren#th of the "arty de"loyed there was
aK Dcer - , JSecond Nieutenant with a$out one year ser'iceK
$K Ounior ;o%%issioned Dcer JO;DK - ,P
cK Oawans 6 Q0
7he Lattery ;o%%ander JL;K re%ained with the Re#i%ent *eadquarters at Srina#ar
Jwith the re%ainin# "art of the LatteryK as "er the orders of the co%%andin# Dcer.
7here was a 'ehicle with the "art of the Lattery which was de"loyed at hi#h altitude to
assist in the daily ad%inistration of the troo"s li&e collection of ration, stores for
"re"aration of defences, water, and ferryin# of "ersonnel fro% one "lace to another. 7he
'ehicle could #o only u"to a li%ited nu%$er of "laces due to $ad road conditions and
stee" #radients. Dnly one dri'er was &e"t for this 'ehicle to reduce ad%inistrati'e
"ro$le%s due to %ore nu%$er of "ersonnel. 7he 'ehicle co%"leted a$out 35 to Q0 &%s.
of runnin# daily in its routine co%%it%ents.
7he "art had <ust $een inducted a$out two wee&s $ac&. 7he defences were $ein#
"re"ared which in'ol'ed lot of e+ort in di##in# of hardened #round due to the cold
winter %onths of 4o'e%$er. 7he defence stores were to $e collected, once the di##in#
was co%"lete, fro% another =n#ineerin# Init located a$out 5 &%s. to the rear. 7he roads
were treacherous/ with a nu%$er of stones and slides fallin# down occasionally durin#
dri88le due to "reci"itation in at%os"here, there were stee" #radients, narrow roads with
sheer falls on one side due to the road ha'in# cut into the side of hills. 7he di##in# was
co%"lete $y end 4o'e%$er. (n the %onth of Dece%$er, snow fall at that location was
e!"ected any ti%e, as it had already started snowin# in the hi#her reaches and to"s of
%ountains. 7he di##in# had $een co%"leted in a record ti%e of two wee&s. 7he "arty
under the stewardshi" of the youn# ocer had done a co%%enda$le <o$.
(n the -rst wee& of Dece%$er, the only dri'er of the 'ehicle re"orted "ain in the chest
and "ro$le% in $reathin#. *e was e'acuated $y helico"ter the ne!t day with instructions
to infor% the unit to send another dri'er for the 'ehicle. (t too& a$out three days for any
one to reach this area, with stayin# of two ni#hts enroute in order to accli%atise $y
sta#es. 7he detach%ent was to $e without any dri'er for a$out three days. 1nother
dri'er was detailed to "roceed to this area, after ha'in# $een %edically e!a%ined and
found -t. 1 day after the dis"atch of the dri'er, the youn# ocer with this "arty arri'ed
in the unit and re"orted that the 'ehicle had fallen fro% a hill-side road and was
co%"letely da%a#ed. 7he oce was in a co%"lete state of disarray and shoc&. What
actually had ha""ened #oes so%ethin# li&e this.
1fter the -rst dri'er of the 'ehicle was e'acuated, the weather started turnin# $ad and it
see%ed that it was #oin# to snow that day. 7he ocer realised that in case of snow fall
all the e+orts "ut in $y the troo"s would #o waste, if the du#-ins were not co'ered.
Realisin# this, he $orrowed a dri'er of an a%$ulance fro% a local %edical unit to direct
his 'ehicle for collection of defence stores. 1fter the stores had $een collected and
du%"ed at the site of defences, the 'ehicle was $ein# dri'en $ac& to the "artyCs
location. Lefore it could reach this location, it had to ne#otiate a dusty and stee" trac&.
1t a stee" cli%$ the 'ehicle stalled and #ot switched o+. 1ll the %en #ot down,
"re'ented the 'ehicle fro% re'ersin# $y "uttin# stones $ehind the wheels and started
chec&in# what had #one wron#.
1fter the chec& on the en#ine had $een carried out, the $onnet co'er sli""ed o+ the
hands of the dri'er while closin# it and fell to closin# it and fell to closin# "osition with a
$an#. Lecause of the <er& thus created, the stones "laced $ehind the 'ehicle sli""ed o+.
(t was later disco'ered that there was a #lassy s%ooth layer of ice under the thin layer of
dirt which could not hold the stones -r%ly and sto""ed u"side down $ecause of the
o$struction created $y a $i# $oulder. 1s there was no one in the 'ehicle, there were no
in<uries to "ersonnel. Dn close ins"ection $y the ocers, it was found that the 'ehicle
$ody, ca$in, $onnet steerin# wheel and two of the four wheels were $adly da%a#ed. 7he
oce, $ein# quite youn# and ine!"erienced, could not ascertain the real condition of the
en#ine and chassis. *e thou#ht those too were da%a#ed, whereas $ecause of so%e
"ro'idential chance, the chassis and en#ine re%ained intact.
7he L; was #i'en the res"onsi$ility of #ettin# the 'ehicle $ac& to the unit. *e was #i'en
a 'ehicle -tter and reco'ery 'ehicle with a dri'er. 7he L; too& two %ore 4on-
;o%%issioned Dcers J4;DsK and "roceeded to the location to retrie'e the 'ehicle. (t
too& two days to reach with a few hours of the last le# of the <ourney in co%"lete
dar&ness in that snow $ound area with treacherous sli""ery roads. Dn reachin# the
location, the ;o%%andin# Dcer of the local unit, who ha""ened to $e the Station
;o%%ander of that sector, e!"ressed his unha""iness on their ta&in# such a #reat ris&.
With the assistance of all ran&s of that unit, who ca%e in willin#ly, it too& two days to #et
the 'ehicle out of the $oulder strewn area on to a trac&. (t was a %inor %ilitary o"eration
in itself in that hostile terrain, and incle%ent weather of hi#h altitude. 7he troo"s and
ocer had a 'ery #ood ra""ort with those of the local unit and there was not %uch of a
"ro$le% in #ettin# the %en of that unit to assist.
While co%in# $ac&, the ha8ards of ni#ht <ourney were 'ery o$'ious. 7here was a thic&
layer of snow on the road with slo"e towards the &huds as layers after layers &e"t on
accu%ulatin#, free8in# $efore the water could roll down the co%"lete slo"e. 7here were
stee" falls on one side. Loth these "heno%ena, "eculiar to hilly terrain, were not 'ery
discerni$le $ecause of the dar&ness. 7he headli#hts of the 'ehicles e!"osed 'ery little.
7here were fro8en nalas where the 'ehicle would s&id, ali#nin# itself in the direction of
the fro8en nala, which tended to "ro'e quite dan#erous at ti%es. 1t such "laces, the few
troo"s and ocer a'aila$le would #et down, "ush the 'ehicle to &ee" it ali#ned to the
road and in turn sli" down the%sel'es on the fro8en snow, %ost of the ti%es face-down,
in an atte%"t to "ush the 'ehicle. 7hou#h the situation was quite #ra'e, it so%eti%es
$ordered on $ein# hu%orous with e'eryone lau#hin# s"ontaneously. 1t one "lace, the
L;, "ushin# the 'ehicle to &ee" its tail and ali#ned to the direction of road, fell down,
sli""ed a few feet down the fro8en nala and landed u" head down in a fro8en &hud a$out
-'e feet dee". Lut for the direction of landin#, the sli" and fall could ha'e "ro'ed quite
dan#erous. 7here was co%"lete silence. 7he 'ehicle was #ently sto""ed on the snow
itself, secured with "e#s alon# the wheels and rescue o"eration co%%enced for the
ditch. 7here were se'eral hu%orous re%ar&s $y the L; and the tension was relie'ed at
once, with troo"s wor&in# on the 'ehicle with renewed 'i#our and stren#th once a#ain.
1t another "lace, the reco'ery 'ehicle with the da%a#ed 'ehicle $ehind it at sus"ension
toe sli""ed, $ut $ecause of the de!erity of the dri'er, it was sa'ed fro% #oin# down a
nala $y "uttin# it on the left. 7he L; hi%self was in the reco'ery 'ehicle to #i'e
encoura#e%ent and %oral su""ort to the dri'er, sharin# all the ris&s which his troo"s
were facin#. *e did all that the troo"s did, while directin#, controllin# and e!ecutin#. 7he
"arty with the 'ehicle, reached the unit location on the e'enin# of the second day after
startin# fro% a hi#h altitude area. 7he "ro$le% of reco'ery of the 'ehicle $ein# resol'ed,
the question of enquiry into the caused e%$arrass%ent to all those in authority in the
unit and also the ocers and <awans of the su$-unit/$attery. Aeanwhile, the ins"ection of
the 'ehicle was carried out to assess the e!tent of da%a#e. (t was found that the en#ine
and chasis were intact and the rest of the ite%s of the $ody or -t%ent were da%a#ed,
either li#htly or se'erely. 7o a'oid e%$arrass%ent to the unit and loss to the e!chequer,
as well as in 'iew of the ad%inistrati'e diculties, the L; decided to ha'e the 'ehicle
"ut on road with the unitsC e+orts and at the earliest. Aeanwhile, the ca$in-hood of the
'ehicle had $een "urchased for a$out Rs R50 and was "aid for $y the L;, fro% his own
"oc&et, thus settin# an e!a%"le to others. 7he O;D and <awans were also &een to "ay for
other da%a#es. 7he o+er was a""reciated $ut declined.
7he Dcer-in-char#e of the local 1r%y Wor&sho" ha""ened to $e an ocer with
co%%enda$le hel"in# attitude, "ositi'e $ent of %ind and with an understandin# of
"eculiarities and "ro$le%s of the area where such accidents were quite frequent and
"ossi$le. When a""roached to assist, he listened to the whole incident 'ery
sy%"athetically and "ro%ised to assist in whate'er way he could. 7his ocer was a
conte%"orary of the unit in a "re'ious station and had e!cellent relations and interaction
with the unit. So%e ite%s were o+ered $y the wor&sho" ocer and re"laced accordin#ly.
7he 'ehicle was %ade roadworthy a#ain within a fortni#ht and "ut on road for duty. 1ll
the enquiries were dis"ensed with and there was no loss of face $y anyone at any le'el.
(t is "ertinent to %ention that it had snowed in that location as soon as the reco'ery
"arty ca%e out of the hills.
)UESTIONS
*+ 9,at a$e t,e C&aitie' #- a %##. ea.e$: I" t,i' ca'eD ,#4 4e$e t,e!
appie.:
0+ 9,ic, -act#$' c#"t$i7&te. t# (#ti6ate t,e t$##p' t# %# a,ea. -#$ '&c, a
.iEc&t ta'> a' $ec#6e$i"% a .a(a%e. 6e,ice -$#( '&c, a .iEc&t a".
t$eac,e$#&' te$$ai" a". %etti"% it $epai$e. i" '&c, a ',#$t ti(e:
3+ 9,ic, i"ci.e"t' i".icate t,e i(p#$ta"ce #- %##. i"te$pe$'#"a $eati#"',ip'
4it, F&"i#$'D pee$' a". '&pe$i#$' a". 4,at i' t,e i(p#$ta"ce #- %##.
i"te$pe$'#"a $eati#"',ip':
Ca'e VI: C,ec>i"% O&t a G&e't
1 #uest wal&ed u" to the front des& a#ent in an u"scale hotel, ready to chec& out. 1s she
would nor%ally do when chec&in# out a #uest, the a#ent as&ed the #uest what his roo%
nu%$er was. 7he #uest was in a hurry and showed his an!iety $y res"ondin#, 3( stay in a
hundred hotel roo%s and you e!"ect %e to re%e%$er %y roo% nu%$er?5
7he a#ent then as&ed for the #uestCs na%e, to which he res"onded, 3Ay na%e is Ar.
Oohnstein.5 1fter than&in# hi%, the a#ent $e#an to loo& for the #uestCs last na%e, $ut the
na%e was not listed in the co%"uter. Lecause the %an had a hea'y accent and the
a#ent assu%ed that she had %isunderstood hi%, she "olitely as&ed the #uest to s"ell his
last na%e. *e answered, 3What? 1re you an idiot? 7he "erson who chec&ed %e in last
ni#ht had no "ro$le% chec&in# %e in.5 1#ain, the a#ent loo&ed on the co%"uter to -nd
the #uest.
7he #uest, $eco%in# e'en %ore frustrated, said, 3( ha'e a "lane to catch and it is
ridiculous that it has to ta&e this lon# to chec& %e out. ( also need to fa! these "a"ers
o+, $ut ( need to ha'e the% "hotoco"ied -rst.5 7he a#ent res"onded, 37here is a
$usiness center at the end of the counter that will fa! and "hotoco"y what you for it.
*a'enCt you e'er heard of custo%er ser'ice? (snCt this a -'e-star hotel? With your $ad
attitude, you should $e wor&in# in a three-star hotel. ( canCt $elie'e they let you wor&
here at the front des&. *a'enCt you found %y na%e yet?5
7he a#ent, who was $e#innin# to #et u"set, as&ed the #uest a#ain to s"ell out his full
na%e. 7he #uest only re"lied, 3*ere are %y "a"ers ( want fa!ed if you are ca"a$le of
fa!in# the%.5 7he a#ent reached to ta&e the "a"ers, and the #uest shouted, 3DonCt #ra$
the% fro% %y hand9 You ha'e a $ad attitude, and if ( had %ore ti%e, ( would tal& to
so%eone a$out #ettin# you re%o'ed fro% your "osition to a hotel where they donCt
require such a le'el of custo%er ser'ice.5 7he a#ent was 'ery u"set, $ut &e"t herself
cal% in order to "re'ent the #uest fro% #ettin# an#rier.
7he a#ent continued to "ro'ide ser'ice to the #uest, sendin# the fa!es and %a&in# the
"hotoco"ies he had requested. I"on her return, the a#ent a#ain as&ed the #uest to
re"eat his last na%e, since he had failed to s"ell it out. 7he #uest re"lied $y s"ellin# out
his na%e, 3O-o-h-n-s-t-o-n-e.5 7he a#ent was -nally a$le to -nd his na%e on the co%"uter
and chec&ed hi% out, while he continued to 'er$ally attac& her. 7he a#ent -nished $y
tellin# the #uest to ha'e a nice Bi#ht.
)&e'ti#"'
*+ I' it app$#p$iate t# ,a6e t,e (a"a%e$ G"i', t,e c,ec>;#&t: O$D ',#&. t,e
-$#"t .e'> a%e"t F&'t ta>e t,e ,eat:
0+ 9#&. !#& ,a6e ,a".e. t,e 'it&ati#" i" t,e 'a(e (a""e$:
3+ 9,at 4#&. !#& ,a6e .#"e .i5e$e"t!:
?+ C#((&"icati#" i(p$#6e(e"t i' $eC&i$e. -#$ 7#t, #- t,e pa$tie' i"6#6e.
#$ a"! #"e #- t,e H&'ti-! !#&$ #pi"i#"+
LEA!ERSHIP
1! 0ould you classify Richard Branson as a %anager or a @eader5 0hat #ualities distinguish hi% as
one over the other5
2! *ollowers are part of the leadership process G 7escribe the relationship between Branson and his
followers!
! Identify the (yths of leadership develop%ent that Richard BransonAs "uccess helps to disprove!
1! Consider 0alt 7isneyAs effectiveness in ter%s of the three do%ains of leadership. the leader$ the
followers$ and situation! *or each do%ain na%e factors that contributed to 7isneyAs success!
2! ,ow think about (ichael 3isnerAs @eadership effectiveness! ,a%e factors within the three
do%ains of leadership that %ight be responsible for controversy surrounding 3isnerAs success and
then ulti%ate failure and re%oval as 7isneyAs C31!
1! 0hat are the %a>or skills Jovita Carran/a has de%onstrated in her career at H'" that have %ade
her a successful leader5
2! Consider the spiral of e4perience that Jovita Carran/a has travelled! 8ow has her e4perience
affected her ability as a leader5
! @ist out the characteristics of successful leaders! 8ow %any of this is de%onstrated by Jovita
Carran/a5
1! As we have discussed$ co%petency %odels describe the behaviors and skills %anager need to
e4hibit if any organi/ation is to be successful! Consider the general co%petencies found in figure
;! and apply these to Andra Rush$ providing e4a%ple of why these co%petencies apply!
2! (entoring has played a role in the careers of %any successful %inorities in leadership positions!
0ho could be identified as a coach or %entor for Andra Rush5
! Consider so%e of the self.defeating behaviors outlines in this chapter that contribute to
%anage%ent derail%ent! 0hat lessons has Andra Rush obviously learned fro% the failure of
others5
1+ @ike %any leader$ (arco has tea% in place and does not have the lu4ury of building a new tea%
fro% the ground up to adapt to the changing business environ%ent his fir% is face with$ Hse the
T@( to help (arco diagnose the proble%s faced by the fir% and identify leverage points for
change!
a+ Consider the %a>or functions of the T@(Qinput process and output where do %ost of the
fir%As challenges fall5
0+ 0hat are the tea%As goals for outputs5
,+ Identify potential resources for (arco and his tea% in i%ple%enting a strategy to change the way
they do business at 8ernande/ ? Associates!
-+ 0ould you classify Bill )ates as a charis%atic or transfor%ational leader5 0hy5
.+ Consider followers=e%ployees of gates! 0hat are so%e of the uni#ue characteristics of )ateAs
followers that %ight identify hi% as a charis%atic or transfor%ational5
CONSUMER BEHAVIOR
CASE;I: MAKING MAGIC THE MULTIPLEX 9AY
7he %iddle class of (ndia, a 'irtual none!istent entity on (nde"endence, has #radually
$eco%e %ore sensi$le, educated and de%andin#. 7he o'erall #rowth of the econo%y
has #i'en a tre%endous thrust to the %iddle class, e!"ected to #row $y 5 to ,0 "ercent
annually. (t has #rown o'er 5. %illion $y 200,-02 and is e!"ected to cross ,53 %illion $y
2002-,0.
7he a'era#e household inco%e in ur$an (ndia has #rown at a ;1ER of 5 "er cent o'er
the last decade, not only is this, $ut the a#e "ro-le of the (4D(14 s"enders is also
under#oin# a sea of chan#es. 4;1=R has identi-ed -'e cate#ories of household on $asis
of inco%e which is su%%arised in 7a$le , $elow>
Ta7e * ;lassi-cation of (ndian *ouseholds on the Lasis of (nco%e
Number Of Households [in millions]
,22Q-25 ,222-2000 200R-0.
Fery rich , 3 R
;onsu%in# 22 55 2,
;li%$ers Q) RR .Q
1s"irants Q) 32 ,5
Destitute 35 2Q ,3
7a$le, re'eals the "aradi#% shift in (ndian households o'er the last decade. 7he nu%$er
of e+ecti'e consu%ers is e!"ected to e!ceed R00 %illions $y 20,0.7his $i# $an# in
consu%ers in (ndian is $ein# seen as the dri'in# force in e%er#ence of 'arious new
$usiness, which ai% at hi#h consu%er tide. 1'aila$ility of easy -nancin# sche%es is
another as"ect of the story> owin#a house, or $uyin# a car or #oin# a$road on a "leasure
tri" is no %ore a distant drea% to the a'era#e (ndian consu%er. With the consu%ersC
#radually #et s&ewed towards the youn#, there is a #reater tendency towards increased
s"endin# on consu%"tion. 1 'ery interestin# "iece of infor%ation is that a'era#e (ndian
household has increased its s"endin# on %o'ies and theatres fro% , to Q.R "er cent of
its dis"osa$le inco%e. 7his a%a8in# s"urt in s"endin# on entertain%ent has a+ected the
quality and deli'ery of -l%s as an industry. 7he sin#le screen theatres with "oor
%aintenance and inadequate infrastructure are #radually "a'in# way for hi#h tech
%ulti"le!es with three to as %any as ele'en screens, di#itali8ed -l%s and Dol$y
surround audio syste%. 7he industry is under#oin# a sawin#, dri'en $y consu%er
$eha'iour.
Re"orts indicate that %ulti"le!es account for 0.R "er cent of the total cine%as, 2.3 "er
cent of the total screens and ha'e a total ca"acity of %ore than two la&h seats. 7he
a'era#e #ross collection "er %ulti"le! is around Rs. 5..2 crore fetchin# a$out 22 to 35
"er cent of the re'enue for the -l% industry.
(ndiaCs %ulti"le! $andwa#on has s"read its tentacles $eyond the %etros to rede-ne
entertain%ent in L and ; class towns. While the -rst "hase of the #rowth of %ulti"le!es
was in %etros, now this is s"readin# to tier two and three cities li&e Nuc&now, 4ashi&,
1uran#a$ad, and Gan"ur. 7o" %ulti"le!es "layers li&e @FR, 1dla$s :il%s, (no! Neisures,
Shrin#ar ;ine%as J:a%e Aulti"le!esK, :un Aulti"le! and ;ine%a! (ndia are 'enturin# to
s%all towns across the country and rede-nin# entertain%ent to the 'ast (ndian Aasses.
7he %ulti"le! $usiness has ri#htly ta""ed the #rowth of consu%eris% in (ndia as it has
understood the "ulse of the (ndian ;onsu%erCs "reference towards su"erior a%$ience,
co%forta$le seatin#, air-conditionin# and #ood quality snac&s, e'en at the cost of "ayin#
hi#her "rice. 7he a'era#e "rice of tic&et in a con'entional theatre is Rs. ,5-35, while a
%ulti"le! char#es on an a'era#e of Rs. .5-350 and consu%er is willin# to dish out this
e!tra a%ount to en<oy the 3co%"lete5 %o'ie e!"erience, which %ost of the traditional
theatres could not render and are thus facin# the fate of near e!tinction. (t thus "ro%ises
to ta&e the %o'ie#oersC e!"erience to a whole new le'el and #i'in# a new di%ension to
watchin# %o'ies at theatres.
P#'e$'
*+ 9,at e''#"' ca" !#& .$a4 -$#( t,e a7#6e ca'e $e%a$.i"% c#"'&(e$
7e,a6i#$:
0+ D# !#& t,i"> c,a"%e i" c#"'&(e$ pe$cepti#" i" (i..e ca'' ,a' 7ee"
i"'t$&(e"ta i" e(e$%e"ce #- (&tipe2e': 9,at ca" 7e #t,e$ $ea'#"':
3+ O7'e$6e Ta7e *+ 9,ic, #- t,e %$#&p'D acc#$.i"% t# !#&D 4#&. ,a6e .e(a".
-#$ (&tipe2e':
?+ 9#&. a4 #- .i(i"i',i"% (a$%i"a &tiit! app! t# (#6ie 4atc,i"%: 9i t,i'
a5ect t,e %$#4t, $ate #- (&tipe2e': O$ ca" it 7e 'ee" a ca&'e -#$
e'ta7i',(e"t #- (&tipe2e': Gi6e a$%&(e"t i" '&pp#$t -#$ !#&$
c#"te"ti#"+
@+ Ca" (&tipe2e' &'e t,e c#"cept #- c#"'&(e$ '&$p&' -#$ att$acti"% (#$e
c#"'&(e$': H#4:
CASE II: SUNDER SINGH
Sunder Sin#h had studied only u" to hi#h school. *e was 32-years of a#e, li'ed alone in a
rented roo%, and wor&ed ei#ht-hour shift at one "etrol "u%", then went to the other one
for another ei#ht-hour shift. *e had a #irl friend and was "lannin# to %arry.
Dne day when he returned fro% wor&, he #ot a note fro% his #irl friend that she was
#ettin# %arried to so%eone else and he need not $other her. 7his was a terri$le shoc& to
Sunder Sin#h and he fell a"art. *e sto""ed #oin# to wor&, s"ent slee"less ni#hts, and
was 'ery de"ressed. 1fter a %onth, he was runnin# (owan his sa'in#s and a""roached
his earlier e%"loyers to #et $ac& his <o$, $ut they would not #i'e hi% a second chance.
*e had to quit his rented roo%, and sold few thin#s that he had. *e would do so%e odd
<o$s at the railway station or the $us ter%inal.
Dne day, nearly two years a#o, he was 'ery hun#ry and did not ha'e any %oney and
saw a youn# %an sellin# news"a"ers. *e as&ed hi% what he was sellin# and he told hi%
a$out Eu8ara Jan inde"endent, non-"ro-t, inde"endent news"a"er sold $y the ho%eless,
and econo%ically disad'anta#ed %en and wo%en of this %etro cityK. Sunder Sin#h
a""roached the oce and started sellin# the news"a"er. *e did not %a&e a lot of
%oney, $ut was #ood at sa'in# it. *e started sa'in# %oney for a war% <ac&et for ne!t
winter.
*e was reasona$ly ha""y/ he had %oney to $uy food, and no lon#er ho%eless and
shared a roo% with two others. Dne day, with his sa'in#s he $ou#ht a "air of second-
hand 4i&e shoes fro% Bea %ar&et.
Sunder Sin#h is not unique a%on# low-inco%e consu%ers, es"ecially in lar#e cities, in
wantin# and $uyin# 4i&e shoes. So%e e!"erts $elie'e that low-inco%e consu%ers too
want the sa%e "roducts and ser'ice that other consu%ers want.
7he wor&in# "oor are forced to s"end a dis"ro"ortionate "ercent of their inco%e on food,
housin#, utilities, and healthcare. 7hey solely rely on "u$lic trans"ortation, s"end 'ery
little on entertain%ent of any &ind, and ha'e no security of any &ind. 7heir -#ht is %ainly
day-to-day sur'i'al.
)UESTIONS:
*+ 9,at .#e' t,e p&$c,a'e #- a p$#.&ct i>e Ni>e (ea" t# S&".e$ Si"%,:
0+ 9,at .#e' t,e 't#$! 'a! a7#&t #&$ '#ciet! a". t,e i(pact #- (a$>eti"% #"
c#"'&(e$ 7e,a6i#$:
CASE;III: TOYOTA
Df all the slo#ans &ic&ed around 7oyota, the &ey one is kaizen, which %eans 3continuous
i%"ro'e%ent5 in Oa"anese. While %any other co%"anies stri'e for dra%atic
$rea&throu#h, 7oyota o'ertoo&rd Aotor ;o%"any to $eco%e the second lar#est
auto%a&er in the world.rd had $een the second lar#est since ,23,.
7oyota si%"ly is to"s in quality, "roduction, and eciency. :ro% its factories "our a wide
ran#e of cars, $uilt with unequaled "recision. 7oyota turns out lu!ury sedans with
Aercedes-Len8-li&e quality usin# one-si!th the la$or Aercedes does. 7he co%"any
ori#inated <ust-in-ti%e "roduction and re%ains its leadin# "ractitioner. (t has close
relationshi"s with its su""liers and ri#id en#ineerin# s"eci-cations for the "roducts it
"urchases
7oyotaCs worldwide leadershi" in the auto%oti'e industry was $uilt on its co%"etiti'e
ad'anta#e across the su""ly chain. Letween ,220 and ,22R, 7oyota reduced "art
defects $y )Q "ercent, co%"ared to Q. "ercent for the Li# 3. (t also reduced the ratio of
in'entories to sales $y 35 "ercent 'ersus R "ercent. 7hese reduction ad'anta#es
occurred des"ite the fact the Li# 3 relied on identical su""liers. 1 study $y Oe+ Dyer of
7he Wharton School of the Ini'ersity of @ennsyl'ania and Gentaro 4o$eo&a of Go$e
Ini'ersity attri$uted 7oyotaCs success "artly to its i%"le%entation of $ilateral and
%ultilateral, &nowled#e-sharin# routines with su""liers that result in su"erior
(nteror#ani8ational or networ& learnin#. 7oyota uses si! a""roaches to facilitate
&nowled#e sharin#> J,Ka su""lier association/J2K tea%s of consultants/J3K'oluntary study
#rou"s/JQK"ro$le%-sol'in# tea%s/J5Kinter-r% e%"loyee transfers/ and JRK"erfor%ance
feed$ac& and %onitorin# "rocesses. 7his e+ort also in'ol'es intense le'els of "ersonal
contact $etween 7oyota and its su""liers.
7oyota "ioneered quality circles, which in'ol'e wor&ers in discussions of ways to i%"ro'e
their tas&s and a'oid what it calls the three Ds> the dan#erous, dirty, and de%andin#
as"ects of factory wor&. 7he co%"any has in'ested H..0 %illion to i%"ro'e wor&er
housin#, add dinin# halls, and $uild new recreational facilities. Dn the asse%$ly line,
quality is de-ned not as 8ero defects $ut, as another slo#an "uts it, 3$uildin# the 'ery
$est and #i'in# the custo%er what she/he wants.5 Lecause each wor&er ser'es as the
custo%er for the "rocess <ust $efore hers, she $eco%es a quality control ins"ector. (f a
"iece isnCt installed "ro"erly when it reaches her, she wonCt acce"t it.
7oyotaCs en#ineerin# syste% allows it to ta&e a new car desi#n fro% conce"t to
showroo% in less than four years 'ersus %ore than -'e years for I.S. co%"anies and
se'en years for Aercedes. 7his cuts costs, allows quic&er correction of %ista&es and
&ee"s 7oyota $etter a$reast of %ar&et trends. Eains fro% s"eed feed on the%sel'es.
7oyota can #et its ad'anced en#ineerin# and desi#n done sooner $ecause, as one
%ana#er "uts it, 3We are closer to the custo%er and thus ha'e shorter conce"t ti%e.5
4ew "roducts are assi#ned to a chief en#ineer who has co%"lete res"onsi$ility and
authority for the "roduct fro% desi#n and %anufacturin# throu#h %ar&etin# and has
direct contacts with $oth dealers and consu%ers. 4ew-%odel $osses for I.S. co%"anies
seldo% ha'e such control and al%ost ne'er ha'e direct contact with dealers or
consu%ers.
7he ,222 *ar$our Re"ort, a study of auto%a&er co%"etencies in asse%$ly, sta%"in#,
and "owertrain o"erations, stated that the to" asse%$ly facility in 4orth 1%erica J$ased
on asse%$ly hours "er 'ehicleK is 7oyotaCs "lant in ;a%$rid#e, Dntario. (n this "lant, a
;orolla is "roduced in ,..RR hours. 7oyota was also rated nu%$er one in en#ine
asse%$ly, ta&in# <ust 2.2. hours to "roduce an en#ine.
(n 7oyotaCs %anufacturin# syste%, "arts and cars donCt #et $uild until orders co%e fro%
dealers requestin# the%. (n "lacin# orders, dealers essentially reser'e a "ortion of
factory ca"acity. 7he syste% is so e+ecti'e that rather than waitin# se'eral %onths for a
new car, the custo%er can #et a $uilt-to-order car in a wee& to ,0 days.
7oyota is the $est car%a&er in the world $ecause it stays close to its custo%ers. 3We
ha'e learned that uni'ersal %ass "roduction is not enou#h,5 said the head of 7oyotaCs
7o&yo Desi#n ;enter. 3(n the 2,
st
century, you "ersonali8e thin#s %ore to %a&e the%
%ore reBecti'e of indi'idual needs.5
(n ,222, 7oyota co%%itted to a H,3 $illion in'est%ent throu#h 2000 to $eco%e a
#enuinely #lo$al cor"oration without $oundaries. (n this way, it will $e a$le to create
worldwide %anufacturin# facilities that "roduce cars accordin# to local de%and. (ts #oal
is to achie'e a ,0 to ,5 "ercent #lo$al %ar&et share $y 20,0.
Why the dri'e towards custo%i8ation of 'ehicles? @art of this is due to -erce co%"etition
that "ro'ides consu%er with a %ultitude of choices. 7he (nternet ena$les consu%ers to
$e %ore de%andin# and less co%"ro%isin#. 7hey now ha'e access to the lowest "rices
a'aila$le for s"eci-c %odels of 'ehicles with all of the $ells and whistles they desi#n.
:ro% the co%fort of their ho%es, they are a$le to $y"ass dealers and still -nd the
'ehicle of their drea%s.
Senior %ana#e%ent at 7oyota $elie'es that kaizen is no lon#er enou#h. 7he senior 'ice
"resident at the 7oyota IS1 di'ision, Dou#las West, states that his di'ision is co%%itted
to $oth creatin# and e!ecutin# a new infor%ation syste% to dri'e the fastest, %ost
ecient order-to-deli'ery syste% in the 4orth 1%erican %ar&et. 7oyota %ana#e%ent has
co%e to reali8e Kaizen alone can no lon#er "redict $usiness success. 7he swee"in#
chan#es ta&in# "lace in the $usiness en'iron%ent can no lon#er rely on the kaizen
"hiloso"hy of s%all, sustained i%"ro'e%ents. (n fact, one e!"ert in the industry $elie'es
that 3"ursuin# incre%ental i%"ro'e%ents while ri'als rein'ent the industry is li&e
-ddlin# while Ro%e $urns.5 ;o%"etiti'e 'itality can no lon#er $e de-ned $y continuous
i%"ro'e%ent alone.
)&e'ti#"':
*+ I" 4,at 4a!' i' T#!#ta/' "e4;p$#.&ct .e6e#p(e"t '!'te( .e'i%"e. t#
'e$6e c&'t#(e$':
0+ I" 4,at 4a!' i' T#!#ta/' (a"&-act&$i"% '!'te( .e'i%"e. t# 'e$6e
c&'t#(e$':
3+ H#4 .#e' T#!#ta pe$'#"aiIe it' ca$' a". t$&c>' t# (eet i".i6i.&a
c#"'&(e$ "ee.':
CASE;IV: EXPOSURED ATTENTIOND AND COMPREHENSION ON THE INTERNET
7he (nternet uni'erse literally #rows %ore cluttered $y the %inute. 1ccordin# to 4etwor&
Solutions, (nc., which re#isters the 'ast %a<ority of We$ addresses around the world,
a$out ,0,000 new addresses are re#istered each day. 7hat %eans $y the ti%e you -nish
readin# this case, a$out R0 new do%ain na%es will ha'e $een #o$$led u". With all the
clutter on the We$, how ha'e so%e -r%s $een a$le to stand out and attract %illions of
custo%ers?
:irst, there are so%e $asics to which online -r%s %ust attend. 7hese cost little %ore
than so%e ti%e and a little creati'ity. 7he -rst is creatin# a #ood site na%e. 7he na%e
should $e %e%ora$le Jyahoo.co%K, easy to s"ell Je$ay.co%K, and/or descri"ti'e
Jwine.co%Sa wine retailerK. 1nd, yes, ideally it will ha'e a .co% e!tension. 7his is the
%ost "o"ular e!tension for e-co%%erce, and $rowsers, as a default, will auto%atically
add a .co% onto any address that is ty"ed without e!tension.
7he second "riority is to %a&e sure the site co%es u" near the to" of the list on any We$
searches. (f you use Nycos.co% to "erfor% a search for 3used $oo&s,5 you #et a list of
%ore than 2.R %illion we$sites. Studies ha'e shown that %ost "eo"le will loo& only at
the to" 30 sites on the list, at %ost. (f you are a used-$oo& retailer and you show u" as
we$site T,,)R5,Q0Q on the search list, there is a 'ery #ood chance you will not attract a
lot of $usiness. 1 ,222 Ou"iter Research study re'eals that 3searchin# on the (nternet5 is
the %ost i%"ortant acti'ity, and (nternet users -nd the infor%ation they are loo&in# for
$y usin# search en#ines and We$ directories. 1 #ood We$ desi#ner can write code that
%atches u" well with search en#ine al#orith%s and results in a site that ran&s hi#h on
search lists.
Firtually all "o"ular we$sites ha'e those $asics down "at. So the third ste" is to reach
out "roacti'ely to "otential custo%ers and $rin# the% to your site. Aany co%"anies
ha'e turned to traditional ad'ertisin# to #ain e!"osure. 7ele'ision ad'ertisin# can $e an
e+ecti'e o"tionSal$eit an e!"ensi'e one. (n late Oanuary ,222, hot<o$s.co% s"ent H2
%illionShalf of its ,22) re'enuesSon one 30-second ad durin# the Su"er Lowl.
1ccordin# to ;=D Richard Oohnson, so %any "eo"le tried to 'isit the site that the
co%"anyCs ser'ers <a%%ed. Oohnson says the nu%$er of site hits was si! ti%es #reater
than in the %onth $efore. 1 quir&y ad ca%"ai#n %ay or %ay not hel". @ets.co%, now de-
func, $uilt its i%a#e around a wise-#uy soc& "u""et. ;4=7, a hardware and software
retailer, ran a series of tele'ision ads featurin# cheesy %usic, low-$ud#et sets, and
unattracti'e actors. Dne such ad featured two %enSone in a 7-shirt that said 5you,5
another in a 7-shirt la$eled 3the ri#ht co%"uter5 6 co%in# to#ether and <oinin# hands
than&s to the e+orts of another #uy in a ;4=7 7-shirt. 7he "roduction quality was
rudi%entary enou#h that any so"ho%ore -l% student could ha'e "roduced it. 7he s"ots
were so $ad that they stood out fro% the slic&, e!"ensi'e co%%ercials to which 'iewers
were accusto%ed. ;ritics ri""ed the ca%"ai#n to shreds, $ut ;4=7 called it a success.
Dther (nternet -r%s ha'e used s"orts s"onsorshi"s to increase 'isi$ility. ;arsDirect.co%,
a hi#hly rated site that allows consu%ers to "urchase auto%o$iles online, once
"urchased the na%in# ri#hts to 41S;1R auto race Jthe ;arsDirect.co%Q00K. Nycos also
has tried to %a&e the %ost of 41S;1RCs increasin# "o"ularity. (t s"ent hundreds of
thousands of dollars to ha'e its na%e and lo#o "lastered all o'er the car of "o"ular
dri'er Oohnny Lenson. Aeanwhile, online co%"uter retailer (nsi#ht and furniture seller
#alleryfurniture.co% each tar#eted foot$all fans $y "urchasin# the na%in# ri#hts to
colle#e $owl #a%es.
Df course, if you can reach consu%ers while they are in front of their co%"uters rather
than their tele'ision sets, you %ay stand an e'en $etter chance of #ettin# the% to your
site. *owe'er, ty"ical $anner ads are inecient, a'era#in# clic&-throu#h rates of only
a$out 0.5 "er cent Jonly one of e'ery 200 "eo"le e!"osed to the ad actually clic&ed on
the adK. 7oo often, $anner ads are <ust wall"a"er/ consu%ers %ay see the% $ut they
usually are not suciently sti%ulated to clic&-throu#h. *owe'er, Aichele Slac& of the
online ad'ertisin# #rou" Ou"iter ;o%%unications $elie'es $anner ads can $e useful if
used correctly. 37he no'elty factor is wearin# o+,5 she says. Lut 3when an ad is tar#eted
well and the creati'e is #ood, clic&-throu#h rates are %uch hi#her.5
1n alternati'e way to reach "eo"le who are already online is throu#h "artnershi"s. Dne
of the %ost 'isi$le e!a%"les of such an alliance is the one $etween Yahoo9 1nd
1%a8on.co%. NetCs say youCre wor&in# on a "ro<ect on the Ereat De"ression and you
want to see what &ind of infor%ation is a'aila$le online. (f you #o to Yahoo9 1nd ty"e in
3Ereat De"ression,5 you will not only $e "resented with a list of we$sites, $ut you will
also see a lin& that will allow you to clic& to see a list of $oo&s on the Ereat De"ression
that are a'aila$le throu#h 1%a8on. 1nother e!a%"le of a successful "artnershi" was
for#ed in ,22) $etween Rollin#stone.co% and the we$site $uildin# and hostin# ser'ice
7ri"od. ='ery one of the 3,000 artist "a#es on Rollin#stone.co% contained a lin& to
7ri"od. 7he #oal was to encoura#e fans to use 7ri"odCs tools to $uild we$"a#es dedicated
their fa'orite sin#ers or $ands. 1ccordin# to the research co%"any Aedia Aetri!, durin#
the course of the alliance 7ri"od <u%"ed fro% the We$Cs fourteenth %ost "o"ular we$site
to nu%$er ei#ht. 1lliances with non'irtual co%"anies are another o"tions. (n 2003, the
(nternet classi-ed -r% ;areerLuilder &ic&ed o+ a cross-"ro%otional ca%"ai#n with %a<or
(nternet -r%s, includin# 1DN and AS4.
1 less su$tle $ut nonetheless e+ecti'e way to $uild trac is to %ore or less "ay "eo"le
'isit your site. Dne study showed %ore than half of (nternet consu%ers would $e %ore
li&ely to "urchase fro% a site if they could "artici"ate in so%e sort of loyalty "ro#ra%.
*undreds of online %erchants in %ore than 20 cate#ories ha'e si#ned u" with a networ&
"ro#ra% called ;lic&Rewards. ;usto%ers %a&in# "urchases at ;lic&Rewards %e%$er
sites recei'e frequent-Bier %iles or other ty"es of $ene-ts. Ay"oints.co% o+ers a si%ilar
incenti'e "ro#ra% in which custo%ers are rewarded with air tra'el, #ift certi-cates and
discounts for sho""in# at %e%$er %erchants. 7he search en#ine iwon.co% was e'en
%ore direct. (t rewards one luc&y 'isitor each wee&day with a H,0,000 "ri8e. 1ccordin# to
rrester Research, co%"anies in 2002 s"ent a$out HR $illion annually on online
incenti'es and "ro%otions.
:inally, so%e -r%s rely on e-%ail to thorou#hly %ine their e!istin# custo%er data$ases.
7he auction site Dn sale Jlater %er#ed with =##head.co%K "ro'ed <ust how successful e-
%ail can $e. (t sent out tar#eted e-%ails to its custo%ers $ased on their "ast $iddin#
acti'ities and "re'iously stated interests. ;lic&-throu#h rates on these tar#eted e-%ails
a'era#ed a re%ar&a$le 30 "ercent. =-%ail %ar&etin# also holds "ro%ise for $usiness-to-
$usiness -r%s. 7he @e""ers and Ro#ers Erou" is a %ar&etin# -r% that #i'es
"resentations around the Inited States. 1t the end of the "resentations, "eo"le are
in'ited to #o to the co%"anyCs we$site and si#n u" for their e-%ail newsletter, (nside ,
to ,. 7he newsletter in'ites readers to 'isit the @e""ers and Ro#ers we$site to learn
%ore a$out 'arious articles, "ro%ote their "roducts and ser'ices, and "artici"ate in
foru%s. (nside , to , now $oasts a su$scri$er $ase of Q5,000, $ut the co%"any
esti%ates that a$out 200,000 "eo"le actually see it $ecause su$scri$ers forward it to
their friends and collea#ues. 1$out ,Q,000 "eo"le 'isit the @e""ers and Ro#ers site each
wee&, with trac often "ea&in# i%%ediately after the newsletter is sent.
1s you can see, there is no one e+ecti'e %ethod for #eneratin# interest in a we$site.
7he sa%e %ethods that ha'e wor&ed for so%e -r%s ha'e failed for others. Dne certainty
is that as the (nternet #rows and %ore "eo"le do $usiness online, (nternet -r%s will ha'e
to -nd e'er %ore creati'e ways to e!"ose custo%ers to their sites and &ee" their
attention once there.
)&e'ti#":
*+ C#"'i.e$ t,e e;(ai ca(pai%"' .i'c&''e. i" t,e ca'e+ 9,! .# !#& t,i">
t,e'e ca(pai%"' 4e$e '&cce''-&: Di'c&'' t,e atte"ti#" p$#ce''e' t,at
4e$e at 4#$>+ D# !#& 'ee a"! p#te"tia .$a47ac>' t# t,i' t!pe #-
(a$>eti"%:
0+ D&$i"% t,e 0JJJ S&pe$ B#4D ABC i"6ite. 6ie4e$' t# 6i'it it' E",a"ce. TV
4e7'ite+ 8a"' c#&. pa! t$i6iaD 'ee $epa!'D pa$ticipate i" p#' a". c,at
$##('D a". 6ie4 pa!e$ 'tati'tic'+ T,e 'ite $ecei6e. a" e'ti(ate. * (ii#"
,it'+ 9,!: 8$a(e !#&$ a"'4e$ i" te$(' #- e2p#'&$eD atte"ti#"D a".
c#(p$e,e"'i#"+
3+ T,i"> a7#&t !#&$ #4" 9e7 '&$G"% patte$"'+ 9$ite .#4" t,e $ea'#"' !#&
6i'it 'ite'+ 9,ic, #- t,e (a$>eti"% 't$ate%ie' .i'c&''e. i" t,e ca'e .# !#&
G". (#'t <a". ea't= i"A&e"tia:
CASE: V PEAPOD ONLINE GROCERYK0JJ3
7he online #rocery turned out to $e a lot tou#her than analysts thou#ht a few years a#o.
Aany of the early online #rocers, includin# We$'an, Sho"Nin&, Strea%Nine, Gos%o%,
*o%eruns, and @DUuic&, went $an&ru"t and out of $usiness. 1t one ti%e, We$'an had
QR "ercent of the online #rocery $usiness, $ut it still wasnCt "ro-ta$le enou#h to sur'i'e.
7he new $usiness %odel for online #rocers is to $e "art of an e!istin# $ric&-and-%ortar
chain. Nar#e #rocery chains, li&e Safeway and 1l$ertsonCs, are e!"eriencin# sales #rowth
in their online $usiness $ut ha'e yet to turn a "ro-t. Ou"iter Research esti%ates that
online #rocery sales will $e o'er H5 $illion $y 200., a$out , "ercent of all #rocery sales,
while it e!"ects %ore than 5 "ercent of all retail sales to $e online $y then. 1 few years
a#o, o"ti%istic analysts esti%ated online #rocery sales would $e ,0 to 20 ti%es that $y
2005, $ut it didnCt wor& out that way.
Dne of the few online #rocers to sur'i'e in 2003 is @ea"od, the -rst online #rocer, started
$y $rothers 1ndrew and 7ho%as @ar&inson in ,220. *owe'er, e'en @ea"od was failin#
until 200, when Dutch #rocery #iant Royal 1hold "urchased controllin# interest in the
co%"any for H.3 %illion. @ea"od o"erates in -'e %ar&ets, %ainly $y closely aliatin#
itself with 1hold-owned #rocery chains. @ea"od $y Eiant is in the Washin#ton, D;, area,
while @ea"od $y Sto" and Sho" runs in Loston, 4ew Yor&, and ;onnecticut. 7he
e!ce"tion is ;hica#o, where @ea"od o"erates without an aliation with a local #rocery
chain. @ea"od e!ecuti'es clai% the co%"any is #rowin# $y 25 "ercent annually and has
,30,000 custo%ers, and all of its %ar&ets e!ce"t ;onnecticut are "ro-ta$le. 1'era#e
order si8e is u" to H,Q3 fro% H,0R three years earlier.
7he online #rocery $usiness see%ed li&e a sure winner in the ,220s. Dual-inco%e
fa%ilies stra""ed for ti%e could si%"ly #o online to do their #rocery sho""in#. 7hey has
a$out the sa%e choices of "roducts that they would ha'e had if they went to a $ric&-
and-%ortar #rocery, a$out 20,000 SGIs Jstoc&&ee"in# unitsK. 7hey could $rowse the
3aisles5 on their ho%e co%"uters and "lace orders 'ia co%"uter, fa! or tele"hone. 7he
orders were -lled at aliated stores and deli'ered to their ho%es in a 20-%inute window,
sa'in# the% ti%e and e+ort and si%"lifyin# their daily li'es.r all this con'enience,
consu%ers were willin# to "ay a %onthly fee and a fee "er order for "ac&a#in#, shi""in#,
and deli'ery. Since %ost of the "roducts "urchased were well-&nown $randed ite%s,
consu%er faced little ris& in $uyin# their traditional foodstu+s. ='en "erisha$les li&e
"roduce and %eat could $e counted on to $e hi#h quality, and if consu%ers were
concerned, they could %a&e a quic& tri" to a $ric&-and-%ortar #rocery for these
selections. *owe'er, while all of this sounded #ood, %ost consu%ers didnCt chan#e their
#rocery sho""in# ha$its to ta&e ad'anta#e of the online alternati'e.
;urrently analysts do not e!"ect the online #rocery industry to ta&e o+ in the near
future, if e'er. Ailes ;oo& of Lain V ;o%"any esti%ates that only ) to ,0 "ercent of I.S.
consu%ers will -nd orderin# #roceries online a""ealin#, $ut only a$out , "ercent will
e'er do so. *e concludes> 37his is #oin# to re%ain a niche o+erin# in a few %ar&ets. (tCs
not #oin# to $e a national %ainstrea% o+erin#.5 Ou"iter Aedia Aetri! analyst Gen ;assar
concludes that 37he %oral of the story is that the a$ility to $uild a $etter %ousetra"
%ust $e %easured a#ainst consu%ersC willin#ness to $uy it.5
)&e'ti#":
*+ 9,at 7e,a6i#$' a$e i"6#6e. i" #"i"e %$#ce$! ',#ppi"%: H#4 .#e' #"i"e
',#ppi"% c#(pa$e 4it, t$a.iti#"a ',#ppi"% i" te$(' #- 7e,a6i#$a e5#$t:
0+ 9,at t!pe' #- c#"'&(e$' a$e i>e! t# 6a&e #"i"e %$#ce$! ',#ppi"% -$#(
Peap#.:
3+ O6e$aD 4,at .# !#& t,i"> a7#&t t,e i.ea #- #"i"e %$#ce$! ',#ppi"%: H#4
.#e' it c#(pa$e 4it, 'i(p! eati"% i" $e'ta&$a"t' a". a6#i.i"% %$#ce$!
',#ppi"% a". c##>i"% at#%et,e$:
CASE: VI SONY
(n <ust o'er half-century, Sony ;or"oration has fro% a ,0-"erson en#ineerin# research
#rou" o"eratin# out of a $o%$ed-out de"art%ent store to one of the lar#est, %ost
co%"le!, and $est-&nown co%"anies in the world. Sony co-founders Aasaru ($u&a and
1&io Aorita %et while ser'in# on Oa"anCs Warti%e Research ;o%%ittee durin# World War
((. 1fter the war, in ,2QR, the "air #ot $ac& to#ether and for%ed 7o&yo
7eleco%%unications =n#ineerin# ;or"oration to re"air radios and $uild shortwa'e radio
ada"ters. 7he -rst $rea&throu#h "roduct ca%e in ,250, when the co%"any "roduced
Oa"anCs -rst ta"e recorder, which "ro'ed 'ery "o"ular in %usic schools and in
courtroo%s as a re"lace%ent for steno#ra"hers.
(n ,253, Aorita ca%e to the Inited States and si#ned an a#ree%ent to #ain access to
Western =lectricCs "atent for the transistor. 1lthou#h Western =lectric JLell Na$oratoryCs
"arent co%"anyK su##ested Aorita and ($u&a use the transistor to %a&e hearin# aids,
they decided instead to use it in radios. (n ,255, 7o&yo 7eleco%%unications =n#ineerin#
;or"oration %ar&eted the 7R-55, Oa"anCs -rst transistor radio, and the rest, as they say,
is history. Soon thereafter, Aorita rechristened the co%"any as Sony, a na%e he felt
con'eyed youthful ener#y and could $e easily reco#ni8ed outside Oa"an.
7oday Sony is al%ost e'erywhere. (ts $usinesses include electronics, co%"uter
equi"%ent, %usic, %o'ies, #a%es, and e'en life insurance. (t e%"loys ,20,000 "eo"le
worldwide and does $usiness on si! continents. (n ,222, Sony rac&ed u" sales of HR3
$illion/ 3, "ercent of those ca%e fro% Oa"an, 30 "ercent fro% the Inited States, and 22
"ercent fro% =uro"e. J7o 'isit so%e of SonyCs country-s"eci-c we$sites, #o to
www.sony.co% and clic& on 3Elo$al Sites.5K
@erha"s SonyCs %ost fa%ous "roduct is the Wal&%an. ;reated in ,2.2, the Wal&%an
ca"itali8ed on what so%e "ercei'ed as the start of a #lo$al trend towards indi'idualis%.
:ro% a technolo#ical stand"oint, the Wal&%an, was fairly uns"ectacular, e'en $y ,2.2
standards, $ut SonyCs %ar&etin# e+orts successfully focused on the freedo% and
inde"endence the Wal&%an "ro'ided. Dne ad de"icted three "airs of shoes sittin# ne!t
to a Wal&%an with the ta# line 3Why %an learned to wal&.5 Ly 2000 %ore than 250
%illion Wal&%ans had $een sold worldwide, $ut Sony was concerned. Studies had shown
that Eeneration Y Ja#es ,Q to 2QK 'iewed the Wal&%an as stod#y and outdated. So Sony
launched a H30 %illion ad'ertisin# and %ar&etin# ca%"ai#n to re"osition the "roduct in
the Inited States. 7he star of the new ads was @lato, a cool, Wal&%an-wearin# s"ace
creature. 7he choice of a nonhu%an character was no accident accordin# to Ron Loire,
head of SonyCs I.S. "ersonal-%o$ile #rou". *e wanted a character that would a""eal to
the $roadest "ossi$le ran#e of ethnic #rou"sSthus, the s"ace creature. Loire e!"lains,
31n alien is no one, so an alien is e'eryone.5
SonyCs current 'ision, howe'er, e!tends far $eyond the Wal&%an> to $eco%e a leader in
$road$and technolo#ies. Sony loo&s forward to a day when all of its "roductsS
tele'isions, DFDs, tele"hones, #a%e %achines, co%"uters, and so onScan co%%unicate
with one another and connect with the We$ on a "ersona networ&. 1 Sony e!ecuti'e
"ro'ides an e!a%"le of such technolo#y in action> 3Say you are watchin# 7F in the den,
and your &ids are "layin# their %usic way too loud u"stairs,5 he says. 3You could use
your 7F re%ote to call u" an onscreen control "anel that would let you turn down your
&idsC stereo, all without ha'in# to #et u" fro% your recliner.5
Sony sees its new @layStation2 -llin# a %a<or role in the (nternet of the future. (n Aarch
2000, Sony introduced the @layStation2 in Oa"an and sold , %illion units within a wee&.
Newsweek featured the @layStation2 on its co'er that s"rin#, e'en thou#h it wasnCt
o+ered in the Inited States until later in the year. Aost consu%ers "ro$a$ly $ou#ht
@layStation2 to "lay 'ideo #a%es, $ut its "otential #oes far $eyond that. (t is actually
"owerful enou#h to $e ada"ted to #uide a $allistic %issile. Sony en'isions consu%ers
turnin# to the @layStation2 for not only #a%es $ut also %o'ies, %usic, online sho""in#,
and any other &ind of di#ital entertain%ent currently i%a#ina$le. Gen Gutara#i, "resident
of Sony ;o%"uter =ntertain%ent, "redicts the @layStation2 will so%eday $eco%e as
'alua$le as the @; is today> 31 lot of "eo"le always assu%ed the @; would $e the
%achine to control your ho%e networ&. Lut the @; is a narrow$and de'ice thatW has
$een retro-tted to "lay 'ideo#a%es and interacti'e 3-D #ra"hics. 7he @layStation2 is
desi#ned fro% the #round u" to $e a $road$and de'ice.5
7he @layStation2 also reBects a chan#in# attitude within Sony re#ardin# "artnershi"s
with other co%"anies. 7oshi$a hel"ed Sony desi#n the =%otion =n#ine, which "owers the
@layStation2. (n "re'ious years, these &inds of alliances were the e!ce"tion rather than
the rule with the Sony. Sony was "ercei'ed as arro#ant $ecause it rarely coo"erated with
other co%"anies, "referrin# to de'elo" and "o"ulari8e new technolo#ies on its own.
Recently, howe'er, that has chan#ed. Sony has wor&ed with I.S. $ased @al% to de'elo"
a new hand-held or#ani8er with %ulti%edia ca"a$ilities, coo"erated with (ntel to create a
set of standards for ho%e networ&s, and launched a <oint 'enture with ;a$le'ision to
$uild a $road$and networ& in the 4ew Yor& %etro"olitan area. 4e'ertheless, so%e critics
$elie'e Sony re%ains too insular, loo&in# on fro% the sidelines while other co%"anies
<oin forces to create entertain%ent "owerhouses. Sony has no alliances with I.S. ca$le or
tele'ision networ&s, raisin# so%e dou$ts a$out its a$ility to fully de'elo" its ho%e
(nternet ser'ices. Sony has tal&ed with other %usic co%"anies a$out "ossi$le <oint
'enture, $ut nothin# has co%e to fruition.
Inli&e %any I.S.-$ased %ultinationals, 7o&yo-$ased Sony traditionally has %ar&eted
itself on a re#ional rather than a #lo$al $asis.r e!a%"le, Sony has al%ost 50 di+erent
country-s"eci-c we$sites fro% which consu%ers can order "roducts. *owe'er, there are
si#ns that strate#y %ay $e chan#in#, at least to so%e de#ree. Sony launched
www.Sonystyle.co%, a we$site that is the co%"anyCs "ri%ary online outlet for sellin#
%o'ies, %usic, and electronic "roducts. Sony also "lans to "ro'ide "roduct ser'ice and
su""ort on the site, and e'entually software u"#rades as well. 7he current %ain we$site
Jwww.sony.co%K is %ainly a source for cor"orate and in'estor infor%ation. 1lso, in ,22.
Sony e%$ar&ed on a worldwide ad ca%"ai#n to %a&e itself and its "roducts %ore
rele'ant in the eyes of youn#er consu%ers. (ronically, %uch of SonyCs future #rowth %ay
co%e fro% its own $ac&yard. 7he "ri%ary $uyers of electronic and di#ital "roducts are
a#es ,5 to Q0. (t is esti%ated that $y 20,0, two-thirds of the "eo"le in the world in that
a#e $rac&et will li'e in 1sia. 7o&yo is already a "owerful inBuence on 1sian culture. 1siaCs
%ost "o"ular youth %a#a8ines are "u$lished in 7o&yo, and %ost of the %usic 1sian
youn# "eo"le listen to co%es for% 7o&yo. So "art of SonyCs challen#e is to continue to
#row on a #lo$al scale while "ayin# close attention to the $ur#eonin# %ar&et at ho%e.
(%%ediately followin# World War (( and for so%e years thereafter, the la$el 3Aade in
Oa"an5 connoted chea", shoddy, i%itation "roducts. 7oday, for %any "eo"le, that sa%e
la$el stands for e!cellence and inno'ation. ;ertainly Sony can ta&e %uch of the credit
that transfor%ation. 4ow the question is whether SonyCs "roducts and %ar&etin# e+orts
can &ee" "ace Jor set the "aceK in the u"co%in# a#e of di#ital con'er#ence.
)&e'ti#":
*+ I.e"ti-! a". .i'c&'' '#(e #- t,e c&t&$a (ea"i"%' -#$ S#"! p#''e''e. 7!
c#"'&(e$' i" !#&$ c#&"t$!+ Di'c&'' ,#4 t,e'e c&t&$a (ea"i"% 4e$e
.e6e#pe. a". ,#4 t,e! i"A&e"ce c#"'&(e$'/ 7e,a6i#$' <a". a5ect a".
c#%"iti#"=+ 9,at i' t,e $#e #- (a$>eti"% 't$ate%ie' i" c$eati"% a".
(ai"tai"i"% <#$ (#.i-!i"%= t,e'e c&t&$a (ea"i"%':
0+ It i' #-te" 'tate. t,at t,e 4#$. i' 7ec#(i"% '(ae$ 7eca&'e t#.a! pe#pe
c#((&"icate $eati6e! ea'i! ac$#'' ti(e a". .i'ta"ce+ Di'c&'' 4,et,e$
t,at ,a' 7ee" 7e"eGcia -#$ S#"!+ 9,at a$e '#(e (a$>eti"% c,ae"%e' it
p$e'e"t':
3+ 9,at .# !#& t,i"> a7#&t S#"!/' t$a.iti#" #- $e%i#";'peciGc #$ "ati#";
'peciGc (a$>eti"%: 9#&. S#"! 7e 7ette$ 'e$6e. 7! 4#$>i"% t# c$eate a
(#$e &"i-#$( %#7a i(a%e:
HUMAN RESOURCES MANAGEMENT
1! 0hat should 7ivan do5
1! 7iscuss the long.ter% relevance of %otivational techni#ues used by Baheti in the light of
prevailing environ%ent in the organi/ation!
2! 8ad you been Baheti$ what other techni#ues you would have used to i%prove the special
services provided by the organi/ation5
1! 8ad you been in place of Alok Trivedi$ what additional %easures would you have taken5
2. Critically analy/e the 3%ployee Relations Audit in the light of its contribution to self
%otivation of e%ployees.
1! If you were (alik$ what strategies would you adopt to solve the proble%5
2! 0ith high e%ployee turnover in insurance industry$ how can the co%pany retain a person like
(alik5
1! 0hat role do the non.financial incentives play in %otivating the workers and %ini%i/ing the
rate of absenteeis%5
2! 0hat innovative solutions would you suggest to %ini%i/e the rate of absenteeis%5
1! 7iscuss %erits=de%erits of the role of strike$ agitation and legal approach in union.
%anage%ent relations!
2! 0hat role does %utual trust play in building union.%anage%ent relations5
A*/iting
1! 7iscuss the advantages and disadvantages of balance sheet audit! Also state the auditorAs position
in relation to balance sheet audit!
2! 7raft a for% of #uestionnaire$ that you would use to deter%ine the effectiveness of the clientAs
internal control over payrolls!
! An enterprise purchases an ite% of %achinery on 1!+!2<<2 for Rs! 1<<$<<<! It depreciates this
ite% at the rate of 1<M per annu% on straight.line basis! 1n 1!+!2<<-$ the enterprise decides to
change the %ethod of depreciation fro% straight.line to written down value! The applicable rate
under the new %ethod is 1-M! 8ow should the enterprise give effect to this change in the %ethod
of depreciation5
+! Hnder what circu%stances$ an auditor can be appointed by the followingJ
DaF The Board of 7irectors
DbF The shareholders
DcF The central govern%ent
-! 0hile e4a%ining the accounts of a co%pany$ you find the following ite%s on credit
side of profit and loss accountJ
'rofit on revaluation of land!
DaF Bounties received fro% central govern%ent
DbF 34cess depreciation charged in the previous year now written back
DcF Hnclai%ed dividend
0ould you have any ob>ection as auditor in passing the accounts of the co%pany5 "tate with
reasons!
9! 0hat is a Clean Report5 )ive a speci%en of a #ualified report of the auditor!
:! 0hat is investigation5 7istinguish investigation fro% audit!
;! 7efine K'rofessional (isconductA and state how professional %isconduct and professional ethics
are related! )ive few instances of professional %isconduct with case decisions!
9! 0hat special points should the auditor consider in conducting audit in the following institutions
DaF Charitable institution DbF 3ducational institution
1<! "tate the controls that can be applied over inputs and processing of data in a co%puteri/ed
accounting environ%ent!
B*$ine$$ St&ateg' En1i&#nment
,. Consider the vision and %ission state%ents of the Reserve Bank of India! Co%%ent on the
#uality of both these state%ents!
2! "hould the RBI go for a syste%atic and co%prehensive strategic plan in place of its earlier
prag%atic approach of responding to environ%ental events as and when they occur5 0hy5
1! Identify the opportunities and threats that the retailing industry in India offers to local and
foreign co%panies!
2! 'repare an 3T1' for a co%pany interested in entering the retailing industry in India
1! In your opinion$ what is the distinctive co%petence of 8elpAge India5
2! 'repare a strategic advantage profile for 8elpAge India!
1! B83@ is %ainly for%ulating and i%ple%enting concentration strategies nationally as well as globally$
in the power e#uip%ent sector! 7o you think it should broaden the scope of its strategies to include
integration or diversification5 0hy5
2! "uppose B83@ plans to diversify its business! 0hat areas should it diversify into5 )ive reasons
to >ustify your choice
1! 0hat is the %otive for internationali/ation by the &alyani )roup5 7iscuss!
2! 0hich type of international strategy is &alyani )roup adopting5 34plain!
1! Co%%ent on the steps taken to reduce the e4tent of vertical integration at the Indian Railways!
"uggest a few %ore %easures that could be taken!
2! 7iscuss the %easures taken for corporate restructuring of the Indian Railways$ in your opinion$
are these ade#uate for dealing with the proble%s faced5 0hy5
! 'ropose the basic ele%ents of a corporate turnaround for the Indian Railways!
Management In2#&mati#n S'$tem$
1! 7o you agree with the argu%ent %ade by ,ick Carr to support his position that IT no longer
gives co%panies a co%petitive advantage5 0hy or why not5
2! 7o you agree with the argu%ent %ade by the business leaders in this case in support of the
co%petitive advantage that IT can provide to a business5 0hy or why not5
! 0hat are several ways that IT could provide a co%petitive advantage to a business5 Hse so%e
of the co%panies %entioned in this case as e4a%ples! Lisit their websites to gather %ore infor%ation
to help you answer!
1! 0hat is the business of wireless technologies in the che%icals and auto%otive %anufacturing
industries5 0hat other %anufacturing applications %ight benefit fro% wireless technologies5
0hy5
2! 0hat are so%e of the business benefits of wireless technologies in finance and invest%ents5
0hat other applications would you reco%%end5 0hy5 Check the website of *idelity!co% to
help you answer!
! 0hat are so%e of the business benefits and challenges of using wireless technologies in
retailing5 0hat are so%e other applications that %ight be beneficial to consu%ers$ as well as
retailers5 0hy5
1! 0hat is the business value of AI technologies in business today5 Hse several e4a%ples fro% the
case to illustrate your answer!
2! 0hat are so%e of the benefits and li%itations of data %ining for business intelligence5 Hse
Bank *inancialAs e4perience to illustrate your answer!
! 0hy have banks and other financial institutions been leading users of AI technologies like
neural networks5 0hat are the benefits and li%itations of this technology
1! 0hat are the benefits and li%itations of the Rowe Co%paniesA R1I %ethods for IT pro>ect
planning5
2! 0hat is the business value of the R1I %ethodology re#uired for pro>ect planning by (errill
@ynch5
! 7o you agree with the IT invest%ent decisions being %ade by the Rowe Co%panies in response
to changing econo%ic conditions5 0hy or why not5
1! 0hat security %easures should co%panies$ business professionals$ and consu%ers take to
protect their syste%s fro% being da%aged by co%puter wor%s and viruses5
2! 0hat is the ethical responsibility of (icrosoft in helping to prevent the spread of co%puter
viruses5 8ave they %et this responsibility5 0hy or why not5
! 0hat are several possible reasons why so%e co%panies Dlike )(F were seriously affected by
co%puter viruses$ while others Dlike Leri/onF were not5
Ma&keting Management
1! 0hat have been the key success factors for ,ike5
2! 0here is ,ike vulnerable5 0hat should it watch out for5
! 0hat reco%%endations would you %ake to senior %arketing e4ecutives going forward5
0hat should they be sure to do with its %arketing5
1! 0hat have been the key success factors for 7isney5
2! 0here is 7isney vulnerable5 0hat should it watch out for5
! 0hat reco%%endations would you %ake to their senior %arketing e4ecutives going
forward5 0hat should it be sure to do with its %arketing5
1! 0hat have been the key success factors for 8"BC5
2! 0here is 8"BC vulnerable5 0hat should it watch out for5
! 0hat reco%%endations would you %ake to senior %arketing e4ecutives going forward5
0hat should they be sure to do with its %arketing5
1! 0hat have been the key success factors for &rispy &re%e5
2! 0here is &rispy &re%e vulnerable5 0hat should it watch out for5
! 0hat reco%%endations would you %ake to senior %arketing e4ecutives going forward5
0hat should they be sure to do with its %arketing5
1! 0hat are the key success factors for "outhwest Airlines5
2! 0here is "outhwest Airlines vulnerable5 0hat should it watch out for5
! 0hat reco%%endations would you %ake to senior %arketing e4ecutives %oving forward5
0hat should they be sure to do with its %arketing5
B*$ine$$ La%
1! DaF 7iscuss the ter% KContinuing )uaranteeA! 8ow can it be revoked5
DbF "tate briefly the rights and obligations of a bailee!
2! DaF 0hat do you understand by the ter% I%plied KAuthority of a partnerA5
DbF 3nu%erate the acts$ which are not covered under i%plied authority!
! DaF 0hat are the rights and duties of a %inor in relation to partnership business5
DbF 7istinguish between ..
DiF "ub.agent and "ubstituted Agent
DiiF "ale$ Bail%ent and 'ledge
+! DaF 34plain the rights of a partner!
DbF 7istinguish between the followingJ
DiF "uccession and Assign%ent!
DiiF Contract of Inde%nity and Contract of )uarantee!
3+ 0rite short note on!
iF ,on.registration of a fir%!
iiF Capacity of Contract
iiiF &inds of Bail%ent!
ivF Anticipatory breach of a Contract!
4+ aF 0hen is a "urety 7ischarged fro% @iability by the conduct of the creditor5
bF 7escribe the rules relating to passing of property in the sale of goods!
5+ aF 0hat is an illegal agree%ent5 "tate the effects of illegality!
bF 0hat is K"upervening I%possibilityA5 0hat are their effects upon the contract5
cF 0hat are the re%edies available to the buyer when goods in wrong #uantity delivered to
hi%5
dF 0hen shall a retired partner be discharged fro% his liabilities for the acts of the fir%
before retire%ent5
6+ DaF "tate the principles on which da%ages are assessed for breach of contract!
DbF 7escribe the law relating to the Kright of resaleA available to an unpaid seller in the "ale
of )oods Act$ 19<!
7+ aF 0hat are the rules regarding delivery of goods5
bF 7istinguish betweenJ
iF ,ovation and Alteration!
iiF @i#uidated da%ages and penalty
10+ Co%%ent on
aF Transferee of a partnerAs interest cannot e4ercise the right of transferring partner!
bF Appropriation is a right pri%arily of the debtor and for his benefit!
cF A proposal can be revoked otherwise than by co%%unication!
dF Right of stoppage in transit is an e4tension of the right of lien!
CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS
PROJECT REPORTS AND THESIS
ISBM / IIBMS / IIBM / ISMS / KSBM /
NIPM
SMU / SYMBIOSIS / XAVIER / NIRM /
PSBM / NSBM / ISM / IGNOU / IICT / ISBS
/ LPU / ISM&RC/ LPU / NMIMS / ISBS /
MANIPAL / GARUDA / HIMALAYA / UPES /
IMT / iact
IC MIND
MBA - EMBA - BMS - GDM - MIS - MIB
DMS - DBM - PGDM - DBM – DBA - PGDM
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Retai8 Management
1! 7evelop a positioning chart for >ewelry! Include 0al.(art$ Tiffany$ and depart%ent stores with
>ewelry depart%ents$ on the chart! 34plain your choice of a4es$ as well as each storeAs
positioning!
2! 7o you agree that the events described in this case are contributing to the blurred positioning
of >ewelry retailing5 34plain your answer and its ra%ifications!
! 0hat are the pros and cons of Tiffany selling ite%s priced as low as R2<<5
+! As a >ewelry shopper$ how would you e4pect the total retail e4perience to differ in 0al.(art$
depart%ent stores$ and high.end retailers5
1! As an independent super%arket operator$ would you want to beco%e a 'iggly 0iggly
franchisee5 0hy or why not5
2! 0hat are the advantages to 'iggly 0iggly of having franchised outlets instead of its own
stores5 The 7isadvantages5
! 0hat criteria should 'iggly 0iggly use in evaluating potential franchisees5
+! "hould *le%ing re#uire *resh Brands to use the 'iggly 0iggly na%e and all of its pro%otions5
34plain your answer!
1! Is the new high.tech research environ%ent going to eli%inate the use of hu%an researchers5
34plain your answer!
2! 0hat are the pros and cons of using .7 CA7 syste%s for %arketing research purposes versus
traditional focus groups5
! 7escribe the ideal %arketing research uses for .7 ani%ation software in the creation of a
virtual grocery shopping environ%ent for super%arkets!
+! 7evise a short consu%er #uestionnaire for Burger &ing to use in assessing its .7 CA7
si%ulations!
1! 7escribe how accounting irregularities can play havoc with a fir%As reputation$ supplier
relations$ and %anager %orale!
2! 7iscuss other %eans of %easuring and i%proving financial perfor%ance at 7ollar )eneral!
! 0hat are the financial %anage%ent pros and cons of 7ollar )eneralAs placing greater e%phasis
on perishables5
+! 3valuate 7ollar )eneralAs inventory %anage%ent initiatives!
1! 3valuate "ports AuthorityAs new design in light of the retailerAs ob>ectives!
2! 7iscuss the pros and cons of "ports AuthorityAs use of specialty bouti#ues instead of its
previous warehouse for%at!
! 7evelop a pro%otional ca%paign for "ports Authority to capitali/e on Bthe authorityC i%age!
+! 7o you think the 0T"A network will prove to be a %a>or contributor to "ports AuthorityAs
at%ospherics or will it turn out to be a fad5 34plain your answer!
Sa8e$ 9 !i$t&i0*ti#n Management
1! 0hat action should the 'hillips Co%pany have taken to change the co%pany i%age in the
public utility field5
1! 7escribe CastleberryAs %a>or operations responsibilities! 8ow well is he carrying out each of
these responsibilities5
2! 0hat kind of planning activities should Castleberry be carrying out regularly5 0hat planning
areas need i%%ediate attention5
! 8ow do you suppose CastleberryAs ti%e should be divided operations and planning5
1! "uggest what 0agner should have done to reduce personnel turnover and eli%inate the other
proble%s at Central CATL!
1! If you were acting as a consultant for the 7riskill Co%pany$ what reco%%endations would you
%ake with respect to the preparation of #uotas of the sales force5
2! 8ow would you evaluate the argu%ents of the sales %anager and the %arketing research
director5
GENERAL MANAGEMENT
CASE: *: TRI 1 STATE TELEPHONE
Oohn Eodwin, ;hief e!ecuti'e of 7ri 6 State 7ele"hone, leaned $ac& in his chair and loo&ed
at the ceilin#. *ow was he e'er #oin# to #et out of this %ess? 1t last ni#htCs "u$lic
hearin#. ,50 an#ry custo%ers had %arched in to "rotest 7ri 6 StateCs latest rate request.
1fter the rancorous shoutin# was o'er and the acri%onious si#ns "ut away, the
"rotesters had "resented state re#ulators with so%e so"histicated econo%ic analyses in
su""ort of their case. 1dditionally, there were a nu%$er of e%otional a""eals fro%
elderly custo%ers who re#arded "hone ser'ice as their lifeline to the outside world
7ri 6 State 7ele"hone o"erated in three states and had sales of o'er H3 $illion. Durin#
the last -'e years, the co%"any had e!"erienced a tre%endous a%ount of chan#e. (n
,2)Q, the 17 V 7 di'estiture sent shoc& wa'es throu#hout the industry, and 7ri-State
7ele"hone had felt the e+ects, as "ricin# for lon# distance tele"hone ser'ice chan#ed
dra%atically. 7he :ederal ;o%%unications ;o%%ission instituted a char#e to the e+ect
that custo%ers should ha'e 3access5 to lon# 6 distance co%"anies whether or not they
were in the ha$it of %a&in# lon# distance calls. ;onsu%er #rou"s, includin# the
;onsu%er :ederation of 1%erica and the ;on#ress of ;onsu%er Dr#ani8ations, had
<oined the "rotest, increasin# their attention on the industry and inter'enin# in
re#ulatory "roceedin#s where'er "ossi$le. 7he :;; was considerin# dere#ulatin# as
%uch of the industry as "ossi$le, and con#ress was loo&in# o'er the co%%issionerCs
shoulder. Aeanwhile, the De"art%ent of Oustice and Oud#e *arold Ereene $oth of who%
were res"onsi$le for %onitorin# the 17 V 7 di'estitureK continued to ar#ue a$out what
$usiness co%"anies li&e 7ri 6 State should $e en#a#ed in.
(n addition, technolo#y was chan#in# ra"idly. ;ellular tele"hones, "ri%arily used in cars,
were now hand-held and could $e su$stituted for standard "hones. Di#ital technolo#y
was #oin# forward, leadin# to lower casts and requirin# co%"anies li&e 7ri 6 state to
in'est to &ee" u" with the state of the art. Aeanwhile, rate increases ne#otiated durin#
the inBationary ,2.0s were &ee"in# earnin#s hi#her than re#ulators would authori8e.
4ew 3(ntelli#ent5 ter%inals and software de'elo"%ents #a'e rise to new uses for the
"hone networ& Jsuch as usin# the "hone for an a ar% syste%K, $ut as lon# as custo%ers
"aid one Bat fee, the "hone co%"any could not $ene-t fro% these new ser'ices.
EodwinCs co%"any has recently "ro"osed a new "ricin# syste% where$y users of local
tele"hone ser'ices would si%"ly "ay for what they used rather than a %onthly Bat fee.
1ll of the senior %ana#ers were con'inced that the "lan was fairer, e'en thou#h so%e
#rou"s who used the "hone with nota$le frequency Jli&e real estate a#entsK would "ay
%ore. (t would #i'e the co%"any an incenti'e to $rin# new ser'ices to their custo%ers,
and custo%ers would $e a$le to choose which ones to $uy. 4one of the% had
antici"ated the hue and cry fro% the 'ery custo%ers who would sa'e %oney under the
new "lan.r instance, EodwinCs studies showed that the elderly were 'ery li#ht users
of local ser'ice and could sa'e as %uch as 20 "ercent under the new "lan.
1fter the de$acle at the hearin# the "re'ious ni#ht, Eodwin was unsure how to "roceed.
(f he $ac&ed o+ the new "ricin# "lan, he would ha'e to -nd a di+erent way to %eet the
challen#es of the future 6 %ay $e e'en di+erent $usinesses to au#%ent co%"any
inco%e. 1lternati'ely, the co%"any could not stand the ne#ati'e "ress fro% a
"rotracted $attle, e'en thou#h Eodwin thou#ht that the re#ulators were fa'ora$ly
dis"osed toward his "lan. (n fact, Eodwin hi%self $elie'ed the co%"any should hel" its
custo%ers rather than -#ht with the%.
)&e'ti#"':
*+ 9,# a$e t,e 'ta>e,#.e$' i" t,i' ca'e:
0+ 9,ic, 'ta>e,#.e$' a$e (#'t i(p#$ta"t:
3+ 9,at a$e t,e c$itica t$e".' i" T$i 1 State/' e"6i$#"(e"t:
?+ 9,! .# !#& t,i"> T$i 1 State/' c&'t#(e$' a$e '# &p'et:
@+ 9,at ',#&. H#," G#.4i" .#:
CASE NO+ 0: 8RESH IDEAS AT 8RESH 8IELDS
:resh :ields %ay $e a su"er%ar&et, $ut what itCs su"er at sellin# is its i%a#e > 3Eood for
you foods.5
1 4ew 1#e #rocery store - X:resh :ieldsC falls so%ewhere $etween a health food store and
a traditional su"er%ar&et. (t is not %erely a health food store, $ecause it carries a wider
'ariety of foods includin# fresh "asta, $a&ed #oods, sea-food and deli selections. What
distin#uishes :resh :ields fro% su"er%ar&ets lies in what is a$sent fro% the shel'es,
rather than what is "resent, for :resh :ields sho""ers will not -nd foods containin# lots of
"reser'ati'es and arti-cial Ba'orin#s, such as Oell 6 D and Dreos, that they can "urchase
at other su"er%ar&ets. What :resh :ields o+ers is 3 or#anic and con'entional "roduce,
%eats, seafood, dairy "roducts, $a&ed #oods fro% an in 6 store $a&ery, deli ite%s
#our%et and 'e#etarian "re"ared foods, a wide array of cheese, a full #rocery
de"art%ent, an e!tensi'e selection of su""le%ents, s&in enrichin# cos%etics and natural
health care "roducts and en'iron%entally friendly household #oods.5
7he arri'al of :resh :ields coincides with that of the 4ew 1#e, health 6 conscious trend of
the ,220s, and the co%"any has not hesitated in ta&in# ad'anta#e of consu%ersC new
who""in# "references resultin# fro% the trend. 1ccordin# to a ,222 sur'ey $y *ealth
cus, a @ennsyl'ania 6 $ased research -r%, 20 "ercent of sho""ers say that health has
$eco%e a factor in deter%inin# the food they $uy. 7his "erha"s accounts for why %any
1%ericans are willin# to "ay u" to 20 "ercent %ore for natural foods. 1ctually, the :resh
:ields "re%iu% tends to ho'er closer to 5 "ercent, and when in season, :resh :ieldCs
locally #rown or#anic "roduce can e'en cost less than "roduce sold at other
su"er%ar&ets.
1 tea% of entre"reneurs $e#an :resh :ields in ,22,. 7he tea% included 33 year old
Aar& Drdain, for%er Eold%an Sachs in'est%ent $an&er as ;=D and @resident, .5 years
Dld Neo Gahn, founder of Sta"les, the "ros"erous oce 6 su""ly sores, as chair%an and
QQ year old Oac& Aur"hy, for%er %ana#er of the *eartland su"er%ar&et chain in 4ew
=n#land, as ;hief o"eratin# ocer.
Within the -rst ,2 %onths, -'e :resh :ields locations o"ened in Aaryland and Fir#inia.
=!"andin# into @ennsyl'ania and (llinois, $y %id 6 ,22Q :resh :ields had o"ened a total
of ,Q stores in the four states, with %ore in the "lannin# sta#es.
Auch of :resh :ieldCs success can $e attri$uted to the fact that the co%"any o+ers only
the freshest "roduce, often fro% local #rowers. 7he co%"any screens #rowers to -nd
those who use natural %ethods of "est %ana#e%ent and a""ly the least a%ount of
a#ricultural che%icals. (n addition, :resh :ields see&s %eat and "oultry fro% far%s, not
factories, to a'oid the #rowth 6 "ro%otin# dru#s often used. :resh :ields also %a&es an
e+ort to #et to &now the "eo"le who catch the seafood, and see&s out -sh cau#ht in
dee", clean waters, not fro% coastal waters threatened $y "ollution.
1ccordin# to Gahn, thou#h, the &ey to :resh :ieldCs success lies in "leasin# the custo%er.
3='ery$ody says the sa%e thin#s "lease the custo%er 6 $ut while e'ery$ody says it, not
too %any "ractice it. 7he custo%er is s%arter than all of us. *ere weCre $uildin# an
or#ani8ation that 8eroes in and &ee"s custo%er satisfaction in %ind.5
(nstilled in :resh :ields is a war%, friendly carin# culture that $e#ins with Gahn and
tra'els throu#h to all sta&eholders> e%"loyees, su""liers, custo%ers, co%%unity
%e%$ers. Whereas at other stores, such as Wal 6 Aart, there is a sin#le, sy%$olic
#reeter $y the door, e'ery e%"loyee at :resh :ield is a sort of 3#reeter5, and he or she
loo&s u", s%iles and says 3hello5 to sho""ers as they "ass $y. Within the co%"any,
there are no e%"loyees, there are only 3associates5 %any of who% Gahn &nows $y
na%e.
Auch of what :resh :ields is a$out is relationshi" $uildin#. 7he war% relationshi"
$etween the co%"any and associates lies at the heart. :ro% there, associates $uild
relationshi" with su""liers to add the "ersonal touch that is inte#ral to the :resh :ields
quality i%a#e.
1s sho""ers wal& throu#h the stores, nu%erous sa%"les are o+ered.
3Dri#inally, ( $ou#ht or#anic "roduce and s"ent H25 to H30 e'ery wee& or two.5 Says
Aerri Au&ai, a ho%e%a&er in 1nnandale, Fir#inia. 37hen ( tried the $a&ed #oods and
u""ed %y s"endin# $y HR0. 4ow (C% $uyin# %eats and eyein# the -sh. 7heyC'e
de-nitely #ot %e hoo&ed.5
Says :resh :ields, 3We #uarantee your satisfaction unconditionally. You can consider our
#uarantee as an o""ortunity to $e ad'enturous and to try new "roducts, without ris&. (f
for any reason you are less than co%"letely satis-ed with so%ethin# you "urchase at
:resh :ields, we will cheerfully o+er you a full refund.5
)&e'ti#"':
*+ 9,at ec#"#(ic a". '#cia -act#$' ',#&. 8$e', 8ie.' (a"a%e$' 4atc,:
0+ S&pp#'e !#& (a"a%e a #ca '&pe$(a$>et a". 8$e', 8ie.' c#(e' t# t#4"+
H#4 4#&. !#& $ei"6e"t !#&$ #$%a"iIati#" t# (eet t,e c,ae"%e' p#'e. 7!
8$e', 8ie.':
CASE: 3: RESPONDING TO ALLEGATIONS O8 RACISM: 8LAGSTAR AND THE
PLEDGE
7he ,220 s ha'e witnessed an increased e%"hasis on 'aluin# di'ersity. With $oth the
%ar&et"lace and the wor&force $eco%in# %ore and %ore di'erse, %any %ana#ers ha'e
redesi#ned their co%"anies cultures to reBect and encoura#e %ulticulturalis%.
;han#in# a co%"anyCs culture, howe'er, is often %ore dicult than %ana#ers %i#ht -rst
$elie'e. 1t Denny5s for e!a%"le, "ro%otin# %ulticulturalis% required a rewor&in# of its
cor"orate culture fro% to" to $otto%.
(n the early ,220s, DennyCs found itself the tar#et of nu%erous alle#ations of racis%, $y
$oth custo%ers and e%"loyees. Llac& custo%ers asserted that they were not recei'in#
the sa%e treat%ent at DennyCs as white custo%ers. So%e co%"lained that they were
either forced to wait for their food lon#er than white custo%ers or denied ser'ice
entirely, others said that they were forced to "re-"ay for their %eals while white
custo%ers in the restaurant were not. 7here were also alle#ations that DennyCs
restaurants would close if there were too %any $lac& custo%ers. (n addition, DennyCs
was accused of discri%inatory hirin# "ractices as well as "re'entin# $lac&s and other
%inorities fro% reachin# %ana#e%ent and franchise "ositions. 4one of this #arnered
%uch attention, howe'er, until a suit was -led on Aarch 2Q, ,223, $y a #rou" of %inority
custo%ers in San Oose, ;alifornia, who %ade the all 6 too 6 fa%iliar alle#ation that
DennyCs had required co'er char#es and "re-"ay%ent of %eals fro% %inority custo%ers,
$ut not fro% white custo%ers.
(n res"onse to these char#es, DennyCs "arent co%"any, :la#star, for%ally a"olo#i8ed to
the custo%ers, and :la#star ;=D Oerry Richardson dro""ed the co'er char#e and "re-
"ay%ent "olicies and e!"lained that they had $een intended to "re'ent late ni#ht 3 dine
6 and 6 dash5 theft and that any discri%inatory i%"le%entation of the% was in direct
'iolation of cor"orate "olicies. Richardson ad%itted, howe'er, that he had $een
unaware that the co'er char#e and "re-"ay%ent "olicies e'en e!isted within the
co%"any. :urther%ore, Richardson $e#an tal&s with ci'il ri#hts #rou"s such as the
411;@. :la#star also si#ned a consent decree issued $y the Oustice De"art%ent that
required s"ot testin# of DennyCs restaurants for discri%inatory "ractices as well as an
anti-discri%ination trainin# "ro#ra% for all DennyCs sta+ers. 3 Dur co%"any does not
tolerate discri%ination of any &ind,5 Richardson assured all, and his actions see%ed to
su""ort his words.
7hen, on Aay 2Q, ,223, si! $lac& Secret Ser'ice a#ents -led suit a#ainst DennyCs for
alle#edly ha'in# denied the% ser'ice at a DennyCs in 1nna"olis, Aaryland. 7he si! %en
clai%ed that while they recei'ed deli$erately slow ser'ice, their white counter "arts were
ser'ed in a ti%ely fashion. 3*earin# the alle#ations %ade yesterday $y Si! 1frican 6
1%erican Secret Ser'ice a#ents on national tele'ision that they were not treated fairly at
DennyCs was a "ainful e!"erience for our co%"any,5 Richardson ad%itted.
7he hi#hly "u$lici8ed suit ser'ed as a catalyst that set o+ a whirlwind of chan#es
throu#hout :la#star. (n a late Aay Richardson issued an internal %e%o that %ar&ed the
$e#innin# of RichardsonCs "led#e to chan#e. 3 ( a% distressed that so%e "eo"le in our
co%"any ha'enCt #otten the %essa#e that we will not tolerate unfair treat%ent of
custo%ers,5 he wrote. 37he "ast year has $een a tryin# e!"erience, "articularly for
%any of our 1frican 6 1%erican e%"loyees who are e%$arrassed $y what ha""ened.
7his is %y "ersonal "led#e to the% to restore their "ride in DennyCs.
Richardson sto""ed "ro%isin# chan#e and started creatin# it. Dn Ouly ,, ,223, :la#star
reached an historic a#ree%ent with the 411;@. 7he a#ree%ent, which was the %ost far-
reachin# arran#e%ent the ci'il 6 ri#hts or#ani8ation had e'er si#ned, re"resented a
$rea&throu#h in relations $etween %inorities and $usinesses. 7he "lan tar#eted se'eral
s"eci-c "ro$le% areas within :la#star.r e!a%"le, of :la#starCs %ore than ,20,000
wor&ers, 20 "ercent were $lac&, $ut only Q.Q. "ercent of its %ana#ers were $lac&. Inder
the a#ree%ent, at least ,2 "ercent of :la#starCs %ana#ers will $e $lac& $y the 2000.
7he co%"any also wanted to increase the nu%$er of $lac&-owned franchises/ only one of
DennyCs Q05 franchises was owned $y a $lac& "erson as of ,223, $ut :la#star "lanned to
ha'e at least 53 $lac&-owned franchise $y ,22.. :la#star also a#reed to direct %ore
%ar&etin# funds toward %inority ad'ertisin# and to $e#in "urchasin# %ore #oods and
ser'ices fro% %inority 6 owned $usinesses. (n addition, :la#star "ro%ised to a""oint at
least one %inority to its $oard of directors. (n all the "lan will direct %ore than one
$illion dollars in <o$s and econo%ic $ene-ts to %inority wor&ers and co%"anies $y the
year 2000.
Richardson also undertoo& e+orts to restore Denny5s re"utation as well as his own at the
forefront of his e+orts was 37he @led#e5. 37he @led#e5 was the na%e #i'en to a R0 6
second 7F s"ot, which aired in Q, tele'ision %ar&ets and on the Llac& =ntertain%ent
7ele'ision networ& durin# a two-wee& "eriod in Oune ,223. (n it, Oerry Richardson and a
re"resentati'e sa%"le of :la#starCs QR,000 e%"loyees endorsed a sole%n "led#e to treat
custo%ers with 3res"ect, di#nity, and fairness.5 37he whole idea for the X"led#eC started
with our desire to e!"ress su""ort for our own e%"loyees.5 =!"lained Da'id *urwitt,
:la#starCs senior 'ice "resident of %ar&etin# 37hese "eo"le ha'e $een 'ery %uch under
the #un. We chose tele'ision for this s"ecial ca%"ai#n $ecause we felt it was i%"ortant
to show "eo"le e!actly who the DennyCs e%"loyees are5. D'erall, res"onse to 37he
@led#e5 was fa'oura$le. 3 Dur "hone has $een rin#in# o+ the hoo& since DennyCs aired
this ad,5 said W. Ere#ory Wi%s, "resident of the 411;@ in Roc&'ille, Aaryland, the
lar#est $ranch in the Washin#ton, D.;.area. 31$out 20 "ercent of our %e%$ers a""ro'e
of the co%%ercials and the ste"s DennyCs has $een ta&in# to i%"ro'e relations with
"eo"le of color.
=!"erience, howe'er, had tau#ht :la#star that %ere "olicy state%ents do little #ood in
the a$sence of trainin# and %onitorin#. With this in %ind, :la#star rear%ed its
co%%it%ent to its a#ree%ent with the De"art%ent of Oustice $y ste"in# u" its
%ulticultural trainin# "ro#ra%s and a#reein# to allow the 411;@ to conduct its own
ins"ection of DennyCs restaurants. DennyCs also set u" a hot line for e%"loyees to use to
re"ort "ossi$le instances of discri%ination. (n addition, :la#star %ade si#ni-cant
%ana#e%ent chan#es durin# the su%%er of ,223 $y installin# three e!ecuti'es
considered "articularly sensiti'e to di'ersity in the wor&"lace> 4or%an *ill, Ooe Russell,
and Ron @etty. Russell was a""ointed head of the di'ersity trainin# "ro#ra%, and *ill
ca%e on $oard to o'ersee -eld hirin#. 37here are co%"anies that $ury their heads in the
sand and say, (C% #oin# to conduct %y $usiness the sa%e way (C'e always conducted %y
$usiness,5 said @etty. 31nd then there are enli#htened co%"anies that say, 37here are
o""ortunities outside of the way weC'e nor%ally done $usiness.5
7he ste"s ta&en $y :la#star ha'e $een si#ni-cant, not only $ecause of the %odel the
co%"any has set for other co%"anies, $ut also $ecause of :la#starCs own holdin#s,
includin# 530 *ardeeCs fast food units, ,,Q00 DennyCs fa%ily restaurants, 200 UuincyCs
stea& houses, ,20 =l @ollo Noco outlets and %ore than 2,000 ;anteen ;or".od and
Recreation Ser'ice accounts. 7he co%%unityCs res"onse to the alle#ations a#ainst
DennyCs con-r% that %ulticulturalis% can no lon#er $e i#nored.
)&e'ti#"':
*+ H#4 4#&. !#& .e'c$i7e t,e #$%a"iIati#"a c&t&$e at 8a%'ta$:
0+ H#4 .#e' 8a%'ta$ .ea 4it, .i6e$'it!:
3+ 9,at c,ae"%e' c#&. 8a%'ta$ -ace i" it' "ea$ -&t&$e:
CASE: ?: DISNEY/S DESIGN
7he Walt Disney ;o%"any is heralded as the worldCs lar#est entertain%ent co%"any. (t
has earned this astoundin# re"utation throu#h ti#ht control o'er the entire o"eration >
control o'er the o"en 6 ended $rainstor%in# that ta&es "lace 2Q hours a day / control
o'er the en#ineers who construct the fa$ulous the%e 6 "ar& rides/ control o'er the
ani%ators who create and desi#n $elo'ed characters and ad'enturous scenarios / and
control o'er the talent that $rin#s the %any conce"ts and characters to life. 1lthou#h
control "er'ades the co%"any, it is not too stron# a #ri". =%"loyees in each de"art%ent
are well aware of their o$<ecti'es and the "ara%eters esta$lished to %eet those
o$<ecti'es. Lut in con<unction with the "re-deter%ined res"onsi$ilities, %ana#ers at
Disney encoura#e inde"endent and inno'ati'e thin&in#.
@eo"le at the co%"any ha'e ado"ted the "hrase 3Drea% as a 7ea%5 as a re%inder that
whi%sical thou#hts, ad'enturous ideas, and all 6 out drea%in# are at the core of the
co%"any "hiloso"hy. 7he o'er all control o'er each de"art%ent is te%"ered $y this
conce"t. Disney %ana#ers stri'e to e%"ower their e%"loyees $y lea'in# roo% for their
creati'e <uices to Bow. (n fact, %ana#ers at Disney do %ore than encoura#e inno'ation.
7hey de%and it. @ro<ects assi#ned to the sta+ 3i%a#iners5 see% i%"ossi$le at -rst
#lance. 1t Disney, doin# the see%in#ly i%"ossi$le is "art of what inno'ation %eans.
7ea%s of i%a#iners #ather to#ether in a $rainstor%in# session &nown as the 3Llue S&y5
"hase. Inder the 3Llue S&y5, an uninhi$ited e!chan#e of wild, ludicrous, outra#eous
ideas, $oth 3 #ood5 and 3 $ad5, continues until solutions are found and the i%"ossi$le is
done. Ly de%andin# so %uch of their e%"loyees, Disney %ana#ers e+ecti'ely dri'e
their e%"loyees to $e creati'e.
;urrent Disney leader Aichael =isner has esta$lished the 3Drea% as a 7ea%5 conce"t.
=isner reali8ed that %ana#ers at Disney needed to let their e%"loyees $rainstor% and
create with su""ort. 1s Disney "resident :ran& Weds says, 3(f a #ood idea is there, you
&now it, you feel it, you do it, no %atter where it co%es fro%.5
)&e'ti#"':
*+ 9,at e"6i$#"(e"ta -act#$' i"A&e"ce. (a"a%e(e"t 't!e at Di'"e!:
0+ 9,at >i".<'= #- #$%a"iIati#"a 't$&ct&$e 'ee( t# 7e c#"'i'te"t 4it, LD$ea(
a' a Tea(M:
3+ H#4 a". 4,e$e (i%,t t,e i"-#$(a #$%a"iIati#" 7e a $ea a''et at Di'"e!:
CASE: @: LTHAT/S NOT MY HOBM 1 LEARNING DELEGATION AT CIN;MADE
When Ro$ert :rey "urchased ;in 6 Aade in ,2)Q, the co%"any was near ruin. 7he
;incinnati, Dhi-$ased %anufacturer of "a"er "ac&a#in# had not altered its "roduct line in
20 years. Na$or costs had hit the ceilin#, while "ro-ts were fallin# throu#h the Boor. 1
solid quarter of the co%"anyCs shi"%ents were late and a$senteeis% was hi#h.
Aana#e%ent and wor&ers were at each otherCs throats.
7en years later, ;in 6 Aade is "roducin# a new assort%ent of hi#hly di+erentiated
co%"osite cans, and "re-ta! "ro-ts ha'e increased %ore than -'e ti%es. 7he ;in 6
Aade wor&force is $oth Be!i$le and dee"ly co%%itted to the success of the co%"any.
Dn-ti%e deli'ery of "roducts has reached 2) "ercent, and a$senteeis% has 'irtually
disa""eared. 7here are e'en "lans to for% two s"in 6 o+ co%"anies to $e owned and
o"erated $y ;in-Aade e%"loyees. (n fact, at the one day 3:uture of the 1%erican
Wor&force5 conference held in Ouly ,223, ;in-Aade was reco#ni8ed $y @resident ;linton
as one of the $est 6 run co%"anies in the Inited States.
3*ow did we achie'e this startlin# turnaround?5 Aused :rey/ 3=%"loyee e%"ower%ent
is one "art of the answer. @ro-t sharin# is another.5
(n the late s"rin# of ,2)R, relations $etween %ana#e%ent and la$or had reached roc&
$otto%. *a'in# recently su+ered a "ay cut, e%"loyees at ;in- Aade ca%e to wor& each
day, "erfor%ed the duties required of their "articular "ositions, and returned ho%e-
nothin# %ore. :rey could see that his co%"any was su+erin#. 37o sur'i'e we needed to
sto" $ein# worthy ad'ersaries and start $ein# worthy "artners,5 he reali8ed. 7oward this
end, :rey decided to call a %eetin# with the union. *e o+ered to restore wor&er "ay to
its "re'ious le'el $y the end of the year. Dn to" of that, he o+ered so%ethin# no one
e!"ected> a ,5 "ercent share of ;in-AadeCs "re-ta! "ro-ts. 3( do not choose to own a
co%"any that has an ad'ersarial relationshi" with its e%"loyees.5 :rey "roclai%ed at the
%eetin#. *e therefore "ro"osed a new arran#e%ent that would encoura#e a
colla$orati'e e%"loyee-%ana#e%ent relationshi" 3=%"loyee "artici"ation will "lay an
essential role in %ana#e%ent.5
Aana#ers within the co%"any were a%on# the -rst "eo"le to o""ose :reyCs new idea of
e%"loyee in'ol'e%ent. 3Ay three %ana#ers felt they were "aid to $e worthy
ad'ersaries of the unions.5 :rey recalled. (tCs what theyCd $een trained for. (tCs what
%ade the% #ood %ana#ers. Aoreo'er, they were not used to "artici"ation in any for%,
certainly not in decision %a&in#.5 7he wor&ers also resisted the idea of e!tendin#
the%sel'es $eyond the written require%ents of their <o$s. 3 J=%"loyeesK wanted
#enerous wa#es and $ene-ts, of course, $ut they did not want to ta&e res"onsi$ility for
anythin# %ore than doin# their own <o$s the way they had always done the%,5 :rey
noted. =%"loyees were therefore s&e"tical of :reyCs o'ertures toward 3e%"loyee
"artici"ation.5 3We thou#ht he was tryin# to ri" us o+ and shaft us,5 e!"lained Dcelia
Willia%s, one of %any ;in-Aade e%"loyees who distrusted :reyCs "lans.
:rey, howe'er, did not #i'e u", and he e'entually con'inced the union to a#ree to his
ter%s. 3 ( wouldnCt ta&e no for an answer,5 he asserted. 3Dnce ( had %ade %y two
#rand "ronounce%ents, ( was deter%ined to "ress ahead and %a&e the% co%e true.5
Lut still ahead lay the considera$le challen#e of con'incin# e%"loyees to ta&e char#e>
( %ade "eo"le %eet with %e, then instead of tellin# the% what to do, ( as&ed the% 7hey
resisted.
3*ow can we cut the waste on his run?5 (Cd Say, or 3*ow are we #oin# to allocate the
D'erti%e on this order?5
37hatCs not %y <o$,5 theyCd say.
3Lut ( need your in"ut,5 (Cd say. 3*ow in the World can we ha'e "artici"ati'e
%ana#e%ent (f you wonCt "artici"ate?
3( donCt &now,5 theyCd say. 3Lecause thatCs not %y <o$ either, thatCs your <o$.5
Eradually, :rey %ade "ro#ress. Aana#ers $e#an sharin# %ore infor%ation with
e%"loyees. :rey was a$le slowly to e!"and the res"onsi$ilities wor&ers would carry.
Aana#ers who were una$le to wor& with e%"loyees left, and union relations $e#an to
i%"ro'e. =%"ower%ent $e#an to ha""en. Ly ,223, ;in Aade e%"loyees were ta&in#
res"onsi$ility for nu%erous tas&s. Willia%s, for e!a%"le, used to o"erate a tin-slittin#
%achine on the co%"anyCs factory Boor. She still runs that sa%e %achine, $ut now is
also res"onsi$le for orderin# al%ost H ,00,000 in su""lies.
Willia%s is <ust one e!a%"le of how <o$ roles and duties ha'e $een rede-ned throu#hout
;in-Aade. Ooyce Lell, "resident of the local union, still runs the "unch "ress she always
has, $ut now also ser'es as ;in- AadeCs cor"orate safety director. 7he co%"anyCs
schedulin# tea%, co%"osed of one %ana#er and -'e lead wor&ers fro% 'arious "lant
areas, is char#ed with settin# hours, desi#natin# layo+s, and decidin# when te%"orary
hel" is needed. 7he hirin# re'iew tea%, sta+ed $y three hourly e%"loyees and two
%ana#ers, is res"onsi$le for inter'iewin# a""licants and decidin# who% to hire. 1n
e%"loyee co%%ittee "erfor%s $oth short 6 and lon# 6 ter% "lannin# of la$or, %aterials,
equi"%ent, "roduction runs, "ac&in#, and deli'ery. =%"loyees e'en %eet daily in order
to set their own "roduction schedules. 3We e%"ower e%"loyees to %a&e decisions, not
<ust ha'e in"ut,5 :rey re%ar&ed. 3( <ust coach.5
Inder :reyCs new %ana#e%ent re#i%e, co%"any secrets ha'e 'irtually disa""eared. 1ll
;in-Aade e%"loyees, fro% entry-le'el e%"loyees all the way to the to", ta&e "art in
runnin# the co%"any. (n fact, :rey has dele#ated so %uch of the co%"anyCs o"erations
to its wor&ers that he now feels little in the dar&. 3 ( now &now 'ery little a$out whatCs
#oin# on, on a day-to-day $asis,5 he confessed.
1t ;in-Aade, e%"ower%ent and dele#ation are %ore than %ere $u88words/ they are the
way of doin# $usiness 6 #ood $usiness. 3 We, as wor&ers, ha'e a lot of o""ortunities,5
said Willia%s. 3 (f we want to ta&e leadershi", itCs o+ered to us.5
)&e'ti#"':
*+ H#4 4e$e p$i"cipe' #- .ee%ati#" a". .ece"t$aiIati#" i"c#$p#$ate. i"t#
Ci"e 1 Ma.e #pe$ati#"':
0+ 9,at a$e t,e '#&$ce' a". &'e' #- p#4e$ at Ci" 1 Ma.e:
3+ 9,at 4e$e '#(e #- t,e 7a$$ie$' t# .ee%ati#" a". e(p#4e$(e"t at Ci" 1
Ma.e:
?+ 9,at e''#"' a7#&t (a"a%e(e"t i" a $api.! c,a"%i"% (a$>etpace ca" 7e
ea$"e. -$#( t,e e2pe$ie"ce #- Ci" 1 Ma.e:
CASE NO+ N: HIGH;TECH ANS9ERS TO DISTRIBUTION: PROBLEMS AT
ROLLERBLADE
When a %an#er -nds that de%and e!ceeds in'entory, the answer lies in %a&in# %ore
#oods. When a %ana#er -nds that in'entory e!ceeds de%and, the answer lies in %a&in#
fewer #oods. Lut what if a co%"any %ana#e%ent -nds that they <ust do not &now which
situation a""lies?
7his is the situation that recently confronted %ana#e%ent at Roller$lade, the "o"ular
s&ate %anufacturer $ased in Ainneton&a, Ainnesota. Roller$lade has $een one of the
leadin# -r%s in the fast #rowin# hi#h "erfor%ance roller s&ate %ar&et"lace, it %atters a
#reat deal for Roller$lade %ana#ers whether de%and and in'entory are in $alance, or
not.
Roller$lade was in a $ind. 7he "roduct literally could not $e shi""ed out the door. 7he
%ana#ers found that wor&ers were not a$le to shi" "roducts $ecause, as a result of "oor
stora#e structures, they could not -nd the "roducts. Dnce they were found,
o'ercrowded aisles, in addition to other s"ace constraints, still "re'ented ecient
shi""in# $ecause the wor&ers could $arely %ana#e to #et the "roducts out the door.
3We were out of control $ecause we didnCt &now how to use s"ace and didnCt ha'e
enou#h of it,5 said (an =llis, director for facilities and safety. 3Lasically, there was no
%ore usea$le s"ace left in the warehouse, a se'ere $ac&lo# of custo%er orders, and
"ic&in# errors were clearly in the unacce"ta$le ran#e,5 added Ra% Grishnan, @rinci"al of
4RA Syste%s, $ased in St. @aul, Ainnesota.
7he answer for Roller$lade was found in technolo#y. *i#h-tech co%"anies ha'e
introduced a collection of co%"uter si%ulations, ran#in# in cost rou#hly fro% H,0,000 to
H30,000, that assist %ana#ers in #eneratin# e+ecti'e facility desi#ns. With the hel" of
layout Aaster (F si%ulation software, de'elo"ed $y 4RA, Roller$lade Aana#e%ent was
a$le to i%"le%ent a new distri$ution desi#n. 1s a result of the distri$ution i%"ro'e%ent,
Roller$lade was a$le to increase the nu%$er of custo%er orders "rocessed daily fro%,Q0
to Q,0 and eli%inate order $ac&lo#. 34ow we ha'e a di+erent $usiness,5 says =llis. 37he
new layout has ta&en us fro% $ein# in a crunch, to $ein# a$le to "lan.
)&e'ti#"':
*+ 9it, $etaie$' a' t,ei$ p$i(a$! c&'t#(e$'D 4,at c&'t#(e$ c#(petiti6e
i(pe$ati6e' c#&. 7e a5ecte. 7! R#e$7a.e/' i"6e"t#$! p$#7e(':
0+ H#4 app$#p$iate (i%,t a F&'t 1 i" 1 ti(e i"6e"t#$! '!'te( i' -#$ a p$#.&ct
'&c, a' $#e$ '>ate':M
3+ 9,at #pp#$t&"itie' a$e t,e$e-#$e R#e$7a.e (a"a%e$' t# 'ee t,e('e6e'
a' 'ei"% 'e$6ice'D i"'tea. #- 'i(p! $#e$ '>ate'?
ORGANIBATIONAL BEHAVIOR
Note: Attend any 04 case studies. All Cases carry equal marks.
CASE 01: THE FLNN EFFECT
CASE 0!: "#SH$N% "A"E& CAN 'E F#N
CASE 0 H)* +$+ $ %ET HE&E,
CASE 04: THE SH$""$N% $N+#ST& ACC)#NT$N% TEA-
CASE 0.: '&$+%$N% THE T*) *)&L+S/THE )&%AN$0AT$)NAL +$LE--A
CASE 01: C)NFL$CT $N CL)SE 2#A&TE&S
CASE 01: THE FLNN EFFECT
%i3en t4at a su5stantial amount o6 intellectual a5ility 7u8 to 90 8ercent: is in4erited; it
mi<4t sur8rise you to learn t4at intelli<ence test scores are risin<. $n 6act; scores 4a3e
risen so dramatically t4at today=s <reat><rand8arents seem mentally de6icient 5y
com8arison.
First; let=s re3ie? t4e e3idence 6or risin< test scores. T4en; ?e=ll re3ie? e@8lanations 6or
t4e results.
)n an $2 scale ?4ere 100 is t4e a3era<e; scores 4a3e 5een risin< a5out ( 8oints 8er
decade; meanin< t4at i6 your <rand8arent scored 100; t4e a3era<e score 6or our
<eneration ?ould 5e around 11.. T4at=s a 8retty 5i< di66erence > a5out a standard
de3iation > meanin< t4at someone ?4o=s 6rom your <rand8arent=s <eneration ?4ose
score ?as at t4e 94t4 8ercentile ?ould only 5e a3era<e 7.0t4: 8ercentile 5y today=s
norms.
Aames Flynn is a Ne? 0ealand researc4er credited ?it4 6irst documentin< t4e risin<
scores. He 6irst re8orted t4e results in 1B94; ?4en 4e 6ound t4at almost e3eryone ?4o
took a ?ell>3alidated $2 test in t4e 1BC0s did 5etter t4an t4ose ?4o took it in t4e 1B40s.
T4e results a88ear to 4old u8 across cultures. Test scores are risin< not only in t4e
#nited States 5ut in most ot4er countries in ?4ic4 t4e e66ect 4as 5een tested; too.
*4at e@8lains t4e Flynn E66ect, &esearc4ers are not entirely sure; 5ut some o6 t4e
e@8lanations o66ered are:
1. Education. Students today are 5etter educated t4an t4eir ancestors; and education
leads to 4i<4er test scores.
!. Smaller 6amilies. $n 1B00; t4e a3era<e cou8le 4ad 6our c4ildrenD today t4e num5er
is less t4an t?o. *e kno? 6irst5orns tend to 4a3e 4i<4er $2s t4an ot4er c4ildren;
8ro5a5ly 5ecause t4ey recei3e more attention t4an t4eir later>5orn si5lin<s.
(. Test>takin< sa33y. Today=s C4ildren 4a3e 5een tested so o6ten t4at t4ey are test
sa33y: T4ey kno? 4o? to take tests and 4o? to do ?ell on t4em.
4. %enes. Alt4ou<4 smart cou8les tend to 4a3e 6e?er; not more; c4ildren; it=s 8ossi5le
t4at due to 5etter education; trackin<; and testin<; t4ose ?4o do 4a3e t4e ri<4t <enes
are 5etter a5le to e@8loit t4ose ad3anta<es. Some <enetics researc4ers also 4a3e ar<ued
t4at i6 t?o 8eo8le o6 di66erent intelli<ence mate; 5ecause t4e <ene o6 t4e more intelli<ent
mate is stron<er; it ?ins out; meanin< t4e c4ild=s $2 ?ill 5e closer to t4e $2 o6 t4e
smarter 8arent.
2uestions:
1. +o you 5elie3e 8eo8le are really <ettin< smarter, *4y or ?4y not,
!. *4ic4 o6 t4e 6actors e@8lainin< t4e Flynn E66ect do you 5uy,
(. Are t4ere any societal ad3anta<es o6 disad3anta<es to t4e Flynn E66ect,
CASE 0!: "#SH$N% "A"E& CAN 'E F#N
A lar<e city <o3ernment ?as 8uttin< on a num5er o6 seminars 6or mana<ers o6 3arious
de8artments t4rou<4out t4e city. At one o6 t4ese sessions t4e to8ic discussed ?as
moti3ation/4o? to moti3ate 8u5lic ser3ants to do a <ood Eo5. T4e 8li<4t o6 a 8olice
ca8tain 5ecame t4e central 6ocus o6 t4e discussion:
$F3e <ot a real 8ro5lem ?it4 my o66icers. T4ey come on t4e 6orce as youn<;
ine@8erienced rookies; and ?e send t4em out on t4e street; eit4er in cars or on a 5eat.
T4ey seem to like t4e contact t4ey 4a3e ?it4 t4e 8u5lic; t4e action in3ol3ed in crime
8re3ention; and t4e a88re4ension o6 criminals. T4ey also like 4el8in< 8eo8le out at 6ires;
accidents; and ot4er emer<encies.
T4e 8ro5lem occurs ?4en t4ey <et 5ack to t4e station. T4ey 4ate to do t4e 8a8er?ork;
and 5ecause t4ey dislike it; t4e Eo5 is 6requently 8ut o66 or done inadequately. T4is lack
o6 attention 4urts us later on ?4en ?e <et to court. *e need clear; 6actual re8orts. T4ey
must 5e 4i<4ly detailed and unam5i<uous. As soon as one 8art o6 a re8ort is s4o?n to
5e inadequate or incorrect; t4e rest o6 t4e re8ort is sus8ect. "oor re8ortin< 8ro5a5ly
causes us to lose more cases t4an any ot4er 6actor.
$ Eust donFt kno? 4o? to moti3ate t4em to do a 5etter Eo5. *eFre in a 5ud<et crunc4;
and $ 4a3e a5solutely no 6inancial re?ards at my dis8osal. $n 6act; ?eFll 8ro5a5ly 4a3e to
lay some 8eo8le o66 in t4e near 6uture. $tFs 4ard 6or me to make t4e Eo5 interestin< and
c4allen<in< 5ecause it isnFt>itFs 5orin<; routine 8a8er?ork; and t4ere isnFt muc4 you can
do a5out it.
Finally; $ canFt say to t4em t4at t4eir 8romotions ?ill 4in<e on t4e e@cellence o6 t4eir
8a8er?ork. First at all; t4ey kno? itFs not true. $6 t4eir 8er6ormance is adequate; most
are more likely to <et 8romoted Eust 5y stayin< on t4e 6orce a certain num5er o6 years
t4an 6or some s8eci6ic outstandin< act. Second; t4ey ?ere trained to do t4e Eo5 t4ey do
out in t4e streets; not to 6ill out 6orms. All t4rou<4 t4eir careers t4e arrests and
inter3entions are ?4at <et noticed.
Some 8eo8le 4a3e su<<ested a num5er o6 t4in<s; like usin< con3iction records as a
8er6ormance criterion. Ho?e3er; ?e kno? t4atFs not 6air/too many ot4er t4in<s are
in3ol3ed. 'ad 8a8er?ork increases t4e c4ance t4at you lose in court; 5ut <ood
8a8er?ork doesnFt necessarily mean youFll ?in. *e tried settin< u8 t4e team
com8etitions 5ased on t4e e@cellence o6 t4e re8orts; 5ut t4e o66icers cau<4t on to t4at
8retty quickly. No one ?as <ettin< any ty8e o6 re?ard 6or ?innin< t4e com8etition; and
t4ey 6i<ured ?4y s4ould t4ey 5ust a <ut ?4en t4ere ?as on 8ayo66.
$ Eust donFt kno? ?4at to do.
2uestions:
1. *4at 8er6ormance 8ro5lems is t4e ca8tain tryin< to correct,
!. #se t4e -A&S model o6 indi3idual 5e4a3ior and 8er6ormance to dia<nose t4e
8ossi5le causes o6 t4e unacce8ta5le 5e4a3ior.
(. Has t4e ca8tain considered all 8ossi5le solutions to t4e 8ro5lem, $6 not; ?4at else
mi<4t 5e done,
CASE 0 H)* +$+ $ %ET HE&E,
Somet4in< ?as not ri<4t. Ao4n 'reckenrid<e o8ened 4is eyes; sa? t4e nurseFs 6ace; and
closed t4em once more. Co5?e5s slo?ly cleared 6rom 4is 5rain as 4e ?oke u8 6rom 4is
5rain as 4e ?oke u8 6rom t4e o8eration. He 6elt a 4ard tu5e in 4is nostril; and tried to li6t
4is 4and to 8ull it out; 5ut it ?as stra88ed do?n to t4e 5ed. Ao4n tried to s8eak 5ut
could make only a croakin< sound. Nurse T4om8son s8oke soot4in<ly; GAust try to rela@;
-r. 'reckenrid<e. ou 4ad a 4eart attack and emer<ency sur<ery; 5ut youFre <oin< to 5e
)H.I
Heart attack, Ho? did $ <et 4ere, As t4e anest4esia ?ore o66 and t4e 8ain set in; Ao4n
5e<an to recall t4e e3ents o6 t4e 8ast yearD and ?it4 t4e memories came anot4er sort o6
8ain J t4at o6 remem5erin< a li6e ?4ere success ?as measured in 4ours ?orked and
t4in<s accom8lis4ed; 5ut ?4ic4 o6 late 4ad not measured u8.
Ao4n recalled 4is years in colle<e; ?4ere <ettin< <ood <rades 4ad 5een im8ortant; 5ut
not so muc4 as 4is ne?ly de3elo8in< lo3e 6or Haren; t4e <irl ?it4 au5urn 4air ?4o <ot
4er nursin< de<ree t4e same year as 4e <raduated ?it4 a de<ree in so6t?are
en<ineerin<. T4ey married t4e summer a6ter <raduation and mo3ed 6rom t4eir slee8y
uni3ersity to?n in $ndiana to As8en; Colorado. T4ere Ao4n <ot a Eo5 ?it4 a ne? so6t?are
com8any ?4ile Haren ?orked e3enin<s as a nurse. Alt4ou<4 t4ey didnFt see muc4 o6
eac4 ot4er durin< t4e ?eek; ?eekends ?ere a s8ecial time; and t4e surroundin<
mountains and nature 8ro3ided a su8er5 quality o6 li6e.
Li6e ?as <ood to t4e 'reckenrid<es. T?o years a6ter t4ey ?ere married; Haren <a3e 5irt4
to Aos4 and t?o years later to Linda. Haren reduced 4er nursin< to t4e minimum 4ours
required to maintain 4er license; and concentrated on rearin< t4e kids. Ao4n; on t4e
ot4er 4and; ?as 5usy 8ro3idin< 6or t4e li6estyle t4ey increasin<ly 5ecame used to; ?4ic4
included a 4ouse; car; S#K; ski tri8s; and all o6 t4e t4in<s a success6ul en<ineerin< career
could 5rin<. T4e com8any <re? in lea8s and 5ounds; and Ao4n ?as one o6 t4e main
reasons it <re? 6ast. *ork ?as 6un. T4e com8any ?as <ro?in<; 4is res8onsi5ilities
increased; and 4e and 4is team ?ere real 5uddies. *it4 HarenFs 4el8 at 4ome; 4e
Eu<<led ?ork; tra3el; and e3enin< classes t4at led to a masterFs de<ree. T4e masterFs
de<ree 5rou<4t anot4er 8romotion/t4is time to 3ice 8resident o6 tec4nolo<y at t4e
youn< 76or t4is com8any: a<e o6 (B.
T4e 8romotion 4ad one dra?5ack: $t ?ould require ?orkin< out o6 t4e Ne? ork o66ice.
Haren sadly said <ood5ye to 4er 6riends; con3inced t4e kids t4at t4e mo3e ?ould 5e
<ood to t4em; and le6t t4e ranc4 4ouse 6or anot4er one; muc4 more e@8ensi3e and
ne?er; 5ut smaller and Eust across t4e ri3er in Ne? Aersey 6rom t4e skyscra8er ?4ere
4er 4us5and ?orked. Ne?ark ?as not muc4 like As8en; and t4e kids 4ad a 4ard time
makin< 6riends; es8ecially Aos4; ?4o ?as no? 11. He <re? sullen and ?it4dra?n and
5e<an 4an<in< around ?it4 a cro?d t4at Haren t4ou<4t looked 3ery tou<4. Linda; al?ays
t4e quiet one; stuck mostly to 4er room.
Ao4nFs ne? Eo5 5rou<4t ?it4 it money and reco<nition; as ?ell as added res8onsi5ilities.
He no? 4ad to not only lead so6t?are de3elo8ment 5ut also acti3ely 8artici8ate in
steerin< t4e com8any in t4e ri<4t direction 6or t4e 6uture; tailorin< its o66erin<s to
market trends. -er<ers and acquisitions ?ere t4e 5i< t4in<s in t4e so6t?are 5usiness;
and Ao4n 6ound a s8ecial t4rill in 8ickin< small com8anies ?it4 8romisin< so6t?are;
5uyin< t4em out; and addin< t4em to t4e cor8orate 8ort6olio. Haren 4ad e3eryt4in< a
?oman could ?ant and ?ent re<ularly to a 4ealt4 clu5. T4e 6amily lacked 6or no material
need.
At a<e 41 Ao4n 6elt 4e 4ad t4e ?orld 5y its tail. Sure; 4e ?as a 5it o3er?ei<4t; 5ut ?4o
?ouldnFt 5e ?it4 t4e amount o6 ?ork and entertainin< t4at 4e did, He drank some; a
4a5it 4e 4ad de3elo8ed early in 4is career. Haren ?orried a5out t4at; 5ut 4e reassured
4er 5y remindin< 4er t4at 4e 4ad 5een really drunk only t?ice and ?ould ne3er drink
and dri3e. Aos4Fs 6riends ?ere a ?orry; 5ut not4in< 4ad yet come o6 it.
Not all ?as ?ell; 4o?e3er. Ao4n 4ad 5een success6ul in Colorado 5ecause 4e t4ou<4t 6ast
on 4is 6eet; e@8ressed 4is o8inions; and <ot 8eo8le to 5uy into 4is decisions. $n t4e Ne?
ork cor8orate o66ice t4in<s ?ere di66erent. All o6 t4e to8 5rass e@ce8t t4e 8resident and
Ao4n 4ad $3y Lea<ue; moneyed 5ack<rounds. T4ey s8oke o6 strate<y 5ut ?ould take
only risks t4at ?ould 6urt4er t4eir 8ersonal careers. He 3alued 8assion; inte<rity; and
action; ?it4 little re<ard 6or 8ersonal ad3ancement. T4ey resented 4im; ri<4tly surmisin<
t4at t4e only reason 4e 4ad 5een 8romoted ?as 5ecause 4e ?as more like 4e 8resident
t4an t4ey ?ere; and 4e ?as 5ein< <roomed as 4eir a88arent.
)n No3em5er !; !004; Ao4n 'reckenrid<eFs ?orld 5e<an to unra3el. T4e com8any 4e
?orked 6or; t4e one 4e 4ad <i3en so muc4 o6 4is li6e to 5uild ?as acquired in a 4ostile
takeo3er. T4e 8resident ?4o 4ad 5een 4is 6riend and mentor ?as let <o; and t4e
5acksta55in< 5e<an in earnest. Ao4n 6ound 4imsel6 t4e odd man out in t4e o66ice as t4e
ot4ers Eostled to 5uild status in t4e ne? 6irm. Alt4ou<4 4is stellar record allo?ed 4im to
sur3i3e t4e 6irst round o6 Eo5 cuts; t4at sur3i3al only made 4im more o6 a 8aria4 to t4ose
around 4im. %oin< to ?ork ?as a c4ore no?; and Ao4n 4ad no 6riends like t4ose 4e 4ad
le6t in As8en.
Haren ?as little 4el8. Ao4n 4ad s8ent nearly t?o decades married more to 4is Eo5 t4an
4is ?i6e; and 4e 6ound s4e ?as more o6 a stran<er t4an a com6orter as 4e stru<<led in
4is ne? role. *4en 4e s8oke a5out c4an<in< Eo5s; s4e 5le? u8. G*4y did $ 4a3e to <i3e
u8 nursin< 6or your career,I s4e said. G*4y do ?e 4a3e to mo3e a<ain; Eust 5ecause you
canFt <et alon< at ?ork, CanFt you see ?4at t4e mo3e did to our kids,I
Seein< t4e 4urt and an<er in HarenFs eyes; Ao4n sto88ed s4arin< and turned to 4is 5ottle
6or com6ort. $n time t4at caused e3en more tension in t4e 4ome; and it slo?ed 4im do?n
at ?ork ?4en 4e really needed to e@cel. Ao4n ?ould o6ten drink 4imsel6 into o5li3ion
?4en on 5usiness tri8s rat4er t4an t4inkin< a5out ?4ere 4is li6e and career ?ere <oin<.
)n 4is last tri8 4e 4adnFt sle8t muc4 and 4ad ?orked 6ar too 4ard. -idmornin< 4e 4ad
5een 6elled 5y a massi3e 4eart attack.
All o6 t4is 4istory 8assed t4rou<4 Ao4n 'reckenrid<eFs mind as 4e ?oke a6ter t4e
o8eration. $t ?as time 6or a c4an<e.
2uestions:
1. $denti6y t4e stressors in Ao4n 'reckenrid<eFs li6e. *4ic4 ones could 4e 4a3e
8re3ented,
!. *4at ?ere t4e results o6 t4e stress, *ould you consider t4ese to 5e ty8ical to
stress situations and li6estyle c4oices Ao4n made; or ?as Ao4n 'reckenrid<e unlucky,
(. Assume you are a career coac4 retained 5y Ao4n 'reckenrid<e to <uide 4im
t4rou<4 4is ne@t decisions. Ho? ?ould you recommend t4at Ao4n modi6y 4is li6estyle and
5e4a3ior to reduce stress, S4ould 4e c4an<e Eo5s, +o you 5elie3e 4e is ca8a5le o6
reducin< 4is stress alone, $6 not; ?4ere s4ould 4e seek 4el8,
CASE 04: THE SH$""$N% $N+#ST& ACC)#NT$N% TEA-
For t4e 8ast 6i3e years $ 4a3e 5een ?orkin< at -cHay; Sanderson; and Smit4 Associates;
a mid>siLed accountin< 6irm in 'oston t4at s8ecialiLes in commercial accountin< and
audits. -y 8articular s8ecialty in accountin< 8ractices 6or s4i88in< com8anies; ran<in<
6rom small 6is4in< 6leets to a cou8le o6 t4e 5i< 6irms ?it4 s4i8s alon< t4e East Coast.
A5out 19 mont4s a<o -cHay; Sanderson; and Smit4 Associates 5ecame 8art o6 a lar<e
mer<er in3ol3in< t?o ot4er accountin< 6irms. T4ese 6irms 4a3e o66ices in -iami; Seattle;
'aton &ou<e; and Los An<eles. Alt4ou<4 t4e ot4er t?o accountin< 6irms ?ere muc4
lar<er t4an -cHay; all t4ree 6irms a<reed to a3oid centraliLin< t4e 5usiness around one
o66ice in Los An<eles. $nstead t4e ne? 6irm/called %old5er<; C4oo; and -cHay
Associates/?ould rely on teams across t4e country to Gle3era<e t4e syner<ies o6 our
collecti3e kno?led<eI 7an o6ten>cited statement 6rom t4e mana<in< 8artner soon a6ter
t4e mer<er:.
T4e mer<er a66ected me a year a<o ?4en my 5oss 7a senior 8artner and 3ice 8resident
o6 t4e mer<er: announced t4at $ ?ould 5e ?orkin< more closely ?it4 t4ree 8eo8le 6rom
t4e ot4er t?o 6irms to 5ecome t4e 6irmFs ne? s4i88in< industry accountin< team. T4e
ot4er team mem5ers ?ere Elias in -iami; Susan in Seattle; and 'rad in Los An<eles. $
4ad met Elias 5rie6ly at a meetin< in Ne? ork City durin< t4e mer<er 5ut 4ad ne3er met
Susan or 'rad; alt4ou<4 $ kne? t4at t4ey ?ere s4i88in< accountin< 8ro6essionals at t4e
ot4er 6irms.
$nitially t4e s4i88in< team acti3ities in3ol3ed e>mailin< eac4 ot4er a5out ne? contracts
and 8ros8ecti3e clients. Later ?e ?ere asked to su5mit Eoint mont4ly re8orts on
accountin< statements and issues. Normally $ su5mitted my o?n mont4ly re8orts to
summariLe acti3ities in3ol3in< my o?n clients. Coordinatin< t4e mont4ly re8ort ?it4
t4ree ot4er 8eo8le took muc4 more time; 8articularly 5ecause di66erent accountin<
documentation 8rocedures across t4e t4ree 6irms ?ere still 5ein< resol3ed. $t took
numerous e>mail messa<es an a 6e? tele84one calls to ?ork out a reasona5le mont4ly
re8ort style.
+urin< t4is a<<ra3atin< 8rocess it 5ecame a88arent/to me at least/t4at t4is team
5usiness ?as costin< me more time t4an it ?as ?ort4. -oreo3er; 'rad in Los An<eles
didnFt 4a3e a clue a5out 4o? to communicate ?it4 t4e rest o6 us. He rarely re8lied to e>
mail. $nstead 4e o6ten used t4e tele84one ta<. 'rad arri3ed at ?ork at B
0 a.m. in Los
An<eles 7and ?as o6ten late:; ?4ic4 is early a6ternoon in 'oston. $ ty8ically 4a3e a
6le@i5le ?ork sc4edule 6rom C0 a.m. to (0 8.m. so $ can c4au66eur my kids a6ter
sc4ool to s8orts and music lessons. So 'rad and $ 4a3e a ?indo? o6 less t4an t4ree
4ours to s4are in6ormation.
T4e 5i<<est nuisance ?it4 t4e s4i88in< s8ecialist accountin< team started t?o ?eeks a<o
?4en t4e 6irm asked t4e 6our o6 us to de3elo8 a ne? strate<y 6or attractin< more
s4i88in< 6irm 5usiness. T4is ne? strate<ic 8lan is a messy 5usiness. Some4o? ?e 4a3e
to s4are our t4ou<4ts on 3arious a88roac4es; a<ree on a ne? 8lan; and ?rite a uni6ied
su5mission to t4e mana<in< 8artner. Already t4e 8roEect is takin< most o6 my time Eust
?ritin< and res8ondin< to e>mail and talkin< in con6erence calls 7?4ic4 none o6 us did
muc4 5e6ore t4e team 6ormed:.
Susan and 'rad 4a3e already 4ad t?o or t4ree misunderstandin<s 3ia e>mail a5out t4eir
di66erent 8ers8ecti3es on delicate matters in t4e strate<ic 8lan. T4e ?orst o6 t4ese
disa<reements required a con6erence call ?it4 all o6 us to resol3e. E@ce8t 6or t4e most
5asic matters; it seems t4at ?e canFt understand eac4 ot4er; let alone a<ree on key
issues. $ 4a3e come to t4e conclusion t4at $ ?ould ne3er ?ant 'rad to ?ork in my
'oston o66ice 7t4anks <oodness 4eFs on t4e ot4er side o6 t4e country:. Alt4ou<4 Elias and
$ seem to a<ree on most 8oints; t4e o3erall team canFt 6orm a common 3ision or
strate<y. $ donFt kno? 4o? Elias; Susan; or 'rad 6eel; 5ut $ ?ould 5e quite 4a88y to ?ork
some?4ere t4at did not require any o6 t4ese lon<>distance team 4eadac4es.
2uestions:
1. *4at ty8e o6 team ?as 6ormed 4ere, *as it necessary; in your o8inion,
!. #se t4e team e66ecti3eness model in C4a8ter B and related in6ormation in t4is
c4a8ter to identi6y t4e stren<t4s and ?eaknesses o6 t4is teamFs en3ironment; desi<n;
and 8rocesses.
(. Assumin< t4at t4ese 6our 8eo8le must continue to ?ork as a team; recommend
?ays to im8ro3e t4e teamFs e66ecti3eness.
CASE 0.: '&$+%$N% THE T*) *)&L+S/THE )&%AN$0AT$)NAL +$LE--A
*illiam Todoro3ic; "urdue #ni3ersity
$ 4ad 5een 4ired 5y Aluminum Elements Cor8. 7AEC:; and it ?as my 6irst day o6 ?ork. $
?as !1 years old; and $ ?as no? t4e mana<er o6 AECFs customer ser3ice <rou8; ?4ic4
looked a6ter customers; lo<istics; and some o6 t4e ra? material 8urc4asin<. -y su8erior;
%eor<e; ?as t4e 3ice 8resident o6 t4e com8any. AEC manu6actured most its 8roducts; a
maEority o6 ?4ic4 ?ere destined 6or t4e construction industry; 6rom aluminum.
As $ ?alked around t4e s4o8 6loor; t4e em8loyees a88eared to 5e concentratin< on t4eir
Eo5s; 5arely noticin< me. -ana<ement 4eld daily meetin<s in ?4ic4 3arious 8roduction
issues ?ere discussed. No one 6rom t4e s4o8 6loor ?as in3ited to t4ese meetin<s unless
t4ere ?as a s8eci6ic 8ro5lem. Later $ also learned t4at mana<ement 4ad se8arate
?as4rooms and se8arate lunc4rooms; as ?ell as ot4er 8erks t4at 6loor em8loyees did
not 4a3e. -ost o6 t4e 6loor em8loyees 6elt t4at mana<ement; alt4ou<4 8olite on t4e
sur6ace; did not really 6eel t4ey 4ad anyt4in< to learn 6rom t4e 6loor em8loyees.
Ao4n; ?4o ?orked on t4e aluminum slitter; a crucial o8eration required 5e6ore any ot4er
o8erations could commence; 4ad su66ered a num5er o6 un8leasant encounters ?it4
%eor<e. As a result %eor<e usually sent ?ritten memos to t4e 6loor to a3oid a direct
con6rontation ?it4 Ao4n. 'ecause t4e directions in t4e memos ?ere com8le@; t4ese
memos ?ere o6ten more t4an t?o 8a<es in len<t4.
)ne mornin< as $ ?as ?alkin< around; $ noticed t4at Ao4n ?as 3ery u8set. Feelin< t4at
8er4a8s t4ere ?as somet4in< $ could do; $ a88roac4ed Ao4n and asked 4im i6 $ could
4el8. He indicated t4at e3eryt4in< ?as Eust 6ine. From t4e looks o6 t4e situation and
Ao4nFs 5ody lan<ua<e; $ 6elt t4at 4e ?as ?illin< to talk; 5ut Ao4n kne? t4at t4is ?as not
t4e ?ay t4in<s ?ere done in AEC. Tony; ?4o ?orked at t4e mac4ine ne@t to Ao4nFs; t4en
cursed and said t4at t4e o66ice <uys cared only a5out sc4edules; not a5out t4e 8eo8le
do?n on t4e 6loor. $ Eust looked at 4im; and t4en said t4at $ 5e<an ?orkin< 4ere only last
?eek; and $ t4ou<4t t4at $ address some o6 t4eir issues. Tony <a3e me a stran<e look;
s4ook 4is 4ead; and ?ent 5ack to 4is mac4ine. $ could 4ear 4im still s?earin< as $ le6t.
Later $ realiLed t4at most o6 t4e o66ice sta66 ?ere also o66ended 5y TonyFs lan<ua<e.
)n t4e ?ay 5ack to my o66ice; Lesley a recently 4ired en<ineer 6rom &ussia; a88roac4ed
me and 8ointed out t4at t4e em8loyees ?ere not accustomed to mana<ers talkin< to
t4em. -ana<ers only issued orders and made demands. As ?e discussed t4e di66erent
8erce8tions 5et?een o66ice and 6loor sta66; ?e ?ere interru8ted 5y a loud lunc4 5ell;
?4ic4 startled me. $ ?as 4a88y to Eoin Lesley 6or lunc4; 5ut s4e asked me ?4y $ ?as not
eatin< in t4e o66ice lunc4room. $ re8lied t4at i6 $ ?as <oin< to understand 4o? AEC
?orked; $ 4ad to <et to kno? all t4e 8eo8le 5etter. $n addition; $ realiLed t4at t4is ?as
not 4o? t4in<s ?ere done; and $ ?ondered a5out t4e nature o6 t4is a88arent di3ision
5et?een t4e mana<ers and t4e 6loor ?orkers. $n t4e lunc4room t4e ot4er ?orkers ?ere
amaLed to see me t4ere; commentin< t4at $ ?as Eust ne? and 4ad not learned t4e ro8es
yet.
A6ter lunc4; ?4en $ asked %eor<e; my su8er3isor; a5out 4is recent con6rontation ?it4
Ao4n; %eor<e ?as sur8rised t4at Ao4n <ot u8set; and e@claimed; G$ Eust ?anted Ao4n to
kno? t4at 4e did a <reat Eo5; and as a result; ?e ?ill 5e a5le to s4i8 on time one lar<e
order to t4e *est Coast. $n 6act; $ t4ou<4t $ ?as com8limentin< 4im.I
Earlier; Lesley 4ad indicated t4at certain 5e4a3ior ?as e@8ected 6rom mana<ers and
t4ere6ore 6rom me. $ reasoned t4at $ do not t4ink t4at t4is 5e4a3ior ?orks; and 5esides
it is not ?4at $ 5elie3e or 4o? $ care to 5e4a3e. For t4e ne@t cou8le o6 mont4s $ sim8ly
?alked around t4e 6loor and took e3ery o88ortunity to talk to t4e s4o8 em8loyees. )6ten
?4en t4e em8loyees related s8eci6ic in6ormation a5out t4eir ?ork8laces; $ 6elt t4at it
?ent o3er my 4ead. Frequently $ 4ad to ?rite do?n t4e in6ormation and re3isit it later. $
made a 8oint o6 listenin< to t4em; identi6yin< ?4ere t4ey ?ere comin< 6rom; and tryin<
to understand t4em. $ needed to kee8 my mind o8en to ne? ideas. 'ecause t4e s4o8
em8loyees e@8ected me to make requests and demands; $ made a 8oint o6 not doin<
any o6 t4at. Soon enou<4 t4e em8loyees 5ecame 6riendly and started to acce8t me as
one o6 t4eir o?n; or at least as a di66erent ty8e o6 mana<ement 8erson.
+urin< my t4ird mont4 o6 ?ork t4e em8loyees s4o?ed me 4o? to im8ro3e t4e
sc4edulin< o6 Eo5s; es8ecially t4ose on t4e aluminum slitter. $n 6act; t4e <reatest
contri5ution ?as made 5y Ao4n; ?4o demonstrated 5etter ?ays to com5ine t4e most
common slittin< siLes and reduce ?aste 5y retainin< some o6 t4e Gcommon>siLedI
material 6or ne? orders. Seein< t4e o88ortunity; $ 8ro<rammed a s8reads4eet to
calculate and track in3entory. T4is; in addition to 5etter 8lannin< and 6orecastin<;
allo?ed us to reduce our ne? order turnarounds 6rom 6our to 6i3e ?eeks to one or t?o
days.
'y t4e time $ ?as em8loyed 6or 6our mont4s; $ realiLed t4at mem5ers 6rom ot4er
de8artments came to me and asked me to relay messa<es to t4e s4o8 em8loyees. *4en
$ asked ?4y t4ey ?ere dele<atin< t4is task to me; t4ey stated t4at $ s8oke t4e same
lan<ua<e as t4e s4o8 em8loyees. $ncreasin<ly $ 5ecame t4e messen<er 6or t4e o66ice>to>
6loor s4i8 communication.
)ne mornin< %eor<e called me into 4is o66ice and com8limented me on t4e le3els o6
customer ser3ice and t4e im8ro3ements t4at 4ad 5een ac4ie3ed. As ?e talked; $
mentioned t4at ?e could not 4a3e done it ?it4out Ao4nFs 4el8. GHe really kno?s 4is stu66;
and 4e is <ood;I $ said. $ su<<ested t4at ?e consider 4im 6or some ty8e o6 8romotion.
Also; $ 4o8ed t4at t4is ?ould 5e a 8ositi3e <esture t4at ?ould im8ro3e t4e
communication 5et?een t4e o66ice and s4o8 6loor.
%eor<e turned and 8ulled a 6lyer out o6 4is desk: GHere is a mana<ement skills seminar.
+o you t4ink ?e s4ould send Ao4n to it,I
GT4at is a <reat idea;I $ e@claimed. G"er4a8s it ?ould 5e <ood i6 4e ?ere to recei3e t4e
ne?s 6rom you directly; %eor<e.I %eor<e a<reed; and a6ter discussin< some ot4er issues;
?e 8arted com8any.
T4at a6ternoon Ao4n came into my o66ice; u8set and ready to quit. GA6ter all my e66ort
and ?ork; you <uys are sendin< me 6or trainin< seminars. So am $ not <ood enou<4 6or
you,I
2uestions:
1. *4at 5arriers to e66ecti3e communication e@isted in Aluminum Elements Cor8,
Ho? did t4e aut4or deal ?it4 t4ese, *4at ?ould you do di66erently,
!. $denti6y and discuss ?4y Ao4n ?as u8set at t4e end o6 t4e case. *4at s4ould t4e
?riter do at t4is time,
CASE 01: C)NFL$CT $N CL)SE 2#A&TE&S
A team o6 8syc4olo<ists at -osco?Fs $nstitute 6or 'iomedical "ro5lems 7$'-": ?anted to
learn more a5out t4e dynamics o6 lon<>term isolation in s8ace. T4is kno?led<e ?ould 5e
a88lied to t4e $nternational S8ace Station; a Eoint 8roEect o6 se3eral countries t4at ?ould
send 8eo8le into s8ace 6or more t4an si@ mont4s. $t ?ould e3entually include a tri8 to
-ars takin< u8 to t4ree years.
$'-" set u8 a re8lica o6 t4e -ir s8ace station in -osco?. T4ey t4en arran<ed 6or t4ree
international researc4ers 6rom Aa8an; Canada; and Austria 110 days isolated in a
c4am5er t4e siLe o6 a train car. T4is c4am5er Eoined a smaller c4am5er ?4ere 6our
&ussian cosmonauts 4ad already com8leted 4al6 o6 t4eir !40 days o6 isolation. T4is ?as
t4e 6irst time an international cre? ?as in3ol3ed in t4e studies. None o6 t4e 8artici8ants
s8oke En<lis4 as t4eir 6irst lan<ua<e; yet t4ey communicated t4rou<4out t4eir stay in
En<lis4 at 3aryin< le3els o6 8ro6iciency.
Audit4 La8ierre; a Frenc4>Canadian; ?as t4e only 6emale in t4e e@8eriment. Alon< ?it4
o5tainin< a "4+ in 8u5lic 4ealt4 and social medicine; La8ierre 4ad studied s8ace
sociolo<y at t4e $nternational S8ace #ni3ersity in France and conducted isolation
researc4 in t4e Antarctic. T4is ?as 4er 6ourt4 tri8 to &ussia; ?4ere s4e 4ad learned t4e
lan<ua<e. T4e mission ?as su88osed to 4a3e a second 6emale 8artici8ant 6rom t4e
Aa8anese s8ace 8ro<ram; 5ut s4e ?as not selected 5y $'-".
T4e Aa8anese and Austrian 8artici8ants 3ie?ed t4e 8artici8ation o6 a ?oman as a
6a3ora5le 6actor; says La8ierre. For e@am8le; to make t4e surroundin<s more
com6orta5le; t4ey rearran<ed t4e 6urniture; 4un< 8osters on t4e ?alls; and 8ut a
ta5leclot4 on t4e kitc4en ta5le. G*e ada8ted our en3ironment; ?4ereas &ussians Eust
3ie?ed it as somet4in< to 5e endured;I s4e e@8lains. G*e decorated 6or C4ristmas
5ecause $Fm t4e kind o6 8erson ?4o likes to 4ost 8eo8le.I
Ne? earFs E3e Turmoil
$ronically; it ?as at one o6 t4ose social e3ents; t4e Ne? earFs E3e 8arty; t4at e3ents
took a turn 6or t4e ?orse. A6ter drinkin< 3odka 7allo?ed 5y t4e &ussian s8ace a<ency:;
t?o o6 t4e &ussian cosmonauts <ot into a 6ist6i<4t t4at le6t 5lood s8lattered on t4e
c4am5er ?alls. At one 8oint a collea<ue 4id t4e kni3es in t4e stationFs kitc4en 5ecause o6
6ears t4at t4e t?o &ussians ?ere a5out to sta5 eac4 ot4er. T4e t?o cosmonauts; ?4o
<enerally did not <et alon<; 4ad to 5e restrained 5y ot4er men. Soon a6ter t4at 5ra?l;
t4e &ussian commander <ra55ed La8ierre; dra<<ed 4er out o6 3ie? o6 t4e tele3ision
monitorin< cameras; and kissed 4er a<<ressi3ely/t?ice. La8ierre 6ou<4t 4im o66; 5ut t4e
messa<e didnFt re<ister. He tried to kiss 4er a<ain t4e ne@t mornin<.
T4e ne@t day t4e international cre? com8lained to $'-" a5out t4e 5e4a3ior o6 t4e
&ussian cosmonauts. T4e &ussian institute a88arently took no a<ainst t4e a<<ressors.
$nstead t4e instituteFs 8syc4olo<ists re8lied t4at t4e incidents ?ere 8art o6 t4e
e@8eriment. T4ey ?anted cre? mem5ers to sol3e t4eir 8ersonal 8ro5lems ?it4 mature
discussion ?it4out askin< 6or outside 4el8. Gou 4a3e to understand t4at -ir is an
autonomous o5Eect; 6ar a?ay 6rom anyt4in<;I Kadim %us4in; t4e $'-" 8syc4olo<ist in
c4ar<e o6 8roEect; e@8lained a6ter t4e e@8eriment 4ad ended in -arc4. G$6 t4e cre? canFt
sol3e 8ro5lems amon< t4emsel3es; t4ey canFt ?ork to<et4er.I
Follo?in< $'-"Fs res8onse; t4e international cre? ?rote a scat4in< letter to t4e &ussian
institute and t4e s8ace a<encies in3ol3ed in t4e e@8eriment. G*e 4ad ne3er e@8ected
suc4 e3ents to take 8lace in a 4i<4ly controlled scienti6ic e@8eriment ?4ere indi3iduals
<o t4rou<4 a multiste8 selection 8rocess;I t4ey ?rote. G$6 ?e 4ad kno?nM ?e ?ould not
4a3e Eoined it as su5Eects.I T4e letter also com8lained a5out $'-"Fs res8onse to t4eir
concerns.
$n6ormed a5out t4e Ne? earFs E3e incident; t4e Aa8anese s8ace 8ro<ram con3ened an
emer<ency meetin< on Aanuary ! to address t4e incidents. Soon a6ter t4e Aa8anese
team mem5er quit; a88arently s4ocked 5y $'-"Fs inaction. He ?as re8laced ?it4 a
&ussian researc4er on t4e international team. Ten days a6ter t4e 6i<4t/a little o3er t4e
mont4 t4e international team 5e<an t4e mission/t4e doors 5et?een t4e &ussian and
international cre?sF c4am5ers ?ere 5arred at t4e request o6 t4e international researc4
team. La8ierre later em84asiLed t4at t4is action ?as taken 5ecause o6 concerns a5out
3iolence; not t4e incident in3ol3in< 4er.
A Stolen Hiss or Se@ual Harassment
'y t4e end o6 e@8eriment in -arc4; ne?s o6 t4e 6ist6i<4t 5et?een t4e cosmonauts and
t4e commanderFs attem8ts to kiss La8ierre 4ad reac4ed t4e 8u5lic. &ussian scientists
attem8ted to 8lay do?n t4e kissin< incident 5y sayin< t4at it ?as one 6leetin< kiss; a
clas4 o6 cultures; and a 6emale 8artici8ant ?4o ?as too emotional.
G$n t4e *est; some kinds o6 kissin< are re<arded as se@ual 4arassment. $n our culture
itFs not4in<;I said &ussian scientist Kadim %us4in in one inter3ie?. $n anot4er inter3ie?
4e e@8lained; GT4e 8ro5lem o6 se@ual 4arassment is <i3en a lot o6 attention in Nort4
America 5ut less in Euro8e. $n &ussia it is e3en less o6 an issue; not 5ecause ?e are
more or less moral t4an t4e rest o6 t4e ?orldD ?e Eust 4a3e di66erent 8riorities.I
Audit4 La8ierre says t4e kissin< incident ?as tolera5le com8ared to t4is reaction 6rom
t4e &ussian scientists ?4o conducted t4e e@8eriment. GT4ey donFt <et it at all;I s4e
com8lains. GT4ey donFt t4ink anyt4in< is ?ron<. $Fm more 6rustrated t4an e3er. T4e
?orst t4in< is t4at t4ey donFt realiLe it ?as ?ron<.I
Nor5ert Hra6t; t4e Austrian scientist on t4e international team; also disa<reed ?it4 t4e
&ussian inter8retation o6 e3ents. GT4eyFre tryin< to 8rotect t4emsel3es;I 4e says.
GT4eyFre tryin< to 8ut t4e 6ault on ot4ers. 'ut t4is is not a cultural issue. $6 a ?oman
doesnFt ?ant to 5e kissed; it is not acce8ta5le.I
2uestions:
1. $denti6y t4e di66erent con6lict e8isodes t4at e@ist in t4is case. *4o ?as in con6lict
?it4 ?4om,
!. *4at are t4e sources o6 con6lict 6or t4ese con6lict incidents,
(. *4at con6lict mana<ement style7s: did La8ierre; t4e international team; and
%us4in use to resol3e t4ese con6licts, *4at style7s: ?ould 4a3e ?orked 5est in t4e
situation,
CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS
PROJECT REPORTS AND THESIS
ISBM / IIBMS / IIBM / ISMS / KSBM /
NIPM
SMU / SYMBIOSIS / XAVIER / NIRM /
PSBM / NSBM / ISM / IGNOU / IICT / ISBS
/ LPU / ISM&RC/ LPU / NMIMS / ISBS /
MANIPAL / GARUDA / HIMALAYA / UPES /
IMT / iact
IC MIND
MBA - EMBA - BMS - GDM - MIS - MIB
DMS - DBM - PGDM - DBM – DBA - PGDM
www.mbacases!"#a$swe%s.c&m
www.cases!"#s&'!(&$.($
www.cases!"#a$swe%s.($
www.)!es(&$a$swe%s.($
www.&$'($e*%&+ec%e*&%.c&m
a%a,($".ba$a-a%./ma('.c&m
doc_806250917.docx
IC MIND ANSWER SHEETS.docx
CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS
PROJECT REPORTS AND THESIS
ISBM / IIBMS / IIBM / ISMS / KSBM /
NIPM
SMU / SYMBIOSIS / XAVIER / NIRM /
PSBM / NSBM / ISM / IGNOU / IICT / ISBS
/ LPU / ISM&RC/ LPU / NMIMS / ISBS /
MANIPAL / GARUDA / HIMALAYA / UPES /
IMT / iact
IC MIND
MBA - EMBA - BMS - GDM - MIS - MIB
DMS - DBM - PGDM - DBM – DBA - PGDM
www.mbacases!"#a$swe%s.c&m
www.cases!"#s&'!(&$.($
www.cases!"#a$swe%s.($
www.)!es(&$a$swe%s.($
www.&$'($e*%&+ec%e*&%.c&m
a%a,($".ba$a-a%./ma('.c&m
Banking Management
CASE-01:BANKING ON RELATIONSHIP
The birth of ABC Bank took place after the RBI issued guidelines for the entry of new private
sector banks in January 199! "ubse#uently$ the pro%oter of ABC Bank sought per%ission to
establish a co%%ercial bank and retained &'()$ a %anage%ent consultant of international repute$
to prepare the groundwork for establishing a co%%ercial bank! The Reserve Bank of India conveyed
its approval in principle to establish ABC Bank on *ebruary 11$ 199+! Thereafter$ the Bank was
incorporated under The Co%panies Act in "epte%ber 199+! The bank started its operations in
,ove%ber 199-! The ABC Bank was pro%oted by the tenth largest develop%ent bank in the world$
which had a %agnificent record of pro%oting world.class institutions in India! The pro%oter was a
strategic investor in a plethora of institutions$ which had revolutioni/ed the Indian financial %arkets!
QUESTIONS OR !ISCUSSION
1! Analy/e the case$ using "01T!
2! Co%%ent on the strategies used by the bank for penetrating the ,agpur %arket!
! "uggest strategies for sustenance and growth of the bank in view of the changing scenario of
the ,agpur region!
Se"ti#n II
An$%e& An' Si
1! 34plain buyers credit and suppliers credit by giving e4a%ples of each type of credit! Also
e4plain with a case study!
2! 0hat is correspondent banking5 34plain briefly the services offered by correspondent
banking5 34plain briefly the services offered by correspondent banks to the banks having
account relationship with the%5 )ive so%e e4a%ples5
! 34plain in brief$ the role of Reserve bank of India in Indian 34change control! 34plain the role
of 36I( bank in pro%otion e4ports$ and describe briefly facilities given by 36I( bank5 )ive
e4a%ples!
+! The organi/ational career is a responsibility of the organi/ation and the individual! 7iscuss!
-! 34plain the general architecture of an integrated banking syste%! 8ow is it useful5 34plain
with e4a%ples!
9! 0hat do you understand by (ICR5 8ow does it help in clearing of instructions5 34plain the
field structure of (ICR che#ue!
:! 34plain how a digital signature is generated5 34plain its use with e4a%ples!
;! 8ow can Indian banks use legal recognition of digital signature for develop%ent of business!
9! 0hat is %arket seg%entation5 0hy is it i%portant to advertisers5 8ow is it useful for banking!
Se"ti#n I
An$%e& an' Si
1<! 34plain role of different parties to a docu%entary credit with a case e4a%ple!
34plain buyers credit and suppliers credit by giving e4a%ples of each type of credit! Also
e4plain with a case study!
11! 0hat is correspondent banking5 34plain briefly the services offered by correspondent
banking5 34plain briefly the services offered by correspondent banks to the banks having
account relationship with the%5 )ive so%e e4a%ples5
12! 34plain in brief$ the role of Reserve bank of India in Indian 34change control! 34plain the role
of 36I( bank in pro%otion e4ports$ and describe briefly facilities given by 36I( bank5 )ive
e4a%ples!
1! The organi/ational career is a responsibility of the organi/ation and the individual discuss!
1+! 34plain with case e4a%ples
a! Role space conflicts
b! Role set conflicts
1-! 34plain the general architecture of an integrated banking syste%! 8ow is it useful5 34plain
with e4a%ples!
19! 0hat do you understand by (ICR5 8ow does it help in clearing of instructions5 34plain the
field structure of (ICR che#ue!
1:! 34plain different e.co%%erce activities and functions! 0hat are the building blocks of e.
co%%erce solution5 34plain with e4a%ples!
1;! 34plain the concept of transfer pricing in banks and its relevance on pricing=profit! 34plain
briefly various %ethods of pricing products!
An$%e& an' T)&ee:
19! 34plain briefly the product life cycle concept with reference to a banks product! "election
develop%ent and launching a product are e#ually i%portant co%%ent!
2<!0hat are the advantages of packaging5 Illustrate in banking conte4t!
21! 34plain the concept of transfer pricing in banks and its relevance on pricing=profit! 34plain
briefly various %ethods of pricing products!
22! 7raw an approach for e.banking deploy%ent for retail custo%ers and e4plain!
2! 34plain how a digital signature is generated5 34plain its use with e4a%ples!
2+! 8ow can Indian banks use legal recognition of digital signature for develop%ent of business!
2-! 0hat is %arket seg%entation5 0hy is it i%portant to advertisers5 8ow is it useful for banking!
29! 34plain briefly the product life cycle concept with reference to a banks product! "election
develop%ent and launching a product are e#ually i%portant co%%ent!
2:! 0hat are the advantages of packaging5 Illustrate in banking conte4t!
B*$ine$$ Et)i"$
1+ Analy/e the ethics of %arketing 'ublius using utilitarianis%$ rights$ >ustice$ and caring! In your
>udg%ents$ is it ethical to %arket 'ublius5 34plain!
,+ Are the creators of 'ublius in any way %orally responsible for any cri%inal acts that cri%inals are
able to carry out and keep secret by relying on 'ublius5 Is AT?T in any way %orally responsible
for these5 34plain your answers!
-+ In your >udg%ent$ should govern%ents allow the i%ple%entation of 'ublius5 0hy or why not5
1+ *ully e4plain the effects that pay%ent like those which @ockheed %ade to the Japanese have on
the structure of a %arket!
,+ In your view$ were @ockheedAs pay%ents to the various Japanese parties BbribesC or Be4tortionsC5
34plain your response fully!
-+ In your >udg%ent$ did (r! A! Carl &otchian act rightly fro% a %oral point of view5 DEour answer
should take into account the effects of the pay%ents 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
a%ong the groups involved!F In your >udg%ent$ was (r! &otchian %orally responsible for his
Actions5 0as he$ in the end$ treated fairly5
.+ In its 1ctober 2:$ 19;<$ issue$ Business 0eek argued that every corporation has a corporate
culture Gthat is$ values that set a pattern for its e%ployeeAs activities$ opinions and actions and
that are instilled in succeeding generations of e%ployees Dpp!1+;.9<F 7escribe$ if you can$ the
corporate culture of @ockheed and relate that culture to (r! &otchianAs actions! 7escribe so%e
strategies for changing that culture in ways that %ight %ake foreign pay%ents less likely!
1+ In your >udg%ent$ is it wrong$ fro% an ethical point of view$ for the auto co%panies to sub%it
plans for an auto%obile to China5 34plain your answer5
,+ 1f the various approaches to environ%ental ethics outlined in this chapter$ which approach
sheds %ost light on the ethical issues raised by this case5 34plain your answer!
-+ "hould the H!"! govern%ent intervene in any way in the negotiations between H!"! auto co%panies
and the Chinese govern%ent5 34plain!
1+ In your >udg%ent$ do the %anagers of the Robert 8all store have any ethical obligations to change
their salary policies5 If you do not think they should change$ then e4plain why they have an
obligation to change and describe the kinds of changes they should %ake! 0ould it %ake
any difference to your analysis if$ instead of two depart%ents in the sa%e store$ it involved two
different Robert 8all "tores$ one for %en and one for wo%en5 0ould it %ake a difference if two
stores Done for %en and one for wo%enF owned by different co%panies were involved5 34plain
each of your answers in ter%s of the relevant ethical principles upon which you are relying!
,+ "uppose that there were very few %ales applying for clerksA >obs in 0il%ington while fe%ales were
flooding the clerking >ob %arket! 0ould this co%petitive factor >ustify paying %ales %ore than
fe%ales5 0hy5 "uppose that 9- percent of the wo%en in 0il%ington who were applying for
clerksA >obs were single wo%en with children who were on welfare while 9- percent of the %en
were single with no fa%ilies to support! 0ould this need factor >ustify paying fe%ales %ore than
%ales5 0hy5 "uppose for the sake of argu%ent that %en were better at selling than wo%enI
would this >ustify different salaries5
-+ If you think the %anagers of the Robert 8all store should pay their %ale and fe%ale clerks e#ual
wages because they do Bsubstantially the sa%e workC then do you also think that ideally each
workerAs salary should be pegged to the work he or she individually perfor%s Dsuch as by having
each worker sell on co%%issionF5 0hy5 0ould a co%%ission syste% be preferable fro% a
utilitarian point of view considering the substantial book keeping e4penses it would involve5
*ro% the point of view of >ustice5 0hat does the phrase substantially the sa%e %ean to you5
1+ 0hat are the legal issues involved in this case$ and what are the %oral issues5 8ow are the two
different kinds of issues different fro% each other$ and how are they related to each other5
Identify and distinguish the Bsyste%ic$ corporate and individual issuesC involved in this case!
,+ In your >udg%ent$ was it %orally wrong for "hawn *anning to develop and release his technology
to the world given its possible conse#uences5 0as it %orally wrong for an individual to use
,apsterAs website and software to copy for free the copy righted %usic on another personAs
hard drive5 If you believe it was wrong$ then e4plain e4actly why it was wrong! If you believe it
was not %orally wrong$ then how would you defend your views against the clai% that such copying
is stealing5 Assu%e that it was not illegal for an individual to copy %usic using ,apster! 0ould
there be anything i%%oral with doing so5 34plain5
-+ Assu%e that it is %orally wrong for a person to use ,apsterAs website and software to %ake a copy
of copyrighted %usic! 0ho$ then$ would be %orally responsible for this personAs wrong doing5
0ould only the person hi%self be %orally responsible5 0as ,apster$ the co%pany$ %orally
responsible5 0ash shawn *anning %orally responsible5 0as any e%ployee of ,apster$ the
co%pany$ %orally responsible5 0as the operator of the server or that portion of the Internet that
the person used %orally responsible5 0hat if the person did not know that the %usic was
copyrighted or did not think that it was illegal to copy copyrighted %usic5
.+ 7o the %usic co%panies share any of the %oral responsibility for what has happened5 8ow do you
think technology like ,apster is likely to change the %usic industry5 In your >udg%ent$ are
these changes ethically good or ethically bad5
1! 7iscuss this case fro% the perspective of utilitarianis%$ rights$ >ustice and caring! 0hat insight
does virtue theory shed on the ethics of the events described in this case5
2! BIn a free enterprise society all adults should be allowed to %ake their own decisions about how
they choose to earn their living!C 7iscuss the state%ent in light of the @ily case!
! In your >udg%ent$ is the policy of using ho%eless alcoholics for test sub>ects %orally
appropriate5 34plain the reasons for your >udg%ent! 0hat does your >udg%ent i%ply about the
%oral legiti%acy of a free %arket in labor5
+! 8ow should the %anagers of @ily handle this issue5
CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS
PROJECT REPORTS AND THESIS
ISBM / IIBMS / IIBM / ISMS / KSBM /
NIPM
SMU / SYMBIOSIS / XAVIER / NIRM /
PSBM / NSBM / ISM / IGNOU / IICT / ISBS
/ LPU / ISM&RC/ LPU / NMIMS / ISBS /
MANIPAL / GARUDA / HIMALAYA / UPES /
IMT / iact
IC MIND
MBA - EMBA - BMS - GDM - MIS - MIB
DMS - DBM - PGDM - DBM – DBA - PGDM
www.mbacases!"#a$swe%s.c&m
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B&an/ Management
CA"3 <1J C1(I,) BAC& A)AI,
CA"3 <2J BRA,7I,) BE "3,"I,)
CA"3 <J "TR3TC8I,) 710, 1R 7R10,I,) T83 BRA,7
CA"3<+J 'C (A&3R" "A,70IC837 I, B3T033,
CA"3 <-J 08IC8 7IR3CTI1, "81H@7 T83 BRA,7 TA&35
CA"3 <1J C1(I,) BAC& A)AI,
B'@ na%e re%inds one of a pheno%enal Indian brand in electronics and appliance
%arket space that once topped in ubi#uity and estee%! "tarting fro% the south$ it
went on to beco%e a household na%e! The group dates back to the Ksi4ties$ when the
founder$ T') ,a%biar began %anufacturing her%etically sealed precision panels in
&erala! It was then known as British 'hysical @aboratories! Back then$ industrial
activity was under tight govern%ent control though reservations and licensing! B'@
ca%e to the forefront in the Keighties when industrial licensing began to give way to a
pro.%arket regi%e! The group got further i%petus in the Knineties$ when
globali/ation and liberali/ation beca%e key policy initiatives for achieving econo%ic
growth! B'@ forged alliances with foreign co%panies to access technology to
i%prove product #uality and innovation$ to %anufacture electronic products! This
way$ the co%pany went on to beco%e a powerful brand in televisions and other
electronic products!
The B'@ brand has been a pioneer in the electronic products industry in the initial
years of liberali/ation! The brand evolved with changing custo%er and co%petitive
conditions! It offered state.of.the.art products like televisions$ refrigerators and
audio products backed by an e4cellent service network! 1nce$ the brand actually
topped the list in ter%s of custo%er trust and loyalty$ at a ti%e when the field was
crowded with a host of pro%inent players like crown$ Beltek and Lideocon! Till the
late Knineties$ the brand won accolades fro% various #uarters!
The co%pany was voted as the K%ost ad%ired %arketing co%panyA in the electronics
and ho%e appliances category in A?( "urvey of 1999! The prestigious *ar 3astern
3cono%ic Review rated the co%pany as the ,o! 1 co%pany in Kinnovativeness in
responding to consu%er needsA in Jan 2<<<! Eoung custo%ers also identified with
this Indian co%pany in high tech space! Accordingly$ B'@ was featured in Ktop ten
%ost preferred brands a%ong youthA in the Brand 3#uity survey of (arch 2<<<$ the
brand featured as one of the Ktop five coolest brands a%ong youthA! In consu%er
electronics$ resonance with the youth is a very i%portant asset! Eoung people act as
purchase initiators$ influencers and ulti%ate buyers! Connecting with the youth has
been instru%ental in the brand success!
The brand owes its re%arkable success to careful brand %anage%ent initiatives! The
B'@ brand has been nurtured and %anaged by e%ploying strategic brand
%anage%ent tools! The %arketing initiatives were controlled in line with the brand
identity! This way$ the co%pany never allowed %arketing efforts to dissipate in
different directions without a grand sche%e! The brand was a%ong the pioneers to
e%ploy identity state%ent! The brandAs soul described two levels of values! The core
set was defined as inherent values! These included trust$ solidity$ reliability$ pride$
progressiveness$ dignity$ #uality$ and intelligence! The other set of Kadded valuesA
sought to e4tend the brandAs soul by values like flair$ gla%our$ style$ youthfulness$
e4cite%ent and cutting edge!
The brand has been so well navigated that it was voted as the K,u%ber 1ne durable
brandA in Brand 3#uity in the year 2<<2! The brand topped in the Indian
ho%egrown durable brand list!
Brand 2<<2 2<<1
B'@
)odre>
8(T
'hilips
Titan
"ony
Lideocon
LI'
Asian 'aints
1nida 1
2
+
-
9
:
;
9
1<
1
2
+
-
;
9
:
,A
9
"ourceJ Brand 3#uity$ The 3cono%ic Ti%es$ 1+ Aug 2<<2
The brandAs achieve%ents do not end here! In a survey designed to discover the
%ost trusted brands$ the brand again e%erged victorious! This survey ai%ed to
identify brands that bond with custo%ers! The survey went beyond the basic brand
fa%iliarity paradig% to include a brandAs perfor%ance on a nu%ber of di%ensions!
These are brands that consu%ers believe to provide #uality and assurance! The
brands are %easured on attributes likeJ #uality$ value for %oney$ intention to buy$
current and future popularity$ uni#ueness$ confidence$ price$ and special feeling and
associations!
The brand e%erged as the K(ost preferred color television brandA in Consu%er
1utlook$ 2<<2! 1n the para%eter of brand preference$ it was rated as the strongest
color television brand$ with : percent score on Kintention to buyA! The brand scored
better than %any %ultinational brands like @) D12MF$ "a%sung D9MF$ 1nida D9MF$
'hilips D9MF$ and Lideocon D;MF! The brand even scored high on the flat television
seg%ent in co%parison to foreign D&oreanF brands like "a%sung and @)!
In the last couple of years$ the brand has taken a severe beating! The %ultinational
brands fro% Japan$ &orea and the H" were initially placed far behind to the brand!
The Indian brands B'@$ 1nida and Lideocon stood the ground fir%ly! They
appeared unassailable! Japanese brands like "ony$ "harp$ 'anasonic and "ansui G
along with &orean counterparts like @) and "a%sung G did not appear to pose a
serious challenge! But in the last five years$ the color televisions %arket has
undergone a co%plete change! The &oreans have overtaken all the other players!
The two &orean brands do%inate the %arket$ followed by ho%egrown players 1nida
and Lideocon!
The Brand 3#uity "urvey of the trusted brands for the year 2<<- reveals a
disappointing result for the brand B'@! The brand appears at the 9; spot on the list!
ahead of it are brands like 'hilips D2F$ 1nida D-9F$ @) D-:F and Lideocon D91F! The
%arket share figures also reveal a disappointing picture for the brand! In the color
televisions$ @) leads with 2-!- percent %arket share followed by "a%sung with 1-!1
percent share! The refrigerator category is also do%inated by @) and 0hirlpool$
with %arket shares of 2:!2 and 21!2 percent share respectively! In washing
%achines$ @) stands strong with + per cent hold followed by 0hirlpool with 1!;
%arket share!
The consu%er electronics %arket has undergone a %a>or transfor%ation in the post
2<<< period! (ultinational brands have gradually cultivated %arket share by
%ounting attacks on the ho%egrown brands! The %arket$ that stood at the take off
stage in the Knineties$ has now %oved to the %aturity stage! The color television
%arket has frag%ented into sub groups! At the top end$ brands offer high tech$
costly plas%a sets! The %iddle seg%ent is %oving towards big.si/e flat screen
televisions! The botto% of the pyra%id now is located in rural areas where niche
brands like 1scar$ Citi/en$ 0eston and Te4la co%pete on price and low
functionality!
In this scenario$ the B'@ brand is %aking a co%eback after receiving transfusion by
way of technological vigour fro% technical collaborator "anyo! Although the brand
en>oys high recognition and recall with custo%ers in the <.plus age group$ the
youth see% to be at the loss so far as the brand is concerned! Technology
environ%ent is now radically different fro% the prevailing in the Knineties! The
issues facing the brand includeJ with brands like @)$ "a%sung$ 'anasonic$ 1nida$
and Lideocon fir%ly entrenched in the %arket$ can B'@ leverage its e#uity5
Technology alone does not appear to be sufficient hot button to create brand power
in the current scenario! Is it a fact that the brand %ust hasten to redefine its
identity$ in order to differentiate and bond with chosen custo%er5
CA"3 <2J BRA,7I,) BE "3,"I,)
There is one co%pany that is silently winning branding battles! "lowly and steadily$
it has %anaged to corner over Rs 2<< crores turnover in the 1TC Dover the counterF
drug %arket! The co%pany in #uestion is none other than 'aras 'har%a!
8ead#uartered in Ah%edabad$ the co%pany is owned by three brothers )irish$
7arshan and 7evendra! ,ot %any know it by its corporate identity! It is held in the
background! But its products and brands en>oy not only high awareness in ter%s of
recall and recognitionI they also stand out for their category ownership!
The list of brands created by this closely held co%pany is as followsJ
N (oov
N &rack
N 7er%i Cool
N Boro ,atural
N Boro "oft
N Itch )uard
N Ring )uard
N @ivon
N ,u%is
N "et 0et
N After Bath
N Recova
N (rs (arino
N 7ACold
N *reshia
0hat sets these brands apart is that they are the outco%e of deep understanding of
needs of Indian custo%ers! The value proposition e%bodied in each one of the%
offers solutions to custo%er needs that have been lying dor%ant for long$ but none
of the other %arketers ventured to uncover the%! All these brands entered the
cluttered %arket space and %anaged to create a uni#ue i%age for the%selves! 0hen
cutting across to the custo%er is really a serious issue even for %ultinational
co%panies with deep pockets$ 'aras has %anaged to carve out a niche for each of its
brands! The %antra that perhaps is at work in this co%pany is to be able to see
everyday proble%s faced by the custo%ers and convert the% into powerful product
ideas and create strong brands in the process!
(any of the products fro% this ni%ble player in the 1TC drugs space places it in
head on co%petition with the established %ultinational players! *or instance$ (oov
Dlaunched in 19;9F directly assaulted the then leading body pain reliever brand
Iode4$ fro% )la4o"%ith&line! It recogni/ed the potential of the rub.efficient
category and entered with a national brand! The %arket was cluttered with both
do%estic and international players! Instead of focusing on all kinds of pain$ the
brand narrowed its scope to only the >oints pains$ including backache! It successfully
attacked the leader by attending to a specific need! It narrowed its focus on the
backaches of wo%en and appropriated that position! It instead of fighting
co%petition in the sprain and %uscle pull$ headache bal%s$ and %ulti.purpose pain
reliever seg%ents$ it narrowed its appeal to wo%en with fre#uently occurring
backaches and positioned itself as a backache specialist!
&rack$ another power brand$ was born in 199 and went on to beco%e category
leader! The brand attended to the acute proble% of dry skin on the heels$ especially
a%ong Indian wo%en! Cracks in the heels are caused by winter dryness$ prolonged
e4posure to water$ su%%er dryness$ and barefoot walking! Though the need solution
ca%e in the for% of petroleu% >elly$ there was no specific brand which addressed
this proble%! The product was specially created to cure cracks in the heels! "ince the
ti%e the brand was launched$ it grew by leaps and bounds to beco%e an over.-
crores brand! The brand attacked the generic products then e4isting in the %arket
and offered a uni#ue solution by isolating a specific proble%! The skin dryness
proble% area is viewed as one single %ass$ but within it$ there are specific types of
dryness needs that are prevalent! &rack could see one$ and create a brand out of it!
Borosoft brand ca%e in the space that was do%inated by 8i%ani DBoroplusF and )7
'har%aceuticals DBorolineF! Back in 199-$ the antiseptic crea% %arket was worth Rs
-< crores of which crea%s for dry and chopped skin held about half the %arket
share! The KBoroA word segregates the product into the sub.category of ine4pensive
Kvalue for %oneyA crea%s %eant for dry and chapped skin! The non.Boro crea%s are
perceived to be %eant for cuts and wounds! 'aras discovered user dissatisfaction
with the then e4isting Boro crea%s for their stickiness and oiliness! (ounted on this
insight$ Borosoft was created as a non.sticky crea% with %oisturi/ing properties!
The brand %anaged to carve out a niche for itself! @ater$ Boro ,atural brand was
launched in the antiseptic %arket! This way$ Boroline was directly attacked!
After the creation of Boro ,atural and Boro "oft$ the co%pany created 7er%i Cool
brand! This brand put the co%pany ne4t to the then do%inant player ,ycil$ fro%
8ein/! It offered a solution to the proble% of prickly heat caused by prolonged
e4posure to perspiration! The product category lacked e4cite%ent and product
innovation! ,ycilAs advertising and product for%ulation re%ained sa%e! 7er%i Cool
challenged this inactivity and silence! The brand was positioned with cool sensation
platfor% DKthanda thanda powderAF! Its high decibel and peppy advertising
contributed e4cite%ent and infused energy into the category!
'aras$ as a co%pany$ have a uni#ue ability to sense custo%er proble%s and convert
the% into a %ega %arketing opportunities! Two of its brands$ Itch )uard and Ring
)uard$ are targeted at the skin proble%s co%%on in hot$ %oisture.laden weather!
"kin areas not e4posed to sun and at%osphere typically get affected by this proble%!
Itch )uard is a speciali/ed product for%ulated to address a specific proble% caused
by sweat itch! Ringwor% or tinea is proble% %ostly occurs in the lower socio.
econo%ic seg%ent! 8u%idity$ e4cessive sweating$ unhygienic conditions and skin
erosion are the root causes! 'aras launched its anti.fungal specialist re%edy brand
Ring )uard in 199;!
The other brands in 'arasA portfolio include cold and headache re%edy 7ACold!
There are legions of brands ai%ed at the headache %arket! 'aras narrowed focus
and positioned itself as a specific re%edy for aches caused by co%%on cold! 7ACold
1pen Hp is a variant targeted against nasal congestion! The brand ca%e in other
variations like 7ACold 7ouble and 7ACold Total as a co%plete package of re%edies
against heavy.headedness$ blocked nose and blocked sinuses!
The unstoppable brand.spinning %achine is showing no sign of slowing down! The
latest brand additions include @ivon$ ,u%is$ "etwet$ Afterbath and Recova! @ivon
and ,u%is brands are first.of.its.kind products! They are ai%ed to solve tangle in
the hair caused by washing! The process of detangling involves heavy co%bing$
which causes hair loss! This is an i%portant proble% faced by Indian wo%en who
nor%ally wear their hair long! ,u%is is a hair care product designed to nourish hair
and lend shine! "et 0et is a hair styling brand targeted at the young %ale seg%ent!
Afterbath brand follows application ti%e oriented positioning! It is to be applied on
body after bath$ as the na%e suggests!
'aras has had its own share of debacles! These include "topache$ 0inter "hield and
*reshia! These brands were all withdrawn because of poor perfor%ance! 'aras
follow a brand %odel that lays e%phasis of individual brand creation! It takes a lot
of effort to create successful brands both in ter%s of research and develop%ent and
cultivating brand e#uity! "erious conte%plation now is doing the rounds of the
co%pany to develop and concreti/e brand architecture! @aunching brands one after
another without a plan %ay create proble%s for the co%pany in the long run$ as it
happened with %any (,Cs! The issue at hand that needs to be addressed isJ what
architecture should be followed so that brandsA e#uity is %a4i%i/ed and leverage to
the fullest e4tent5
CA"3 <J "TR3TC8I,) 710, 1R 7R10,I,) T83 BRA,7
0ay back in 1;;;$ in 0isconsin$ H"A$ a %an na%ed )eorge "afford 'arker was
overwhel%ed with the a%ount of repairs that were needed to keep fountains pens
working! This inspired hi% to invent his own fountain pen$ one that worked better!
In 1;9<$ 'arker patented his first pen! @ater$ in 1;9+$ 'arker received another
patent for so%ething called K@ucky CurveA feed that drew e4cess ink back into the
pen body when the pen was not being used! This technology re%ained co%%on until
the late nineteen twenties! 'arker pens retained their position a%ong the top pen in
the writing instru%ent industry! 'arker is credited with another land%ark in writing
technology by creating a #uick drying ink DOuinkF that eli%inated the need for
constant blotting! "ince then$ the co%pany set up by 'arker has co%e a long way!
'arker re%ains a brand with strong heritage connotations and aspirational value!
'arker ca%e to India through the @u4or 0riting Instru%ent Co%pany! @u4or was
founded in 199 and has evolved into a do%inant player in the writing instru%ent
%arket in India! It en>oys about 1- percent %arket share$ and offers products to suit
varying needs of different seg%ents! The co%panyAs product line includes brands
like @u4or$ 'ilot$ 'aper%ate$ 'arker and the recently introduced 0ater%an!
The writing instru%ent industry is esti%ated to be worth over Rs 1-<< crores! It is a
huge opportunity! But a large portion of the %arket is occupied by players fro% the
unorgani/ed sector! "o%e put the si/e of this unorgani/ed %arket at around Rs 12<<
crores! This portion of %arket offers scope for branded players to consolidate their
positions! The pen %arketed by the unorgani/ed players lack #uality and brand
value! 8owever$ the biggest barriers to conversion are low involve%ent and brand
loyalty!
At the super pre%iu% level operated brands like (ont Blanc$ Cartier$ 0ater%an
and 7unhill! This niche is high value and low volu%e! The pre%iu% seg%ent is
targeted by brands like Cross$ 'arker and 'ierre Cardin! Then co%es the popular
seg%ent$ where the ho%egrown brands like *lair and @u4or co%pete! At the botto%
of the pyra%id is the econo%y seg%ent or %ass seg%ent Dsub.Rs -<F$ which is the
target of action between the organi/ed$ branded players like Cello$ Today$ A77$
Roto%ac$ "tic$ (onte4 and Reynolds! (uch of the turnover co%es fro% the lower
seg%ent!
A pen to %ost people is a functional product! And what %atters in %arketing pens is
the availability$ price and acceptable #uality DKit should writeAF! Custo%ers in the
%ass seg%ent generally try before buying and do not attach i%portance to brand
na%e! The situation is reversed in the top layers of the pyra%id! The higher one
cli%bs up the pyra%id$ the %ore the pen beco%es a source of sy%bolic satisfaction!
Its writing ability or functionality is taken for granted$ but what %atters is the na%e$
a pen beco%es a device for signaling style$ class$ power and sophistication! It
assu%es a psycho.social character! Brands at the top end do precisely this with their
uni#ue %otifs like 'arkerAs distinctive clip and (ont BlancAs flower like tip of the
cap!
In keeping with the stature of the brand when 'arker ca%e to India$ no less a
personage than A%itabh Bachchan hi%self pro%oted the product! The endorse%ent
worked in sync with the brandAs established heritage and pre%iu% i%age! The Big
B$ being an icon in the Indian fil% industry and hailing fro% a literary fa%ily$
infused the brand with the right kind of values$ %aking it appealing to a wide
spectru% of the %arket! The brandAs initial ca%paign pro%oted the central idea of
love of writing with a 'arker! Through the association with Big B$ the brand has
developed an aura of success$ elegance$ e4clusivity and sophistication!
'arker offers pens suited for distinct %arket seg%ents$ with sub brands! But what
runs co%%on across these ranges is the class and sophistication! These co%bine
heritage and %odernity$ high functionality and sign value! "o%e of these areJ
N 'arker 7ufoldJ brandAs identity is captured in words like opulence$ iconography$
e4ceptional character and outstanding work%anship! )enerally li%ited edition and
highly priced!
N 'arker 1<<J this range signifies understated status and sharp individual style!
Co%bines conventional and avant.garde! 'rice ranges fro% Rs 1<<<< to 1-<<<!
N 'arker "onnetJ the brand brings together achieve%ent$ distinction$ balanced style
and classic di%ensions! 'rice ranges between Rs ;9<< and Rs +2<<!
N 'arker @atitudeJ e%bodies original non.confor%ist individuality$ rebels against
tradition and convention!
N 'arker InsigniaJ the brand is a classic accessory for discerning individuals! 1ffers
authentic #uality and effortless style! 'rice ranges between Rs ;-< to Rs 1<<!
N 'arker RialtoJ defined as a pen with character$ grace and char%$ crafted with a
veneer of taste and tradition! 'rice ranges between Rs 2:<< and Rs 1-<<!
N 'arker +-J this well known brand signifies 'arker tradition$ originality and
nostalgia! It is a high perfor%ance$ ti%e.tested and trustworthy instru%ent! 'rice
ranges between Rs 1+<< and Rs9<<!
N 'arker *rontierJ the brand co%bines functional utility with innovation$
conservatis% and forward thinking! 'rice ranges between Rs 19-< and Rs 9-<!
N 'arker 7ia%anteJ wears a sophisticated look and futuristic design for young$
urban$ design conscious consu%ers! 'riced around Rs :<<!
In its bid to gain volu%es$ the brand has launched two variants by the na%e of
Lector and Beta! The price of the Lector line varies between one hundred and five
hundred! But parker Beta has pushed the brand down below the hundred.rupee
threshold! 'arker Beta is stated to co%bine superb technology and %odern designs
at a highly affordable price! The product is fitted with >otter refill and co%es in
e4citing colors with a co%fortable grip! The brand seeks to cash on the trend of
increasing brand consciousness a%ong consu%ers! Beta has brought a highly
aspirational brand like 'arker within the reach of %asses! The Beta range co%es in a
plastic body and sports the sa%e arrow clip$ albeit not as well designed and chiseled
as higher ranges have!
0ith the Beta line$ 'arkerAs range starts fro% a price level of less than hundred
rupees to e4ceed well over ten thousand! (any believe this downward stretch of a
brand like 'arker is good for generating volu%es! It is an easy path to succeed and
%ake inroads in the lower %arket seg%ent! 'resent consu%ers would be able to
possess an aspirational brand that otherwise re%ained a drea% for the%! 1thers
believe that this downward stretch would do %ore har% to the brand in the long
run! The %assification of the brand %ay rob it of its e4clusivity and pre%iu% aura
and degrade its i%age!
CA"3 <+J 'C (A&3R" "A,70IC837 I, B3T033,
The 'ersonal Co%puter industry in India has been a testing ground of %arketing
acu%en for players that play the branding ga%e! The %arket is broadly divided into
three groups! 1n the one hand is the plethora of players in the unorgani/ed sector!
1n the other hand are established %ultinational brands that operate globally in a
nu%ber of countries! "o%ewhere in between these two are Indian co%panies
staking a clai% with their brands!
The (,C players in the %arket include 8'$ Co%pa# Dthe two have since %ergedF$
Apple$ 7ell$ 3.sys$ Acer$ @) and @enovo Dthat bought IB(As 'C business in 2<<-F!
The ho%e grown co%panies in the field include players like 8C@$ 0ipro$ 'ertec$
Penith and Lintron! All the three sets of players co%pete on different strategic
platfor%s! The (,C products are priced relatively higher and signal #uality i%age!
The Indian players$ on the other hand$ pro%ise product #uality as good as (,C
product besides offering so%e price advantage! Co%puter co%pany Penith often
advertises their product as K(,CA #uality at Indian pricesA! The players that
constitute the unorgani/ed sector co%pete on price and custo%er inti%acy!
In this %arket structure$ the branded players have been engaged in a severely fought
battle with unbranded players! And so far$ they have been losing this battle! The
local players beat their branded counterparts on two counts! *irst of all$ their wares
are priced significantly lower and secondly$ they are widely available! ,owadays$ it
does not re#uire great technical e4pertise to asse%ble a 'C! The e4plosion in the
co%puter %arket has attracted a lot of entrepreneurs to >oin the industry as
asse%blers! There is wide availability of co%puter asse%blers Das well as
econo%ically.priced co%ponents and sub.asse%bliesF in the %arket! The 'C
co%puter %anufacturers that for% the organi/ed sector$ on the other hand$ bank
upon their re.sellers$ and they are not so widely located as to %ake their products
easily accessible to prospects! Thus$ on the accessibility front$ branded players scale
poorly!
The %arket for personal co%puter is seg%ented along the lines of price and users!
There is the office seg%ent$ consisting of large corporate houses$ and the s%all
business seg%ent %ade up of s%all co%panies and sole proprietorships! And then
there is the ho%e seg%ent! Co%puter education in schools has opened up this
seg%ent in a big way! The school.going children need to have co%puters at ho%e to
pursue studies! These seg%ents also reflect the co%ple4ity of configuration suitable
for the%! *or instance$ the s%all office and ho%e D"181F seg%ent does not re#uire
co%plicated %achines and software! But the business seg%ent certainly re#uires
higher configured co%puters in a networked environ%ent!
The %a>or factor that works in favour of unbranded co%puters is the price
advantage! The local players pass on the benefit of various levies and ta4es to their
custo%ers$ hence their product costs relatively less! *urther$ the pro4i%ity of the
vender with the custo%er and easy two.way dialogue provides a strong basis for
relationship for%ation! A typical co%puter buyer in "181 seg%ent lacks co%puter
literacy! It is this lack of product knowledge that %akes hi% look for ways to reduce
uncertainty and risk surrounding the purchase! Hnder such circu%stances$ brands
typically are called to fill this role of advisor and after.sale provider.an area where
they do not pass with distinction! But in the "181 seg%ent$ the search process for
co%puters involves talking with friends who$ in turn introduce these prospects to
local vendors! The local vendors$ through better pro4i%ity$ direct contact and
convincing power are able to convert these prospects into buyers! 7ue to the sa%e
factors$ their after.sales response is also better$ since they largely rely on networking
with custo%ers for business e4pansion and lucrative annual %aintenance contracts!
Hnlike other lu4ury or conspicuous products$ co%puters are not bought or %ade for
sy%bolic purposes! They are typically bought rationally to solve a proble%! The
cognitive %ode of approaching the purchase creates openness to infor%ation as well
as utility assess%ent! It is at this stage that the local co%puter vendor is able to
convince the potential buyer that a co%puter is nothing but asse%bly of parts
%anufactured by established original e#uip%ent %anufacturers like "a%sung$ Intel$
@)$ "eagate and TL"! The asse%bly of their parts into a %achine does not re#uire
%uch skillJ it is %ostly screwdriver technology! (ost branded players do not e%ploy
any uni#ue technology in their co%puter %aking$ therefore the perfor%ance
outco%es do not vary between the two categories! The local vendors attribute the
price pre%iu% charged by the branded players to advertising and overhead costs$
thus %aking out a powerful case against the purchase of branded co%puters!
Recent duty structure changes have worked in favour of the organi/ed seg%ent$ and
the prices of branded %achines have seen a downward trend owing to lower landed
costs of products! Besides$ the distribution strategies have been reworked! The
nu%ber of outlets offering branded products has been increased! "i%ply raising the
technical product specification is not viewed as a crucial differentiator! The
specifications can be %atched point by point by all kinds of players! *or instance$
8C@ has +<< e4clusive stores across 2<< cities and around 1<<< other selling points
or s%aller for%ats! "i%ilarly$ Acer also works on a two.for%at fra%ework! There are
e4clusive Acer %alls that stock Acer products e4clusively$ besides other selling
points where its products are sold along with rival brands!
The %arket for unbranded 'Cs used to be above ; percent in 2<<$ but now it has
co%e down to about -- percent! The downward trend still continues! The organi/ed
sector see%s to be eating into the unorgani/ed sector! This growth is$ by and large$
attributable to duty reduction! In a study of consu%er behaviour$ it was discovered
that co%puters are inti%idating products for buyers who buy the% for ho%e use!
Children are the %a>or drivers of purchase! The need is often initiated at their level!
Co%puters are used both for educational and entertain%ent purposes! *urther$
co%puters are perceived to be a high tech area$ and an average custo%er finds
hi%self grossly ill.e#uipped to handle the co%puter.buying task! The process of
e#uipping the%selves to effectively handle the purchase leaves the% open to
infor%ational influence$ i!e!$ networking friends and colleagues! Co%puters are
undifferentiated products for custo%ers in ter%s of technical specifications! All they
crave is the confidence to %ake a purchase decision$ and will gravitate towards a
source of this wherever they are convinced the support is genuine!
As such$ one of the %a>or challenges that %ost branded players face is how to %ake
a dent in the %arket do%inated by the unorgani/ed players! Trapped in between are
the Indian players like "hiv ,adarAs 8C@$ an i%portant player in the desktop
seg%ent! Its position at present is fir%ly established but it can drift into the line of
fire fro% the (,C brands! (,C brands are consolidating their position$ having
grown at the cost of %ostly Indian brands! These brands have been registering
robust growth! Caught in between grey %arket and (,Cs are the hapless Indian
co%panies! The lower end is do%inated by the players fro% the unorgani/ed sector
who operate on wafer.thin %argins! 1n the top are (,C brands that push i%age
and #uality to lure upper layers of the %arket! "o%e (,C players have even roped
in celebrities like "aif Ali and "hah Rukh &han in their brand building efforts!
@enovo is banking upon the char% of "aif Ali$ and "hah Rukh endorses Co%pa#!
The net effect is that (,C brands are gradually building %arket share pri%arily at
the e4pense of Indian players! The downward trend of prices is eroding the price
advantage that %any Indian %akers so far relied upon to develop their brands! They
co%bined acceptable #uality with appreciably lower prices to gain %arket share!
Indian brands are now finding the%selves s#uee/ed in between the unorgani/ed
players and (,C brands! This is leaving the% looking for ways to create %eaningful
differentiation in their products! The conventional %arkets like %etros and top
cities have already beco%e a battle.ground$ where fierce battles are raging as
saturation points are nearing! In this scenario$ even the top players are beginning to
e4plore non.traditional$ non.%etro %arkets!
34perts are divided on the issue whether Indian co%puter %akers would be
co%pletely wiped off the %ap! "o%e feel that Indian %akers do not offer
differentiated product! The (,C brands$ on the one hand$ for% the top end$ while
unorgani/ed players at the botto% leave very little scope for differentiation! Indian
brands see% to losing ground every year! "o%e players are shifting their attention to
non.%etro %arkets in B and C category cities! But the real issue isJ how long the
(,C brands be prevented fro% getting into these %arkets as well5 They have the
resources and the i%age to do this with relative ease! Hlti%ately$ brands have to
develop strategies to co%bat co%petition! It is not i%%ediately apparent what
Indian %arketers ought to be doing to carve out a survival niche for the%selves!
CA"3 <-J 08IC8 7IR3CTI1, "81H@7 T83 BRA,7 TA&35
@iril %ade a big splash in the toilet soaps category in the late Kseventies! The %arket
then was not very co%petitive! The %i4ed econo%y %odel did not yet fulfil the
drea% of prosperity and affluence! The Klicence ra>A tightly controlled industrial
activity! @ike %ost of the industry sectors$ the toilet soap industry was do%inated by
only a handful of players like 8industan @ever$ Calcutta Che%icals and To%co!
These three players %arketed a co%plete portfolio with brands ai%ed at different
seg%ents and offering different benefits! The other players catered to s%all niches$
as did Johnson ? Johnson$ which li%ited its range to infant and kids$ with
appropriate product offering including %ild soap and sha%poos! 1ther local players
included the likes of Chandrika$ "wastik$ &eshnikhar$ (ysore "andal and (edi%i4$
besides a host of s%all players that operated locally!
This was during the Kseventies$ when %arketing as we know it today had not co%e
into its ownI it had yet to harden into a serious discipline! *ir%s still followed
traditional practices in conducting business$ and %arketing personnel could not be
said to co%%and high estee%I their >ob was to hunt out fresh avenues for enhancing
sales opportunities! Lery few co%panies differentiated between sales and %arketing
functions$ preferring to club the% under a single depart%ent$ and few indeed were
the ones who adopted a seriously technical approach to the activity! 7e%and still
chased supply and$ it being a supplierAs %arket$ things were easier to sell$ whatever
their #uality! Advertising did not use sophisticated tools both to e4plore consu%er
%otivation and create e4ecutions! @ike %any other categories$ brands used rational
appeals to woo consu%ers! The proble% G solution the%es do%inated the
%arketing arena! "oap fragrance$ si/e$ colour$ na%e$ etc!$ were seen to be %a>or bait
for hooking custo%ers! The brand co%%unication and ingredients as %eans to
influence buying! The %arkets were still clubbed into the large %asses of custo%ers
with little e4press differentiation! The whole econo%y see%ed to have been stuck in
a ti%e warp$ with a little cla%our when it ca%e to grappling with the co%petition.
what there was of it!
@iril arrived on the soap space with the pro%ise to transfor% bathing fro% proble%
coping to providing e4perience! 0ith its KfreshnessA platfor%$ the brand sought to
add a psychological di%ension of feeling good! The brand uni#uely co%%unicated
and connected with its prospects through a bold advertise%ent by then prevalent
values! In 19:-$ the brand co%%unications showed a beautiful %odel in a bikini
under a natural waterfall! The e4cite%ent and freshness so conveyed by the
advertise%ent struck an e%otional connect with the people! The sound track of the
TL Dthen$ alas$ only black and whiteF co%%ercial used a K@a!!la!!la!!A tune that
concreti/ed the delivery pro%ised by the brand! In no ti%e$ the brand beca%e
hugely successful! The brand headline invited the potential uses as Kco%e alive with
@iril freshnessA! The brand advertising showed floating >uicy sliced le%on to back up
its freshness clai%! It was the first brand that sought to play on inherent freshness
associated with li%e!
Brand co%%unication
N 'otential custo%erJ young wo%en
N BackgroundJ natural high energy waterfall
N The%eJ young$ vivacious$ attractive girl having bath
N 'ro%ised benefit. freshness e4perience
N 'ro%ise supportJ floating >uicy slices of le%on
N Loice overJ Co%e alive with @iril freshness
@iril cornered 1+ percent %arket share$ good enough to give it a slot in first three
positions! It established the pre%iu% seg%ent in soap category! The brand was a top
perfor%er in the toilet soaps category until 199-$ when it began to lose %arket
share! 7uring this period$ the brand lost big volu%e. over - percent G and its
%arket share slid to below five percent! The e4cite%ent and innovation created by
the brand could not be sustained! The later brand co%%unication deviated fro% the
original brand positioning! *urther$ the brand benefits of li%e and freshness
responsible for its success lost novelty! (any other brands began to focus on li%e as
ingredient and the clai%ed benefits of freshness! 0hat was once a uni#ue$
pioneering benefit was beco%ing generic! *urther$ the brandAs original custo%ers
who grew up with it$ were aging! 1ver ti%e$ the need structure of this group was
shifting fro% e4perience and e%otional delivery to functionality! This way$ the
brand began to lose its grip over the %arket!
The net result of loyal custo%ers %igrating to functionality$ and the brandAs uni#ue
positioning getting cluttered$ were typical challenges associated with the life cycle!
@ack of differentiation and resonance with the potential custo%ers began to take is
toll on the brand! The brand persona$ that centred on li%e and freshness no longer
offered the uni#ueness that the brand now re#uired to revitali/e itself! The issue
facing @iril was how to resurrect the once very strong brand and regain its for%er
glory! (any thought of launching variations and re.doing the brandAs
co%%unication in order to %ake it %ore attuned with the ti%es$ so that young
custo%ers could be included in the brandAs fold!
Challenged at the brand was$ @ever did %ake a heroic atte%pt to in>ect fresh blood
into the brand! The period of change and e4peri%entation began in 199-! The brand
first rode on the e4tension %ode! *irst$ the brand saw the launch of a shower gel in
199+$ followed by a cologne variant in 1999! @ater$ in 1999$ another variation saw
the light of the day by the na%e of Rainfresh! Then ca%e icy blue @iril! The brand
was hooked into a nu%ber of variants$ all of the% trying to play around with the
the%e of freshness in different conte4ts!
The brand co%%unication that once created history of sorts G with se4y$ bikini.clad
&aren @unel splashing about gleefully under a natural waterfall changed radically!
The original &aren @unel ads ran for twelve years$ fir%ly establishing the brandAs
associations with li%e freshness! The girl in the waterfall the%e was finally
abandoned in favour of so%ething called an Kunusual water e4perienceA! Instead of
Kthe girl under the waterfallA the%e$ the girl ca%e out to bathe in the open$ whether
in a car wash or by dancing in front of a fire tanker hose! In a bid to lure youth$ a set
of co%%ercials were launched on (TL! Then ca%e the pissing boy$ the girl in the
desert$ and the @iril Icy co%%ercial! The brand co%%unication began to take %any
routes$ as if the idea was to shoot off arrows in all direction in the hope that one
would hit the target! But that did not see% to happen! The advertising initiatives and
line e4tensions failed to infuse any energy into brandAs perfor%ance!
@ike the brand co%%unication$ even the product looks and for%s deviated fro% its
uni#ue green$ streaked appearance! Icy blue gave way to a blue variant that
contained %enthol! 0ith line e4tensions$ the brand sought to deliver bathing
e4perience! The brandAs bold co%%ercial of the green bikini clad %odel$ %ade way
for a %odel in a green swi%suit! @ater$ the swi%suit of the @iril %odel %oved on to
beco%e a pair of hot pants! The brand faced intense co%petitive pressures in
nineties$ fro% other li%e soaps ai%ing to copy the freshness platfor%!
34perts feel differently about the fall of @iril fro% its pri%a donna status! 1ne e4pert
ascribes the fall of the brand to the confusion between the brand idea and its
e4ecution! (any believe that the central brand idea was never really clear! It
appeared that the Kgirl in the waterfallA was the central brand idea and it should not
have been touched! But is it this creative e4pression of the central idea of freshness
G or the ideas itself G that was sacrosanct5
1thers believe that @iril drew its success fro% the brand personality created by the
first %odel$ &aren @unel! "he epito%ised not only youth but also other traits like
e4uberance$ vivacity$ innocence and fun! The %odels that replaced &aren were only$
young pretty things! They were lacking across all the other personality aspects of the
first %odel that launched the brand! @ever was never been able to find another
&aren @unel to so uni#uely capture and reflect the brand essence!
The %anagers at the co%pany believed that the brandAs creative e4pression of Kgirl in
the waterfallA hand beco%e outdated! It had lived its life! But actually$ the hangover
persists to this very day! To give the% credit$ they have not altogether deviated fro%
it! Be it @iril calendar or advertise%ents$ the sy%bols of the waterfall and the girl
would always be visible! Beyond co%%unication$ the brand has also see%ed to have
suffered on account of @everAs inability to co%e up with the right product line in the
case of @iril$ as they did for @u4 and @ifebuoy! It is suggested that the brand has to
discover new$ audacious paradig%s and reach out to new hori/ons! It %ust
transcend its current e4pression$ only then is there so%e hope for revival!
(any believe that he brand failed to progress with ti%e! The raped changes e4ecuted
in the co%%unications a%ount to influencing the superficial! The funda%ental
proble%s plaguing the brand were never unearthed! The tactics to correct
i%%ediate proble%s began to drive the strategy! ,ew variations and
co%%unications %ade the picture rosy for so%e ti%e$ but once the e4cite%ent
period passes$ the sales tu%ble to their previous levels!
Aly#ue 'ada%see$ who initially created the brand$ believes that @irilAs proble%s lie
in the fact that its original bathing e4perience has been replaced with unusual water
e4perience! The later ads like the pissing boy and the desert ad use the the%e of
water$ but he #uestions$ Kwhere is the bathing e4perience in this5 Is it central to the
idea of freshness5 The brand see%s to have withered Dand %eanderedF too far
beyond its original core idea! All the co%%ercials are good to view$ but they fail to
touch the heart! (any industry people believe that bringing back those original
co%%ercials %ay be a good idea!
But how would that help5 A %a>ority of the brandAs current custo%ers do not have
any idea or recollections of those %agical advertise%ents fro% the Kseventies! 1ver
thirty years have passed$ and few are the nostalgic that have survived! The
custo%ers to today are funda%entally different fro% those of the pastI they have a
%ore actively e4periential outlook on life! They seek %ore active participation in
everything! They donAt e4pect a brand to passively deliver a benefit! Rather$ they
want to create an e4perience by active participation! 'resently$ @iril has three
variantsJ @iril Aloe Lera$ Icy Cool and @iril 1range!
BUSINESS COMMUNICATION
CASE I: A Rep! Se"t t# a" E$$i"% C&'t#(e$
Dear Sir,
Your letter of the 23rd, with a cheque for Rs. 25,000/- on account, is to hand.
We note what you say as to the diculty you e!"erience in collectin# your outstandin#
accounts, $ut we are co%"elled to re%ar& that we do not thin& you are treatin# us with
the consideration we ha'e a ri#ht to e!"ect.
(t is true that s%all re%ittances ha'e $een forwarded fro% ti%e to ti%e, $ut the de$it
$alance a#ainst you has $een steadily increasin# durin# the "ast twel'e %onths until it
now stands at the considera$le total of Rs. )5,000/-
*a'in# re#ard to the %any years durin# which you ha'e $een a custo%er of this house
and the, #enerally s"ea&in#, satisfactory character of your account, we are reluctant to
resort to harsh %easures.
We %ust, howe'er, insist that the e!istin# $alance should $e cleared o+ $y re#ular
install%ents of say Rs. ,0,000/- "er %onth, the -rst install%ent to reach us $y the .th.
(n the %eanti%e you shall "ay cash for all further #oods/ we are allowin# you an e!tra
30 discount in lieu of credit.
We shall $e #lad to hear fro% you a$out this arran#e%ent, as otherwise we shall ha'e no
alternati'e $ut de-nitely to close your account and "lace the %atter in other hands.
Yours truly.
)&e'ti#"':
*+ C#((e"t #" t,e app$#p$iate"e'' #- t,e 'e".e$/' t#"e t# a c&'t#(e$+
0+ P#i"t #&t t,e #. 1 -a',i#"e. p,$a'e' a". e2p$e''i#"'+
3+ Re4$ite t,e $ep! acc#$.i"% t# t,e p$i"cipe' #- e5ecti6e 4$iti"% i" 7&'i"e''+
CASE II: ADVERTISING RADIO 8M BRAND
1 youn#, #or#eous wo%an is standin# in front of her a"art%ent window dancin# to the
,2.0s tune, 31ll Ri#ht 4ow5 $y the one 6 hit $and free. 1cross the street a youn# %an
loo&s out of his a"art%ent window and notices her. *e %o'es closer to the window,
ta&in# interest. She cran&s u" the 'olu%e and continues dancin#, loo&in# out the
window at the fellow, who s%iles ho"efully and wa'es %ee&ly. *e holds u" a $ottle of
wine and wa'es it, a""arently in'itin# her o'er for a drin&. 7he lady wa'es $ac&. *e
&isses the $ottle and e!citedly says, 3Yesss.5 7hen, he #a8es around his a"art%ent and
reali8es that it is a %ess. 34o95 he e!clai%s in a worried tone of 'oice.
:rantically, he does his $est to quic&ly clean u" the "lace, stun# "a"ers under the sofa
and "uttin# old food $ac& in the refri#erator, *e sli"s on a $lac& shirt, slic&s $ac& his
hair, sni+s his ar%"it, and lets out an e!cited , 3Yeahhh95 in ea#er antici"ation of
entertainin# the youn# lady. *e #oes $ac& to the window and sees the wo%an still
dancin# away. *e "oints to his watch, as if to say 3;o%e on. (t is #ettin# late.5 1s she
<ust continues dancin#, he loo&s confused. 7hen a loo& of sudden insi#ht a""ears on his
face, 3:i'e,5 he says to hi%self. *e turns on his radio, and it too is "layin# 31ll Ri#ht
4ow.5 7he %an #oes to his window and starts dancin# as he watches his lady friend
continue ste""in#. 3:i'e, yeah,5 he says as he %a&es the 3o&ay5 si#n with his thu%$
and fore-n#er. *e wa'es a#ain. ='eryone in the a"art%ent $uildin# is dancin# $y their
window to 31ll Ri#ht 4ow.5 1 su"er a""ears on the screen> 31re you on the ri#ht
wa'elen#th?5
)&e'ti#"':
*+ 9,at i' "#" 1 6e$7a c#((&"icati#": 9,! .# !#& '&pp#'e t,at t,i'
c#((e$cia $eie' p$i(a$i! #" "#";6e$7a c#((&"icati#" 7et4ee" a !#&"%
(a" a". a %#$%e#&' 4#(a": 9,at t!pe' #- "#" 1 6e$7a c#((&"icati#" a$e
7ei"% &'e. i" t,i' ca'e:
0+ 9#&. a"! #- t,e "#";6e$7a c#((&"icati#"' i" t,i' 'p#t <a.= "#t 4#$> 4e
i" a"#t,e$ c&t&$e:
3+ 9,at $#e .#e' (&'ic pa! i" t,i' 'p#t: 9,# i' t,e ta$%et (a$>et:
?+ I' t,e (&'ic at a .i't$acti"% -$#( t,e (e''a%e:
@+ H#4 e'e a$e $a.i# 'tati#"' a.6e$ti'e. #" TV:
CASE III: A$6i". Pa".e! Ca&%,t i" B&'i"e'' 9e7
1r'ind @andey is a "ro<ect %ana#er at 1l Sa$a ;onstruction ;o%"any in Auscat. (t s a
Bourishin# co%"any with se'eral construction "ro<ects in Auscat and a$road. (t is &nown
for co%"letin# "ro<ects on ti%e and with hi#h quantity construction. 7he co%"anyCs
;hair%an is a rich and a hi#hly educated D%ani. 1 Eer%an en#ineer is 1r'indCs Fice 6
@resident for ur$an and forei#n construction "ro<ects.
7hree %onths a#o, 1l Sa$a had su$%itted a tender for a %a<or construction "ro<ect in
Guwait. (ts quotation was for H 25 %illion. (n Guwait the "ro<ect was s"onsored and
announced $y a IS 6 $ased construction co%"any called :u%a. 1ccordin# to 1l Sa$a,
their $id of H 25 %illion was %odest $ut had included a hi#h %ar#in of "ro-t.
Dn 25 1"ril, 1r'ind was as&ed to #o to Guwait to -nd out fro% the :u%a "ro<ect %ana#er
the status of their construction "ro"osal. 1r'ind was deli#hted to &now that :u%a had
decided to #i'e his co%"any, J1l Sa$aK the construction "ro<ect wor&. 7he "ro<ect %eant
a lot of e+ort and %oney in "lannin# the "ro"osed construction in Guwait.
Lut $efore 1r'ind could tan& the :u%a "ro<ect %ana#er, he was told that their $ird
should $e raised to H 2) %illion. 1r'ind was sur"rised. *e tried to con'ince the :u%a
"ro<ect %ana#er that his J1r'ind co%"any had the $ast re"utation for doin# construction
wor& in a cost e+ecti'e way. *owe'er, he could always raise the $id $y H 3 %illion. Lut
he wanted to &now why he was required to do so.
7he :u%a %ana#erCs re"ly was, 37hatCs the way we do our $usiness in this "art of the
world, H , %illion will #o to our Aana#in# Director in the IS, ( shall #et H , %illion, you,
Ar. @andey, will #et H , %illion in a s"eci-ed account in Swiss Lan&.
1r'ind as&ed, 3Lut why %e?5
3So that you ne'er tal& a$out it to any one.5 7he :u%a @ro<ect Aana#er said.
1r'ind "ro%ised ne'er to lea& it out to any one else. 1nd he tried to $ar#ain to raise the
$id $y H 2 %illion.
r 1r'ind was fa%iliar with the "ractice of 3"ay 6 o+s5 in'ol'ed inany such thin#. *e thou#ht it was a#ainst his loyalty to his co%"any and his "ersonal
ethics. 1r'ind "ro%ised the :u%a "ro<ect %ana#er that the $id would $e raised to H 2)
%illion and fresh "a"ers would $e "ut in. *e did not want to lose the <o$.
*e ca%e $ac& to Auscat and &e"t tryin# to -#ure out how he should "lace the whole
thin# $efore his Eer%an Fice @resident. *e o$'iously was at a loss.
)&e'ti#"':
*+ A"a!'e t,e $ea'#"' -#$ A$6i". Pa".e!/' .ie((a+
0+ D#e' A$6i". Pa".e! $ea! -ace a .ie((a:
3+ I" !#&$ 6ie4 4,at ',#&. A$6i". Pa".e! .#: S,#&. ,e .i'c#'e it t# ,i'
Ge$(a" Vice P$e'i.e"t:
CASE IV: C#(pa"! Accepti"% a C#"t$act
1 co%"uter co%"any was ne#otiatin# a 'ery lar#e order with a lar#e si8e cor"oration.
7hey had a 'ery #ood trac& record with this client.
(n this cor"oration, -'e di+erent de"art%ents had "ooled their require%ents and
$ud#ets. 1 co%%ittee was for%ed which had re"resentation fro% all the de"art%ents.
7he cor"oration wanted the equi"%ent on a lon# lease and not outri#ht "urchase.
:urther, they wanted the entire hardware and software for% one su""lier. 7his %eant
that there should $e $ou#ht 6 out ite%s fro% %any su""liers since no one su""lier could
%eet all the require%ents of su""ly fro% its ran#e of "roducts.
7he cor"oration "ro'ided an e!hausti'e list of 'ery dicult ter%s and conditions and
"ressuri8ed the 'endors to acce"t. 7he co%"uter co%"any who was -nally awarded the
contract had a#reed to o'erall ter%s that were -ne as far as their own "roducts were
concerned $ut had also acce"ted the sa%e ter%s for the $rou#ht 6 out ite%s. (n this
case, the $ou#ht 6 out ite%s were to $e i%"orted throu#h a letter of credit. 7he
"ercenta#e of the $ou#ht 6 out ite%s 'ersus their own %anufacture was also 'ery hi#h.
Dne of the ter%s acce"ted was that the 3syste%5 would $e acce"ted o'er a "eriod of ,0
days after all the hardware had $een lin&ed u" and software loaded.
7he co%"uter co%"any started facin# trou$le i%%ediately on su""ly. 7here were o'er
,00 co%"uters o'er a distance connected with one another with software on it.
r theacce"tance tests, it had $een a#reed that the co%"uter co%"any would de%onstrate as
a "re-requisite the features they had clai%ed durin# technical discussions.
4ow, as you are aware, if a *ero *onda %otorcycle clai%s )0 &% to a litre of "etrol, it is
under ideal test conditions and if a %otorcycle fro% the showroo% were to $e tried for
this test $efore $ein# acce"ted, it would ne'er "ass the test. (n cor"orationCs case, due
to internal "olitics, the cor"oration "ersons fro% one de"art%ent 6 who insisted on #oin#
e!actly $y the contract 6 did not si#n acce"tance since the 3syste%5 could not %eet the
ideal test conditions.
:urther, in a classic case of, 3for want of a horse 6 shoe, "ay%ent for the horse was held
u"5, the co%"uter co%"any tried to #et the syste% acce"ted and "ay%ent released.
7he syste% was so lar#e that at any "oint of ti%e o'er a "eriod of ,0 days so%ethin#
s%all or the other always #a'e "ro$le%s. Lut the cor"oration too& the stand that as far
as they were concerned the contracts clearly were concerned the contract clearly
%entioned that the 3syste%5 had to $e tested as a whole and not %odule $y %odule.
)&e'ti#"':
*+ C#((e"t #" t,e te$(' a". c#".iti#"' pace. 7! t,e c#$p#$ati#"+
0+ 9,at -act#$' i"A&e"ce. t,e c#(p&te$ c#(pa"!/' .eci'i#" t# accept t,e
c#"t$act:
3+ 9a' it a 4i" 1 4i" a%$ee(e"t: Di'c&'':
Ca'e V: HABARDS O8 HILLS
INTRODUCTION
7his case is $ased on an actual incident which too& "lace in an 1r%y Init de"loyed in
-eld area. 1 "art of a Lattery Ja$out M of an 1rtillery Re#i%entK was de"loyed in a snow
$ound hi#h altitude area of Gash%ir. 7his was the -rst ti%e, an artillery unit was
de"loyed in an area with roads and trac&s still under de'elo"%ent. @re"aration of this
area for such a de'elo"%ent needed a lot of di##in# for #uns, "its for a%%unition
stora#e, li'in# "lace of the "ersonnel, slit trenches and wea"on "its for local defence
a#ainst any "ossi$le ene%y/terroristsC attac& on the "osition, "lace for stora#e of rations,
coo&-house and co%%unication trenches, etc.
7he total stren#th of the "arty de"loyed there was
aK Dcer - , JSecond Nieutenant with a$out one year ser'iceK
$K Ounior ;o%%issioned Dcer JO;DK - ,P
cK Oawans 6 Q0
7he Lattery ;o%%ander JL;K re%ained with the Re#i%ent *eadquarters at Srina#ar
Jwith the re%ainin# "art of the LatteryK as "er the orders of the co%%andin# Dcer.
7here was a 'ehicle with the "art of the Lattery which was de"loyed at hi#h altitude to
assist in the daily ad%inistration of the troo"s li&e collection of ration, stores for
"re"aration of defences, water, and ferryin# of "ersonnel fro% one "lace to another. 7he
'ehicle could #o only u"to a li%ited nu%$er of "laces due to $ad road conditions and
stee" #radients. Dnly one dri'er was &e"t for this 'ehicle to reduce ad%inistrati'e
"ro$le%s due to %ore nu%$er of "ersonnel. 7he 'ehicle co%"leted a$out 35 to Q0 &%s.
of runnin# daily in its routine co%%it%ents.
7he "art had <ust $een inducted a$out two wee&s $ac&. 7he defences were $ein#
"re"ared which in'ol'ed lot of e+ort in di##in# of hardened #round due to the cold
winter %onths of 4o'e%$er. 7he defence stores were to $e collected, once the di##in#
was co%"lete, fro% another =n#ineerin# Init located a$out 5 &%s. to the rear. 7he roads
were treacherous/ with a nu%$er of stones and slides fallin# down occasionally durin#
dri88le due to "reci"itation in at%os"here, there were stee" #radients, narrow roads with
sheer falls on one side due to the road ha'in# cut into the side of hills. 7he di##in# was
co%"lete $y end 4o'e%$er. (n the %onth of Dece%$er, snow fall at that location was
e!"ected any ti%e, as it had already started snowin# in the hi#her reaches and to"s of
%ountains. 7he di##in# had $een co%"leted in a record ti%e of two wee&s. 7he "arty
under the stewardshi" of the youn# ocer had done a co%%enda$le <o$.
(n the -rst wee& of Dece%$er, the only dri'er of the 'ehicle re"orted "ain in the chest
and "ro$le% in $reathin#. *e was e'acuated $y helico"ter the ne!t day with instructions
to infor% the unit to send another dri'er for the 'ehicle. (t too& a$out three days for any
one to reach this area, with stayin# of two ni#hts enroute in order to accli%atise $y
sta#es. 7he detach%ent was to $e without any dri'er for a$out three days. 1nother
dri'er was detailed to "roceed to this area, after ha'in# $een %edically e!a%ined and
found -t. 1 day after the dis"atch of the dri'er, the youn# ocer with this "arty arri'ed
in the unit and re"orted that the 'ehicle had fallen fro% a hill-side road and was
co%"letely da%a#ed. 7he oce was in a co%"lete state of disarray and shoc&. What
actually had ha""ened #oes so%ethin# li&e this.
1fter the -rst dri'er of the 'ehicle was e'acuated, the weather started turnin# $ad and it
see%ed that it was #oin# to snow that day. 7he ocer realised that in case of snow fall
all the e+orts "ut in $y the troo"s would #o waste, if the du#-ins were not co'ered.
Realisin# this, he $orrowed a dri'er of an a%$ulance fro% a local %edical unit to direct
his 'ehicle for collection of defence stores. 1fter the stores had $een collected and
du%"ed at the site of defences, the 'ehicle was $ein# dri'en $ac& to the "artyCs
location. Lefore it could reach this location, it had to ne#otiate a dusty and stee" trac&.
1t a stee" cli%$ the 'ehicle stalled and #ot switched o+. 1ll the %en #ot down,
"re'ented the 'ehicle fro% re'ersin# $y "uttin# stones $ehind the wheels and started
chec&in# what had #one wron#.
1fter the chec& on the en#ine had $een carried out, the $onnet co'er sli""ed o+ the
hands of the dri'er while closin# it and fell to closin# it and fell to closin# "osition with a
$an#. Lecause of the <er& thus created, the stones "laced $ehind the 'ehicle sli""ed o+.
(t was later disco'ered that there was a #lassy s%ooth layer of ice under the thin layer of
dirt which could not hold the stones -r%ly and sto""ed u"side down $ecause of the
o$struction created $y a $i# $oulder. 1s there was no one in the 'ehicle, there were no
in<uries to "ersonnel. Dn close ins"ection $y the ocers, it was found that the 'ehicle
$ody, ca$in, $onnet steerin# wheel and two of the four wheels were $adly da%a#ed. 7he
oce, $ein# quite youn# and ine!"erienced, could not ascertain the real condition of the
en#ine and chassis. *e thou#ht those too were da%a#ed, whereas $ecause of so%e
"ro'idential chance, the chassis and en#ine re%ained intact.
7he L; was #i'en the res"onsi$ility of #ettin# the 'ehicle $ac& to the unit. *e was #i'en
a 'ehicle -tter and reco'ery 'ehicle with a dri'er. 7he L; too& two %ore 4on-
;o%%issioned Dcers J4;DsK and "roceeded to the location to retrie'e the 'ehicle. (t
too& two days to reach with a few hours of the last le# of the <ourney in co%"lete
dar&ness in that snow $ound area with treacherous sli""ery roads. Dn reachin# the
location, the ;o%%andin# Dcer of the local unit, who ha""ened to $e the Station
;o%%ander of that sector, e!"ressed his unha""iness on their ta&in# such a #reat ris&.
With the assistance of all ran&s of that unit, who ca%e in willin#ly, it too& two days to #et
the 'ehicle out of the $oulder strewn area on to a trac&. (t was a %inor %ilitary o"eration
in itself in that hostile terrain, and incle%ent weather of hi#h altitude. 7he troo"s and
ocer had a 'ery #ood ra""ort with those of the local unit and there was not %uch of a
"ro$le% in #ettin# the %en of that unit to assist.
While co%in# $ac&, the ha8ards of ni#ht <ourney were 'ery o$'ious. 7here was a thic&
layer of snow on the road with slo"e towards the &huds as layers after layers &e"t on
accu%ulatin#, free8in# $efore the water could roll down the co%"lete slo"e. 7here were
stee" falls on one side. Loth these "heno%ena, "eculiar to hilly terrain, were not 'ery
discerni$le $ecause of the dar&ness. 7he headli#hts of the 'ehicles e!"osed 'ery little.
7here were fro8en nalas where the 'ehicle would s&id, ali#nin# itself in the direction of
the fro8en nala, which tended to "ro'e quite dan#erous at ti%es. 1t such "laces, the few
troo"s and ocer a'aila$le would #et down, "ush the 'ehicle to &ee" it ali#ned to the
road and in turn sli" down the%sel'es on the fro8en snow, %ost of the ti%es face-down,
in an atte%"t to "ush the 'ehicle. 7hou#h the situation was quite #ra'e, it so%eti%es
$ordered on $ein# hu%orous with e'eryone lau#hin# s"ontaneously. 1t one "lace, the
L;, "ushin# the 'ehicle to &ee" its tail and ali#ned to the direction of road, fell down,
sli""ed a few feet down the fro8en nala and landed u" head down in a fro8en &hud a$out
-'e feet dee". Lut for the direction of landin#, the sli" and fall could ha'e "ro'ed quite
dan#erous. 7here was co%"lete silence. 7he 'ehicle was #ently sto""ed on the snow
itself, secured with "e#s alon# the wheels and rescue o"eration co%%enced for the
ditch. 7here were se'eral hu%orous re%ar&s $y the L; and the tension was relie'ed at
once, with troo"s wor&in# on the 'ehicle with renewed 'i#our and stren#th once a#ain.
1t another "lace, the reco'ery 'ehicle with the da%a#ed 'ehicle $ehind it at sus"ension
toe sli""ed, $ut $ecause of the de!erity of the dri'er, it was sa'ed fro% #oin# down a
nala $y "uttin# it on the left. 7he L; hi%self was in the reco'ery 'ehicle to #i'e
encoura#e%ent and %oral su""ort to the dri'er, sharin# all the ris&s which his troo"s
were facin#. *e did all that the troo"s did, while directin#, controllin# and e!ecutin#. 7he
"arty with the 'ehicle, reached the unit location on the e'enin# of the second day after
startin# fro% a hi#h altitude area. 7he "ro$le% of reco'ery of the 'ehicle $ein# resol'ed,
the question of enquiry into the caused e%$arrass%ent to all those in authority in the
unit and also the ocers and <awans of the su$-unit/$attery. Aeanwhile, the ins"ection of
the 'ehicle was carried out to assess the e!tent of da%a#e. (t was found that the en#ine
and chasis were intact and the rest of the ite%s of the $ody or -t%ent were da%a#ed,
either li#htly or se'erely. 7o a'oid e%$arrass%ent to the unit and loss to the e!chequer,
as well as in 'iew of the ad%inistrati'e diculties, the L; decided to ha'e the 'ehicle
"ut on road with the unitsC e+orts and at the earliest. Aeanwhile, the ca$in-hood of the
'ehicle had $een "urchased for a$out Rs R50 and was "aid for $y the L;, fro% his own
"oc&et, thus settin# an e!a%"le to others. 7he O;D and <awans were also &een to "ay for
other da%a#es. 7he o+er was a""reciated $ut declined.
7he Dcer-in-char#e of the local 1r%y Wor&sho" ha""ened to $e an ocer with
co%%enda$le hel"in# attitude, "ositi'e $ent of %ind and with an understandin# of
"eculiarities and "ro$le%s of the area where such accidents were quite frequent and
"ossi$le. When a""roached to assist, he listened to the whole incident 'ery
sy%"athetically and "ro%ised to assist in whate'er way he could. 7his ocer was a
conte%"orary of the unit in a "re'ious station and had e!cellent relations and interaction
with the unit. So%e ite%s were o+ered $y the wor&sho" ocer and re"laced accordin#ly.
7he 'ehicle was %ade roadworthy a#ain within a fortni#ht and "ut on road for duty. 1ll
the enquiries were dis"ensed with and there was no loss of face $y anyone at any le'el.
(t is "ertinent to %ention that it had snowed in that location as soon as the reco'ery
"arty ca%e out of the hills.
)UESTIONS
*+ 9,at a$e t,e C&aitie' #- a %##. ea.e$: I" t,i' ca'eD ,#4 4e$e t,e!
appie.:
0+ 9,ic, -act#$' c#"t$i7&te. t# (#ti6ate t,e t$##p' t# %# a,ea. -#$ '&c, a
.iEc&t ta'> a' $ec#6e$i"% a .a(a%e. 6e,ice -$#( '&c, a .iEc&t a".
t$eac,e$#&' te$$ai" a". %etti"% it $epai$e. i" '&c, a ',#$t ti(e:
3+ 9,ic, i"ci.e"t' i".icate t,e i(p#$ta"ce #- %##. i"te$pe$'#"a $eati#"',ip'
4it, F&"i#$'D pee$' a". '&pe$i#$' a". 4,at i' t,e i(p#$ta"ce #- %##.
i"te$pe$'#"a $eati#"',ip':
Ca'e VI: C,ec>i"% O&t a G&e't
1 #uest wal&ed u" to the front des& a#ent in an u"scale hotel, ready to chec& out. 1s she
would nor%ally do when chec&in# out a #uest, the a#ent as&ed the #uest what his roo%
nu%$er was. 7he #uest was in a hurry and showed his an!iety $y res"ondin#, 3( stay in a
hundred hotel roo%s and you e!"ect %e to re%e%$er %y roo% nu%$er?5
7he a#ent then as&ed for the #uestCs na%e, to which he res"onded, 3Ay na%e is Ar.
Oohnstein.5 1fter than&in# hi%, the a#ent $e#an to loo& for the #uestCs last na%e, $ut the
na%e was not listed in the co%"uter. Lecause the %an had a hea'y accent and the
a#ent assu%ed that she had %isunderstood hi%, she "olitely as&ed the #uest to s"ell his
last na%e. *e answered, 3What? 1re you an idiot? 7he "erson who chec&ed %e in last
ni#ht had no "ro$le% chec&in# %e in.5 1#ain, the a#ent loo&ed on the co%"uter to -nd
the #uest.
7he #uest, $eco%in# e'en %ore frustrated, said, 3( ha'e a "lane to catch and it is
ridiculous that it has to ta&e this lon# to chec& %e out. ( also need to fa! these "a"ers
o+, $ut ( need to ha'e the% "hotoco"ied -rst.5 7he a#ent res"onded, 37here is a
$usiness center at the end of the counter that will fa! and "hotoco"y what you for it.
*a'enCt you e'er heard of custo%er ser'ice? (snCt this a -'e-star hotel? With your $ad
attitude, you should $e wor&in# in a three-star hotel. ( canCt $elie'e they let you wor&
here at the front des&. *a'enCt you found %y na%e yet?5
7he a#ent, who was $e#innin# to #et u"set, as&ed the #uest a#ain to s"ell out his full
na%e. 7he #uest only re"lied, 3*ere are %y "a"ers ( want fa!ed if you are ca"a$le of
fa!in# the%.5 7he a#ent reached to ta&e the "a"ers, and the #uest shouted, 3DonCt #ra$
the% fro% %y hand9 You ha'e a $ad attitude, and if ( had %ore ti%e, ( would tal& to
so%eone a$out #ettin# you re%o'ed fro% your "osition to a hotel where they donCt
require such a le'el of custo%er ser'ice.5 7he a#ent was 'ery u"set, $ut &e"t herself
cal% in order to "re'ent the #uest fro% #ettin# an#rier.
7he a#ent continued to "ro'ide ser'ice to the #uest, sendin# the fa!es and %a&in# the
"hotoco"ies he had requested. I"on her return, the a#ent a#ain as&ed the #uest to
re"eat his last na%e, since he had failed to s"ell it out. 7he #uest re"lied $y s"ellin# out
his na%e, 3O-o-h-n-s-t-o-n-e.5 7he a#ent was -nally a$le to -nd his na%e on the co%"uter
and chec&ed hi% out, while he continued to 'er$ally attac& her. 7he a#ent -nished $y
tellin# the #uest to ha'e a nice Bi#ht.
)&e'ti#"'
*+ I' it app$#p$iate t# ,a6e t,e (a"a%e$ G"i', t,e c,ec>;#&t: O$D ',#&. t,e
-$#"t .e'> a%e"t F&'t ta>e t,e ,eat:
0+ 9#&. !#& ,a6e ,a".e. t,e 'it&ati#" i" t,e 'a(e (a""e$:
3+ 9,at 4#&. !#& ,a6e .#"e .i5e$e"t!:
?+ C#((&"icati#" i(p$#6e(e"t i' $eC&i$e. -#$ 7#t, #- t,e pa$tie' i"6#6e.
#$ a"! #"e #- t,e
H&'ti-! !#&$ #pi"i#"+LEA!ERSHIP
1! 0ould you classify Richard Branson as a %anager or a @eader5 0hat #ualities distinguish hi% as
one over the other5
2! *ollowers are part of the leadership process G 7escribe the relationship between Branson and his
followers!
! Identify the (yths of leadership develop%ent that Richard BransonAs "uccess helps to disprove!
1! Consider 0alt 7isneyAs effectiveness in ter%s of the three do%ains of leadership. the leader$ the
followers$ and situation! *or each do%ain na%e factors that contributed to 7isneyAs success!
2! ,ow think about (ichael 3isnerAs @eadership effectiveness! ,a%e factors within the three
do%ains of leadership that %ight be responsible for controversy surrounding 3isnerAs success and
then ulti%ate failure and re%oval as 7isneyAs C31!
1! 0hat are the %a>or skills Jovita Carran/a has de%onstrated in her career at H'" that have %ade
her a successful leader5
2! Consider the spiral of e4perience that Jovita Carran/a has travelled! 8ow has her e4perience
affected her ability as a leader5
! @ist out the characteristics of successful leaders! 8ow %any of this is de%onstrated by Jovita
Carran/a5
1! As we have discussed$ co%petency %odels describe the behaviors and skills %anager need to
e4hibit if any organi/ation is to be successful! Consider the general co%petencies found in figure
;! and apply these to Andra Rush$ providing e4a%ple of why these co%petencies apply!
2! (entoring has played a role in the careers of %any successful %inorities in leadership positions!
0ho could be identified as a coach or %entor for Andra Rush5
! Consider so%e of the self.defeating behaviors outlines in this chapter that contribute to
%anage%ent derail%ent! 0hat lessons has Andra Rush obviously learned fro% the failure of
others5
1+ @ike %any leader$ (arco has tea% in place and does not have the lu4ury of building a new tea%
fro% the ground up to adapt to the changing business environ%ent his fir% is face with$ Hse the
T@( to help (arco diagnose the proble%s faced by the fir% and identify leverage points for
change!
a+ Consider the %a>or functions of the T@(Qinput process and output where do %ost of the
fir%As challenges fall5
0+ 0hat are the tea%As goals for outputs5
,+ Identify potential resources for (arco and his tea% in i%ple%enting a strategy to change the way
they do business at 8ernande/ ? Associates!
-+ 0ould you classify Bill )ates as a charis%atic or transfor%ational leader5 0hy5
.+ Consider followers=e%ployees of gates! 0hat are so%e of the uni#ue characteristics of )ateAs
followers that %ight identify hi% as a charis%atic or transfor%ational5
CONSUMER BEHAVIOR
CASE;I: MAKING MAGIC THE MULTIPLEX 9AY
7he %iddle class of (ndia, a 'irtual none!istent entity on (nde"endence, has #radually
$eco%e %ore sensi$le, educated and de%andin#. 7he o'erall #rowth of the econo%y
has #i'en a tre%endous thrust to the %iddle class, e!"ected to #row $y 5 to ,0 "ercent
annually. (t has #rown o'er 5. %illion $y 200,-02 and is e!"ected to cross ,53 %illion $y
2002-,0.
7he a'era#e household inco%e in ur$an (ndia has #rown at a ;1ER of 5 "er cent o'er
the last decade, not only is this, $ut the a#e "ro-le of the (4D(14 s"enders is also
under#oin# a sea of chan#es. 4;1=R has identi-ed -'e cate#ories of household on $asis
of inco%e which is su%%arised in 7a$le , $elow>
Ta7e * ;lassi-cation of (ndian *ouseholds on the Lasis of (nco%e
Number Of Households [in millions]
,22Q-25 ,222-2000 200R-0.
Fery rich , 3 R
;onsu%in# 22 55 2,
;li%$ers Q) RR .Q
1s"irants Q) 32 ,5
Destitute 35 2Q ,3
7a$le, re'eals the "aradi#% shift in (ndian households o'er the last decade. 7he nu%$er
of e+ecti'e consu%ers is e!"ected to e!ceed R00 %illions $y 20,0.7his $i# $an# in
consu%ers in (ndian is $ein# seen as the dri'in# force in e%er#ence of 'arious new
$usiness, which ai% at hi#h consu%er tide. 1'aila$ility of easy -nancin# sche%es is
another as"ect of the story> owin#a house, or $uyin# a car or #oin# a$road on a "leasure
tri" is no %ore a distant drea% to the a'era#e (ndian consu%er. With the consu%ersC
#radually #et s&ewed towards the youn#, there is a #reater tendency towards increased
s"endin# on consu%"tion. 1 'ery interestin# "iece of infor%ation is that a'era#e (ndian
household has increased its s"endin# on %o'ies and theatres fro% , to Q.R "er cent of
its dis"osa$le inco%e. 7his a%a8in# s"urt in s"endin# on entertain%ent has a+ected the
quality and deli'ery of -l%s as an industry. 7he sin#le screen theatres with "oor
%aintenance and inadequate infrastructure are #radually "a'in# way for hi#h tech
%ulti"le!es with three to as %any as ele'en screens, di#itali8ed -l%s and Dol$y
surround audio syste%. 7he industry is under#oin# a sawin#, dri'en $y consu%er
$eha'iour.
Re"orts indicate that %ulti"le!es account for 0.R "er cent of the total cine%as, 2.3 "er
cent of the total screens and ha'e a total ca"acity of %ore than two la&h seats. 7he
a'era#e #ross collection "er %ulti"le! is around Rs. 5..2 crore fetchin# a$out 22 to 35
"er cent of the re'enue for the -l% industry.
(ndiaCs %ulti"le! $andwa#on has s"read its tentacles $eyond the %etros to rede-ne
entertain%ent in L and ; class towns. While the -rst "hase of the #rowth of %ulti"le!es
was in %etros, now this is s"readin# to tier two and three cities li&e Nuc&now, 4ashi&,
1uran#a$ad, and Gan"ur. 7o" %ulti"le!es "layers li&e @FR, 1dla$s :il%s, (no! Neisures,
Shrin#ar ;ine%as J:a%e Aulti"le!esK, :un Aulti"le! and ;ine%a! (ndia are 'enturin# to
s%all towns across the country and rede-nin# entertain%ent to the 'ast (ndian Aasses.
7he %ulti"le! $usiness has ri#htly ta""ed the #rowth of consu%eris% in (ndia as it has
understood the "ulse of the (ndian ;onsu%erCs "reference towards su"erior a%$ience,
co%forta$le seatin#, air-conditionin# and #ood quality snac&s, e'en at the cost of "ayin#
hi#her "rice. 7he a'era#e "rice of tic&et in a con'entional theatre is Rs. ,5-35, while a
%ulti"le! char#es on an a'era#e of Rs. .5-350 and consu%er is willin# to dish out this
e!tra a%ount to en<oy the 3co%"lete5 %o'ie e!"erience, which %ost of the traditional
theatres could not render and are thus facin# the fate of near e!tinction. (t thus "ro%ises
to ta&e the %o'ie#oersC e!"erience to a whole new le'el and #i'in# a new di%ension to
watchin# %o'ies at theatres.
P#'e$'
*+ 9,at e''#"' ca" !#& .$a4 -$#( t,e a7#6e ca'e $e%a$.i"% c#"'&(e$
7e,a6i#$:
0+ D# !#& t,i"> c,a"%e i" c#"'&(e$ pe$cepti#" i" (i..e ca'' ,a' 7ee"
i"'t$&(e"ta i" e(e$%e"ce #- (&tipe2e': 9,at ca" 7e #t,e$ $ea'#"':
3+ O7'e$6e Ta7e *+ 9,ic, #- t,e %$#&p'D acc#$.i"% t# !#&D 4#&. ,a6e .e(a".
-#$ (&tipe2e':
?+ 9#&. a4 #- .i(i"i',i"% (a$%i"a &tiit! app! t# (#6ie 4atc,i"%: 9i t,i'
a5ect t,e %$#4t, $ate #- (&tipe2e': O$ ca" it 7e 'ee" a ca&'e -#$
e'ta7i',(e"t #- (&tipe2e': Gi6e a$%&(e"t i" '&pp#$t -#$ !#&$
c#"te"ti#"+
@+ Ca" (&tipe2e' &'e t,e c#"cept #- c#"'&(e$ '&$p&' -#$ att$acti"% (#$e
c#"'&(e$': H#4:
CASE II: SUNDER SINGH
Sunder Sin#h had studied only u" to hi#h school. *e was 32-years of a#e, li'ed alone in a
rented roo%, and wor&ed ei#ht-hour shift at one "etrol "u%", then went to the other one
for another ei#ht-hour shift. *e had a #irl friend and was "lannin# to %arry.
Dne day when he returned fro% wor&, he #ot a note fro% his #irl friend that she was
#ettin# %arried to so%eone else and he need not $other her. 7his was a terri$le shoc& to
Sunder Sin#h and he fell a"art. *e sto""ed #oin# to wor&, s"ent slee"less ni#hts, and
was 'ery de"ressed. 1fter a %onth, he was runnin# (owan his sa'in#s and a""roached
his earlier e%"loyers to #et $ac& his <o$, $ut they would not #i'e hi% a second chance.
*e had to quit his rented roo%, and sold few thin#s that he had. *e would do so%e odd
<o$s at the railway station or the $us ter%inal.
Dne day, nearly two years a#o, he was 'ery hun#ry and did not ha'e any %oney and
saw a youn# %an sellin# news"a"ers. *e as&ed hi% what he was sellin# and he told hi%
a$out Eu8ara Jan inde"endent, non-"ro-t, inde"endent news"a"er sold $y the ho%eless,
and econo%ically disad'anta#ed %en and wo%en of this %etro cityK. Sunder Sin#h
a""roached the oce and started sellin# the news"a"er. *e did not %a&e a lot of
%oney, $ut was #ood at sa'in# it. *e started sa'in# %oney for a war% <ac&et for ne!t
winter.
*e was reasona$ly ha""y/ he had %oney to $uy food, and no lon#er ho%eless and
shared a roo% with two others. Dne day, with his sa'in#s he $ou#ht a "air of second-
hand 4i&e shoes fro% Bea %ar&et.
Sunder Sin#h is not unique a%on# low-inco%e consu%ers, es"ecially in lar#e cities, in
wantin# and $uyin# 4i&e shoes. So%e e!"erts $elie'e that low-inco%e consu%ers too
want the sa%e "roducts and ser'ice that other consu%ers want.
7he wor&in# "oor are forced to s"end a dis"ro"ortionate "ercent of their inco%e on food,
housin#, utilities, and healthcare. 7hey solely rely on "u$lic trans"ortation, s"end 'ery
little on entertain%ent of any &ind, and ha'e no security of any &ind. 7heir -#ht is %ainly
day-to-day sur'i'al.
)UESTIONS:
*+ 9,at .#e' t,e p&$c,a'e #- a p$#.&ct i>e Ni>e (ea" t# S&".e$ Si"%,:
0+ 9,at .#e' t,e 't#$! 'a! a7#&t #&$ '#ciet! a". t,e i(pact #- (a$>eti"% #"
c#"'&(e$ 7e,a6i#$:
CASE;III: TOYOTA
Df all the slo#ans &ic&ed around 7oyota, the &ey one is kaizen, which %eans 3continuous
i%"ro'e%ent5 in Oa"anese. While %any other co%"anies stri'e for dra%atic
$rea&throu#h, 7oyota o'ertoo&
rd Aotor ;o%"any to $eco%e the second lar#estauto%a&er in the world.
rd had $een the second lar#est since ,23,.7oyota si%"ly is to"s in quality, "roduction, and eciency. :ro% its factories "our a wide
ran#e of cars, $uilt with unequaled "recision. 7oyota turns out lu!ury sedans with
Aercedes-Len8-li&e quality usin# one-si!th the la$or Aercedes does. 7he co%"any
ori#inated <ust-in-ti%e "roduction and re%ains its leadin# "ractitioner. (t has close
relationshi"s with its su""liers and ri#id en#ineerin# s"eci-cations for the "roducts it
"urchases
7oyotaCs worldwide leadershi" in the auto%oti'e industry was $uilt on its co%"etiti'e
ad'anta#e across the su""ly chain. Letween ,220 and ,22R, 7oyota reduced "art
defects $y )Q "ercent, co%"ared to Q. "ercent for the Li# 3. (t also reduced the ratio of
in'entories to sales $y 35 "ercent 'ersus R "ercent. 7hese reduction ad'anta#es
occurred des"ite the fact the Li# 3 relied on identical su""liers. 1 study $y Oe+ Dyer of
7he Wharton School of the Ini'ersity of @ennsyl'ania and Gentaro 4o$eo&a of Go$e
Ini'ersity attri$uted 7oyotaCs success "artly to its i%"le%entation of $ilateral and
%ultilateral, &nowled#e-sharin# routines with su""liers that result in su"erior
(nteror#ani8ational or networ& learnin#. 7oyota uses si! a""roaches to facilitate
&nowled#e sharin#> J,Ka su""lier association/J2K tea%s of consultants/J3K'oluntary study
#rou"s/JQK"ro$le%-sol'in# tea%s/J5Kinter-r% e%"loyee transfers/ and JRK"erfor%ance
feed$ac& and %onitorin# "rocesses. 7his e+ort also in'ol'es intense le'els of "ersonal
contact $etween 7oyota and its su""liers.
7oyota "ioneered quality circles, which in'ol'e wor&ers in discussions of ways to i%"ro'e
their tas&s and a'oid what it calls the three Ds> the dan#erous, dirty, and de%andin#
as"ects of factory wor&. 7he co%"any has in'ested H..0 %illion to i%"ro'e wor&er
housin#, add dinin# halls, and $uild new recreational facilities. Dn the asse%$ly line,
quality is de-ned not as 8ero defects $ut, as another slo#an "uts it, 3$uildin# the 'ery
$est and #i'in# the custo%er what she/he wants.5 Lecause each wor&er ser'es as the
custo%er for the "rocess <ust $efore hers, she $eco%es a quality control ins"ector. (f a
"iece isnCt installed "ro"erly when it reaches her, she wonCt acce"t it.
7oyotaCs en#ineerin# syste% allows it to ta&e a new car desi#n fro% conce"t to
showroo% in less than four years 'ersus %ore than -'e years for I.S. co%"anies and
se'en years for Aercedes. 7his cuts costs, allows quic&er correction of %ista&es and
&ee"s 7oyota $etter a$reast of %ar&et trends. Eains fro% s"eed feed on the%sel'es.
7oyota can #et its ad'anced en#ineerin# and desi#n done sooner $ecause, as one
%ana#er "uts it, 3We are closer to the custo%er and thus ha'e shorter conce"t ti%e.5
4ew "roducts are assi#ned to a chief en#ineer who has co%"lete res"onsi$ility and
authority for the "roduct fro% desi#n and %anufacturin# throu#h %ar&etin# and has
direct contacts with $oth dealers and consu%ers. 4ew-%odel $osses for I.S. co%"anies
seldo% ha'e such control and al%ost ne'er ha'e direct contact with dealers or
consu%ers.
7he ,222 *ar$our Re"ort, a study of auto%a&er co%"etencies in asse%$ly, sta%"in#,
and "owertrain o"erations, stated that the to" asse%$ly facility in 4orth 1%erica J$ased
on asse%$ly hours "er 'ehicleK is 7oyotaCs "lant in ;a%$rid#e, Dntario. (n this "lant, a
;orolla is "roduced in ,..RR hours. 7oyota was also rated nu%$er one in en#ine
asse%$ly, ta&in# <ust 2.2. hours to "roduce an en#ine.
(n 7oyotaCs %anufacturin# syste%, "arts and cars donCt #et $uild until orders co%e fro%
dealers requestin# the%. (n "lacin# orders, dealers essentially reser'e a "ortion of
factory ca"acity. 7he syste% is so e+ecti'e that rather than waitin# se'eral %onths for a
new car, the custo%er can #et a $uilt-to-order car in a wee& to ,0 days.
7oyota is the $est car%a&er in the world $ecause it stays close to its custo%ers. 3We
ha'e learned that uni'ersal %ass "roduction is not enou#h,5 said the head of 7oyotaCs
7o&yo Desi#n ;enter. 3(n the 2,
st
century, you "ersonali8e thin#s %ore to %a&e the%
%ore reBecti'e of indi'idual needs.5
(n ,222, 7oyota co%%itted to a H,3 $illion in'est%ent throu#h 2000 to $eco%e a
#enuinely #lo$al cor"oration without $oundaries. (n this way, it will $e a$le to create
worldwide %anufacturin# facilities that "roduce cars accordin# to local de%and. (ts #oal
is to achie'e a ,0 to ,5 "ercent #lo$al %ar&et share $y 20,0.
Why the dri'e towards custo%i8ation of 'ehicles? @art of this is due to -erce co%"etition
that "ro'ides consu%er with a %ultitude of choices. 7he (nternet ena$les consu%ers to
$e %ore de%andin# and less co%"ro%isin#. 7hey now ha'e access to the lowest "rices
a'aila$le for s"eci-c %odels of 'ehicles with all of the $ells and whistles they desi#n.
:ro% the co%fort of their ho%es, they are a$le to $y"ass dealers and still -nd the
'ehicle of their drea%s.
Senior %ana#e%ent at 7oyota $elie'es that kaizen is no lon#er enou#h. 7he senior 'ice
"resident at the 7oyota IS1 di'ision, Dou#las West, states that his di'ision is co%%itted
to $oth creatin# and e!ecutin# a new infor%ation syste% to dri'e the fastest, %ost
ecient order-to-deli'ery syste% in the 4orth 1%erican %ar&et. 7oyota %ana#e%ent has
co%e to reali8e Kaizen alone can no lon#er "redict $usiness success. 7he swee"in#
chan#es ta&in# "lace in the $usiness en'iron%ent can no lon#er rely on the kaizen
"hiloso"hy of s%all, sustained i%"ro'e%ents. (n fact, one e!"ert in the industry $elie'es
that 3"ursuin# incre%ental i%"ro'e%ents while ri'als rein'ent the industry is li&e
-ddlin# while Ro%e $urns.5 ;o%"etiti'e 'itality can no lon#er $e de-ned $y continuous
i%"ro'e%ent alone.
)&e'ti#"':
*+ I" 4,at 4a!' i' T#!#ta/' "e4;p$#.&ct .e6e#p(e"t '!'te( .e'i%"e. t#
'e$6e c&'t#(e$':
0+ I" 4,at 4a!' i' T#!#ta/' (a"&-act&$i"% '!'te( .e'i%"e. t# 'e$6e
c&'t#(e$':
3+ H#4 .#e' T#!#ta pe$'#"aiIe it' ca$' a". t$&c>' t# (eet i".i6i.&a
c#"'&(e$ "ee.':
CASE;IV: EXPOSURED ATTENTIOND AND COMPREHENSION ON THE INTERNET
7he (nternet uni'erse literally #rows %ore cluttered $y the %inute. 1ccordin# to 4etwor&
Solutions, (nc., which re#isters the 'ast %a<ority of We$ addresses around the world,
a$out ,0,000 new addresses are re#istered each day. 7hat %eans $y the ti%e you -nish
readin# this case, a$out R0 new do%ain na%es will ha'e $een #o$$led u". With all the
clutter on the We$, how ha'e so%e -r%s $een a$le to stand out and attract %illions of
custo%ers?
:irst, there are so%e $asics to which online -r%s %ust attend. 7hese cost little %ore
than so%e ti%e and a little creati'ity. 7he -rst is creatin# a #ood site na%e. 7he na%e
should $e %e%ora$le Jyahoo.co%K, easy to s"ell Je$ay.co%K, and/or descri"ti'e
Jwine.co%Sa wine retailerK. 1nd, yes, ideally it will ha'e a .co% e!tension. 7his is the
%ost "o"ular e!tension for e-co%%erce, and $rowsers, as a default, will auto%atically
add a .co% onto any address that is ty"ed without e!tension.
7he second "riority is to %a&e sure the site co%es u" near the to" of the list on any We$
searches. (f you use Nycos.co% to "erfor% a search for 3used $oo&s,5 you #et a list of
%ore than 2.R %illion we$sites. Studies ha'e shown that %ost "eo"le will loo& only at
the to" 30 sites on the list, at %ost. (f you are a used-$oo& retailer and you show u" as
we$site T,,)R5,Q0Q on the search list, there is a 'ery #ood chance you will not attract a
lot of $usiness. 1 ,222 Ou"iter Research study re'eals that 3searchin# on the (nternet5 is
the %ost i%"ortant acti'ity, and (nternet users -nd the infor%ation they are loo&in# for
$y usin# search en#ines and We$ directories. 1 #ood We$ desi#ner can write code that
%atches u" well with search en#ine al#orith%s and results in a site that ran&s hi#h on
search lists.
Firtually all "o"ular we$sites ha'e those $asics down "at. So the third ste" is to reach
out "roacti'ely to "otential custo%ers and $rin# the% to your site. Aany co%"anies
ha'e turned to traditional ad'ertisin# to #ain e!"osure. 7ele'ision ad'ertisin# can $e an
e+ecti'e o"tionSal$eit an e!"ensi'e one. (n late Oanuary ,222, hot<o$s.co% s"ent H2
%illionShalf of its ,22) re'enuesSon one 30-second ad durin# the Su"er Lowl.
1ccordin# to ;=D Richard Oohnson, so %any "eo"le tried to 'isit the site that the
co%"anyCs ser'ers <a%%ed. Oohnson says the nu%$er of site hits was si! ti%es #reater
than in the %onth $efore. 1 quir&y ad ca%"ai#n %ay or %ay not hel". @ets.co%, now de-
func, $uilt its i%a#e around a wise-#uy soc& "u""et. ;4=7, a hardware and software
retailer, ran a series of tele'ision ads featurin# cheesy %usic, low-$ud#et sets, and
unattracti'e actors. Dne such ad featured two %enSone in a 7-shirt that said 5you,5
another in a 7-shirt la$eled 3the ri#ht co%"uter5 6 co%in# to#ether and <oinin# hands
than&s to the e+orts of another #uy in a ;4=7 7-shirt. 7he "roduction quality was
rudi%entary enou#h that any so"ho%ore -l% student could ha'e "roduced it. 7he s"ots
were so $ad that they stood out fro% the slic&, e!"ensi'e co%%ercials to which 'iewers
were accusto%ed. ;ritics ri""ed the ca%"ai#n to shreds, $ut ;4=7 called it a success.
Dther (nternet -r%s ha'e used s"orts s"onsorshi"s to increase 'isi$ility. ;arsDirect.co%,
a hi#hly rated site that allows consu%ers to "urchase auto%o$iles online, once
"urchased the na%in# ri#hts to 41S;1R auto race Jthe ;arsDirect.co%Q00K. Nycos also
has tried to %a&e the %ost of 41S;1RCs increasin# "o"ularity. (t s"ent hundreds of
thousands of dollars to ha'e its na%e and lo#o "lastered all o'er the car of "o"ular
dri'er Oohnny Lenson. Aeanwhile, online co%"uter retailer (nsi#ht and furniture seller
#alleryfurniture.co% each tar#eted foot$all fans $y "urchasin# the na%in# ri#hts to
colle#e $owl #a%es.
Df course, if you can reach consu%ers while they are in front of their co%"uters rather
than their tele'ision sets, you %ay stand an e'en $etter chance of #ettin# the% to your
site. *owe'er, ty"ical $anner ads are inecient, a'era#in# clic&-throu#h rates of only
a$out 0.5 "er cent Jonly one of e'ery 200 "eo"le e!"osed to the ad actually clic&ed on
the adK. 7oo often, $anner ads are <ust wall"a"er/ consu%ers %ay see the% $ut they
usually are not suciently sti%ulated to clic&-throu#h. *owe'er, Aichele Slac& of the
online ad'ertisin# #rou" Ou"iter ;o%%unications $elie'es $anner ads can $e useful if
used correctly. 37he no'elty factor is wearin# o+,5 she says. Lut 3when an ad is tar#eted
well and the creati'e is #ood, clic&-throu#h rates are %uch hi#her.5
1n alternati'e way to reach "eo"le who are already online is throu#h "artnershi"s. Dne
of the %ost 'isi$le e!a%"les of such an alliance is the one $etween Yahoo9 1nd
1%a8on.co%. NetCs say youCre wor&in# on a "ro<ect on the Ereat De"ression and you
want to see what &ind of infor%ation is a'aila$le online. (f you #o to Yahoo9 1nd ty"e in
3Ereat De"ression,5 you will not only $e "resented with a list of we$sites, $ut you will
also see a lin& that will allow you to clic& to see a list of $oo&s on the Ereat De"ression
that are a'aila$le throu#h 1%a8on. 1nother e!a%"le of a successful "artnershi" was
for#ed in ,22) $etween Rollin#stone.co% and the we$site $uildin# and hostin# ser'ice
7ri"od. ='ery one of the 3,000 artist "a#es on Rollin#stone.co% contained a lin& to
7ri"od. 7he #oal was to encoura#e fans to use 7ri"odCs tools to $uild we$"a#es dedicated
their fa'orite sin#ers or $ands. 1ccordin# to the research co%"any Aedia Aetri!, durin#
the course of the alliance 7ri"od <u%"ed fro% the We$Cs fourteenth %ost "o"ular we$site
to nu%$er ei#ht. 1lliances with non'irtual co%"anies are another o"tions. (n 2003, the
(nternet classi-ed -r% ;areerLuilder &ic&ed o+ a cross-"ro%otional ca%"ai#n with %a<or
(nternet -r%s, includin# 1DN and AS4.
1 less su$tle $ut nonetheless e+ecti'e way to $uild trac is to %ore or less "ay "eo"le
'isit your site. Dne study showed %ore than half of (nternet consu%ers would $e %ore
li&ely to "urchase fro% a site if they could "artici"ate in so%e sort of loyalty "ro#ra%.
*undreds of online %erchants in %ore than 20 cate#ories ha'e si#ned u" with a networ&
"ro#ra% called ;lic&Rewards. ;usto%ers %a&in# "urchases at ;lic&Rewards %e%$er
sites recei'e frequent-Bier %iles or other ty"es of $ene-ts. Ay"oints.co% o+ers a si%ilar
incenti'e "ro#ra% in which custo%ers are rewarded with air tra'el, #ift certi-cates and
discounts for sho""in# at %e%$er %erchants. 7he search en#ine iwon.co% was e'en
%ore direct. (t rewards one luc&y 'isitor each wee&day with a H,0,000 "ri8e. 1ccordin# to
rrester Research, co%"anies in 2002 s"ent a$out HR $illion annually on onlineincenti'es and "ro%otions.
:inally, so%e -r%s rely on e-%ail to thorou#hly %ine their e!istin# custo%er data$ases.
7he auction site Dn sale Jlater %er#ed with =##head.co%K "ro'ed <ust how successful e-
%ail can $e. (t sent out tar#eted e-%ails to its custo%ers $ased on their "ast $iddin#
acti'ities and "re'iously stated interests. ;lic&-throu#h rates on these tar#eted e-%ails
a'era#ed a re%ar&a$le 30 "ercent. =-%ail %ar&etin# also holds "ro%ise for $usiness-to-
$usiness -r%s. 7he @e""ers and Ro#ers Erou" is a %ar&etin# -r% that #i'es
"resentations around the Inited States. 1t the end of the "resentations, "eo"le are
in'ited to #o to the co%"anyCs we$site and si#n u" for their e-%ail newsletter, (nside ,
to ,. 7he newsletter in'ites readers to 'isit the @e""ers and Ro#ers we$site to learn
%ore a$out 'arious articles, "ro%ote their "roducts and ser'ices, and "artici"ate in
foru%s. (nside , to , now $oasts a su$scri$er $ase of Q5,000, $ut the co%"any
esti%ates that a$out 200,000 "eo"le actually see it $ecause su$scri$ers forward it to
their friends and collea#ues. 1$out ,Q,000 "eo"le 'isit the @e""ers and Ro#ers site each
wee&, with trac often "ea&in# i%%ediately after the newsletter is sent.
1s you can see, there is no one e+ecti'e %ethod for #eneratin# interest in a we$site.
7he sa%e %ethods that ha'e wor&ed for so%e -r%s ha'e failed for others. Dne certainty
is that as the (nternet #rows and %ore "eo"le do $usiness online, (nternet -r%s will ha'e
to -nd e'er %ore creati'e ways to e!"ose custo%ers to their sites and &ee" their
attention once there.
)&e'ti#":
*+ C#"'i.e$ t,e e;(ai ca(pai%"' .i'c&''e. i" t,e ca'e+ 9,! .# !#& t,i">
t,e'e ca(pai%"' 4e$e '&cce''-&: Di'c&'' t,e atte"ti#" p$#ce''e' t,at
4e$e at 4#$>+ D# !#& 'ee a"! p#te"tia .$a47ac>' t# t,i' t!pe #-
(a$>eti"%:
0+ D&$i"% t,e 0JJJ S&pe$ B#4D ABC i"6ite. 6ie4e$' t# 6i'it it' E",a"ce. TV
4e7'ite+ 8a"' c#&. pa! t$i6iaD 'ee $epa!'D pa$ticipate i" p#' a". c,at
$##('D a". 6ie4 pa!e$ 'tati'tic'+ T,e 'ite $ecei6e. a" e'ti(ate. * (ii#"
,it'+ 9,!: 8$a(e !#&$ a"'4e$ i" te$(' #- e2p#'&$eD atte"ti#"D a".
c#(p$e,e"'i#"+
3+ T,i"> a7#&t !#&$ #4" 9e7 '&$G"% patte$"'+ 9$ite .#4" t,e $ea'#"' !#&
6i'it 'ite'+ 9,ic, #- t,e (a$>eti"% 't$ate%ie' .i'c&''e. i" t,e ca'e .# !#&
G". (#'t <a". ea't= i"A&e"tia:
CASE: V PEAPOD ONLINE GROCERYK0JJ3
7he online #rocery turned out to $e a lot tou#her than analysts thou#ht a few years a#o.
Aany of the early online #rocers, includin# We$'an, Sho"Nin&, Strea%Nine, Gos%o%,
*o%eruns, and @DUuic&, went $an&ru"t and out of $usiness. 1t one ti%e, We$'an had
QR "ercent of the online #rocery $usiness, $ut it still wasnCt "ro-ta$le enou#h to sur'i'e.
7he new $usiness %odel for online #rocers is to $e "art of an e!istin# $ric&-and-%ortar
chain. Nar#e #rocery chains, li&e Safeway and 1l$ertsonCs, are e!"eriencin# sales #rowth
in their online $usiness $ut ha'e yet to turn a "ro-t. Ou"iter Research esti%ates that
online #rocery sales will $e o'er H5 $illion $y 200., a$out , "ercent of all #rocery sales,
while it e!"ects %ore than 5 "ercent of all retail sales to $e online $y then. 1 few years
a#o, o"ti%istic analysts esti%ated online #rocery sales would $e ,0 to 20 ti%es that $y
2005, $ut it didnCt wor& out that way.
Dne of the few online #rocers to sur'i'e in 2003 is @ea"od, the -rst online #rocer, started
$y $rothers 1ndrew and 7ho%as @ar&inson in ,220. *owe'er, e'en @ea"od was failin#
until 200, when Dutch #rocery #iant Royal 1hold "urchased controllin# interest in the
co%"any for H.3 %illion. @ea"od o"erates in -'e %ar&ets, %ainly $y closely aliatin#
itself with 1hold-owned #rocery chains. @ea"od $y Eiant is in the Washin#ton, D;, area,
while @ea"od $y Sto" and Sho" runs in Loston, 4ew Yor&, and ;onnecticut. 7he
e!ce"tion is ;hica#o, where @ea"od o"erates without an aliation with a local #rocery
chain. @ea"od e!ecuti'es clai% the co%"any is #rowin# $y 25 "ercent annually and has
,30,000 custo%ers, and all of its %ar&ets e!ce"t ;onnecticut are "ro-ta$le. 1'era#e
order si8e is u" to H,Q3 fro% H,0R three years earlier.
7he online #rocery $usiness see%ed li&e a sure winner in the ,220s. Dual-inco%e
fa%ilies stra""ed for ti%e could si%"ly #o online to do their #rocery sho""in#. 7hey has
a$out the sa%e choices of "roducts that they would ha'e had if they went to a $ric&-
and-%ortar #rocery, a$out 20,000 SGIs Jstoc&&ee"in# unitsK. 7hey could $rowse the
3aisles5 on their ho%e co%"uters and "lace orders 'ia co%"uter, fa! or tele"hone. 7he
orders were -lled at aliated stores and deli'ered to their ho%es in a 20-%inute window,
sa'in# the% ti%e and e+ort and si%"lifyin# their daily li'es.
r all this con'enience,consu%ers were willin# to "ay a %onthly fee and a fee "er order for "ac&a#in#, shi""in#,
and deli'ery. Since %ost of the "roducts "urchased were well-&nown $randed ite%s,
consu%er faced little ris& in $uyin# their traditional foodstu+s. ='en "erisha$les li&e
"roduce and %eat could $e counted on to $e hi#h quality, and if consu%ers were
concerned, they could %a&e a quic& tri" to a $ric&-and-%ortar #rocery for these
selections. *owe'er, while all of this sounded #ood, %ost consu%ers didnCt chan#e their
#rocery sho""in# ha$its to ta&e ad'anta#e of the online alternati'e.
;urrently analysts do not e!"ect the online #rocery industry to ta&e o+ in the near
future, if e'er. Ailes ;oo& of Lain V ;o%"any esti%ates that only ) to ,0 "ercent of I.S.
consu%ers will -nd orderin# #roceries online a""ealin#, $ut only a$out , "ercent will
e'er do so. *e concludes> 37his is #oin# to re%ain a niche o+erin# in a few %ar&ets. (tCs
not #oin# to $e a national %ainstrea% o+erin#.5 Ou"iter Aedia Aetri! analyst Gen ;assar
concludes that 37he %oral of the story is that the a$ility to $uild a $etter %ousetra"
%ust $e %easured a#ainst consu%ersC willin#ness to $uy it.5
)&e'ti#":
*+ 9,at 7e,a6i#$' a$e i"6#6e. i" #"i"e %$#ce$! ',#ppi"%: H#4 .#e' #"i"e
',#ppi"% c#(pa$e 4it, t$a.iti#"a ',#ppi"% i" te$(' #- 7e,a6i#$a e5#$t:
0+ 9,at t!pe' #- c#"'&(e$' a$e i>e! t# 6a&e #"i"e %$#ce$! ',#ppi"% -$#(
Peap#.:
3+ O6e$aD 4,at .# !#& t,i"> a7#&t t,e i.ea #- #"i"e %$#ce$! ',#ppi"%: H#4
.#e' it c#(pa$e 4it, 'i(p! eati"% i" $e'ta&$a"t' a". a6#i.i"% %$#ce$!
',#ppi"% a". c##>i"% at#%et,e$:
CASE: VI SONY
(n <ust o'er half-century, Sony ;or"oration has fro% a ,0-"erson en#ineerin# research
#rou" o"eratin# out of a $o%$ed-out de"art%ent store to one of the lar#est, %ost
co%"le!, and $est-&nown co%"anies in the world. Sony co-founders Aasaru ($u&a and
1&io Aorita %et while ser'in# on Oa"anCs Warti%e Research ;o%%ittee durin# World War
((. 1fter the war, in ,2QR, the "air #ot $ac& to#ether and for%ed 7o&yo
7eleco%%unications =n#ineerin# ;or"oration to re"air radios and $uild shortwa'e radio
ada"ters. 7he -rst $rea&throu#h "roduct ca%e in ,250, when the co%"any "roduced
Oa"anCs -rst ta"e recorder, which "ro'ed 'ery "o"ular in %usic schools and in
courtroo%s as a re"lace%ent for steno#ra"hers.
(n ,253, Aorita ca%e to the Inited States and si#ned an a#ree%ent to #ain access to
Western =lectricCs "atent for the transistor. 1lthou#h Western =lectric JLell Na$oratoryCs
"arent co%"anyK su##ested Aorita and ($u&a use the transistor to %a&e hearin# aids,
they decided instead to use it in radios. (n ,255, 7o&yo 7eleco%%unications =n#ineerin#
;or"oration %ar&eted the 7R-55, Oa"anCs -rst transistor radio, and the rest, as they say,
is history. Soon thereafter, Aorita rechristened the co%"any as Sony, a na%e he felt
con'eyed youthful ener#y and could $e easily reco#ni8ed outside Oa"an.
7oday Sony is al%ost e'erywhere. (ts $usinesses include electronics, co%"uter
equi"%ent, %usic, %o'ies, #a%es, and e'en life insurance. (t e%"loys ,20,000 "eo"le
worldwide and does $usiness on si! continents. (n ,222, Sony rac&ed u" sales of HR3
$illion/ 3, "ercent of those ca%e fro% Oa"an, 30 "ercent fro% the Inited States, and 22
"ercent fro% =uro"e. J7o 'isit so%e of SonyCs country-s"eci-c we$sites, #o to
www.sony.co% and clic& on 3Elo$al Sites.5K
@erha"s SonyCs %ost fa%ous "roduct is the Wal&%an. ;reated in ,2.2, the Wal&%an
ca"itali8ed on what so%e "ercei'ed as the start of a #lo$al trend towards indi'idualis%.
:ro% a technolo#ical stand"oint, the Wal&%an, was fairly uns"ectacular, e'en $y ,2.2
standards, $ut SonyCs %ar&etin# e+orts successfully focused on the freedo% and
inde"endence the Wal&%an "ro'ided. Dne ad de"icted three "airs of shoes sittin# ne!t
to a Wal&%an with the ta# line 3Why %an learned to wal&.5 Ly 2000 %ore than 250
%illion Wal&%ans had $een sold worldwide, $ut Sony was concerned. Studies had shown
that Eeneration Y Ja#es ,Q to 2QK 'iewed the Wal&%an as stod#y and outdated. So Sony
launched a H30 %illion ad'ertisin# and %ar&etin# ca%"ai#n to re"osition the "roduct in
the Inited States. 7he star of the new ads was @lato, a cool, Wal&%an-wearin# s"ace
creature. 7he choice of a nonhu%an character was no accident accordin# to Ron Loire,
head of SonyCs I.S. "ersonal-%o$ile #rou". *e wanted a character that would a""eal to
the $roadest "ossi$le ran#e of ethnic #rou"sSthus, the s"ace creature. Loire e!"lains,
31n alien is no one, so an alien is e'eryone.5
SonyCs current 'ision, howe'er, e!tends far $eyond the Wal&%an> to $eco%e a leader in
$road$and technolo#ies. Sony loo&s forward to a day when all of its "roductsS
tele'isions, DFDs, tele"hones, #a%e %achines, co%"uters, and so onScan co%%unicate
with one another and connect with the We$ on a "ersona networ&. 1 Sony e!ecuti'e
"ro'ides an e!a%"le of such technolo#y in action> 3Say you are watchin# 7F in the den,
and your &ids are "layin# their %usic way too loud u"stairs,5 he says. 3You could use
your 7F re%ote to call u" an onscreen control "anel that would let you turn down your
&idsC stereo, all without ha'in# to #et u" fro% your recliner.5
Sony sees its new @layStation2 -llin# a %a<or role in the (nternet of the future. (n Aarch
2000, Sony introduced the @layStation2 in Oa"an and sold , %illion units within a wee&.
Newsweek featured the @layStation2 on its co'er that s"rin#, e'en thou#h it wasnCt
o+ered in the Inited States until later in the year. Aost consu%ers "ro$a$ly $ou#ht
@layStation2 to "lay 'ideo #a%es, $ut its "otential #oes far $eyond that. (t is actually
"owerful enou#h to $e ada"ted to #uide a $allistic %issile. Sony en'isions consu%ers
turnin# to the @layStation2 for not only #a%es $ut also %o'ies, %usic, online sho""in#,
and any other &ind of di#ital entertain%ent currently i%a#ina$le. Gen Gutara#i, "resident
of Sony ;o%"uter =ntertain%ent, "redicts the @layStation2 will so%eday $eco%e as
'alua$le as the @; is today> 31 lot of "eo"le always assu%ed the @; would $e the
%achine to control your ho%e networ&. Lut the @; is a narrow$and de'ice thatW has
$een retro-tted to "lay 'ideo#a%es and interacti'e 3-D #ra"hics. 7he @layStation2 is
desi#ned fro% the #round u" to $e a $road$and de'ice.5
7he @layStation2 also reBects a chan#in# attitude within Sony re#ardin# "artnershi"s
with other co%"anies. 7oshi$a hel"ed Sony desi#n the =%otion =n#ine, which "owers the
@layStation2. (n "re'ious years, these &inds of alliances were the e!ce"tion rather than
the rule with the Sony. Sony was "ercei'ed as arro#ant $ecause it rarely coo"erated with
other co%"anies, "referrin# to de'elo" and "o"ulari8e new technolo#ies on its own.
Recently, howe'er, that has chan#ed. Sony has wor&ed with I.S. $ased @al% to de'elo"
a new hand-held or#ani8er with %ulti%edia ca"a$ilities, coo"erated with (ntel to create a
set of standards for ho%e networ&s, and launched a <oint 'enture with ;a$le'ision to
$uild a $road$and networ& in the 4ew Yor& %etro"olitan area. 4e'ertheless, so%e critics
$elie'e Sony re%ains too insular, loo&in# on fro% the sidelines while other co%"anies
<oin forces to create entertain%ent "owerhouses. Sony has no alliances with I.S. ca$le or
tele'ision networ&s, raisin# so%e dou$ts a$out its a$ility to fully de'elo" its ho%e
(nternet ser'ices. Sony has tal&ed with other %usic co%"anies a$out "ossi$le <oint
'enture, $ut nothin# has co%e to fruition.
Inli&e %any I.S.-$ased %ultinationals, 7o&yo-$ased Sony traditionally has %ar&eted
itself on a re#ional rather than a #lo$al $asis.
r e!a%"le, Sony has al%ost 50 di+erentcountry-s"eci-c we$sites fro% which consu%ers can order "roducts. *owe'er, there are
si#ns that strate#y %ay $e chan#in#, at least to so%e de#ree. Sony launched
www.Sonystyle.co%, a we$site that is the co%"anyCs "ri%ary online outlet for sellin#
%o'ies, %usic, and electronic "roducts. Sony also "lans to "ro'ide "roduct ser'ice and
su""ort on the site, and e'entually software u"#rades as well. 7he current %ain we$site
Jwww.sony.co%K is %ainly a source for cor"orate and in'estor infor%ation. 1lso, in ,22.
Sony e%$ar&ed on a worldwide ad ca%"ai#n to %a&e itself and its "roducts %ore
rele'ant in the eyes of youn#er consu%ers. (ronically, %uch of SonyCs future #rowth %ay
co%e fro% its own $ac&yard. 7he "ri%ary $uyers of electronic and di#ital "roducts are
a#es ,5 to Q0. (t is esti%ated that $y 20,0, two-thirds of the "eo"le in the world in that
a#e $rac&et will li'e in 1sia. 7o&yo is already a "owerful inBuence on 1sian culture. 1siaCs
%ost "o"ular youth %a#a8ines are "u$lished in 7o&yo, and %ost of the %usic 1sian
youn# "eo"le listen to co%es for% 7o&yo. So "art of SonyCs challen#e is to continue to
#row on a #lo$al scale while "ayin# close attention to the $ur#eonin# %ar&et at ho%e.
(%%ediately followin# World War (( and for so%e years thereafter, the la$el 3Aade in
Oa"an5 connoted chea", shoddy, i%itation "roducts. 7oday, for %any "eo"le, that sa%e
la$el stands for e!cellence and inno'ation. ;ertainly Sony can ta&e %uch of the credit
that transfor%ation. 4ow the question is whether SonyCs "roducts and %ar&etin# e+orts
can &ee" "ace Jor set the "aceK in the u"co%in# a#e of di#ital con'er#ence.
)&e'ti#":
*+ I.e"ti-! a". .i'c&'' '#(e #- t,e c&t&$a (ea"i"%' -#$ S#"! p#''e''e. 7!
c#"'&(e$' i" !#&$ c#&"t$!+ Di'c&'' ,#4 t,e'e c&t&$a (ea"i"% 4e$e
.e6e#pe. a". ,#4 t,e! i"A&e"ce c#"'&(e$'/ 7e,a6i#$' <a". a5ect a".
c#%"iti#"=+ 9,at i' t,e $#e #- (a$>eti"% 't$ate%ie' i" c$eati"% a".
(ai"tai"i"% <#$ (#.i-!i"%= t,e'e c&t&$a (ea"i"%':
0+ It i' #-te" 'tate. t,at t,e 4#$. i' 7ec#(i"% '(ae$ 7eca&'e t#.a! pe#pe
c#((&"icate $eati6e! ea'i! ac$#'' ti(e a". .i'ta"ce+ Di'c&'' 4,et,e$
t,at ,a' 7ee" 7e"eGcia -#$ S#"!+ 9,at a$e '#(e (a$>eti"% c,ae"%e' it
p$e'e"t':
3+ 9,at .# !#& t,i"> a7#&t S#"!/' t$a.iti#" #- $e%i#";'peciGc #$ "ati#";
'peciGc (a$>eti"%: 9#&. S#"! 7e 7ette$ 'e$6e. 7! 4#$>i"% t# c$eate a
(#$e &"i-#$( %#7a i(a%e:
HUMAN RESOURCES MANAGEMENT
1! 0hat should 7ivan do5
1! 7iscuss the long.ter% relevance of %otivational techni#ues used by Baheti in the light of
prevailing environ%ent in the organi/ation!
2! 8ad you been Baheti$ what other techni#ues you would have used to i%prove the special
services provided by the organi/ation5
1! 8ad you been in place of Alok Trivedi$ what additional %easures would you have taken5
2. Critically analy/e the 3%ployee Relations Audit in the light of its contribution to self
%otivation of e%ployees.
1! If you were (alik$ what strategies would you adopt to solve the proble%5
2! 0ith high e%ployee turnover in insurance industry$ how can the co%pany retain a person like
(alik5
1! 0hat role do the non.financial incentives play in %otivating the workers and %ini%i/ing the
rate of absenteeis%5
2! 0hat innovative solutions would you suggest to %ini%i/e the rate of absenteeis%5
1! 7iscuss %erits=de%erits of the role of strike$ agitation and legal approach in union.
%anage%ent relations!
2! 0hat role does %utual trust play in building union.%anage%ent relations5
A*/iting
1! 7iscuss the advantages and disadvantages of balance sheet audit! Also state the auditorAs position
in relation to balance sheet audit!
2! 7raft a for% of #uestionnaire$ that you would use to deter%ine the effectiveness of the clientAs
internal control over payrolls!
! An enterprise purchases an ite% of %achinery on 1!+!2<<2 for Rs! 1<<$<<<! It depreciates this
ite% at the rate of 1<M per annu% on straight.line basis! 1n 1!+!2<<-$ the enterprise decides to
change the %ethod of depreciation fro% straight.line to written down value! The applicable rate
under the new %ethod is 1-M! 8ow should the enterprise give effect to this change in the %ethod
of depreciation5
+! Hnder what circu%stances$ an auditor can be appointed by the followingJ
DaF The Board of 7irectors
DbF The shareholders
DcF The central govern%ent
-! 0hile e4a%ining the accounts of a co%pany$ you find the following ite%s on credit
side of profit and loss accountJ
'rofit on revaluation of land!
DaF Bounties received fro% central govern%ent
DbF 34cess depreciation charged in the previous year now written back
DcF Hnclai%ed dividend
0ould you have any ob>ection as auditor in passing the accounts of the co%pany5 "tate with
reasons!
9! 0hat is a Clean Report5 )ive a speci%en of a #ualified report of the auditor!
:! 0hat is investigation5 7istinguish investigation fro% audit!
;! 7efine K'rofessional (isconductA and state how professional %isconduct and professional ethics
are related! )ive few instances of professional %isconduct with case decisions!
9! 0hat special points should the auditor consider in conducting audit in the following institutions
DaF Charitable institution DbF 3ducational institution
1<! "tate the controls that can be applied over inputs and processing of data in a co%puteri/ed
accounting environ%ent!
B*$ine$$ St&ateg' En1i&#nment
,. Consider the vision and %ission state%ents of the Reserve Bank of India! Co%%ent on the
#uality of both these state%ents!
2! "hould the RBI go for a syste%atic and co%prehensive strategic plan in place of its earlier
prag%atic approach of responding to environ%ental events as and when they occur5 0hy5
1! Identify the opportunities and threats that the retailing industry in India offers to local and
foreign co%panies!
2! 'repare an 3T1' for a co%pany interested in entering the retailing industry in India
1! In your opinion$ what is the distinctive co%petence of 8elpAge India5
2! 'repare a strategic advantage profile for 8elpAge India!
1! B83@ is %ainly for%ulating and i%ple%enting concentration strategies nationally as well as globally$
in the power e#uip%ent sector! 7o you think it should broaden the scope of its strategies to include
integration or diversification5 0hy5
2! "uppose B83@ plans to diversify its business! 0hat areas should it diversify into5 )ive reasons
to >ustify your choice
1! 0hat is the %otive for internationali/ation by the &alyani )roup5 7iscuss!
2! 0hich type of international strategy is &alyani )roup adopting5 34plain!
1! Co%%ent on the steps taken to reduce the e4tent of vertical integration at the Indian Railways!
"uggest a few %ore %easures that could be taken!
2! 7iscuss the %easures taken for corporate restructuring of the Indian Railways$ in your opinion$
are these ade#uate for dealing with the proble%s faced5 0hy5
! 'ropose the basic ele%ents of a corporate turnaround for the Indian Railways!
Management In2#&mati#n S'$tem$
1! 7o you agree with the argu%ent %ade by ,ick Carr to support his position that IT no longer
gives co%panies a co%petitive advantage5 0hy or why not5
2! 7o you agree with the argu%ent %ade by the business leaders in this case in support of the
co%petitive advantage that IT can provide to a business5 0hy or why not5
! 0hat are several ways that IT could provide a co%petitive advantage to a business5 Hse so%e
of the co%panies %entioned in this case as e4a%ples! Lisit their websites to gather %ore infor%ation
to help you answer!
1! 0hat is the business of wireless technologies in the che%icals and auto%otive %anufacturing
industries5 0hat other %anufacturing applications %ight benefit fro% wireless technologies5
0hy5
2! 0hat are so%e of the business benefits of wireless technologies in finance and invest%ents5
0hat other applications would you reco%%end5 0hy5 Check the website of *idelity!co% to
help you answer!
! 0hat are so%e of the business benefits and challenges of using wireless technologies in
retailing5 0hat are so%e other applications that %ight be beneficial to consu%ers$ as well as
retailers5 0hy5
1! 0hat is the business value of AI technologies in business today5 Hse several e4a%ples fro% the
case to illustrate your answer!
2! 0hat are so%e of the benefits and li%itations of data %ining for business intelligence5 Hse
Bank *inancialAs e4perience to illustrate your answer!
! 0hy have banks and other financial institutions been leading users of AI technologies like
neural networks5 0hat are the benefits and li%itations of this technology
1! 0hat are the benefits and li%itations of the Rowe Co%paniesA R1I %ethods for IT pro>ect
planning5
2! 0hat is the business value of the R1I %ethodology re#uired for pro>ect planning by (errill
@ynch5
! 7o you agree with the IT invest%ent decisions being %ade by the Rowe Co%panies in response
to changing econo%ic conditions5 0hy or why not5
1! 0hat security %easures should co%panies$ business professionals$ and consu%ers take to
protect their syste%s fro% being da%aged by co%puter wor%s and viruses5
2! 0hat is the ethical responsibility of (icrosoft in helping to prevent the spread of co%puter
viruses5 8ave they %et this responsibility5 0hy or why not5
! 0hat are several possible reasons why so%e co%panies Dlike )(F were seriously affected by
co%puter viruses$ while others Dlike Leri/onF were not5
Ma&keting Management
1! 0hat have been the key success factors for ,ike5
2! 0here is ,ike vulnerable5 0hat should it watch out for5
! 0hat reco%%endations would you %ake to senior %arketing e4ecutives going forward5
0hat should they be sure to do with its %arketing5
1! 0hat have been the key success factors for 7isney5
2! 0here is 7isney vulnerable5 0hat should it watch out for5
! 0hat reco%%endations would you %ake to their senior %arketing e4ecutives going
forward5 0hat should it be sure to do with its %arketing5
1! 0hat have been the key success factors for 8"BC5
2! 0here is 8"BC vulnerable5 0hat should it watch out for5
! 0hat reco%%endations would you %ake to senior %arketing e4ecutives going forward5
0hat should they be sure to do with its %arketing5
1! 0hat have been the key success factors for &rispy &re%e5
2! 0here is &rispy &re%e vulnerable5 0hat should it watch out for5
! 0hat reco%%endations would you %ake to senior %arketing e4ecutives going forward5
0hat should they be sure to do with its %arketing5
1! 0hat are the key success factors for "outhwest Airlines5
2! 0here is "outhwest Airlines vulnerable5 0hat should it watch out for5
! 0hat reco%%endations would you %ake to senior %arketing e4ecutives %oving forward5
0hat should they be sure to do with its %arketing5
B*$ine$$ La%
1! DaF 7iscuss the ter% KContinuing )uaranteeA! 8ow can it be revoked5
DbF "tate briefly the rights and obligations of a bailee!
2! DaF 0hat do you understand by the ter% I%plied KAuthority of a partnerA5
DbF 3nu%erate the acts$ which are not covered under i%plied authority!
! DaF 0hat are the rights and duties of a %inor in relation to partnership business5
DbF 7istinguish between ..
DiF "ub.agent and "ubstituted Agent
DiiF "ale$ Bail%ent and 'ledge
+! DaF 34plain the rights of a partner!
DbF 7istinguish between the followingJ
DiF "uccession and Assign%ent!
DiiF Contract of Inde%nity and Contract of )uarantee!
3+ 0rite short note on!
iF ,on.registration of a fir%!
iiF Capacity of Contract
iiiF &inds of Bail%ent!
ivF Anticipatory breach of a Contract!
4+ aF 0hen is a "urety 7ischarged fro% @iability by the conduct of the creditor5
bF 7escribe the rules relating to passing of property in the sale of goods!
5+ aF 0hat is an illegal agree%ent5 "tate the effects of illegality!
bF 0hat is K"upervening I%possibilityA5 0hat are their effects upon the contract5
cF 0hat are the re%edies available to the buyer when goods in wrong #uantity delivered to
hi%5
dF 0hen shall a retired partner be discharged fro% his liabilities for the acts of the fir%
before retire%ent5
6+ DaF "tate the principles on which da%ages are assessed for breach of contract!
DbF 7escribe the law relating to the Kright of resaleA available to an unpaid seller in the "ale
of )oods Act$ 19<!
7+ aF 0hat are the rules regarding delivery of goods5
bF 7istinguish betweenJ
iF ,ovation and Alteration!
iiF @i#uidated da%ages and penalty
10+ Co%%ent on
aF Transferee of a partnerAs interest cannot e4ercise the right of transferring partner!
bF Appropriation is a right pri%arily of the debtor and for his benefit!
cF A proposal can be revoked otherwise than by co%%unication!
dF Right of stoppage in transit is an e4tension of the right of lien!
CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS
PROJECT REPORTS AND THESIS
ISBM / IIBMS / IIBM / ISMS / KSBM /
NIPM
SMU / SYMBIOSIS / XAVIER / NIRM /
PSBM / NSBM / ISM / IGNOU / IICT / ISBS
/ LPU / ISM&RC/ LPU / NMIMS / ISBS /
MANIPAL / GARUDA / HIMALAYA / UPES /
IMT / iact
IC MIND
MBA - EMBA - BMS - GDM - MIS - MIB
DMS - DBM - PGDM - DBM – DBA - PGDM
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Retai8 Management
1! 7evelop a positioning chart for >ewelry! Include 0al.(art$ Tiffany$ and depart%ent stores with
>ewelry depart%ents$ on the chart! 34plain your choice of a4es$ as well as each storeAs
positioning!
2! 7o you agree that the events described in this case are contributing to the blurred positioning
of >ewelry retailing5 34plain your answer and its ra%ifications!
! 0hat are the pros and cons of Tiffany selling ite%s priced as low as R2<<5
+! As a >ewelry shopper$ how would you e4pect the total retail e4perience to differ in 0al.(art$
depart%ent stores$ and high.end retailers5
1! As an independent super%arket operator$ would you want to beco%e a 'iggly 0iggly
franchisee5 0hy or why not5
2! 0hat are the advantages to 'iggly 0iggly of having franchised outlets instead of its own
stores5 The 7isadvantages5
! 0hat criteria should 'iggly 0iggly use in evaluating potential franchisees5
+! "hould *le%ing re#uire *resh Brands to use the 'iggly 0iggly na%e and all of its pro%otions5
34plain your answer!
1! Is the new high.tech research environ%ent going to eli%inate the use of hu%an researchers5
34plain your answer!
2! 0hat are the pros and cons of using .7 CA7 syste%s for %arketing research purposes versus
traditional focus groups5
! 7escribe the ideal %arketing research uses for .7 ani%ation software in the creation of a
virtual grocery shopping environ%ent for super%arkets!
+! 7evise a short consu%er #uestionnaire for Burger &ing to use in assessing its .7 CA7
si%ulations!
1! 7escribe how accounting irregularities can play havoc with a fir%As reputation$ supplier
relations$ and %anager %orale!
2! 7iscuss other %eans of %easuring and i%proving financial perfor%ance at 7ollar )eneral!
! 0hat are the financial %anage%ent pros and cons of 7ollar )eneralAs placing greater e%phasis
on perishables5
+! 3valuate 7ollar )eneralAs inventory %anage%ent initiatives!
1! 3valuate "ports AuthorityAs new design in light of the retailerAs ob>ectives!
2! 7iscuss the pros and cons of "ports AuthorityAs use of specialty bouti#ues instead of its
previous warehouse for%at!
! 7evelop a pro%otional ca%paign for "ports Authority to capitali/e on Bthe authorityC i%age!
+! 7o you think the 0T"A network will prove to be a %a>or contributor to "ports AuthorityAs
at%ospherics or will it turn out to be a fad5 34plain your answer!
Sa8e$ 9 !i$t&i0*ti#n Management
1! 0hat action should the 'hillips Co%pany have taken to change the co%pany i%age in the
public utility field5
1! 7escribe CastleberryAs %a>or operations responsibilities! 8ow well is he carrying out each of
these responsibilities5
2! 0hat kind of planning activities should Castleberry be carrying out regularly5 0hat planning
areas need i%%ediate attention5
! 8ow do you suppose CastleberryAs ti%e should be divided operations and planning5
1! "uggest what 0agner should have done to reduce personnel turnover and eli%inate the other
proble%s at Central CATL!
1! If you were acting as a consultant for the 7riskill Co%pany$ what reco%%endations would you
%ake with respect to the preparation of #uotas of the sales force5
2! 8ow would you evaluate the argu%ents of the sales %anager and the %arketing research
director5
GENERAL MANAGEMENT
CASE: *: TRI 1 STATE TELEPHONE
Oohn Eodwin, ;hief e!ecuti'e of 7ri 6 State 7ele"hone, leaned $ac& in his chair and loo&ed
at the ceilin#. *ow was he e'er #oin# to #et out of this %ess? 1t last ni#htCs "u$lic
hearin#. ,50 an#ry custo%ers had %arched in to "rotest 7ri 6 StateCs latest rate request.
1fter the rancorous shoutin# was o'er and the acri%onious si#ns "ut away, the
"rotesters had "resented state re#ulators with so%e so"histicated econo%ic analyses in
su""ort of their case. 1dditionally, there were a nu%$er of e%otional a""eals fro%
elderly custo%ers who re#arded "hone ser'ice as their lifeline to the outside world
7ri 6 State 7ele"hone o"erated in three states and had sales of o'er H3 $illion. Durin#
the last -'e years, the co%"any had e!"erienced a tre%endous a%ount of chan#e. (n
,2)Q, the 17 V 7 di'estiture sent shoc& wa'es throu#hout the industry, and 7ri-State
7ele"hone had felt the e+ects, as "ricin# for lon# distance tele"hone ser'ice chan#ed
dra%atically. 7he :ederal ;o%%unications ;o%%ission instituted a char#e to the e+ect
that custo%ers should ha'e 3access5 to lon# 6 distance co%"anies whether or not they
were in the ha$it of %a&in# lon# distance calls. ;onsu%er #rou"s, includin# the
;onsu%er :ederation of 1%erica and the ;on#ress of ;onsu%er Dr#ani8ations, had
<oined the "rotest, increasin# their attention on the industry and inter'enin# in
re#ulatory "roceedin#s where'er "ossi$le. 7he :;; was considerin# dere#ulatin# as
%uch of the industry as "ossi$le, and con#ress was loo&in# o'er the co%%issionerCs
shoulder. Aeanwhile, the De"art%ent of Oustice and Oud#e *arold Ereene $oth of who%
were res"onsi$le for %onitorin# the 17 V 7 di'estitureK continued to ar#ue a$out what
$usiness co%"anies li&e 7ri 6 State should $e en#a#ed in.
(n addition, technolo#y was chan#in# ra"idly. ;ellular tele"hones, "ri%arily used in cars,
were now hand-held and could $e su$stituted for standard "hones. Di#ital technolo#y
was #oin# forward, leadin# to lower casts and requirin# co%"anies li&e 7ri 6 state to
in'est to &ee" u" with the state of the art. Aeanwhile, rate increases ne#otiated durin#
the inBationary ,2.0s were &ee"in# earnin#s hi#her than re#ulators would authori8e.
4ew 3(ntelli#ent5 ter%inals and software de'elo"%ents #a'e rise to new uses for the
"hone networ& Jsuch as usin# the "hone for an a ar% syste%K, $ut as lon# as custo%ers
"aid one Bat fee, the "hone co%"any could not $ene-t fro% these new ser'ices.
EodwinCs co%"any has recently "ro"osed a new "ricin# syste% where$y users of local
tele"hone ser'ices would si%"ly "ay for what they used rather than a %onthly Bat fee.
1ll of the senior %ana#ers were con'inced that the "lan was fairer, e'en thou#h so%e
#rou"s who used the "hone with nota$le frequency Jli&e real estate a#entsK would "ay
%ore. (t would #i'e the co%"any an incenti'e to $rin# new ser'ices to their custo%ers,
and custo%ers would $e a$le to choose which ones to $uy. 4one of the% had
antici"ated the hue and cry fro% the 'ery custo%ers who would sa'e %oney under the
new "lan.
r instance, EodwinCs studies showed that the elderly were 'ery li#ht usersof local ser'ice and could sa'e as %uch as 20 "ercent under the new "lan.
1fter the de$acle at the hearin# the "re'ious ni#ht, Eodwin was unsure how to "roceed.
(f he $ac&ed o+ the new "ricin# "lan, he would ha'e to -nd a di+erent way to %eet the
challen#es of the future 6 %ay $e e'en di+erent $usinesses to au#%ent co%"any
inco%e. 1lternati'ely, the co%"any could not stand the ne#ati'e "ress fro% a
"rotracted $attle, e'en thou#h Eodwin thou#ht that the re#ulators were fa'ora$ly
dis"osed toward his "lan. (n fact, Eodwin hi%self $elie'ed the co%"any should hel" its
custo%ers rather than -#ht with the%.
)&e'ti#"':
*+ 9,# a$e t,e 'ta>e,#.e$' i" t,i' ca'e:
0+ 9,ic, 'ta>e,#.e$' a$e (#'t i(p#$ta"t:
3+ 9,at a$e t,e c$itica t$e".' i" T$i 1 State/' e"6i$#"(e"t:
?+ 9,! .# !#& t,i"> T$i 1 State/' c&'t#(e$' a$e '# &p'et:
@+ 9,at ',#&. H#," G#.4i" .#:
CASE NO+ 0: 8RESH IDEAS AT 8RESH 8IELDS
:resh :ields %ay $e a su"er%ar&et, $ut what itCs su"er at sellin# is its i%a#e > 3Eood for
you foods.5
1 4ew 1#e #rocery store - X:resh :ieldsC falls so%ewhere $etween a health food store and
a traditional su"er%ar&et. (t is not %erely a health food store, $ecause it carries a wider
'ariety of foods includin# fresh "asta, $a&ed #oods, sea-food and deli selections. What
distin#uishes :resh :ields fro% su"er%ar&ets lies in what is a$sent fro% the shel'es,
rather than what is "resent, for :resh :ields sho""ers will not -nd foods containin# lots of
"reser'ati'es and arti-cial Ba'orin#s, such as Oell 6 D and Dreos, that they can "urchase
at other su"er%ar&ets. What :resh :ields o+ers is 3 or#anic and con'entional "roduce,
%eats, seafood, dairy "roducts, $a&ed #oods fro% an in 6 store $a&ery, deli ite%s
#our%et and 'e#etarian "re"ared foods, a wide array of cheese, a full #rocery
de"art%ent, an e!tensi'e selection of su""le%ents, s&in enrichin# cos%etics and natural
health care "roducts and en'iron%entally friendly household #oods.5
7he arri'al of :resh :ields coincides with that of the 4ew 1#e, health 6 conscious trend of
the ,220s, and the co%"any has not hesitated in ta&in# ad'anta#e of consu%ersC new
who""in# "references resultin# fro% the trend. 1ccordin# to a ,222 sur'ey $y *ealth
cus, a @ennsyl'ania 6 $ased research -r%, 20 "ercent of sho""ers say that health has$eco%e a factor in deter%inin# the food they $uy. 7his "erha"s accounts for why %any
1%ericans are willin# to "ay u" to 20 "ercent %ore for natural foods. 1ctually, the :resh
:ields "re%iu% tends to ho'er closer to 5 "ercent, and when in season, :resh :ieldCs
locally #rown or#anic "roduce can e'en cost less than "roduce sold at other
su"er%ar&ets.
1 tea% of entre"reneurs $e#an :resh :ields in ,22,. 7he tea% included 33 year old
Aar& Drdain, for%er Eold%an Sachs in'est%ent $an&er as ;=D and @resident, .5 years
Dld Neo Gahn, founder of Sta"les, the "ros"erous oce 6 su""ly sores, as chair%an and
QQ year old Oac& Aur"hy, for%er %ana#er of the *eartland su"er%ar&et chain in 4ew
=n#land, as ;hief o"eratin# ocer.
Within the -rst ,2 %onths, -'e :resh :ields locations o"ened in Aaryland and Fir#inia.
=!"andin# into @ennsyl'ania and (llinois, $y %id 6 ,22Q :resh :ields had o"ened a total
of ,Q stores in the four states, with %ore in the "lannin# sta#es.
Auch of :resh :ieldCs success can $e attri$uted to the fact that the co%"any o+ers only
the freshest "roduce, often fro% local #rowers. 7he co%"any screens #rowers to -nd
those who use natural %ethods of "est %ana#e%ent and a""ly the least a%ount of
a#ricultural che%icals. (n addition, :resh :ields see&s %eat and "oultry fro% far%s, not
factories, to a'oid the #rowth 6 "ro%otin# dru#s often used. :resh :ields also %a&es an
e+ort to #et to &now the "eo"le who catch the seafood, and see&s out -sh cau#ht in
dee", clean waters, not fro% coastal waters threatened $y "ollution.
1ccordin# to Gahn, thou#h, the &ey to :resh :ieldCs success lies in "leasin# the custo%er.
3='ery$ody says the sa%e thin#s "lease the custo%er 6 $ut while e'ery$ody says it, not
too %any "ractice it. 7he custo%er is s%arter than all of us. *ere weCre $uildin# an
or#ani8ation that 8eroes in and &ee"s custo%er satisfaction in %ind.5
(nstilled in :resh :ields is a war%, friendly carin# culture that $e#ins with Gahn and
tra'els throu#h to all sta&eholders> e%"loyees, su""liers, custo%ers, co%%unity
%e%$ers. Whereas at other stores, such as Wal 6 Aart, there is a sin#le, sy%$olic
#reeter $y the door, e'ery e%"loyee at :resh :ield is a sort of 3#reeter5, and he or she
loo&s u", s%iles and says 3hello5 to sho""ers as they "ass $y. Within the co%"any,
there are no e%"loyees, there are only 3associates5 %any of who% Gahn &nows $y
na%e.
Auch of what :resh :ields is a$out is relationshi" $uildin#. 7he war% relationshi"
$etween the co%"any and associates lies at the heart. :ro% there, associates $uild
relationshi" with su""liers to add the "ersonal touch that is inte#ral to the :resh :ields
quality i%a#e.
1s sho""ers wal& throu#h the stores, nu%erous sa%"les are o+ered.
3Dri#inally, ( $ou#ht or#anic "roduce and s"ent H25 to H30 e'ery wee& or two.5 Says
Aerri Au&ai, a ho%e%a&er in 1nnandale, Fir#inia. 37hen ( tried the $a&ed #oods and
u""ed %y s"endin# $y HR0. 4ow (C% $uyin# %eats and eyein# the -sh. 7heyC'e
de-nitely #ot %e hoo&ed.5
Says :resh :ields, 3We #uarantee your satisfaction unconditionally. You can consider our
#uarantee as an o""ortunity to $e ad'enturous and to try new "roducts, without ris&. (f
for any reason you are less than co%"letely satis-ed with so%ethin# you "urchase at
:resh :ields, we will cheerfully o+er you a full refund.5
)&e'ti#"':
*+ 9,at ec#"#(ic a". '#cia -act#$' ',#&. 8$e', 8ie.' (a"a%e$' 4atc,:
0+ S&pp#'e !#& (a"a%e a #ca '&pe$(a$>et a". 8$e', 8ie.' c#(e' t# t#4"+
H#4 4#&. !#& $ei"6e"t !#&$ #$%a"iIati#" t# (eet t,e c,ae"%e' p#'e. 7!
8$e', 8ie.':
CASE: 3: RESPONDING TO ALLEGATIONS O8 RACISM: 8LAGSTAR AND THE
PLEDGE
7he ,220 s ha'e witnessed an increased e%"hasis on 'aluin# di'ersity. With $oth the
%ar&et"lace and the wor&force $eco%in# %ore and %ore di'erse, %any %ana#ers ha'e
redesi#ned their co%"anies cultures to reBect and encoura#e %ulticulturalis%.
;han#in# a co%"anyCs culture, howe'er, is often %ore dicult than %ana#ers %i#ht -rst
$elie'e. 1t Denny5s for e!a%"le, "ro%otin# %ulticulturalis% required a rewor&in# of its
cor"orate culture fro% to" to $otto%.
(n the early ,220s, DennyCs found itself the tar#et of nu%erous alle#ations of racis%, $y
$oth custo%ers and e%"loyees. Llac& custo%ers asserted that they were not recei'in#
the sa%e treat%ent at DennyCs as white custo%ers. So%e co%"lained that they were
either forced to wait for their food lon#er than white custo%ers or denied ser'ice
entirely, others said that they were forced to "re-"ay for their %eals while white
custo%ers in the restaurant were not. 7here were also alle#ations that DennyCs
restaurants would close if there were too %any $lac& custo%ers. (n addition, DennyCs
was accused of discri%inatory hirin# "ractices as well as "re'entin# $lac&s and other
%inorities fro% reachin# %ana#e%ent and franchise "ositions. 4one of this #arnered
%uch attention, howe'er, until a suit was -led on Aarch 2Q, ,223, $y a #rou" of %inority
custo%ers in San Oose, ;alifornia, who %ade the all 6 too 6 fa%iliar alle#ation that
DennyCs had required co'er char#es and "re-"ay%ent of %eals fro% %inority custo%ers,
$ut not fro% white custo%ers.
(n res"onse to these char#es, DennyCs "arent co%"any, :la#star, for%ally a"olo#i8ed to
the custo%ers, and :la#star ;=D Oerry Richardson dro""ed the co'er char#e and "re-
"ay%ent "olicies and e!"lained that they had $een intended to "re'ent late ni#ht 3 dine
6 and 6 dash5 theft and that any discri%inatory i%"le%entation of the% was in direct
'iolation of cor"orate "olicies. Richardson ad%itted, howe'er, that he had $een
unaware that the co'er char#e and "re-"ay%ent "olicies e'en e!isted within the
co%"any. :urther%ore, Richardson $e#an tal&s with ci'il ri#hts #rou"s such as the
411;@. :la#star also si#ned a consent decree issued $y the Oustice De"art%ent that
required s"ot testin# of DennyCs restaurants for discri%inatory "ractices as well as an
anti-discri%ination trainin# "ro#ra% for all DennyCs sta+ers. 3 Dur co%"any does not
tolerate discri%ination of any &ind,5 Richardson assured all, and his actions see%ed to
su""ort his words.
7hen, on Aay 2Q, ,223, si! $lac& Secret Ser'ice a#ents -led suit a#ainst DennyCs for
alle#edly ha'in# denied the% ser'ice at a DennyCs in 1nna"olis, Aaryland. 7he si! %en
clai%ed that while they recei'ed deli$erately slow ser'ice, their white counter "arts were
ser'ed in a ti%ely fashion. 3*earin# the alle#ations %ade yesterday $y Si! 1frican 6
1%erican Secret Ser'ice a#ents on national tele'ision that they were not treated fairly at
DennyCs was a "ainful e!"erience for our co%"any,5 Richardson ad%itted.
7he hi#hly "u$lici8ed suit ser'ed as a catalyst that set o+ a whirlwind of chan#es
throu#hout :la#star. (n a late Aay Richardson issued an internal %e%o that %ar&ed the
$e#innin# of RichardsonCs "led#e to chan#e. 3 ( a% distressed that so%e "eo"le in our
co%"any ha'enCt #otten the %essa#e that we will not tolerate unfair treat%ent of
custo%ers,5 he wrote. 37he "ast year has $een a tryin# e!"erience, "articularly for
%any of our 1frican 6 1%erican e%"loyees who are e%$arrassed $y what ha""ened.
7his is %y "ersonal "led#e to the% to restore their "ride in DennyCs.
Richardson sto""ed "ro%isin# chan#e and started creatin# it. Dn Ouly ,, ,223, :la#star
reached an historic a#ree%ent with the 411;@. 7he a#ree%ent, which was the %ost far-
reachin# arran#e%ent the ci'il 6 ri#hts or#ani8ation had e'er si#ned, re"resented a
$rea&throu#h in relations $etween %inorities and $usinesses. 7he "lan tar#eted se'eral
s"eci-c "ro$le% areas within :la#star.
r e!a%"le, of :la#starCs %ore than ,20,000wor&ers, 20 "ercent were $lac&, $ut only Q.Q. "ercent of its %ana#ers were $lac&. Inder
the a#ree%ent, at least ,2 "ercent of :la#starCs %ana#ers will $e $lac& $y the 2000.
7he co%"any also wanted to increase the nu%$er of $lac&-owned franchises/ only one of
DennyCs Q05 franchises was owned $y a $lac& "erson as of ,223, $ut :la#star "lanned to
ha'e at least 53 $lac&-owned franchise $y ,22.. :la#star also a#reed to direct %ore
%ar&etin# funds toward %inority ad'ertisin# and to $e#in "urchasin# %ore #oods and
ser'ices fro% %inority 6 owned $usinesses. (n addition, :la#star "ro%ised to a""oint at
least one %inority to its $oard of directors. (n all the "lan will direct %ore than one
$illion dollars in <o$s and econo%ic $ene-ts to %inority wor&ers and co%"anies $y the
year 2000.
Richardson also undertoo& e+orts to restore Denny5s re"utation as well as his own at the
forefront of his e+orts was 37he @led#e5. 37he @led#e5 was the na%e #i'en to a R0 6
second 7F s"ot, which aired in Q, tele'ision %ar&ets and on the Llac& =ntertain%ent
7ele'ision networ& durin# a two-wee& "eriod in Oune ,223. (n it, Oerry Richardson and a
re"resentati'e sa%"le of :la#starCs QR,000 e%"loyees endorsed a sole%n "led#e to treat
custo%ers with 3res"ect, di#nity, and fairness.5 37he whole idea for the X"led#eC started
with our desire to e!"ress su""ort for our own e%"loyees.5 =!"lained Da'id *urwitt,
:la#starCs senior 'ice "resident of %ar&etin# 37hese "eo"le ha'e $een 'ery %uch under
the #un. We chose tele'ision for this s"ecial ca%"ai#n $ecause we felt it was i%"ortant
to show "eo"le e!actly who the DennyCs e%"loyees are5. D'erall, res"onse to 37he
@led#e5 was fa'oura$le. 3 Dur "hone has $een rin#in# o+ the hoo& since DennyCs aired
this ad,5 said W. Ere#ory Wi%s, "resident of the 411;@ in Roc&'ille, Aaryland, the
lar#est $ranch in the Washin#ton, D.;.area. 31$out 20 "ercent of our %e%$ers a""ro'e
of the co%%ercials and the ste"s DennyCs has $een ta&in# to i%"ro'e relations with
"eo"le of color.
=!"erience, howe'er, had tau#ht :la#star that %ere "olicy state%ents do little #ood in
the a$sence of trainin# and %onitorin#. With this in %ind, :la#star rear%ed its
co%%it%ent to its a#ree%ent with the De"art%ent of Oustice $y ste"in# u" its
%ulticultural trainin# "ro#ra%s and a#reein# to allow the 411;@ to conduct its own
ins"ection of DennyCs restaurants. DennyCs also set u" a hot line for e%"loyees to use to
re"ort "ossi$le instances of discri%ination. (n addition, :la#star %ade si#ni-cant
%ana#e%ent chan#es durin# the su%%er of ,223 $y installin# three e!ecuti'es
considered "articularly sensiti'e to di'ersity in the wor&"lace> 4or%an *ill, Ooe Russell,
and Ron @etty. Russell was a""ointed head of the di'ersity trainin# "ro#ra%, and *ill
ca%e on $oard to o'ersee -eld hirin#. 37here are co%"anies that $ury their heads in the
sand and say, (C% #oin# to conduct %y $usiness the sa%e way (C'e always conducted %y
$usiness,5 said @etty. 31nd then there are enli#htened co%"anies that say, 37here are
o""ortunities outside of the way weC'e nor%ally done $usiness.5
7he ste"s ta&en $y :la#star ha'e $een si#ni-cant, not only $ecause of the %odel the
co%"any has set for other co%"anies, $ut also $ecause of :la#starCs own holdin#s,
includin# 530 *ardeeCs fast food units, ,,Q00 DennyCs fa%ily restaurants, 200 UuincyCs
stea& houses, ,20 =l @ollo Noco outlets and %ore than 2,000 ;anteen ;or".
od andRecreation Ser'ice accounts. 7he co%%unityCs res"onse to the alle#ations a#ainst
DennyCs con-r% that %ulticulturalis% can no lon#er $e i#nored.
)&e'ti#"':
*+ H#4 4#&. !#& .e'c$i7e t,e #$%a"iIati#"a c&t&$e at 8a%'ta$:
0+ H#4 .#e' 8a%'ta$ .ea 4it, .i6e$'it!:
3+ 9,at c,ae"%e' c#&. 8a%'ta$ -ace i" it' "ea$ -&t&$e:
CASE: ?: DISNEY/S DESIGN
7he Walt Disney ;o%"any is heralded as the worldCs lar#est entertain%ent co%"any. (t
has earned this astoundin# re"utation throu#h ti#ht control o'er the entire o"eration >
control o'er the o"en 6 ended $rainstor%in# that ta&es "lace 2Q hours a day / control
o'er the en#ineers who construct the fa$ulous the%e 6 "ar& rides/ control o'er the
ani%ators who create and desi#n $elo'ed characters and ad'enturous scenarios / and
control o'er the talent that $rin#s the %any conce"ts and characters to life. 1lthou#h
control "er'ades the co%"any, it is not too stron# a #ri". =%"loyees in each de"art%ent
are well aware of their o$<ecti'es and the "ara%eters esta$lished to %eet those
o$<ecti'es. Lut in con<unction with the "re-deter%ined res"onsi$ilities, %ana#ers at
Disney encoura#e inde"endent and inno'ati'e thin&in#.
@eo"le at the co%"any ha'e ado"ted the "hrase 3Drea% as a 7ea%5 as a re%inder that
whi%sical thou#hts, ad'enturous ideas, and all 6 out drea%in# are at the core of the
co%"any "hiloso"hy. 7he o'er all control o'er each de"art%ent is te%"ered $y this
conce"t. Disney %ana#ers stri'e to e%"ower their e%"loyees $y lea'in# roo% for their
creati'e <uices to Bow. (n fact, %ana#ers at Disney do %ore than encoura#e inno'ation.
7hey de%and it. @ro<ects assi#ned to the sta+ 3i%a#iners5 see% i%"ossi$le at -rst
#lance. 1t Disney, doin# the see%in#ly i%"ossi$le is "art of what inno'ation %eans.
7ea%s of i%a#iners #ather to#ether in a $rainstor%in# session &nown as the 3Llue S&y5
"hase. Inder the 3Llue S&y5, an uninhi$ited e!chan#e of wild, ludicrous, outra#eous
ideas, $oth 3 #ood5 and 3 $ad5, continues until solutions are found and the i%"ossi$le is
done. Ly de%andin# so %uch of their e%"loyees, Disney %ana#ers e+ecti'ely dri'e
their e%"loyees to $e creati'e.
;urrent Disney leader Aichael =isner has esta$lished the 3Drea% as a 7ea%5 conce"t.
=isner reali8ed that %ana#ers at Disney needed to let their e%"loyees $rainstor% and
create with su""ort. 1s Disney "resident :ran& Weds says, 3(f a #ood idea is there, you
&now it, you feel it, you do it, no %atter where it co%es fro%.5
)&e'ti#"':
*+ 9,at e"6i$#"(e"ta -act#$' i"A&e"ce. (a"a%e(e"t 't!e at Di'"e!:
0+ 9,at >i".<'= #- #$%a"iIati#"a 't$&ct&$e 'ee( t# 7e c#"'i'te"t 4it, LD$ea(
a' a Tea(M:
3+ H#4 a". 4,e$e (i%,t t,e i"-#$(a #$%a"iIati#" 7e a $ea a''et at Di'"e!:
CASE: @: LTHAT/S NOT MY HOBM 1 LEARNING DELEGATION AT CIN;MADE
When Ro$ert :rey "urchased ;in 6 Aade in ,2)Q, the co%"any was near ruin. 7he
;incinnati, Dhi-$ased %anufacturer of "a"er "ac&a#in# had not altered its "roduct line in
20 years. Na$or costs had hit the ceilin#, while "ro-ts were fallin# throu#h the Boor. 1
solid quarter of the co%"anyCs shi"%ents were late and a$senteeis% was hi#h.
Aana#e%ent and wor&ers were at each otherCs throats.
7en years later, ;in 6 Aade is "roducin# a new assort%ent of hi#hly di+erentiated
co%"osite cans, and "re-ta! "ro-ts ha'e increased %ore than -'e ti%es. 7he ;in 6
Aade wor&force is $oth Be!i$le and dee"ly co%%itted to the success of the co%"any.
Dn-ti%e deli'ery of "roducts has reached 2) "ercent, and a$senteeis% has 'irtually
disa""eared. 7here are e'en "lans to for% two s"in 6 o+ co%"anies to $e owned and
o"erated $y ;in-Aade e%"loyees. (n fact, at the one day 3:uture of the 1%erican
Wor&force5 conference held in Ouly ,223, ;in-Aade was reco#ni8ed $y @resident ;linton
as one of the $est 6 run co%"anies in the Inited States.
3*ow did we achie'e this startlin# turnaround?5 Aused :rey/ 3=%"loyee e%"ower%ent
is one "art of the answer. @ro-t sharin# is another.5
(n the late s"rin# of ,2)R, relations $etween %ana#e%ent and la$or had reached roc&
$otto%. *a'in# recently su+ered a "ay cut, e%"loyees at ;in- Aade ca%e to wor& each
day, "erfor%ed the duties required of their "articular "ositions, and returned ho%e-
nothin# %ore. :rey could see that his co%"any was su+erin#. 37o sur'i'e we needed to
sto" $ein# worthy ad'ersaries and start $ein# worthy "artners,5 he reali8ed. 7oward this
end, :rey decided to call a %eetin# with the union. *e o+ered to restore wor&er "ay to
its "re'ious le'el $y the end of the year. Dn to" of that, he o+ered so%ethin# no one
e!"ected> a ,5 "ercent share of ;in-AadeCs "re-ta! "ro-ts. 3( do not choose to own a
co%"any that has an ad'ersarial relationshi" with its e%"loyees.5 :rey "roclai%ed at the
%eetin#. *e therefore "ro"osed a new arran#e%ent that would encoura#e a
colla$orati'e e%"loyee-%ana#e%ent relationshi" 3=%"loyee "artici"ation will "lay an
essential role in %ana#e%ent.5
Aana#ers within the co%"any were a%on# the -rst "eo"le to o""ose :reyCs new idea of
e%"loyee in'ol'e%ent. 3Ay three %ana#ers felt they were "aid to $e worthy
ad'ersaries of the unions.5 :rey recalled. (tCs what theyCd $een trained for. (tCs what
%ade the% #ood %ana#ers. Aoreo'er, they were not used to "artici"ation in any for%,
certainly not in decision %a&in#.5 7he wor&ers also resisted the idea of e!tendin#
the%sel'es $eyond the written require%ents of their <o$s. 3 J=%"loyeesK wanted
#enerous wa#es and $ene-ts, of course, $ut they did not want to ta&e res"onsi$ility for
anythin# %ore than doin# their own <o$s the way they had always done the%,5 :rey
noted. =%"loyees were therefore s&e"tical of :reyCs o'ertures toward 3e%"loyee
"artici"ation.5 3We thou#ht he was tryin# to ri" us o+ and shaft us,5 e!"lained Dcelia
Willia%s, one of %any ;in-Aade e%"loyees who distrusted :reyCs "lans.
:rey, howe'er, did not #i'e u", and he e'entually con'inced the union to a#ree to his
ter%s. 3 ( wouldnCt ta&e no for an answer,5 he asserted. 3Dnce ( had %ade %y two
#rand "ronounce%ents, ( was deter%ined to "ress ahead and %a&e the% co%e true.5
Lut still ahead lay the considera$le challen#e of con'incin# e%"loyees to ta&e char#e>
( %ade "eo"le %eet with %e, then instead of tellin# the% what to do, ( as&ed the% 7hey
resisted.
3*ow can we cut the waste on his run?5 (Cd Say, or 3*ow are we #oin# to allocate the
D'erti%e on this order?5
37hatCs not %y <o$,5 theyCd say.
3Lut ( need your in"ut,5 (Cd say. 3*ow in the World can we ha'e "artici"ati'e
%ana#e%ent (f you wonCt "artici"ate?
3( donCt &now,5 theyCd say. 3Lecause thatCs not %y <o$ either, thatCs your <o$.5
Eradually, :rey %ade "ro#ress. Aana#ers $e#an sharin# %ore infor%ation with
e%"loyees. :rey was a$le slowly to e!"and the res"onsi$ilities wor&ers would carry.
Aana#ers who were una$le to wor& with e%"loyees left, and union relations $e#an to
i%"ro'e. =%"ower%ent $e#an to ha""en. Ly ,223, ;in Aade e%"loyees were ta&in#
res"onsi$ility for nu%erous tas&s. Willia%s, for e!a%"le, used to o"erate a tin-slittin#
%achine on the co%"anyCs factory Boor. She still runs that sa%e %achine, $ut now is
also res"onsi$le for orderin# al%ost H ,00,000 in su""lies.
Willia%s is <ust one e!a%"le of how <o$ roles and duties ha'e $een rede-ned throu#hout
;in-Aade. Ooyce Lell, "resident of the local union, still runs the "unch "ress she always
has, $ut now also ser'es as ;in- AadeCs cor"orate safety director. 7he co%"anyCs
schedulin# tea%, co%"osed of one %ana#er and -'e lead wor&ers fro% 'arious "lant
areas, is char#ed with settin# hours, desi#natin# layo+s, and decidin# when te%"orary
hel" is needed. 7he hirin# re'iew tea%, sta+ed $y three hourly e%"loyees and two
%ana#ers, is res"onsi$le for inter'iewin# a""licants and decidin# who% to hire. 1n
e%"loyee co%%ittee "erfor%s $oth short 6 and lon# 6 ter% "lannin# of la$or, %aterials,
equi"%ent, "roduction runs, "ac&in#, and deli'ery. =%"loyees e'en %eet daily in order
to set their own "roduction schedules. 3We e%"ower e%"loyees to %a&e decisions, not
<ust ha'e in"ut,5 :rey re%ar&ed. 3( <ust coach.5
Inder :reyCs new %ana#e%ent re#i%e, co%"any secrets ha'e 'irtually disa""eared. 1ll
;in-Aade e%"loyees, fro% entry-le'el e%"loyees all the way to the to", ta&e "art in
runnin# the co%"any. (n fact, :rey has dele#ated so %uch of the co%"anyCs o"erations
to its wor&ers that he now feels little in the dar&. 3 ( now &now 'ery little a$out whatCs
#oin# on, on a day-to-day $asis,5 he confessed.
1t ;in-Aade, e%"ower%ent and dele#ation are %ore than %ere $u88words/ they are the
way of doin# $usiness 6 #ood $usiness. 3 We, as wor&ers, ha'e a lot of o""ortunities,5
said Willia%s. 3 (f we want to ta&e leadershi", itCs o+ered to us.5
)&e'ti#"':
*+ H#4 4e$e p$i"cipe' #- .ee%ati#" a". .ece"t$aiIati#" i"c#$p#$ate. i"t#
Ci"e 1 Ma.e #pe$ati#"':
0+ 9,at a$e t,e '#&$ce' a". &'e' #- p#4e$ at Ci" 1 Ma.e:
3+ 9,at 4e$e '#(e #- t,e 7a$$ie$' t# .ee%ati#" a". e(p#4e$(e"t at Ci" 1
Ma.e:
?+ 9,at e''#"' a7#&t (a"a%e(e"t i" a $api.! c,a"%i"% (a$>etpace ca" 7e
ea$"e. -$#( t,e e2pe$ie"ce #- Ci" 1 Ma.e:
CASE NO+ N: HIGH;TECH ANS9ERS TO DISTRIBUTION: PROBLEMS AT
ROLLERBLADE
When a %an#er -nds that de%and e!ceeds in'entory, the answer lies in %a&in# %ore
#oods. When a %ana#er -nds that in'entory e!ceeds de%and, the answer lies in %a&in#
fewer #oods. Lut what if a co%"any %ana#e%ent -nds that they <ust do not &now which
situation a""lies?
7his is the situation that recently confronted %ana#e%ent at Roller$lade, the "o"ular
s&ate %anufacturer $ased in Ainneton&a, Ainnesota. Roller$lade has $een one of the
leadin# -r%s in the fast #rowin# hi#h "erfor%ance roller s&ate %ar&et"lace, it %atters a
#reat deal for Roller$lade %ana#ers whether de%and and in'entory are in $alance, or
not.
Roller$lade was in a $ind. 7he "roduct literally could not $e shi""ed out the door. 7he
%ana#ers found that wor&ers were not a$le to shi" "roducts $ecause, as a result of "oor
stora#e structures, they could not -nd the "roducts. Dnce they were found,
o'ercrowded aisles, in addition to other s"ace constraints, still "re'ented ecient
shi""in# $ecause the wor&ers could $arely %ana#e to #et the "roducts out the door.
3We were out of control $ecause we didnCt &now how to use s"ace and didnCt ha'e
enou#h of it,5 said (an =llis, director for facilities and safety. 3Lasically, there was no
%ore usea$le s"ace left in the warehouse, a se'ere $ac&lo# of custo%er orders, and
"ic&in# errors were clearly in the unacce"ta$le ran#e,5 added Ra% Grishnan, @rinci"al of
4RA Syste%s, $ased in St. @aul, Ainnesota.
7he answer for Roller$lade was found in technolo#y. *i#h-tech co%"anies ha'e
introduced a collection of co%"uter si%ulations, ran#in# in cost rou#hly fro% H,0,000 to
H30,000, that assist %ana#ers in #eneratin# e+ecti'e facility desi#ns. With the hel" of
layout Aaster (F si%ulation software, de'elo"ed $y 4RA, Roller$lade Aana#e%ent was
a$le to i%"le%ent a new distri$ution desi#n. 1s a result of the distri$ution i%"ro'e%ent,
Roller$lade was a$le to increase the nu%$er of custo%er orders "rocessed daily fro%,Q0
to Q,0 and eli%inate order $ac&lo#. 34ow we ha'e a di+erent $usiness,5 says =llis. 37he
new layout has ta&en us fro% $ein# in a crunch, to $ein# a$le to "lan.
)&e'ti#"':
*+ 9it, $etaie$' a' t,ei$ p$i(a$! c&'t#(e$'D 4,at c&'t#(e$ c#(petiti6e
i(pe$ati6e' c#&. 7e a5ecte. 7! R#e$7a.e/' i"6e"t#$! p$#7e(':
0+ H#4 app$#p$iate (i%,t a F&'t 1 i" 1 ti(e i"6e"t#$! '!'te( i' -#$ a p$#.&ct
'&c, a' $#e$ '>ate':M
3+ 9,at #pp#$t&"itie' a$e t,e$e-#$e R#e$7a.e (a"a%e$' t# 'ee t,e('e6e'
a' 'ei"% 'e$6ice'D i"'tea. #- 'i(p! $#e$ '>ate'?
ORGANIBATIONAL BEHAVIOR
Note: Attend any 04 case studies. All Cases carry equal marks.
CASE 01: THE FLNN EFFECT
CASE 0!: "#SH$N% "A"E& CAN 'E F#N
CASE 0
H)* +$+ $ %ET HE&E,CASE 04: THE SH$""$N% $N+#ST& ACC)#NT$N% TEA-
CASE 0.: '&$+%$N% THE T*) *)&L+S/THE )&%AN$0AT$)NAL +$LE--A
CASE 01: C)NFL$CT $N CL)SE 2#A&TE&S
CASE 01: THE FLNN EFFECT
%i3en t4at a su5stantial amount o6 intellectual a5ility 7u8 to 90 8ercent: is in4erited; it
mi<4t sur8rise you to learn t4at intelli<ence test scores are risin<. $n 6act; scores 4a3e
risen so dramatically t4at today=s <reat><rand8arents seem mentally de6icient 5y
com8arison.
First; let=s re3ie? t4e e3idence 6or risin< test scores. T4en; ?e=ll re3ie? e@8lanations 6or
t4e results.
)n an $2 scale ?4ere 100 is t4e a3era<e; scores 4a3e 5een risin< a5out ( 8oints 8er
decade; meanin< t4at i6 your <rand8arent scored 100; t4e a3era<e score 6or our
<eneration ?ould 5e around 11.. T4at=s a 8retty 5i< di66erence > a5out a standard
de3iation > meanin< t4at someone ?4o=s 6rom your <rand8arent=s <eneration ?4ose
score ?as at t4e 94t4 8ercentile ?ould only 5e a3era<e 7.0t4: 8ercentile 5y today=s
norms.
Aames Flynn is a Ne? 0ealand researc4er credited ?it4 6irst documentin< t4e risin<
scores. He 6irst re8orted t4e results in 1B94; ?4en 4e 6ound t4at almost e3eryone ?4o
took a ?ell>3alidated $2 test in t4e 1BC0s did 5etter t4an t4ose ?4o took it in t4e 1B40s.
T4e results a88ear to 4old u8 across cultures. Test scores are risin< not only in t4e
#nited States 5ut in most ot4er countries in ?4ic4 t4e e66ect 4as 5een tested; too.
*4at e@8lains t4e Flynn E66ect, &esearc4ers are not entirely sure; 5ut some o6 t4e
e@8lanations o66ered are:
1. Education. Students today are 5etter educated t4an t4eir ancestors; and education
leads to 4i<4er test scores.
!. Smaller 6amilies. $n 1B00; t4e a3era<e cou8le 4ad 6our c4ildrenD today t4e num5er
is less t4an t?o. *e kno? 6irst5orns tend to 4a3e 4i<4er $2s t4an ot4er c4ildren;
8ro5a5ly 5ecause t4ey recei3e more attention t4an t4eir later>5orn si5lin<s.
(. Test>takin< sa33y. Today=s C4ildren 4a3e 5een tested so o6ten t4at t4ey are test
sa33y: T4ey kno? 4o? to take tests and 4o? to do ?ell on t4em.
4. %enes. Alt4ou<4 smart cou8les tend to 4a3e 6e?er; not more; c4ildren; it=s 8ossi5le
t4at due to 5etter education; trackin<; and testin<; t4ose ?4o do 4a3e t4e ri<4t <enes
are 5etter a5le to e@8loit t4ose ad3anta<es. Some <enetics researc4ers also 4a3e ar<ued
t4at i6 t?o 8eo8le o6 di66erent intelli<ence mate; 5ecause t4e <ene o6 t4e more intelli<ent
mate is stron<er; it ?ins out; meanin< t4e c4ild=s $2 ?ill 5e closer to t4e $2 o6 t4e
smarter 8arent.
2uestions:
1. +o you 5elie3e 8eo8le are really <ettin< smarter, *4y or ?4y not,
!. *4ic4 o6 t4e 6actors e@8lainin< t4e Flynn E66ect do you 5uy,
(. Are t4ere any societal ad3anta<es o6 disad3anta<es to t4e Flynn E66ect,
CASE 0!: "#SH$N% "A"E& CAN 'E F#N
A lar<e city <o3ernment ?as 8uttin< on a num5er o6 seminars 6or mana<ers o6 3arious
de8artments t4rou<4out t4e city. At one o6 t4ese sessions t4e to8ic discussed ?as
moti3ation/4o? to moti3ate 8u5lic ser3ants to do a <ood Eo5. T4e 8li<4t o6 a 8olice
ca8tain 5ecame t4e central 6ocus o6 t4e discussion:
$F3e <ot a real 8ro5lem ?it4 my o66icers. T4ey come on t4e 6orce as youn<;
ine@8erienced rookies; and ?e send t4em out on t4e street; eit4er in cars or on a 5eat.
T4ey seem to like t4e contact t4ey 4a3e ?it4 t4e 8u5lic; t4e action in3ol3ed in crime
8re3ention; and t4e a88re4ension o6 criminals. T4ey also like 4el8in< 8eo8le out at 6ires;
accidents; and ot4er emer<encies.
T4e 8ro5lem occurs ?4en t4ey <et 5ack to t4e station. T4ey 4ate to do t4e 8a8er?ork;
and 5ecause t4ey dislike it; t4e Eo5 is 6requently 8ut o66 or done inadequately. T4is lack
o6 attention 4urts us later on ?4en ?e <et to court. *e need clear; 6actual re8orts. T4ey
must 5e 4i<4ly detailed and unam5i<uous. As soon as one 8art o6 a re8ort is s4o?n to
5e inadequate or incorrect; t4e rest o6 t4e re8ort is sus8ect. "oor re8ortin< 8ro5a5ly
causes us to lose more cases t4an any ot4er 6actor.
$ Eust donFt kno? 4o? to moti3ate t4em to do a 5etter Eo5. *eFre in a 5ud<et crunc4;
and $ 4a3e a5solutely no 6inancial re?ards at my dis8osal. $n 6act; ?eFll 8ro5a5ly 4a3e to
lay some 8eo8le o66 in t4e near 6uture. $tFs 4ard 6or me to make t4e Eo5 interestin< and
c4allen<in< 5ecause it isnFt>itFs 5orin<; routine 8a8er?ork; and t4ere isnFt muc4 you can
do a5out it.
Finally; $ canFt say to t4em t4at t4eir 8romotions ?ill 4in<e on t4e e@cellence o6 t4eir
8a8er?ork. First at all; t4ey kno? itFs not true. $6 t4eir 8er6ormance is adequate; most
are more likely to <et 8romoted Eust 5y stayin< on t4e 6orce a certain num5er o6 years
t4an 6or some s8eci6ic outstandin< act. Second; t4ey ?ere trained to do t4e Eo5 t4ey do
out in t4e streets; not to 6ill out 6orms. All t4rou<4 t4eir careers t4e arrests and
inter3entions are ?4at <et noticed.
Some 8eo8le 4a3e su<<ested a num5er o6 t4in<s; like usin< con3iction records as a
8er6ormance criterion. Ho?e3er; ?e kno? t4atFs not 6air/too many ot4er t4in<s are
in3ol3ed. 'ad 8a8er?ork increases t4e c4ance t4at you lose in court; 5ut <ood
8a8er?ork doesnFt necessarily mean youFll ?in. *e tried settin< u8 t4e team
com8etitions 5ased on t4e e@cellence o6 t4e re8orts; 5ut t4e o66icers cau<4t on to t4at
8retty quickly. No one ?as <ettin< any ty8e o6 re?ard 6or ?innin< t4e com8etition; and
t4ey 6i<ured ?4y s4ould t4ey 5ust a <ut ?4en t4ere ?as on 8ayo66.
$ Eust donFt kno? ?4at to do.
2uestions:
1. *4at 8er6ormance 8ro5lems is t4e ca8tain tryin< to correct,
!. #se t4e -A&S model o6 indi3idual 5e4a3ior and 8er6ormance to dia<nose t4e
8ossi5le causes o6 t4e unacce8ta5le 5e4a3ior.
(. Has t4e ca8tain considered all 8ossi5le solutions to t4e 8ro5lem, $6 not; ?4at else
mi<4t 5e done,
CASE 0
H)* +$+ $ %ET HE&E,Somet4in< ?as not ri<4t. Ao4n 'reckenrid<e o8ened 4is eyes; sa? t4e nurseFs 6ace; and
closed t4em once more. Co5?e5s slo?ly cleared 6rom 4is 5rain as 4e ?oke u8 6rom 4is
5rain as 4e ?oke u8 6rom t4e o8eration. He 6elt a 4ard tu5e in 4is nostril; and tried to li6t
4is 4and to 8ull it out; 5ut it ?as stra88ed do?n to t4e 5ed. Ao4n tried to s8eak 5ut
could make only a croakin< sound. Nurse T4om8son s8oke soot4in<ly; GAust try to rela@;
-r. 'reckenrid<e. ou 4ad a 4eart attack and emer<ency sur<ery; 5ut youFre <oin< to 5e
)H.I
Heart attack, Ho? did $ <et 4ere, As t4e anest4esia ?ore o66 and t4e 8ain set in; Ao4n
5e<an to recall t4e e3ents o6 t4e 8ast yearD and ?it4 t4e memories came anot4er sort o6
8ain J t4at o6 remem5erin< a li6e ?4ere success ?as measured in 4ours ?orked and
t4in<s accom8lis4ed; 5ut ?4ic4 o6 late 4ad not measured u8.
Ao4n recalled 4is years in colle<e; ?4ere <ettin< <ood <rades 4ad 5een im8ortant; 5ut
not so muc4 as 4is ne?ly de3elo8in< lo3e 6or Haren; t4e <irl ?it4 au5urn 4air ?4o <ot
4er nursin< de<ree t4e same year as 4e <raduated ?it4 a de<ree in so6t?are
en<ineerin<. T4ey married t4e summer a6ter <raduation and mo3ed 6rom t4eir slee8y
uni3ersity to?n in $ndiana to As8en; Colorado. T4ere Ao4n <ot a Eo5 ?it4 a ne? so6t?are
com8any ?4ile Haren ?orked e3enin<s as a nurse. Alt4ou<4 t4ey didnFt see muc4 o6
eac4 ot4er durin< t4e ?eek; ?eekends ?ere a s8ecial time; and t4e surroundin<
mountains and nature 8ro3ided a su8er5 quality o6 li6e.
Li6e ?as <ood to t4e 'reckenrid<es. T?o years a6ter t4ey ?ere married; Haren <a3e 5irt4
to Aos4 and t?o years later to Linda. Haren reduced 4er nursin< to t4e minimum 4ours
required to maintain 4er license; and concentrated on rearin< t4e kids. Ao4n; on t4e
ot4er 4and; ?as 5usy 8ro3idin< 6or t4e li6estyle t4ey increasin<ly 5ecame used to; ?4ic4
included a 4ouse; car; S#K; ski tri8s; and all o6 t4e t4in<s a success6ul en<ineerin< career
could 5rin<. T4e com8any <re? in lea8s and 5ounds; and Ao4n ?as one o6 t4e main
reasons it <re? 6ast. *ork ?as 6un. T4e com8any ?as <ro?in<; 4is res8onsi5ilities
increased; and 4e and 4is team ?ere real 5uddies. *it4 HarenFs 4el8 at 4ome; 4e
Eu<<led ?ork; tra3el; and e3enin< classes t4at led to a masterFs de<ree. T4e masterFs
de<ree 5rou<4t anot4er 8romotion/t4is time to 3ice 8resident o6 tec4nolo<y at t4e
youn< 76or t4is com8any: a<e o6 (B.
T4e 8romotion 4ad one dra?5ack: $t ?ould require ?orkin< out o6 t4e Ne? ork o66ice.
Haren sadly said <ood5ye to 4er 6riends; con3inced t4e kids t4at t4e mo3e ?ould 5e
<ood to t4em; and le6t t4e ranc4 4ouse 6or anot4er one; muc4 more e@8ensi3e and
ne?er; 5ut smaller and Eust across t4e ri3er in Ne? Aersey 6rom t4e skyscra8er ?4ere
4er 4us5and ?orked. Ne?ark ?as not muc4 like As8en; and t4e kids 4ad a 4ard time
makin< 6riends; es8ecially Aos4; ?4o ?as no? 11. He <re? sullen and ?it4dra?n and
5e<an 4an<in< around ?it4 a cro?d t4at Haren t4ou<4t looked 3ery tou<4. Linda; al?ays
t4e quiet one; stuck mostly to 4er room.
Ao4nFs ne? Eo5 5rou<4t ?it4 it money and reco<nition; as ?ell as added res8onsi5ilities.
He no? 4ad to not only lead so6t?are de3elo8ment 5ut also acti3ely 8artici8ate in
steerin< t4e com8any in t4e ri<4t direction 6or t4e 6uture; tailorin< its o66erin<s to
market trends. -er<ers and acquisitions ?ere t4e 5i< t4in<s in t4e so6t?are 5usiness;
and Ao4n 6ound a s8ecial t4rill in 8ickin< small com8anies ?it4 8romisin< so6t?are;
5uyin< t4em out; and addin< t4em to t4e cor8orate 8ort6olio. Haren 4ad e3eryt4in< a
?oman could ?ant and ?ent re<ularly to a 4ealt4 clu5. T4e 6amily lacked 6or no material
need.
At a<e 41 Ao4n 6elt 4e 4ad t4e ?orld 5y its tail. Sure; 4e ?as a 5it o3er?ei<4t; 5ut ?4o
?ouldnFt 5e ?it4 t4e amount o6 ?ork and entertainin< t4at 4e did, He drank some; a
4a5it 4e 4ad de3elo8ed early in 4is career. Haren ?orried a5out t4at; 5ut 4e reassured
4er 5y remindin< 4er t4at 4e 4ad 5een really drunk only t?ice and ?ould ne3er drink
and dri3e. Aos4Fs 6riends ?ere a ?orry; 5ut not4in< 4ad yet come o6 it.
Not all ?as ?ell; 4o?e3er. Ao4n 4ad 5een success6ul in Colorado 5ecause 4e t4ou<4t 6ast
on 4is 6eet; e@8ressed 4is o8inions; and <ot 8eo8le to 5uy into 4is decisions. $n t4e Ne?
ork cor8orate o66ice t4in<s ?ere di66erent. All o6 t4e to8 5rass e@ce8t t4e 8resident and
Ao4n 4ad $3y Lea<ue; moneyed 5ack<rounds. T4ey s8oke o6 strate<y 5ut ?ould take
only risks t4at ?ould 6urt4er t4eir 8ersonal careers. He 3alued 8assion; inte<rity; and
action; ?it4 little re<ard 6or 8ersonal ad3ancement. T4ey resented 4im; ri<4tly surmisin<
t4at t4e only reason 4e 4ad 5een 8romoted ?as 5ecause 4e ?as more like 4e 8resident
t4an t4ey ?ere; and 4e ?as 5ein< <roomed as 4eir a88arent.
)n No3em5er !; !004; Ao4n 'reckenrid<eFs ?orld 5e<an to unra3el. T4e com8any 4e
?orked 6or; t4e one 4e 4ad <i3en so muc4 o6 4is li6e to 5uild ?as acquired in a 4ostile
takeo3er. T4e 8resident ?4o 4ad 5een 4is 6riend and mentor ?as let <o; and t4e
5acksta55in< 5e<an in earnest. Ao4n 6ound 4imsel6 t4e odd man out in t4e o66ice as t4e
ot4ers Eostled to 5uild status in t4e ne? 6irm. Alt4ou<4 4is stellar record allo?ed 4im to
sur3i3e t4e 6irst round o6 Eo5 cuts; t4at sur3i3al only made 4im more o6 a 8aria4 to t4ose
around 4im. %oin< to ?ork ?as a c4ore no?; and Ao4n 4ad no 6riends like t4ose 4e 4ad
le6t in As8en.
Haren ?as little 4el8. Ao4n 4ad s8ent nearly t?o decades married more to 4is Eo5 t4an
4is ?i6e; and 4e 6ound s4e ?as more o6 a stran<er t4an a com6orter as 4e stru<<led in
4is ne? role. *4en 4e s8oke a5out c4an<in< Eo5s; s4e 5le? u8. G*4y did $ 4a3e to <i3e
u8 nursin< 6or your career,I s4e said. G*4y do ?e 4a3e to mo3e a<ain; Eust 5ecause you
canFt <et alon< at ?ork, CanFt you see ?4at t4e mo3e did to our kids,I
Seein< t4e 4urt and an<er in HarenFs eyes; Ao4n sto88ed s4arin< and turned to 4is 5ottle
6or com6ort. $n time t4at caused e3en more tension in t4e 4ome; and it slo?ed 4im do?n
at ?ork ?4en 4e really needed to e@cel. Ao4n ?ould o6ten drink 4imsel6 into o5li3ion
?4en on 5usiness tri8s rat4er t4an t4inkin< a5out ?4ere 4is li6e and career ?ere <oin<.
)n 4is last tri8 4e 4adnFt sle8t muc4 and 4ad ?orked 6ar too 4ard. -idmornin< 4e 4ad
5een 6elled 5y a massi3e 4eart attack.
All o6 t4is 4istory 8assed t4rou<4 Ao4n 'reckenrid<eFs mind as 4e ?oke a6ter t4e
o8eration. $t ?as time 6or a c4an<e.
2uestions:
1. $denti6y t4e stressors in Ao4n 'reckenrid<eFs li6e. *4ic4 ones could 4e 4a3e
8re3ented,
!. *4at ?ere t4e results o6 t4e stress, *ould you consider t4ese to 5e ty8ical to
stress situations and li6estyle c4oices Ao4n made; or ?as Ao4n 'reckenrid<e unlucky,
(. Assume you are a career coac4 retained 5y Ao4n 'reckenrid<e to <uide 4im
t4rou<4 4is ne@t decisions. Ho? ?ould you recommend t4at Ao4n modi6y 4is li6estyle and
5e4a3ior to reduce stress, S4ould 4e c4an<e Eo5s, +o you 5elie3e 4e is ca8a5le o6
reducin< 4is stress alone, $6 not; ?4ere s4ould 4e seek 4el8,
CASE 04: THE SH$""$N% $N+#ST& ACC)#NT$N% TEA-
For t4e 8ast 6i3e years $ 4a3e 5een ?orkin< at -cHay; Sanderson; and Smit4 Associates;
a mid>siLed accountin< 6irm in 'oston t4at s8ecialiLes in commercial accountin< and
audits. -y 8articular s8ecialty in accountin< 8ractices 6or s4i88in< com8anies; ran<in<
6rom small 6is4in< 6leets to a cou8le o6 t4e 5i< 6irms ?it4 s4i8s alon< t4e East Coast.
A5out 19 mont4s a<o -cHay; Sanderson; and Smit4 Associates 5ecame 8art o6 a lar<e
mer<er in3ol3in< t?o ot4er accountin< 6irms. T4ese 6irms 4a3e o66ices in -iami; Seattle;
'aton &ou<e; and Los An<eles. Alt4ou<4 t4e ot4er t?o accountin< 6irms ?ere muc4
lar<er t4an -cHay; all t4ree 6irms a<reed to a3oid centraliLin< t4e 5usiness around one
o66ice in Los An<eles. $nstead t4e ne? 6irm/called %old5er<; C4oo; and -cHay
Associates/?ould rely on teams across t4e country to Gle3era<e t4e syner<ies o6 our
collecti3e kno?led<eI 7an o6ten>cited statement 6rom t4e mana<in< 8artner soon a6ter
t4e mer<er:.
T4e mer<er a66ected me a year a<o ?4en my 5oss 7a senior 8artner and 3ice 8resident
o6 t4e mer<er: announced t4at $ ?ould 5e ?orkin< more closely ?it4 t4ree 8eo8le 6rom
t4e ot4er t?o 6irms to 5ecome t4e 6irmFs ne? s4i88in< industry accountin< team. T4e
ot4er team mem5ers ?ere Elias in -iami; Susan in Seattle; and 'rad in Los An<eles. $
4ad met Elias 5rie6ly at a meetin< in Ne? ork City durin< t4e mer<er 5ut 4ad ne3er met
Susan or 'rad; alt4ou<4 $ kne? t4at t4ey ?ere s4i88in< accountin< 8ro6essionals at t4e
ot4er 6irms.
$nitially t4e s4i88in< team acti3ities in3ol3ed e>mailin< eac4 ot4er a5out ne? contracts
and 8ros8ecti3e clients. Later ?e ?ere asked to su5mit Eoint mont4ly re8orts on
accountin< statements and issues. Normally $ su5mitted my o?n mont4ly re8orts to
summariLe acti3ities in3ol3in< my o?n clients. Coordinatin< t4e mont4ly re8ort ?it4
t4ree ot4er 8eo8le took muc4 more time; 8articularly 5ecause di66erent accountin<
documentation 8rocedures across t4e t4ree 6irms ?ere still 5ein< resol3ed. $t took
numerous e>mail messa<es an a 6e? tele84one calls to ?ork out a reasona5le mont4ly
re8ort style.
+urin< t4is a<<ra3atin< 8rocess it 5ecame a88arent/to me at least/t4at t4is team
5usiness ?as costin< me more time t4an it ?as ?ort4. -oreo3er; 'rad in Los An<eles
didnFt 4a3e a clue a5out 4o? to communicate ?it4 t4e rest o6 us. He rarely re8lied to e>
mail. $nstead 4e o6ten used t4e tele84one ta<. 'rad arri3ed at ?ork at B
0 a.m. in LosAn<eles 7and ?as o6ten late:; ?4ic4 is early a6ternoon in 'oston. $ ty8ically 4a3e a
6le@i5le ?ork sc4edule 6rom C
0 a.m. to (0 8.m. so $ can c4au66eur my kids a6tersc4ool to s8orts and music lessons. So 'rad and $ 4a3e a ?indo? o6 less t4an t4ree
4ours to s4are in6ormation.
T4e 5i<<est nuisance ?it4 t4e s4i88in< s8ecialist accountin< team started t?o ?eeks a<o
?4en t4e 6irm asked t4e 6our o6 us to de3elo8 a ne? strate<y 6or attractin< more
s4i88in< 6irm 5usiness. T4is ne? strate<ic 8lan is a messy 5usiness. Some4o? ?e 4a3e
to s4are our t4ou<4ts on 3arious a88roac4es; a<ree on a ne? 8lan; and ?rite a uni6ied
su5mission to t4e mana<in< 8artner. Already t4e 8roEect is takin< most o6 my time Eust
?ritin< and res8ondin< to e>mail and talkin< in con6erence calls 7?4ic4 none o6 us did
muc4 5e6ore t4e team 6ormed:.
Susan and 'rad 4a3e already 4ad t?o or t4ree misunderstandin<s 3ia e>mail a5out t4eir
di66erent 8ers8ecti3es on delicate matters in t4e strate<ic 8lan. T4e ?orst o6 t4ese
disa<reements required a con6erence call ?it4 all o6 us to resol3e. E@ce8t 6or t4e most
5asic matters; it seems t4at ?e canFt understand eac4 ot4er; let alone a<ree on key
issues. $ 4a3e come to t4e conclusion t4at $ ?ould ne3er ?ant 'rad to ?ork in my
'oston o66ice 7t4anks <oodness 4eFs on t4e ot4er side o6 t4e country:. Alt4ou<4 Elias and
$ seem to a<ree on most 8oints; t4e o3erall team canFt 6orm a common 3ision or
strate<y. $ donFt kno? 4o? Elias; Susan; or 'rad 6eel; 5ut $ ?ould 5e quite 4a88y to ?ork
some?4ere t4at did not require any o6 t4ese lon<>distance team 4eadac4es.
2uestions:
1. *4at ty8e o6 team ?as 6ormed 4ere, *as it necessary; in your o8inion,
!. #se t4e team e66ecti3eness model in C4a8ter B and related in6ormation in t4is
c4a8ter to identi6y t4e stren<t4s and ?eaknesses o6 t4is teamFs en3ironment; desi<n;
and 8rocesses.
(. Assumin< t4at t4ese 6our 8eo8le must continue to ?ork as a team; recommend
?ays to im8ro3e t4e teamFs e66ecti3eness.
CASE 0.: '&$+%$N% THE T*) *)&L+S/THE )&%AN$0AT$)NAL +$LE--A
*illiam Todoro3ic; "urdue #ni3ersity
$ 4ad 5een 4ired 5y Aluminum Elements Cor8. 7AEC:; and it ?as my 6irst day o6 ?ork. $
?as !1 years old; and $ ?as no? t4e mana<er o6 AECFs customer ser3ice <rou8; ?4ic4
looked a6ter customers; lo<istics; and some o6 t4e ra? material 8urc4asin<. -y su8erior;
%eor<e; ?as t4e 3ice 8resident o6 t4e com8any. AEC manu6actured most its 8roducts; a
maEority o6 ?4ic4 ?ere destined 6or t4e construction industry; 6rom aluminum.
As $ ?alked around t4e s4o8 6loor; t4e em8loyees a88eared to 5e concentratin< on t4eir
Eo5s; 5arely noticin< me. -ana<ement 4eld daily meetin<s in ?4ic4 3arious 8roduction
issues ?ere discussed. No one 6rom t4e s4o8 6loor ?as in3ited to t4ese meetin<s unless
t4ere ?as a s8eci6ic 8ro5lem. Later $ also learned t4at mana<ement 4ad se8arate
?as4rooms and se8arate lunc4rooms; as ?ell as ot4er 8erks t4at 6loor em8loyees did
not 4a3e. -ost o6 t4e 6loor em8loyees 6elt t4at mana<ement; alt4ou<4 8olite on t4e
sur6ace; did not really 6eel t4ey 4ad anyt4in< to learn 6rom t4e 6loor em8loyees.
Ao4n; ?4o ?orked on t4e aluminum slitter; a crucial o8eration required 5e6ore any ot4er
o8erations could commence; 4ad su66ered a num5er o6 un8leasant encounters ?it4
%eor<e. As a result %eor<e usually sent ?ritten memos to t4e 6loor to a3oid a direct
con6rontation ?it4 Ao4n. 'ecause t4e directions in t4e memos ?ere com8le@; t4ese
memos ?ere o6ten more t4an t?o 8a<es in len<t4.
)ne mornin< as $ ?as ?alkin< around; $ noticed t4at Ao4n ?as 3ery u8set. Feelin< t4at
8er4a8s t4ere ?as somet4in< $ could do; $ a88roac4ed Ao4n and asked 4im i6 $ could
4el8. He indicated t4at e3eryt4in< ?as Eust 6ine. From t4e looks o6 t4e situation and
Ao4nFs 5ody lan<ua<e; $ 6elt t4at 4e ?as ?illin< to talk; 5ut Ao4n kne? t4at t4is ?as not
t4e ?ay t4in<s ?ere done in AEC. Tony; ?4o ?orked at t4e mac4ine ne@t to Ao4nFs; t4en
cursed and said t4at t4e o66ice <uys cared only a5out sc4edules; not a5out t4e 8eo8le
do?n on t4e 6loor. $ Eust looked at 4im; and t4en said t4at $ 5e<an ?orkin< 4ere only last
?eek; and $ t4ou<4t t4at $ address some o6 t4eir issues. Tony <a3e me a stran<e look;
s4ook 4is 4ead; and ?ent 5ack to 4is mac4ine. $ could 4ear 4im still s?earin< as $ le6t.
Later $ realiLed t4at most o6 t4e o66ice sta66 ?ere also o66ended 5y TonyFs lan<ua<e.
)n t4e ?ay 5ack to my o66ice; Lesley a recently 4ired en<ineer 6rom &ussia; a88roac4ed
me and 8ointed out t4at t4e em8loyees ?ere not accustomed to mana<ers talkin< to
t4em. -ana<ers only issued orders and made demands. As ?e discussed t4e di66erent
8erce8tions 5et?een o66ice and 6loor sta66; ?e ?ere interru8ted 5y a loud lunc4 5ell;
?4ic4 startled me. $ ?as 4a88y to Eoin Lesley 6or lunc4; 5ut s4e asked me ?4y $ ?as not
eatin< in t4e o66ice lunc4room. $ re8lied t4at i6 $ ?as <oin< to understand 4o? AEC
?orked; $ 4ad to <et to kno? all t4e 8eo8le 5etter. $n addition; $ realiLed t4at t4is ?as
not 4o? t4in<s ?ere done; and $ ?ondered a5out t4e nature o6 t4is a88arent di3ision
5et?een t4e mana<ers and t4e 6loor ?orkers. $n t4e lunc4room t4e ot4er ?orkers ?ere
amaLed to see me t4ere; commentin< t4at $ ?as Eust ne? and 4ad not learned t4e ro8es
yet.
A6ter lunc4; ?4en $ asked %eor<e; my su8er3isor; a5out 4is recent con6rontation ?it4
Ao4n; %eor<e ?as sur8rised t4at Ao4n <ot u8set; and e@claimed; G$ Eust ?anted Ao4n to
kno? t4at 4e did a <reat Eo5; and as a result; ?e ?ill 5e a5le to s4i8 on time one lar<e
order to t4e *est Coast. $n 6act; $ t4ou<4t $ ?as com8limentin< 4im.I
Earlier; Lesley 4ad indicated t4at certain 5e4a3ior ?as e@8ected 6rom mana<ers and
t4ere6ore 6rom me. $ reasoned t4at $ do not t4ink t4at t4is 5e4a3ior ?orks; and 5esides
it is not ?4at $ 5elie3e or 4o? $ care to 5e4a3e. For t4e ne@t cou8le o6 mont4s $ sim8ly
?alked around t4e 6loor and took e3ery o88ortunity to talk to t4e s4o8 em8loyees. )6ten
?4en t4e em8loyees related s8eci6ic in6ormation a5out t4eir ?ork8laces; $ 6elt t4at it
?ent o3er my 4ead. Frequently $ 4ad to ?rite do?n t4e in6ormation and re3isit it later. $
made a 8oint o6 listenin< to t4em; identi6yin< ?4ere t4ey ?ere comin< 6rom; and tryin<
to understand t4em. $ needed to kee8 my mind o8en to ne? ideas. 'ecause t4e s4o8
em8loyees e@8ected me to make requests and demands; $ made a 8oint o6 not doin<
any o6 t4at. Soon enou<4 t4e em8loyees 5ecame 6riendly and started to acce8t me as
one o6 t4eir o?n; or at least as a di66erent ty8e o6 mana<ement 8erson.
+urin< my t4ird mont4 o6 ?ork t4e em8loyees s4o?ed me 4o? to im8ro3e t4e
sc4edulin< o6 Eo5s; es8ecially t4ose on t4e aluminum slitter. $n 6act; t4e <reatest
contri5ution ?as made 5y Ao4n; ?4o demonstrated 5etter ?ays to com5ine t4e most
common slittin< siLes and reduce ?aste 5y retainin< some o6 t4e Gcommon>siLedI
material 6or ne? orders. Seein< t4e o88ortunity; $ 8ro<rammed a s8reads4eet to
calculate and track in3entory. T4is; in addition to 5etter 8lannin< and 6orecastin<;
allo?ed us to reduce our ne? order turnarounds 6rom 6our to 6i3e ?eeks to one or t?o
days.
'y t4e time $ ?as em8loyed 6or 6our mont4s; $ realiLed t4at mem5ers 6rom ot4er
de8artments came to me and asked me to relay messa<es to t4e s4o8 em8loyees. *4en
$ asked ?4y t4ey ?ere dele<atin< t4is task to me; t4ey stated t4at $ s8oke t4e same
lan<ua<e as t4e s4o8 em8loyees. $ncreasin<ly $ 5ecame t4e messen<er 6or t4e o66ice>to>
6loor s4i8 communication.
)ne mornin< %eor<e called me into 4is o66ice and com8limented me on t4e le3els o6
customer ser3ice and t4e im8ro3ements t4at 4ad 5een ac4ie3ed. As ?e talked; $
mentioned t4at ?e could not 4a3e done it ?it4out Ao4nFs 4el8. GHe really kno?s 4is stu66;
and 4e is <ood;I $ said. $ su<<ested t4at ?e consider 4im 6or some ty8e o6 8romotion.
Also; $ 4o8ed t4at t4is ?ould 5e a 8ositi3e <esture t4at ?ould im8ro3e t4e
communication 5et?een t4e o66ice and s4o8 6loor.
%eor<e turned and 8ulled a 6lyer out o6 4is desk: GHere is a mana<ement skills seminar.
+o you t4ink ?e s4ould send Ao4n to it,I
GT4at is a <reat idea;I $ e@claimed. G"er4a8s it ?ould 5e <ood i6 4e ?ere to recei3e t4e
ne?s 6rom you directly; %eor<e.I %eor<e a<reed; and a6ter discussin< some ot4er issues;
?e 8arted com8any.
T4at a6ternoon Ao4n came into my o66ice; u8set and ready to quit. GA6ter all my e66ort
and ?ork; you <uys are sendin< me 6or trainin< seminars. So am $ not <ood enou<4 6or
you,I
2uestions:
1. *4at 5arriers to e66ecti3e communication e@isted in Aluminum Elements Cor8,
Ho? did t4e aut4or deal ?it4 t4ese, *4at ?ould you do di66erently,
!. $denti6y and discuss ?4y Ao4n ?as u8set at t4e end o6 t4e case. *4at s4ould t4e
?riter do at t4is time,
CASE 01: C)NFL$CT $N CL)SE 2#A&TE&S
A team o6 8syc4olo<ists at -osco?Fs $nstitute 6or 'iomedical "ro5lems 7$'-": ?anted to
learn more a5out t4e dynamics o6 lon<>term isolation in s8ace. T4is kno?led<e ?ould 5e
a88lied to t4e $nternational S8ace Station; a Eoint 8roEect o6 se3eral countries t4at ?ould
send 8eo8le into s8ace 6or more t4an si@ mont4s. $t ?ould e3entually include a tri8 to
-ars takin< u8 to t4ree years.
$'-" set u8 a re8lica o6 t4e -ir s8ace station in -osco?. T4ey t4en arran<ed 6or t4ree
international researc4ers 6rom Aa8an; Canada; and Austria 110 days isolated in a
c4am5er t4e siLe o6 a train car. T4is c4am5er Eoined a smaller c4am5er ?4ere 6our
&ussian cosmonauts 4ad already com8leted 4al6 o6 t4eir !40 days o6 isolation. T4is ?as
t4e 6irst time an international cre? ?as in3ol3ed in t4e studies. None o6 t4e 8artici8ants
s8oke En<lis4 as t4eir 6irst lan<ua<e; yet t4ey communicated t4rou<4out t4eir stay in
En<lis4 at 3aryin< le3els o6 8ro6iciency.
Audit4 La8ierre; a Frenc4>Canadian; ?as t4e only 6emale in t4e e@8eriment. Alon< ?it4
o5tainin< a "4+ in 8u5lic 4ealt4 and social medicine; La8ierre 4ad studied s8ace
sociolo<y at t4e $nternational S8ace #ni3ersity in France and conducted isolation
researc4 in t4e Antarctic. T4is ?as 4er 6ourt4 tri8 to &ussia; ?4ere s4e 4ad learned t4e
lan<ua<e. T4e mission ?as su88osed to 4a3e a second 6emale 8artici8ant 6rom t4e
Aa8anese s8ace 8ro<ram; 5ut s4e ?as not selected 5y $'-".
T4e Aa8anese and Austrian 8artici8ants 3ie?ed t4e 8artici8ation o6 a ?oman as a
6a3ora5le 6actor; says La8ierre. For e@am8le; to make t4e surroundin<s more
com6orta5le; t4ey rearran<ed t4e 6urniture; 4un< 8osters on t4e ?alls; and 8ut a
ta5leclot4 on t4e kitc4en ta5le. G*e ada8ted our en3ironment; ?4ereas &ussians Eust
3ie?ed it as somet4in< to 5e endured;I s4e e@8lains. G*e decorated 6or C4ristmas
5ecause $Fm t4e kind o6 8erson ?4o likes to 4ost 8eo8le.I
Ne? earFs E3e Turmoil
$ronically; it ?as at one o6 t4ose social e3ents; t4e Ne? earFs E3e 8arty; t4at e3ents
took a turn 6or t4e ?orse. A6ter drinkin< 3odka 7allo?ed 5y t4e &ussian s8ace a<ency:;
t?o o6 t4e &ussian cosmonauts <ot into a 6ist6i<4t t4at le6t 5lood s8lattered on t4e
c4am5er ?alls. At one 8oint a collea<ue 4id t4e kni3es in t4e stationFs kitc4en 5ecause o6
6ears t4at t4e t?o &ussians ?ere a5out to sta5 eac4 ot4er. T4e t?o cosmonauts; ?4o
<enerally did not <et alon<; 4ad to 5e restrained 5y ot4er men. Soon a6ter t4at 5ra?l;
t4e &ussian commander <ra55ed La8ierre; dra<<ed 4er out o6 3ie? o6 t4e tele3ision
monitorin< cameras; and kissed 4er a<<ressi3ely/t?ice. La8ierre 6ou<4t 4im o66; 5ut t4e
messa<e didnFt re<ister. He tried to kiss 4er a<ain t4e ne@t mornin<.
T4e ne@t day t4e international cre? com8lained to $'-" a5out t4e 5e4a3ior o6 t4e
&ussian cosmonauts. T4e &ussian institute a88arently took no a<ainst t4e a<<ressors.
$nstead t4e instituteFs 8syc4olo<ists re8lied t4at t4e incidents ?ere 8art o6 t4e
e@8eriment. T4ey ?anted cre? mem5ers to sol3e t4eir 8ersonal 8ro5lems ?it4 mature
discussion ?it4out askin< 6or outside 4el8. Gou 4a3e to understand t4at -ir is an
autonomous o5Eect; 6ar a?ay 6rom anyt4in<;I Kadim %us4in; t4e $'-" 8syc4olo<ist in
c4ar<e o6 8roEect; e@8lained a6ter t4e e@8eriment 4ad ended in -arc4. G$6 t4e cre? canFt
sol3e 8ro5lems amon< t4emsel3es; t4ey canFt ?ork to<et4er.I
Follo?in< $'-"Fs res8onse; t4e international cre? ?rote a scat4in< letter to t4e &ussian
institute and t4e s8ace a<encies in3ol3ed in t4e e@8eriment. G*e 4ad ne3er e@8ected
suc4 e3ents to take 8lace in a 4i<4ly controlled scienti6ic e@8eriment ?4ere indi3iduals
<o t4rou<4 a multiste8 selection 8rocess;I t4ey ?rote. G$6 ?e 4ad kno?nM ?e ?ould not
4a3e Eoined it as su5Eects.I T4e letter also com8lained a5out $'-"Fs res8onse to t4eir
concerns.
$n6ormed a5out t4e Ne? earFs E3e incident; t4e Aa8anese s8ace 8ro<ram con3ened an
emer<ency meetin< on Aanuary ! to address t4e incidents. Soon a6ter t4e Aa8anese
team mem5er quit; a88arently s4ocked 5y $'-"Fs inaction. He ?as re8laced ?it4 a
&ussian researc4er on t4e international team. Ten days a6ter t4e 6i<4t/a little o3er t4e
mont4 t4e international team 5e<an t4e mission/t4e doors 5et?een t4e &ussian and
international cre?sF c4am5ers ?ere 5arred at t4e request o6 t4e international researc4
team. La8ierre later em84asiLed t4at t4is action ?as taken 5ecause o6 concerns a5out
3iolence; not t4e incident in3ol3in< 4er.
A Stolen Hiss or Se@ual Harassment
'y t4e end o6 e@8eriment in -arc4; ne?s o6 t4e 6ist6i<4t 5et?een t4e cosmonauts and
t4e commanderFs attem8ts to kiss La8ierre 4ad reac4ed t4e 8u5lic. &ussian scientists
attem8ted to 8lay do?n t4e kissin< incident 5y sayin< t4at it ?as one 6leetin< kiss; a
clas4 o6 cultures; and a 6emale 8artici8ant ?4o ?as too emotional.
G$n t4e *est; some kinds o6 kissin< are re<arded as se@ual 4arassment. $n our culture
itFs not4in<;I said &ussian scientist Kadim %us4in in one inter3ie?. $n anot4er inter3ie?
4e e@8lained; GT4e 8ro5lem o6 se@ual 4arassment is <i3en a lot o6 attention in Nort4
America 5ut less in Euro8e. $n &ussia it is e3en less o6 an issue; not 5ecause ?e are
more or less moral t4an t4e rest o6 t4e ?orldD ?e Eust 4a3e di66erent 8riorities.I
Audit4 La8ierre says t4e kissin< incident ?as tolera5le com8ared to t4is reaction 6rom
t4e &ussian scientists ?4o conducted t4e e@8eriment. GT4ey donFt <et it at all;I s4e
com8lains. GT4ey donFt t4ink anyt4in< is ?ron<. $Fm more 6rustrated t4an e3er. T4e
?orst t4in< is t4at t4ey donFt realiLe it ?as ?ron<.I
Nor5ert Hra6t; t4e Austrian scientist on t4e international team; also disa<reed ?it4 t4e
&ussian inter8retation o6 e3ents. GT4eyFre tryin< to 8rotect t4emsel3es;I 4e says.
GT4eyFre tryin< to 8ut t4e 6ault on ot4ers. 'ut t4is is not a cultural issue. $6 a ?oman
doesnFt ?ant to 5e kissed; it is not acce8ta5le.I
2uestions:
1. $denti6y t4e di66erent con6lict e8isodes t4at e@ist in t4is case. *4o ?as in con6lict
?it4 ?4om,
!. *4at are t4e sources o6 con6lict 6or t4ese con6lict incidents,
(. *4at con6lict mana<ement style7s: did La8ierre; t4e international team; and
%us4in use to resol3e t4ese con6licts, *4at style7s: ?ould 4a3e ?orked 5est in t4e
situation,
CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS
PROJECT REPORTS AND THESIS
ISBM / IIBMS / IIBM / ISMS / KSBM /
NIPM
SMU / SYMBIOSIS / XAVIER / NIRM /
PSBM / NSBM / ISM / IGNOU / IICT / ISBS
/ LPU / ISM&RC/ LPU / NMIMS / ISBS /
MANIPAL / GARUDA / HIMALAYA / UPES /
IMT / iact
IC MIND
MBA - EMBA - BMS - GDM - MIS - MIB
DMS - DBM - PGDM - DBM – DBA - PGDM
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