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This material is for PGPSE / CSE students of AFTERSCHOOOL. PGPSE / CSE are free online programme - open for all - free for all - to promote entrepreneurship and social entrepreneurship PGPSE is for those who want to transform the world. It is different from MBA, BBA, CFA, CA,CS,ICWA and other traditional programmes. It is based on self certification and based on self learning and guidance by mentors. It is for those who want to be entrepreneurs and social changers. Let us work together. Our basic idea is that KNOWLEDGE IS FREE & AND SHARE IT WITH THE WORLD

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  1. 1. 1.NEW BUSINESS CHALLENGES 2.PRODUCT POSITIONING 3.PRODUCT POSITIONING 4.NEAT AND CLEAN CITY 5.VARUN LOGISTICS 6.VDO ANDSOCIAL TRANSFORMATION PROCESS 7.MOVIES FOR SOCIAL CHANGE 8.MAHENDRA LOGISTICS 9.ORGANISATIONAL TRANSFORMATION BY MADHAVAN NEW BUSINESS CHALLENGES 2008 was a year of recession. For many firms, this was the worst year. Some firms were closing down, and some firms were on the bankruptcy. Ajay took it as an opportunity. He decided to acquire new businesses. He realized that this was the golden time to acquire running businesses. He decided to enter into some evergreen sector. One such sector was cement sector. In 2008, most of the cement companies were in troubles. They had built huge capacity, but demand was slackening. Many builders had cancelled their orders. Mini cement companies were getting closed down. Ajay took it as an opportunity and started searching out mini cement units. His plan was to create an all India brand of cement and to use mini cement plants to produce and market cement. His plan was further to make special types of cements – which are not made by other companies (like quick setting cement). Ajay acquired 4 mini cement plants in four parts of the country: North, South, East and West. These plants would fulfill the requirements of these regions. Ajay didn’t want to give head on competition to the large companies. He knew that there is no point in competing with a large company, if you are a small company. He therefore concentrated in niche marketing – particularly on specialized cements. He could easily make his brand in these segments. As 2008 completed, the blues of recession starting reducing and opportunities started blooming. Ajay undertook demand analysis. He used Delphi and Nominal Group technique to anticipate demand in the four regions of the country. He found the following scenario: PRODUCT POSITIONING Ajay had set up a tractor company. He imported Chinese components and assembles them and sold out tractors in India. His brand was FIELDFORCE. He popularized his brands through village fairs, trade displays, exhibitions in fairs etc. He didn’t give any advertisement, but he used to organize Kushti competitions in villages. He sponsored a national Kushti competition, which was telecast on TV also. Ajay believed that his customers were farmers, so he needed to reach the farmers. He wanted to match the expectations of the farmers. Ajay also used a mascot as his logo. The mascot displayed an elephant. Ajay symbolized power, rough and tough tractors through his publicity media. However, Ajay realized that the sales were not coming up. Ajay hired an advertisement and media company to give suggestion. The company gave a presentation that the sale of tractors in India had reached a maturity level. As per the media company, farmers in India no longer buy small tractors (which Ajay was selling). The media company suggested Ajay to switch over to big tractors. Ajay said to them that it was not possible for him to switch over to higher horse power tractors. Ajay this time asked a student from MBA to prepare a dissertation report on new
  2. 2. products to launch. Ajay asked her to prepare a report and identity business segments with very high growth potential, high growth rate and future scope. The student suggested to Ajay to launch a moped for college girls. At that time there was only one brand of moped available. Ajay realized that there was great scope in this business. This was the product, which would sell in huge number. Its market segment was well defined. Its target customers were increasing in number. There was not much competition. The existing producer was making a moped which neither had style nor performance (as per Ajay). Ajay launched the moped for college girls. This moped was launched with his existing brand name (as the brand was already popular). The advertising agency of Ajay got agonized on this. They said that perception of people about the brand was that of rugged product. The said that product must be positioned appropriately. They suggested that Ajay should carefully design an appropriate brand personality and then launch a new brand. Ajay however, was adamant. He wanted the existing brand to be used. He said that our brand can be modified as per the new situation. He suggested that instead of Kushti, now he will sponsor some other events that will attract the attention of college girls. Ajay believed that every product passes through four stages: 1. introduction, 2. growth 3. maturity, 4. decline. Ajay believed that his product was in introduction stage and there was lot of scope in the future. VARUN LOGISTICS Varun Logistics is into transportation of small parcels and packets. The challenge is to minimize the cost of transportation and ensuring that there are no lost goods. They try to prepare a transportation schedule to facilitate faster transportation. This firm is situated in UP Border in Delhi. UP Border is the main transportation hub. Trucks come from different parts of the country and they are unloaded there. The firm then moves the packets in the trucks of the destination. Suppose one truck comes from Bangalore containing a packet for Chandigarh, then the packets will be loaded in the truck that has come from Chandigarh, so that the truck from Chandigarh would get something to take in its return journey. The truck from Chandigarh might bring something for Bangalore, those items will be loaded in the truck from Bangalore. The market is daily fluctuating. The rates of trucks are determined on the basis of demand and supply. If the truckers in South are in strike, the rates for trucks to south will shoot up. The firm gets a fixed rate of commission per packet (which is based on weight and length to be covered). The firm has to find the best possible sources for transportation. Generally it hires trucks in open market, but there are possibilities of pilferage during journey. Although the firm doesn’t suffer any loss (as all the goods are 100% insured), but it mars the goodwill of the firm. You have to help the firm in its restructuring plans regarding transportation system. The firm is having following options: 1.Have its own trucks. One truck will cost it Rs. 10 lakhs. Rate of interest will be 18% per annum. One truck will operate 20 days in a month and will earn Rs. 5000 per day when it is moving. It will also require Rs. 50000 per annum of maintenance expenditure. 2. Contract with good companies – where there will be no possibility for pilferage. In that case the firm will have to guarantee minimum 200 truck loads in a year. This is a very small figure considering the business of this firm. However, in this case the transportation costs of these companies are 1.5 times those of the prevailing market rates (available in open market). If the firm goes for this option, the firm will also have to install an automated system, as the other firms will expect a very quick response from this company. This will cost another 2 to 4 lakhs.
  3. 3. 3. The firm can also go for having a system of performance based reward system for the drivers of the trucks. If the drivers and staff ensure safety of material, the firm can give them reward. Thus it can ensure safety of the goods and pilferage would be stopped. In this case it will have to spend about Rs. 2000 per truck hire, which will increase its expenses by 20% (thus reducing its margins by 20%). This firm is making lot of money. As the firm has no fixed investment. Except an office, the firm has no fixed investment now. Every day the firm gets about 100 to 150 tonnes of goods to transship. It keeps the goods in a rented godown and tries to arrange trucks and loads the goods in those trucks and takes away its profit in the process. It is able to earn about Rs. 5 per tonne of net profit (after deducting all the expenditure). The firm can easily make the turnover 10 times, as there is great VDO AND SOCIAL TRANSFORMATION PROCESS Village Development Group or VDG is now a powerful NGO. It was started by a group of professionals who had done their masters in social work and social entrepreneurship. The company works in villages in and around Bikaner. These villages are inhabitated by people belonging to backward communities. Shishir is one of the founders of this NGO. He had undertaking capability assessment of the villages before starting this NGO. He had carried out PRA (participatory research and analysis) in these villages. He visited these villages and identified the skills and abilities of the villages. For other persons, these villages had no talent, but for Shishir and his group there was a lot of talent in these villages. They found that villagers in these villages used to prepare woolen blankets and cotton blankets. Shishir decided to start with this skill. There purpose was to find a match between demands the capabilities of the villagers. They organized a group discussion the village to take the villagers into confidence. They clarified the villagers about their expectations and what could they do for the villagers. They told the villagers that they were not from government department, but wanted to work with the villagers. Honest working was their basic value and they wanted to work with the villagers in building an NGO for the development of the villages. The villagers joined with them in their work. Their first venture was to participate in an exhibition being organized by a government department for promotion of handicrafts. They presented their stall in the exhibition in which they displayed the creativity of the village in the exhibition. This exhibition gave them an opportunity to interact with the foreign buyers and to know about their requirements. They wrote down the expectations of the buyers in details. Thus this was a major milestone for them, although they didn’t get any business. They also studied the marketing strategies of other handicraft selling units. They understood that understanding of tastes and preferences in different countries would help them in sharpening their products. The NGO then had an open discussion to carve out the strategy. The NGO had no financial resource by this time, so they had to take their decision in financial constraints. One official from handicraft export promotion council had briefed them about possibilities for handicraft exports for them. And how they could move forward MOVIES FOR SOCIAL CHANGE Sharat Babu works as lecturer in the department of commerce in Kolkata University. He is not satisfied as his role as change agent. He wants to involve the youth in the process of social change. He wants the youth to look beyond the present and dream for a better society. Teaching accounting and bookkeeping is not his cup of tea, but he is doing it because there is no option. He has a good collection of old
  4. 4. classical movies, which are very good in terms of their lessons. He uses his university auditorium for showing some of these movies. He finds good response among the youth. He gets an idea to do something creative. He forms a movie club in the university. He seeks suggestions from the students regarding movies that they want to see. The criteria are: 1.the movie should be really different from the conventional movie 2.2. the movie should have a social message 3.The movie should be useful to the youth. He gets lots of suggestions. He starts buying those movies and showing them in the auditorium of the university. He charges nominal charge of Rs. 5 from the students. Soon he has a very rich collection of international movies. Now he applies to various international forums and funding agencies regarding his work. His work is now appreciated by other bodies also and he receives support for this task. He prepares his website also where he shows the list of movies with their social theme. Mr. Sharat now receives invitations from premier institutions from across the globe to show some movies. He takes his collection and goes to these institutions and shows the movies. He also ties up with NGOs in different cities and shows these movies in different cities on different themes. In 2005, it is the peak time of his activities. He had taken 100 days of holidays from his university. He spent most of his time traveling in different places. He organized a 7 day programme in IIM Ahmedabad, where he displayed 30 movies in different class auditoriums and organized discussions on those movies also. Till date, his collection of movies is such as no one can really compete with him. He has collection of many rare movies. With spread of information technology, he has got advantage as well as disadvantage. Earlier he used to get calls from different parts of the country for showing unique movies, but now these movie clips are available on internet also and many people download pirated copies of these movies. Mr. Sharat had obtained license to show many international movies in different parts of the country, but now it seems to be irrelevant. Many of these movies are already available as pirated copies on internet. Downloading speeds have increased considerably and people can easily download these. Mr. Sharat particularly enjoys the discussions that follow these movies. He wants the youth to have detailed discussions on the matters of the movie. Generally, he shows movies of 1.5 hours and organizes discussions for half an hour. Thus this 2 hour session is something which people like and wait for. Mr. Sharat is now having another problem. His university has given him a notice. He has been asked to discontinue or become regular. He would not be given any more holidays. MAHENDRA CERAMICS Born in a lower middle class family, Mahendra was working with the Indian Railways. It was the summers of 1976. He observed that there was one party in Bikaner which used to send railways wagons full of a particular type of soils to various parts of country. In a curiosity, Mahendra decided to inquire about it. During his next visit to Delhi, he inquired about the rates of that soil. He went with the samples of the soil. He had collected address of the consignee of the last Railway Wagon and he went directly to that party and inquired about the rate of the soil. He was surprised to know about the rates of the soil. The soil was used in ceramics industry. Mahendra got an idea to experiment. He collected his small savings. It was total Rs. 20000. He purchased soil from this savings and sent the soil to the firm in Delhi. He collected the payment. In the process he earned Rs. 50000. Now he
  5. 5. took these 70000 (20000 + 50000) and again purchased soil and sent it to the firm in Delhi and this time earned Rs. 170000. It was such a huge amount that he could never earn at a time. Now he decided to do this wholeheartedly. He got involved in this business. He resigned from his job. He realized that there are always business possibilities which most people don’t know. People only look for established businesses, but forget that real profit is in unexplored or underexplored sectors. Mahendra went to South India to explore the markets for that soil. He realized that profits could be more in South India. Now he started focusing on the Southern India. Till 1984, Mahendra had become established business person and was now considered a rich person in the city. Considering his success, many people started following him and now he had many competitors. Mahendra realized that it is better to earn and diversify so that he could earn more in some other sectors. Due to competition, his margins had reduced. He went to one of his buyers and asked him to tell about the process regarding factories. He now wanted to start a factory to use this soil. He was wondering that when this soil is purchased by the factory owners, he would be able to make more money if he sets up a similar factory. He tried for 3 years, but he couldn’t set up his factory. There were many restrictions in those days. With his savings from his business, he now purchased a mine of the soil. His margins were constantly shrinking. He was pondering on how to increase his profit. He asked his elder son to take up a course on ceramics engineering. At that time, this course was available in only a few institutions in India. The admission was through a rigorous entrance test. It was difficult for a boy from Bikaner to crack the test. So he decided to send his son to the USA to study. It took him Rs 18 lakhs (which was a huge amount for him), but the expected benefits were equally great. After 5 years, his son returned with ceramics engineering. Now his son started the process of his dreams. His son set up the first ceramics factory in the region. Now they could use the soil in the factory. The factory started making insulators. The variable cost of the one insulator of a particular type used to be Rs. 50. Insulators could be supplied to various government projects. This insulator could be sold to the government at Rs. 400. The real profits would depend on volume. Huge infrastructure development work was going on in South India and in the East India. The governments of Kerala, Tamilnadu were buying these insulators in bulk. Mahendra went to south India and got his first contract to supply the insulators. Soon they were able to establish their rapport with other governments and started supplying insulators all over India. They were able to make huge profits. Their average monthly profits were in the range of Rs. 1 lakh to 10 lakhs. The big challenge was to ensure transportation for supply of these insulators from Bikaner to South India. They had to incur Rs. 9 per kg on transportation of insulators from Bikaner to South India. They had to send one truck load every fortnight. Mahendra realized that he could reduce this cost substantially by using containers. One container was of 28 tonnes (four times the truck load). The cost per kg would be Rs. 4. But now he would be required to send more goods. He contacted buyers and stockists in South India. Thus he was now able to supply one container of insulators. This reduced his transportation costs and damages (damage in the process of transportation). His margins improved further. Mahendra was now thinking about new business possibilities. With the surplus profits that he was generating from this business, he could easily finance some new business. He had different ideas in his mind: 1.set up a vitrified tiles manufacturing plant 2.Set up an institution to impart training in ceramics engineering. 3.To diversify into other unexplored sectors like real estate or commodity trading. ORGANISATIONAL TRANSFORMATION BY MADHAVAN Madhavan joined as CEO of one of the leading companies of the country. However, the company was facing problems. Till date the company was in computer hardware and software support. The company had opened distribution points for various brands of computers. The company was having good turnover, the but the sales were shrinking.
  6. 6. Margins were also reducing. The company had good staff, most of them were engineers. Madhavan decided to give the company a new shape. He wanted to convert the company from hardware based company to a software development company. The idea was to convert this company into higher value addition sectors. The margins would increase substantially, if the company entered into software and support sectors. Under the guidance of Madhavan, the company converted itself into an ERP and support company. The challenge was to constantly build the skills of the employees. Madhavan instituted a rigorous training and development department in the company. Every new recruit had to undergo 3 month rigorous training in this department. Here Madhavan would personally take at least one session. All the senior executives would come and take at least one session. The training sessions were very rigorous. The trainees would be given daily assignments of at least 4 hours. The trainees had to undergo class room training for 6 hours and then they had to complete the assignments. They would be evaluated every week on their performance and if they failed in performance, they would be given a warning. If their performance was again poor, they would be asked to leave the company. New recruits used to say that they have completed changed after the training. Madhavan was also very careful in recruitment. Instead of newspaper advertisements, Madhavan used to visit good institutions and recruit the students. He had instructed his HR department to prepare a very rigorous test for recruitment. The recruitment test consisted of two parts: 1.technical questions 2.Psychological questions to test team work, communication skills and attitude of the candidates. Madhavan had also asked all his employees to bring new persons and if the new recruit would stay with the company for 1 year, the referee employee would get a cash award of Rs. 40000. These initiatives enabled Madhavan to recruit motivated, self driven and committed employees. Madhavan was prepared for low grade recruits, but he would not compromise on attitude and motivation of the recruits. During training and development sessions, at least half the sessions would be on motivation, team work and positive thinking. The next one year witnessed massive changes in the company. New recruits who joined the company, used to be very ambitious. They would bring projects on their own and share their learning with others. Madhavan started an intranet across the company. All the employees were asked to share their experiences on intranet. All the employees would be evaluated on their contribution on intranet. Further the employees were also required to give presentations every weekend on their new projects and their new learning. The company soon converted into a learning company. 1. ANKIT’S DILEMMA 2.RAISING PUBLC OPINION 3.TURNAROUND OF INFOINFOXEROX 4.PAWAN’S NEW NEW BUSINESS PLAN ANKIT’S DILLEMA
  7. 7. In order to start something new, Ankit started project formulation. He prepared two social development projects. You have to help him in identifying the appropriate project. 1.The first project is about spreading education in Rajasthan. He studied villages in Rajasthan and found that the biggest challenge is to spread education in the far off villages. He found that there was lack of school in the vicinity of most of the far off villages. If the school is 10-15 km away, the parents would not send the children to that school. Many government schools are defunct in the villages. He thought of a plan. He decided to hire local persons for providing education. He prepared a business plan in which he would take a SHIKSHA-KARMI who would spread education in his and nearby villages. Eligibility norms for this person would be that he must have at least class 8th completed. He must have very high motivation to provide education. He would use the local resources and vernacular language in providing basic education. Instead of A for Apple, he would use A for some local thing which the children in villages can identify. Thus Ankit had a plan to spread education without formal schools. SKHIKSHA-KARMI would take Rs. 1000 from Ankit and work as a volunteer. He would teach children under some tree or some community building. If required, he would go to Dhani (field area) and spread education in Dhanis. Ankit had thought that once in a year, he would organise a residential educational camp, where all the students (taught by SHIKSHA KARMI) would come and there they would be provided best possible education using ultra modern facilities and amenities. Ankit had one doubt - should he hire SHIKSHA KARMI at such a low package. Ankit was expecting to get financial support from funding agencies and his supporters. Ankit knew that his plan will bring tremendous improvement in the villages - as education will act as catalyst in the villages. The second plan was to start a cultural heritage centre. Ankit had thorough knowledge about Rajasthan culture and folk art. He surveyed and found that lot of tourists are interested in understanding the culture of Rajasthan. Ankit found that folk art and culture was on the verge of extinction. There were many things, which were accessible only to a few persons. Foreigners were more interested in understanding and experiencing the unique culture of Rajasthan in a comfortable environment. Ankit prepared a plan where he would open a centre in a village, which was connected to the capital of Rajasthan - Jaipur. Ankit would open a model centre - where tourists can flock in. He would contact with the tourists agencies would over and tie up with them for ensuring that tourists come. He would set up huts (with all modern amenities), folk art centre, recreational centre, folk art training academy, Rajasthani cuisine development centre, and documentary movie development centre. It will be the centre, where he would invite folk artists to present their art (from all over Rajasthan). It will be the centre, where he would document and preserve the folk art of Rajasthan, including paintings, dance, customs, costumes, designs etc. From a preliminary study, Ankit found that this project would be a profitable project in next 5 years. Ankit was sure about profitability, but he wanted to do something, which can ultimately benefit society. His ideals were the nobel laureates like Mother Teresa - and he wanted nothing less then the perfection, which could simply transform the society. Ankit didn’t want commercialisation to spoil the culture of Rajasthan. He had a plan, which would definitely ensure that culture and folk art of Rajasthan is preserved and developed. After spending 6 months, Ankit was ready with two great plans, but didn’t know which plan to pick up and how to start? Can you suggest? RAISING PUBLC OPINION After completing my post graduation in social work, I had different options to choose from. I had done my internship (project) with an organization for social
  8. 8. development and wanted to work in this field. I joined BSC, a well known organization in Gujarat and wanted to share my vision with them. They asked me to share my vision which I told my vision. I surveyed and identified a village, which was very backward. I decided to work in that village. I went to that village and started living in that village as a worker. I developed friendship with the people their. The village was having very hierarchical system. I realised that in order to change the village, I had to change the system. I encouraged people from backward classes to come forward. I also encouraged the women in the village to come forward. It was not easy. I tool help of the women nurse of the village and the persons from backward community to participate in important matters in village. I soon faced resistance from the village. Ultimately I was forced to quit the village. The entire village community was against me. Nobody realized my dreams. I now formed my own NGO. I approached funding agencies like FORD FOUNDATION for help. I made a written proposal to them and requested them to help me. One funding agency agreed for helping me in conducing awareness programme for women awareness – not for the work that I actually wanted to do. I started the work. I hired 2 women volunteered to work on the project. I took them with the condition that they have to undertake reconstruction work in the village besides awareness building. Both the candidates were full of enthusiasm and wanted to develop their village. They were filled with positive spirit. My NGO started work. I decided to take the help of women from the village for changing the village. I visited the village and tried to study the village. I noted down information about important persons in the village, important linkages, and important practices. Soon there were many occasions, when I could meet with the villagers in awareness building programmes. This time, villagers didn’t oppose me, as they thought that I was like a BABU – a typical govt. employee kind of person. I got entry into the village. I started my work. I saw a beer shop in the village – which was illegal (in Gujarat – it is illegal to sell beer). I could easily oppose it. But I asked the women in the village to protest against the shop. I took help of other NGOs in the nearby cities and asked them to help the people in the village. AWAG and many other NGOs came forward. I was in the background this time. My plans worked. There was a lot of media coverage. One woman in the village got to the limelight. She became vocal and started shouting against the shop. Soon the shop was closed. The shopkeeper ran away and it was a big victory in the village. The women in the village became very active now. I used to attend their meetings and used to suggest them developmental plans. They organized SHG on my advice and their income increased. They took many other steps for the development of their village. The village was soon converted into a model village. They organized crafts and industries in the village. I used to bring resource persons from cities to help the villagers. I wanted to help them more, but now they had developed their ideas and now they were self reliant. They soon set up their own NGOs. Sirdi Ben, an elderly woman from the village got award from Govt and other bodies for her initiatives in rural development. Women took the lead now. Soon there was a woman Sarpanch in that village. My project was for 3 years, and it came to an end. My funding agency had a review meeting, and I presented my data- (which were all numbers). I told them that malnutrition level has reduced from 70 percent to 10 percent… so on. Thus my targets were more than achieved. I knew that I had achieved my targets more than the numbers. Now I was searching for other villages to start my projects. I took 4 projects for 4 villages and hired some volunteers and started the work. I took help from villagers in the previous village also. One funding agency representative asked me about my style of working. I didn’t have any office, any building, and any fixed investments. He asked me about how I wanted to work. He was not convinced about my future. I told him that I didn’t want to be like a Bunyan tree. My dream was simple, go in villages and raise their mind, raise their societies and once the village had its self reliant NGO, I had to withdraw. It was surprising for the representative of the funding agency. I was sure that I had my mission in my eyes. I didn’t want to make a gigantic organization, but only wanted to offer a little help in raising the village ideas
  9. 9. and vision. I used my expertise in raising public voice and public thinking. My ideas were revolutionary and I knew that if I expose my ideas before typical villagers, I would be ousted (exiled from village) therefore I had changed my strategies. I wanted to convert the villages into truly democratic institutions. I was moving in this direction. By now I have helped 23 village institutions to come up. With my help these villages have their own self help groups, their own bodies and villages are working on democratic lines. In spite of all my efforts, I find it difficult to break the chains of caste system, age old customs etc. I was able to bring greater awareness. I used education, awareness, and public participation as important tool to bring about desired changes in the villages. I spend 20 days in villages traveling, talking and gossiping with the villagers. I come across people who think that I am a politician. There are also offers to me to join active politics. But I tell them very clearly about my mission and my goals. I continue on my journey. TURNAROUND OF INFOXEROX Rangarajan or Ranga joined Infoxerox India office. It was a time when Infoxerox was in difficult conditions. Once a market leader, Infoxerox had seen the time when people used to talk about it as synonymous to photocopy. Off late there had been a number of difficulties. It was difficult for this company to convert into digital environment. The employees had a fixed mindset. They were not prepared to change with the changing time. Most of the employees were of the service of 10 to 14 years and they were not able to understand the imperatives of change. Ranga decided to introduce massive change, but he wanted to do it in people friendly style. The company was undergoing massive changes all over the world. It was like do or die situation. Ranga introduced teams of people to document the processes in the organization. Each and every process was noted down. Customers were contacted and their requirements were noted down and as per that each process was again stretched out and this process was noted down. Teams of people were now responsible to identify the processes in the company and identify internal and external difficulties. The company introduced TQM and introduced internal accountability. Time was fixed for each process and there was accountability for these processes. The company was soon able to experience positive changes. It was now able to compete with companies like Ricoh, Cannon, and other companies of the industry. There was also change in the company in other offices. Ranga was not an MBA or a person from commerce background. He attended special classes to understand balance sheet. He wanted to introduce financial accountability across the company. Each executive was now responsible for four aspects: A. Revenue and expenditure generated B. Quality of changes introduced by that person C: Customer relation and new customer addition D: Overall level of motivation and innovation introduced by that person in the company and amount of learning introduced by that person. The company soon experienced a major shift. Old employees realized that they needed training in the new systems. They demanded training and development. Ranga carried our TNA (training need assessment) and hired professional trainers to introduced company wide training and development program. The company introduced comprehensive training in quality management, customer relation management, organization development etc. Massive organizational changes were stressful for many persons. While earlier employees thought that they were permanent employees, Ranga told it very clearly that nobody is permanent and if the performance was not up to the minimum level,
  10. 10. any person can be asked to quit. Although no person was retrenched, but the message created a new work culture. Workers were now scared about new work systems. Ranga used to visit different places to identify new possibilities for improving the work culture. In the course of these visits, once he visited a small company located in Southern India. This company had a history of over 100 years. It was considered to be a very good company in that region and it had ZERO employee turnovers. Ranga requested the owners of this company that he wanted to spend a day in this company to understand the processes of this company. He was given permission. Ranga returned back with mixed feelings. He liked the work culture of this company. The workers were so committed and dedicated that he wanted to create the same in his company. Next month, there was annual planning meeting of Infoxerox. Ranga asked each of his regional head to come up with a vision and plan document. Ranga himself prepared a vision plan for the company. He told everyone that he wanted to introduce a cohesive work culture in the company, where each employee considers others as very closely. Ranga shared his experiences also. Members present in the meeting asked Ranga to give an action plan for that. Ranga didn’t know about that. Can you help him in preparing an action plan in steering this company further? Infoxerox was not in red now. It was turning around, but new directions had to be given. You are requested to help Ranga in giving charismatic leadership to this company. Ranga has some characteristics, which you must remember before recommending: 1.He is always cheerful 2.He is always positive about future 3.When he talks with employees, he gives them detailed description of the future that he wants and he shares that future vividly 4.He shows very high level of confidence on his subordinates ability in achieving objectives 5.His dreams and ideas look impossible - but he has always proved them true. PAWAN’S NEW NEW BUSINESS PLAN Pawan completed his PGPSE and wanted to start a business enterprise. He had different ideas in his mind. He came across an old Indian text book about Indian herbs and their medicinal properties. He developed ideas about using those herbs in developing new products. His idea was to introduce a new product, which would be good for health. He was thinking about giving it the shape of a brand. He knew that making a branded product and selling that as a popular brand is not an easy task. He studies many case studies on similar products and evolved different ideas about how he should produce. While going through these ideas, he had 4 options, which were based on 4 studies: 1.Launch the product like a commodity - just like coca cola. Coca cola was also launched as a product sold by druggists initially. It took a long time for coca cola to reach to masses. He was also reminded of Dalda. When Dalda was launched in India - people resisted it. Nobody wanted to use it - and those who used it, didn’t tell others that they were using it. HLL tried to give many advertisements to show the good things of Dalda - but it all failed. Later on HLL changed its advertisement strategy, and it introduced one slogan which worked, the slogan was just emotional tough: the slogan emphasized that Mother can’t be wrong - and mother gives the best to the child. This slogan changed the future of Dalda and now Dalda
  11. 11. is a big brand. Pawan was thinking of giving his product a tinkering similar to Coca cola or a Dalda. 2.The second option was to launch it like a medicine. Medicines can’t be advertised directly. They have to be marketed to the doctors directly - who will recommend it the patients. Here the option was to make it not strictly like a medicine. Here his idea was to make it similar to Complain. Complain was initially introduced as a food for soldiers and patients. When soldiers were fighting in 2nd world war, Complain was given to them to help them to fight. Later complain was introduced for elderly persons. Later it was introduced for children and now it is for growing children. Its advertisement also proves it: "I am a complain girl". Pawan was also thinking to make his product similar to the complain strategy. 3.The third strategy was to introduce this product as a generic product. Here Pawan was reminded of great brand aura of TAJ. When Taj group of hotels introduced an efficient, suave, decent, sophisticated lady as brand ambassador for Taj, it became very popular. Pawan was also thinking to make a good personality for his product and introduce it as a generic brand. 4.Pawan had 4th idea also. The forth idea was to create a new marketing channel. During his PGPSE program, he had made presentations on terms like viral marketing, network marketing etc. Viral marketing is word of mouth marketing. Network marketing also relies on networking on people. Pawan had an idea about introducing the product using similar strategy. He had seen success of AMWAY succeeding in network marketing. Similarly, he had seen his own institution AFTERSCHOOOL using viral marketing. Now he was not sure about which strategy to use. He was in confusion and wanted your help in evolving his overall marketing strategy. He was ready with the product - which was tested out in laboratories. The question was how to position this product in the market? How to introduce this product in the market? Pawan knew that great products have failed in markets - he didn’t want failures - he wanted a sure success and for this the only way was brainstorm and find the best option. (read as per pgpse programme syllabus) 1. ARUN’S ICE HOUSE 2.RISHI’S EVENT MANAGEMENT COMPANY 3.PANKAJ’S LINUX ACADEMY 4.SWATI – THE BUSINESS CONSULTANT 5.VIJAY’S DILEMMA arun’s ice house Fun and Joy are for every person. Arun thought of this as a business plan. He had a spare building lying in the centre of the city. He decided to organize this building as a place for fun and joy. He converted this building into ice house. The entire house was converted into an ice house. He installed very high quality cooling system in the house, which could bring temperature down to -25 degree. Thus it was like a great fun for a short period of time. The house had to be closed from all sides. The entrance of the house had very tight 5 gates, which protected the cool chill to emit out. The house had inside it lot of ice (formed due to temperature being less -25
  12. 12. degree). Entry fees for entry into the house was kept Rs. 200 per person. A person would be asked to take proper precaution before entering the house. He would also be given a kit of oxygen, if he finds any difficulty. Each person was briefed about the cold temperature precautions. Located in a desert climate, his city had a special charm for cold places. People flocked into to see the cold island. People in neighbouring cities also started coming in. However, the fees collected was not sufficient to meet the running expenditure of the Ice House. Arun was now thinking about other options to be added to make this ice house a profitable venture. He forumated a number of plans for this : 1.20% of the revenue will go the the welfare of deaf and dumb, so the people get motivated to pay and he also get an opportunity to raise the fees and use the surplus for social welfare and development start a restaurant near the ice house, so that people could get some refreshment and he could get some earning have a tie up with international chain of tourist agencies so that he could get more revenue. He was wondering about what to do. The number of visitors visiting his city daily is between 1000 to 10000. He wanted that every person who visits his city should also visit the ice-house. At present only 200 persons visit his ice house daily (on an average). This is a very small number considering the number of visitors to his city. He was not sure about how to go for it. His monthly electricity bill alone is Rs. 7 Lakhs. His other promotional expenditure are about Rs. 50000 per month. His other expenditure are Rs. 5 lakhs per month. What should be his strategy to reach BEP level at least. He has already invested Rs. 1 Crore in this project. A reasonable return should be about 18% on this project, which doesn’t seem to come in the near future.
  13. 13. Rishi;s Event Management Company Rishi was discussing with Ravi about business possibilities. Ravi told Rishi that he was hiring stadium for 3 days, while he would actually need it for 1 day only. The rent of the stadium would be Rs. 50000 per day. The stadium had to be hired for 3 days, as he was not yet sure about the exact date, and if he would delay, the stadium would be booked by someone else during that time. Ravi immediately had a business plan in his mind. He thought of organizing some fair one one of the days in this stadium. He asked Ravi for providing the stadium to him for one day and promised to share revenues (if any with him). Ravi agreed. The stadium was booked from 10 to 13 October. It is the time near Diwali. Most people prefer to do shopping in this time. Rishi could sense for this time as the golden time for doing a trade fair. He immediately preparped an outline of one day trade fair. He listed down all the steps that would be required in the process. He searched the internet for important dealers in Delhi, Jaipur, Ahmedad, Rajkot, Chandigarh and other places, who might be interested in participating in the fair. The one day fair would be an opportunity for them to demonstrate their products in Bikaner. He mailed them letters to know about their response. He had kept different rates for different shops. The front shops were being offered for Rs. 20000, but the shops at the last were given in only Rs. 500. He wrote emails with design of the fair, with list of all the media partners and other partners, who were likely to be involved. In this process, he had to also move out to see other fairs going on and approach the firms displaying their products in those fairs. In all he approached 3000 firms through emails and letters. He also approached 20 media companies, and event marketing companies for partnering with him in creating publicity of this event. One month before the the event, he had prepared for daily news. Everyday he would give some or other news regarding the event in the newspaper. He also starting organisisgn small competitions regarding the forthcoming one day trade fair through newspaper. Meanwhile, Ravi also finalized his dates, Rish was able to get the stadium for one day and when the date was fixed, Rishi could collect advance amount from all the participating companies. In all 120 firms agreed to participate in the trade fair. Rishi also approached the local media persons for extensive media coverage. Rishi purposefully contacted those firms, which didn’t have their presence in Bikaner, so that people from
  14. 14. Bikaner have some attraction in comeing over to the fair. He purposefully contacted innovative handicraft workers, padmshree awardees (for their art and craft) etc. and offered some of them free entry. The purpose was to create excitement among people of the city regarding the event. He created a special cell in the last pandal of the fair, where he had asked the Padmashree awardees to display their art. This was the opportunity for the city to see exclusive art and craft of the greatest persons of this time. Rishi also contacted some firms from the neighbouring countries and asked them to display their products. This also created excitement amojnt the people. Finally the day came. It was a big crown. There was massive response. All the efforts of Rishi brought fruits to him. There was a huge turnout of the crowd. People wanted the fair to be extended. It waas not possible for Rishi to extend the fair. However, in the process, he was able to Give Rs. 150000 as share of profit to his friend Ravi. Ravi was now thankful to Rishi, as all his expenses were met out. PANKAJ’S LINUX ACADEMY Linux had started becoming popular in late 90s. It was like a new revolution. It was absolutely free software. While patent laws were becoming stringent, people were switching over to Linux. Linux was just like Windows. There were all the
  15. 15. facilities which were available in windows. Making it absolutely free, Linux had made a big move forward. In India also, there were massive changes taking place. Pankaj was a student of PGPSE. Along with studies, he had to do some entrepreneurship project. He wanted to do a project which could give him economic rewards. He stuck upon the idea of promoting Linux products. There were many options for him – to start as linux trainer or to introduce linux software installation etc. Linux softwares were available with the magazine Linux for You. He got lot of CDs with this magazine and experimented with these CDs. Now he prepared a letter and went from office to office. The letter mentioned the importance of linux and its advantages vis a vis windows. He contacted 50 offices and institutions. He got mixed response. Some institutions asked him to give a demonstration on linux. Some offices asked him to install linux in their office. He asked for installation charges of Rs. 300 per system. He also asked for Rs. 2000 for training one person in Linux operating system. He got 3 clients to start with. Soon he was able to prepare a portfolio of his work. The three satisfied customers gave him positive recommendations and these recommendations helped him in securing more business. Pankaj was now having huge contracts and had to hire one assistant to help him in linux installation and maintenance in offices. He was lacking in time. His studies were getting adversely affected due to these initiatives. He was evaluated on multiple criteria in his classes. He used to score higher on project implementation, but his marks in other areas were getting lower. He also had to prepare and submit 4 detailed comprehensive business plans. He also had some business plans in his mind, which could give him lots of profits. He was thinking about different options. He got a surprise, when he received an email from a company from delhi. The company wanted him to work on Linux based software development. He had to hire some employees to develop softwares and promote linux based software. The company was prepared to give him authorized franchisee for this. His total investment would be just Rs 50000. He was expecting to increase his income from present Rs. 40000 per month to Rs. 100,000 per month. He was also expecting to get orders from other countries on linux based software development. He was also confused regarding what to do. Basically, he had a strong inclination to work in the field of capability development. He wanted to start an NGO to build skills of people from poor families. He also wanted to work with UNICEF for promoting nutrition among villages. All these things couldn’t be done simultaneously. Can you help him in deciding about his career options and help him in finalizing his career direction. SWATI – THE BUSINESS CONSULTANT Swati (PGPSE from AFTERSCHOOOL) identified her core competencies as being innovative, creative, and futuristic. She had undertaken 4 years work experience as entrepreneurial trainee with an advertising firm. Then she started her firm to provide business consultancy. Her business is a new type of business. It is to provide complete business solutions. Here she undertakes complete business planning for small and medium enterprises. Under this she prepares following for the business enterprises : 1.logo and business communication planning 2.campaign and marketing planning communication designing including website and overall business presentation. She has designed her business in such a way that it requires more of imagination,
  16. 16. creativity and desiginign skills. She has hired 2 employees to assist her in technical work. These employees undertake desiginign work on Corel and Photoshop. They also use webhosting solutions for designing websites for the clients. Swati relies on outside firms for all her activities. She has a small office at prime location in the city. In terms of infrastructure, she has 2 computers, 1 laptop and 1 deskjet printer. She has got her office designed from her elder sister, who is also an interior designer. The office gives an auro of a great office. Swati spends most of her time in dealing with her clients and in understanding their problems. Once she understands their business model, she is able to prepare suitable designs, which are then prepared by her two assistants. In terms of cost, she doesn’t have much worries. Her running expenditure is not much. The office is in a premises, which belongs to her brother and therefore she doesn’t have to pay any rent. She doesn’t have to worry about any fixed expenditure – other than salary of her two assistant (which is also partly variable). She has so far contacted with 40 parties and has been able to secure 3 business contracts. She occasionally gets small business contracts also,which are for small amount. The three big contracts that she has got, will fetch her Rs. 9 lakhs (Rs. 3 lakhs per annum per client). She will also be getting some other revenues from these contracts. If she is able to publish their advertisements, she would get commission of 15% from the media company, out of which she would be able to retail 3% with herself. Thus she expects to have earnings of Rs. 10 lakh in the first year of her business. She has now 3 options for herself : 1.enter into business for large clients also 2.expand business in other cities 3.expand her business by hiring more employees 4.spare time for helping children from poor family in their education (which is her dream). She is in confusion about how to align her time well and undertake all these activities. What do you suggest to her. VIJAY’S DILEMMA Vijay is considering the following options and you have to help him in selecting the best possible option: the first option, he has the plan to buy wheat, and other such grains direct from farmers and sell it direct to the retailers. The average rate of wheat in the market is Rs. 35 per KG, while, he would get it @ Rs. 20 per KG from the farmers. Similarly, for other grains. In this case, he has to hire some persons to do the task of purchase on his behalf. The margins in the case of wheat are less than other commodities. In other commodities, the margins would be as much as 50%. Thus he expects to get a lot of profit out of this business. He already knows many persons in different mandis (places where farmers come to sell their crops). He can contact those persons to undertake this work. In this process, he has already requested Mohan to start this work. Mohan’s relatives have a shop in Sriganganagar Mandi and Mohan can easily sit in that shop and start the tasks for Vijay also along with brokerage work for other traders. The advantage in this work is that there is no wastage in this process. Vijay has to buy from one side and sell in
  17. 17. other side – at the most on a credit of one month. His working capital would be for maximum one month’s sales worth. Vijay expects that he would be able to have business transactions of 20000 KG per week in this business. Wheat and these grains are fast selling products and can be easily sold to any retailer in any part of the country. 2. the second business possibility is the business to deal with large business houses in commodities segment. Here he has a plan to meet the requirements of the large business houses. He has requested one executive in NCDEX to help him about various business possibilities regarding this. He has got one business possibility here to set up large godown for NCDEX. In this case he would get rent @ Rs. 1 per bag per day. He plans to set up a large godown of size of 300 feet by 900 feet. He would get finance from NABARD for this purpose. NABARD would give him finance upto Rs. 1 crores for this purpose. He has a friend who can become his partner in this business. His friend has land, which can be used for this purpose. This business is safe business – as there is no credit here. There is no possibility of bad – debt here. Another advantage here is that the value of the building will continue to appreciate over a period of time. He can also expand this business by extending the size of the godown and facilities & surroundings. 3. The 3rd business plan is with regard to use of his old agricultural land. He is no longer using his agricultural land. The land is lying unutilized. However, that land can easily be used for making bricks. The prices of bricks are increasing constantly. Brick making is one such industry, which will never face any competition from MNCs. Small entrepreneurs can continue to run this business for many years to come. In this business, the advantage is that there is no credit here, payments received promptly, margins are huge and business possibilities are immense. Construction industry is booming, and with that the demand for bricks will increase manifold. Most of the persons in this trade are illiterate and therefore Vijay has the advantage that he can undertake branding and marketing. He can also make higher quality bricks (super A class bricks) and sell them at premium rate. The disadvantages would be that he would be using the fertile land in this process. Vijay is confused between these 3 options. All these 3 optiosn would enable him to remain in touch with the villages and village life – which he wants the most. All these plans are having huge profit possibilities, but it is becoming difficult for Vijay to determine the social benefits also. Apart from financial profits, Vijay wants to look at the ultimate social impacts that his business can generate on the society. He wants to go for the business with positive social contribution also. 1.Achievemnt Motivation Training 2.Fight for the right to information 3.Mahipal’s dilemma 4.Goti’s Aatta Chakki 5.Job Designing 6.GD on Reliance Retail 7.Product Positioning 8.Bothra & co. 9.bhanwarlal Bus Designer 10.Bangalore Movement 11.Worldgo 12.P&G v/s HUL
  18. 18. 13.Board meeting of an NGO ACHIEVEMENT MOTIVATION TRAINING Being euphoric is always good as you can change the people. Ask people for positive dreams and create positive dreams in the minds of people and see how people reach there. People reach the limits of their dreams. When there are no dreams, there are no achievements. Great achievements take place in a row as people start thinking about dreams and ideas. When there is one invention, there are a series of inventions. When there is one discovery, there are a series of discoveries. The world is created by fantasies and we have to shape these fantasies. Religious leaders are able to create a society greater than what we are able to fabricate, because they are able to create a god and that god makes people work in a direction. The world consists of herds – as 90 percent people move in herd mentality. You can create a few leaders – if you can. These are the leaders who can transform the world. Vivekanand asserted that he needs only 100 leaders to change the whole world. You can also see similar instances in the world. Atrocities and troubles add to the fuels for achievements. Wherever, we had atrocities, troubles and challenges, the real mettle inside the persons rose up and gave a true testimony of infinite capability that people possess. Look at Jews, when Hitler crushed them, they rose to even greater heights by showing their talents in varied field. Look at refugees all over the world. Refugees create great entrepreneurs and extraordinary workers wherever they go. The world consists of two types of persons – one intrinsic – who believe in self and create their own world. They believe in their dreams and actualize these dreams. The second types of persons are extrinsic – they believe in fate or God or other such things and fail to do anything on their own. They keep on praying – but not actually doing anything. Do your duty – the statement that every religion tells you – because even religious leaders know that if every person becomes extrinsic, there will be no entrepreneurs or leaders. Mr. Verma was a born intrinsic. He used to shout at the persons who used to sit idle and wait for luck to unfold. He was a staunch supporter and follower of Kabir. Mr. Verma used to exert persons to do something on their own. He started a business consultancy firm. He used to give 4 advices to every person: 1.start small 2.start with big dreams 3.start early – no point in waiting – you learn more by doing 4.Start with others – those who work in groups learn faster than those who do it alone. He went to Morbi district in Gujarat and talked to many unemployed youth in the city. His ideas worked and people decided to do something. These persons were encouraged by possibilities of rising industrial demand and low production in India. Huge demand and lack of availability of products created an opportunity for entrepreneurship. A group of 19 volunteers visited Bikaner on request by Mr. Verma and vested ceramics units in Bikaner. Each of these persons contributed Rs. 1 lakh and thus they started a new unit in Morbi. They had no loan (at that time there was no scheme from government and it was not easy to take loan from the government). Each of these persons took different role – one person was accountant, one person
  19. 19. was marketing officer and other persons also took similar roles. Soon their business took off. Taking lessons from the entrepreneurs of Bikaner, these entrepreneurs didn’t depend on government support, but worked hard to innovate in terms of quality, production facilities and creativity. They were all moderately educated, religious persons, who became intrinsic persons in contact with Mr. Verma. Now each of them had only one dream and one goal – to be number one in the country in ceramics. They started making glazed tiles and started competing with leaders like Somany, etc. Soon there were many other groups of youth, who jumped in business with similar ideas. These youth were bubbling with energy and ideas. The business in Morbi started creating pulses across the country. Morbi was soon the hub of the country in ceramics. In 2008 Morbi was making 80% of the entire country;s production. Morbi has production base as high as 5000 tonnes per day. Now the government of Gujarat was also after them to give them full support. Truly luck favours them, who follow their own ideals. Morbi success story completely changed the scenario of life for many people and made them billionairs. The challenge is however with Mr. Verma. He finds that people in other cities didn’t pick up his ideas. He preached the same ideas to every person, but in Morbi, people picked up. In other cities, people still rely on luck, fate and other similar things. Mr. Verma wants to know from you as to how to create true entrepreneurial spirit, how to create achievement motivation and how to really create a true burning desire for success? e fight for the Right to information This is the story about how she took the fight to the ultimate level and ultimately won the battle. She had seen public systems. She had seen how poor people face the problems while working with government departments. She had seen how government departments were working in India. She was convinced that in order to revamp the system, massive changes were required in public institutions. She had seen that were ever government departments were transparent and working in open environment, there was less corruption and real developmental work could take place. There were three important challenges: 1.raise voice for transparency in government bodies 2.raise the system of governance and improve the working of public systems 3.Raise public voice and unite people against the inefficient government institutions.
  20. 20. In her strategy for achieving these goals, she decided to raise public opinion and use political pressure for achieving the objectives. She wrote articles on these issues, which were published by daily newspapers. She gave speeches on these issues and these speeches helped her in raising the public opinion. Brining any new idea to public is not very easy task. People generally don’t accept new ideas, even if they are in their favour. People don’t support for radical moves. She didn’t receive the kind of support that she deserved. She relentlessly pursued her objectives. She traveled from place to place and talked with civil society workers, MPs, MLAs, local representatives and media for raising voice for greater transparency and greater accountability in government bodies. In one such travel, she came down to Bikaner and organized a programme at a well known NGO, in which public came to listen to her. She raises her demands and asked for the rights of people regarding information from the public bodies. When she had started the move, most people were not convinced about the programme. Those who had working in government departments, reacted that it would never happen. Some government officials were skeptical about her moves and said these steps would be misused by people. She however, continued her efforts and was able to gather a group of supporters all over India. All of them collectively were raising demand at national and international demand for transparency in government departments. World over, there was a demand for transparency and accountability in government bodies. Ultimately she succeeded and government of India enacted a new law – the right to information act 2005. This was a big victory for concerted initiatives by the NGOs.
  21. 21. MAHIPAL’S DILEMMA Mahipal was little bit confused about different business possibilities that existed before him. He wanted to take up a business in his home town, but options created problems as he was not sure which option to go for. You are requested to help him out in picking up the right options: 1.There are 250 Plaster of Paris (PoP) units in Bikaner – each producing 15 tones of PoP every day – there is huge demand and the product sells like a commodity. With likely boom in construction industry, this industry will have a golden time in the years to come. In this sector, Mahipal can sell goods all over India. Out of 250 units, no unit has been able to establish brand or differentiation. No unit is able to claim high quality orientation. No unit is able to differentiate or work as massive production level. If mahipal can establish brand and go for mass production, the profit possibilities are huge. There are immense profit possibilities. If Mahipal can only capture the market of NCR (Delhi and surrounding regions), he can easily sell 20 Tones per day at a margin of 40% against cash payments. Thus there are minimum risks and maximum profitability. This business doesn’t require any specialized inputs. Workers are available from Bihar, who come and work on contract basis. The contractor takes all the responsibilities regarding work and is paid as per work. What is required is a focus on marketing. It involves industrial marketing – as the goods have to be sold to big contractors, large scale manufacturers etc. it all requires skills in negotiation, presentation and quality assurance. Mahipal believes that he can delivers all these and reach upto the levels of top scale. 2.the second business possibility is regarding food items. Over 2 lakhs KG of food items like Bhujia, Papad etc. is produced in Bikaner, but the demand is huge. Bikaner name itself is sufficient to create confidence in the minds of people. Bikaji is the only player from Bikaner, which has been able to establish brand and positioning. Hahipal can also think in these lines and go for this business. With aggressive marketing and huge potential, he can easily achieve huge volumes with at least 25% margins. 3.third business possibility is regarding art craft and jewellery. These are the things which are sold for their aesthetic value and for their unique appeal. They are sold at premium prices, if they are rare. Bikaner has many such artists who can produce virtually rare products, which can never be duplicated. These products can then be sold to the elite class of the world at prices beyond imagination. If properly marketed and exhibited, mahipal can have margins as high as 1000% per piece. But here volumes will not be much. Further, it will require extensive traveling, and very high level of expertise in marketing. Mahipal has the capability to use his connections across the globe for organisng displays and
  22. 22. exhibitions in the finest display centres in the world. 4.The forth business possibility is in the insulator business. Bikaner is world’s leader in insulator producing small towns. Bikaner alone produces 40% insulators produced in India. Its unique strengths are inavailabiliiy of raw material and skills here. There are 40 units in Bikaner, which are making insulators. However, none of the unit has been able to become a global player as yet. None of these units has been able to establish a powerful institutional marketing / industrial marketing network. None of these units has been able to exploit the huge potential of large scale production at lower costs. None of the units has been able to negotiate with the government for confessional facilities due to scales of operations. Mahipal is little bit confused out of all these possibilities. He believes that he has to take up a business, which can continue for a long time without competition and which has scalability (which can be increased in volume to infinite limits). Mahipal has 10etrusted friends, each of whom is willing to invest between 2 to 10 lakhs rupees and each of these is willing to work with Mahipal in his business. Thus there is no need to look for employees or loans. Mahipal is sure about business acumen and capability of these 10 persons and he believes that working in a team, he can truly establish a worldclass business. GOTI’S AATTA CHAKKI Goti is planning to start manufacture of Aatta-Chakki. In order to finalise his marketing plan, he organizes a brainstorming session among marketing professionals. The discussion is as under : Vipin: we should target market lower middle class and we should highlight the quality (functional value) of the product. In our advertisement, we can show a lady from middle class using this Aata Chakki. There is a huge middle class in India, and this will be our target market. Ladies from upper class are never going to use this product. Ladies in middle class and lower middle class want to save money and
  23. 23. they are also willing to give good quality food at their home, so they will go for it. Dhairya : “I belive that this product should be abandoned. Life style is changing. People are no longer getting time to cook food and eat it at their home. They eat junk food / ready to eat food. Thus this product will be flop. There is no point in marketing Aata chakki. If you want to sell, then make a new machine which can make pizza in a few seconds or which can make chow-min in a few seconds. So throw away all these plans in dustbins. Ankit : “No it is not so, we still have a lot of scope in the market. We had carried out a survey and found that out of 100 ladies, 80 are interested in buying a good Aata chhakki. There is no big player in the market. We will be able to establish our brand. We can market our product well. In fact, we don’t have any fixed costs also. We are getting our products made in Rajkot and putting our logo and brand on the product and sell it out. We can also modify the product as per the change the taste of the product. Gautam : “ask fundamental question – why should a person buy this product? What is the functional or emotional benefit that you are offering to that person. It is not going to be a status symbol product, so why should a person be prepared to pay for this.” Ravina : “I think we should have a systematic market survey and test marketing before we launch this product. There must be some reason why big companies are not making Atta Chhakis”. Goti is little bit confused now. What should he do and how ? Can you prepare a marketing plan for Goti? JOB DESIGNING Can job designing really contribute? Can we really have interesting and fruitful jobs. Can we really have jobs, which can help persons in achieving their personal goals and organizational goals? Job designing is challenging and interesting aspect. Companies are designing jobs in such a way that jobs really become interesting and challenging. People spend 80% of their most constructive time working in the companies and therefore jobs must be interesting, challenging, and making it meaningful. People want to work hard and progress. Jobs give the people the opportunity to learn, grow and show their capabilities. Thus if people are not working, it is due to lack of proper job contents / job designing. Thus we need to have better job designs. Take HP for example. The chairman of HP Lew Platt suffered a tragedy. His wife died and he had to look after his two daughters. He realized some lessons out of it. The job designing process in HP was completely changed due to this. In late 80s and 90s, Lew Platt forced the HR department to change the job designs. Instead of rigit job designs, HP had adopted flexible and convenient work designs. Workers were permitted to adopt part time work structure or flexible timings. Earlier, HP had
  24. 24. very high employee turnover rate. After job designing exercises, employee turnover stopped. Workers didn’t resign any more. Women workers were the most beneficiaries. Women workers could not have greater flexibility regarding managing their homes. Lew Platt realized it when he himself had to look after his family. Thus sometimes tragedies also contribute to something good. HP now has a very people friendly HR Policies, employees are given freedom to work as per their schedule. Some workers can work together as team and divide their work among themselves. For example in HP, two female executives Elva and Maria work together – 3 days each in a week and share their salaries by dividing it between them. They together have 50 hours of work in a week. This helps them to help each others. They can also look after their family responsibilities. There are many male workers also who take 4 day week - in order to shoulder their family responsibilities on the other 3 days. The ultimate purpose of the organization is to give people an opportunity to have better life, better working conditions and better opportunities to grow. CMC in India understands this. CMC tries to give its workers flexible timings. Workers can schedule their work timings as per their personal and organizational commitments. CMC also takes care of some personal responsibilities of the workers – for example for booking of Gas, the employee has to inform it in the office and someone from the office will do it on behalf of the employee. Organizations are also realizing the power of teamwork. M&M has started group work systems. Workers are grouped in self managed teams where workers are grouped together in self managed teams and the workers are given the freedom to manager their work. They can schedule it also. Thus we see many such cases where organizations are able to benefit from job designing. Should we have time flexibility and should have complete freedom to the worker? Can we really reduce employee turnover rate by job designing? How can we add elements of recognition, autonomy, flexibility, feedback, growth in each job? What are the limitations in such initiatives? Can you identify the issues which would be critical issues in job designing?
  25. 25. PRODUCT POSITIONING Ajay had set up a tractor company. He imported Chinese components and assembles them and sold out tractors in India. His brand was FIELDFORCE. He popularized his brands through village fairs, trade displays, exhibitions in fairs etc. He didn’t
  26. 26. give any advertisement, but he used to organize Kushti competitions in villages. He sponsored a national Kushti competition, which was telecast on TV also. Ajay believed that his customers were farmers, so he needed to reach the farmers. He wanted to match the expectations of the farmers. Ajay also used a mascot as his logo. The mascot displayed an elephant. Ajay symbolized power, rough and tough tractors through his publicity media. However, Ajay realized that the sales were not coming up. Ajay hired an advertisement and media company to give suggestion. The company gave a presentation that the sale of tractors in India had reached a maturity level. As per the media company, farmers in India no longer buy small tractors (which Ajay was selling). The media company suggested Ajay to switch over to big tractors. Ajay said to them that it was not possible for him to switch over to higher horse power tractors. Ajay this time asked a student from MBA to prepare a dissertation report on new products to launch. Ajay asked her to prepare a report and identity business segments with very high growth potential, high growth rate and future scope. The student suggested to Ajay to launch a moped for college girls. At that time there was only one brand of moped available. Ajay realized that there was great scope in this business. This was the product, which would sell in huge number. Its market segment was well defined. Its target customers were increasing in number. There was not much competition. The existing producer was neither making a moped which neither had style nor performance (as per Ajay). Ajay launched the moped for college girls. This moped was launched with his existing brandname (as the brand was already popular). The advertising agency of Ajay got agonized on this. They said that perception of people about the brand was that of rugged product. The said that product must be positioned appropriately. They suggested that Ajay should carefully design an appropriate brand personality and then launch a new brand. Ajay however, was adamant. He wanted the existing brand to be used. He said that our brand can be modified as per the new situation. He suggested that instead of Kushti, now he will sponsor some other events that will attract the attention of college girls. Ajay believed that every product passes through four stages: 1. introduction, 2. growth 3. Maturity, 4. Decline. Ajay believed that his product was in introduction stage and there was lot of scope in the future. You are requested to prepare appropriate strategy for Ajay. BOTHRA & COMPANY Bothra & Co. is a famous law firm in Bikaner. They specialize in taxation and related matters. In order to expand their business, they have decided to open offices in other cities also. They have decided to recruit people for other cities. In a hurry 30 persons were recruited. The firm does not have any departmentation. There are just 3 persons at present and now there are 33 persons. These 30 persons were given a quick orientation programme in which the new employees were given following information: 1.Brief history of their company 2. narration of the achievement of the company
  27. 27. 2.brief description of the work to be performed 3.Brief narration of the legal processes involved. 4.Description of the core values of the organization – like honesty in dealing with clients etc. All these new recruits were law graduates with at least 3 years experience. Now they were positioned in different locations. These persons started working in different locations. Bothra & company was able to get lots of customers in different locations. Most of these customers were those who had taken services of this firm at some or other time or they were branch offices of the main firm which was taking services of this firm. However, in the next one year 50% employees resigned from their positions. It was realized that these people didn’t leave due to salary reasons. These people were also not dissatisfied due to the policies of the company. However, there was a lack of system in the organization. Most of these people were not able to take decisions. They didn’t know how to proceed. There was also a lack of HR policy in the company. The company also didn’t have thorough training for these persons. These persons were not competent to handle difficult issues on their own. They were not able to resolve the matter and found lack of confidence in handling tricky issues. The performance of other branches was also poor. The organization had to move forward, but the real question was how to start and grow the organization. The growth of the organization could be possible only when we can be sure that everyone in the organization is knowledge driven, learning focused and capability oriented. The firm is sure that it is the time it has to grow and expand and slowly become a global company. The company is confident about its values, and its core competency. It still needs guidance about how to expand the business. Can you really shape a business model for this firm? BHANWARLAL BUS DESIGNER When Sony Company was started, it was a small company. It was just a repairing company. The company was able to grow, only due to innovations and innovations. This company launched small radio for the first time in the world. This company also launched Walkman for the first time in the world. This company also introduced many electronic products for the first time in the world. Due to its ability to introduce innovative products at lower cost, this company became market leader. Sony was also the first Japanese company to be listed on New York Exchange. It was also the first Japanese company to have made aggressive growth by inorganic growth through acquisitions in the USA. It acquired Columbia Pictures and many other companies in the USA. Sony word is derived from a Latin word, which means sound. Thus Sony had a very clear vision to be in the sounds sector. When there is sound, there is Sony – be it radio, or walkman, or anything else. However, later Sony also entered into camera products. Its camera products were also very successful. From a small repairing shop to a giant MNC – the growth is amazing. Chhabaria is known for car designing in India. Chhabaria prepares car bodies and
  28. 28. sells it. The cars designed by Chhabaria are considered very premium products. They command premium prices. Chhabaria designs beautiful and comfortable cars. They only design the body of the car (retaining the engine of the original car). Now we come to Bhanwarlal. Mr. Bhanwarlal is basically a carpenter from village Bhamatsar near Nokha village in Bikaner. He changed many professions (from carpenter to electrician to mechanic) before he jumped into Bus body designing. He has heard about Chhabarias. Chhabaria is known for car designing. Bhanwarlal is known for Truck and Bus body designing. He designs trucks and bus body and prepares it and sells it. He has set up plant with machines from Rajkot and now operates it to prepare about 30 trucks / Buses every month. He is able to establish his identity among travel companies of North –Western India so that he gets some orders always. He has converted his small farm house into a factory, where there is some or other work going on constantly. His total investment in plant and machinery is about Rs. 20 lakhs. He has 6 assistants with him, who assist him in his task. At any time, you can find 10 to 20 buses under preparation with him. He is able to save between 5000 to 30000 per body. Is there any way that Bhanwarlal can also grow to the heights of Sony or the heights of Chhabaria? What is the difference in business models of Chhabaria and Sony, which model is better for Bhanwarlal and why?
  29. 29. BANGALORE MOVEMENT It all started when I was doing my doctoral research. I went to Bangalore municipality to collect their financial data. I requested them to provide last year’s balance sheet. I was asked to come next day. I visited the next day – and kept on visiting the department – but for no use. I was totally tired of my usual visits to the Municipality. One Day while was sipping a cup of tea and gossiping with a person outside the municipality, I came to know that the Municipality was in shambles and had not prepared balance sheets for last 4 years. Their system of accounting was in very poor condition. I didn’t know about my research work (which was on budgeting and financial planning in Bangalore Municipality) but now I had a new plan buzzing in my mind. Why not do something to rectify the situation. I could see a better picture of Bangalore municipality in my dreams. I decided to raise voice against the systems. Meanwhile I heard about movements by Aruna Roy. She was asking for information from the government departments and transparency in government department. I decided to go for this direction. I organized a meeting of activists and civil society volunteers. We decided to raise our collective voice against the prevailing system in Bangalore Municipality. When we submitted our application to the Bangalore Municipality, we were told that all over India same situation exists. We were told that we should know that government departments don’t work like private organizations. The work takes place at its own systems. We approached the chief minister and other ministers with our request. We also submitted our copies to local media and other international bodies which were having their offices in Bangalore. International Budget Project gave us a favorable response and agreed to sponsor our campaign for transparency. They agreed to support us if we organize a campaign to bring transparency in governance. Our efforts were now better organized. With support from International Budget Project, we organized many seminars and conferences to discuss transparency in governance and particularly in Bangalore Municipality. I also approached one leading IT company of the city. This was also global leader in system implementation. This company agreed that if Bangalore Municipality wants, they can implement latest information system in Bangalore Municipality at very low prices. I presented this to the chief minister. The chief minister was also annoyed with continuous media reports regarding Bangalore municipality. He got the chairman, director and dy. Director of Bangalore municipality transferred. Now there was a new head. The new head was willing to do something. Our group again met with the new head and requested that we wanted better information system in Bangalore municipality. This time we got better response. A committee was constituted to improve the system. Next 6 months witness massive changes in the Bangalore Municipality. Our movement is now in golden words in the history of organized initiatives for better
  30. 30. governance. Our efforts culminated in a series of changes. Bangalore Municipality is now one of the best Municipalities in India. It is having best information systems in place. You can retrieve information about latest situation. The result is a series of changes in other municipalities. Subsequent to this, other municipalities also started implementing organizational restructuring and development initiatives. These changes have resulted in a series of initiatives for improvement in public systems. We wish that these initiatives should be taken by other concerned citizens also. Our initiatives will go a long way in improving public systems in our country. Ahmedabad Municipality took huge leaps subsequent to us. They even went for public issues and revamped their systems. Thus we can say that people still have power in our system and the system of governance can be revamped. Questions: Looking at the above case, do you think that there is a need of organized movement throughout the country for revamping public systems in our country? P&G V/S HUL P & G is known for its marketing skills. it has introduced many new products In the last few decades, it has a few basic strategies: Multi branding: it introduces 2-3 brands in the same product category. Each brand is targeted to a particular class of customers. For example, in laundry category it has introduced Arial and Tide - one for upper middle class and one for lower middle class. Both products are having different psychological connotations and perceptual spaces. Category extension: it introduces a product in one category and then launches another category of products in that brand. Take for example Old spice. From shaving cream to a number of other products like deodorants etc.
  31. 31. In some way P & G is in direct competition with HUL. Both the companies are having similar strategies. Both the companies are now having similar battle grounds. When you look at Surf, you have Arial fighting with it. When you look at wheel, you have tide fighting against it. There are product against product - for each of the product, they have come up with different products. Both the companies are having extensive advertising budgets, extensive promotions and brand building. Both the companies are having extensive sales force to supplement their marketing efforts. P & G has now realized that HUL is very aggressive in its rural marketing front. HUL has been able to create a wide spread distribution network in rural areas. You go in any village; you can find products like rin (product of HUL). Thus the challenge for P & G is take the battle beyond marketing and do something more important. People across the country are today having a favorable image towards HUL and P&G is comparatively less known. P & G has established its brands world over as very quality driven, socially responsible and accountable company. Its brand values have been so powerful that while other companies are increasing their sales promotion campaigns, P & G is continuously reducing its sales Promotions campaigns. It is now establishing its networking with companies like Wal-Mart and introducing schemes like everyday low prices (rather than sales promotions). P& G has now launched Shiksha project in India - the project which will enable this company to fulfill its social commitment. Earnings from the sale of the products will go towards Shiksha project. Thus consumers will also be happy that by using P & G products, they are able to contribute to nation building. P & G has extensively marketed its Shiksha project all over India. At retails outlets, you can find details of different brands of P & G and Shiksha project - there is a slogan written - "by purchasing these products, you contribute to nation building - through shiksha project" P & G has the worldwide record of having close to 25% market share in each of its products that it introduces. However, in India, it has yet to achieve these levels. You are required to compare the strategies of P&G and HUL and suggest appropriate marketing strategies for P&G and study Shiksha project and how this project can contribute to nation building in our country.
  32. 32. WORLDGO WorldGo Airlines is in deep red. It is having various difficult times. It was started with the objectives of having profitable ventures using less frequent routes. However, the idea didn’t pick up. WorldGo has adopted the following plans: offers 80% discount if booking is done 6 months earlier offers 20% discount if booking is done 3 months in advance 3.Occasionally it offers some free tickets also – the primary objective is to have media attention and attention of prospective flyers. 4.It offers 20% discount under its frequent flyer programme. World go has estimated that its annual fixed costs (including maintenance of airplanes) is 200 millions. If there is 100% occupancy in one flight, it can save Rs. 20 lakhs per flight. If however, there is 20% occupancy, then the company would not be able to recover its costs –not even variable costs. The challenge is to have at least 20% occupancy. The airlines company has seen a good response from customers due to its frequent announcements regarding free tickets / discount tickets. Travel agents and travel companies are given 15% commission by this company. The company has tried to establish its brand personality as a very sophisticated lady offering utmost care and sincere services. In all the advertisements of this company, you can find the smiling lady offering sincere services. WorldGo has also established agreements with an institution (which gives training to flight stewards) to have their trainees work with WorldGo. WorldGo offers them stipend, which is 20% of usual salaries offered to other permanent staff in similar airlines. WorldGo has the practice of recruiting only Pilots and Technical staff in its permanent core staff. It offers highest salary in the industry for pilots. It has no permanent service staff. All its service staff are on contract and most are working as trainees (on stipend). This company is also known for its innovative practices in the airlines industry. This company has routes, which are uncommon and different from other airline companies. WorldGo now plans to launch some innovative schemes to attract more travelers. It is planning to offer free travel passes to international film stars, and international celebrities. It wishes to attract them. It also has the plan to launch an innovative contest in each of its flights. However, these plans have yet to work out. The company also has the practice of selling out its airplanes just after 3 years of use. The company has been able to maintain accident free record till date.
  33. 33. Due to many innovative practices like this. The company has been able to survive (although, the CEO realizes that due to world wide recession, it is difficult to continue any more). The company has now plans to train its HR department for institutionalizing innovation across the organization. The company is having a plan to have a comprehensive training programme for its staff. The already struggling company has the plans to have 5 day training programme. This type of training programmes is having huge costs. The debate is whether to go for such training programmes or not? Some executives of the company claim that these costs should be avoided. The company on the other hand wants to have innovative practices across the company to save costs and to bring distinct advantages in comparison to other company. HR department argues that due to recession, this is the best time to send the employees for training, later it would be difficult for the company to have such training as the employees would get less time to spare. The number of flights is continuously reduced due to lack of bookings. In such critical period, do you think that the company should continue to go ahead for its training programmes? What are the precautions that you can suggest to this company to tide over the difficulties that it may face? BOARD MEETING OF AN NGO
  34. 34. It is the scene of the board meeting of an NGO. The organization wants to launch a nation wide campaign to promote blood donation and organ donation among the youth. The NGO wants that youth should come forward and donate blood and other body organs (like eyes). The NGO also wants to launch its services on these matters. The question is how to launch it. Ajay: “I believe that we have to see here how companies launch the products. Recently Tata Motors has launched Tata Ace. This is a product which was designed after undertaking market survey. People told they want a minitruck. The traditional trucks are not suitable for narrow streets of India. Therefore Tata group designed a new mini-truck and it was priced little above auto-rikshaw (over Rs. 3 lakh) and it became a very successful and it doesn’t have any competition. The reason for its success is that it is a product, which fulfills the vacuum. There was a vacuum and Tata Motors filled this vacuum. You can’t sell a product which is not required by people. If you are launching any product or service, you have to first survey people and identify their requirements and thereafter you have to introduce the product. NGOs also have to follow this model.” Sudha : “I disagree to this. There is no need of any survey. We have to build a brand – no doubt about it. I believe that NGOs are offering services and therefore they have to look into the feelings of people. If people believe in something, they will do it. We have to touch the emotions of the people. Even in products also, companies follow this as their marketing strategy. Look at Nike, it offered its shoes to athletes, sportspersons like Michael Jordon etc. Its products became popular among masses because people thought that this product is for those who are tough and thus this product became successful. Look at many services, which have become vary popular. They are popular, because people associate them with those who are the leaders / opinion leaders. Thus we have to introduce our services in piecemeal approach; it will percolate down from top to the bottom.” Monika: “Services are intangible, inseparable, and perishable. If you are launching any services, you have to understand that people must believe in your brand and trust your company. People will not trust our company. Look at Pulls Polio campaign. It used services of Amitabh Bachhan, and it worked. People believe in what Amitabh says. We should also use similar approach of celebrity endorsement. I do agree to what Ajay and Sudha say, but I believe that being a change agent, we have to use some celebrity, who will endorse what we say.” Swati : “Being from science background, I believe that people will accept what is scientifically convincing. Let us tell them the truth that donating small amount of blood doesn’t cause them any harm. This will work. People are ignorant. Most of the people are influenced by rumors. If we communicate facts, it will work.” Pankaj: “ We have to launch a campaign. Only those campaigns work, which are able to take masses. Masses have herd mentality. If people will do something, everyone will do it. What we need is to create a mass movement. Look at Mumbai Marathon. Those people who cant run even 100 meters, start participating in the Mumbai Marathon. This is what we call as mass appeal. People adopt ideas in groups. Let us think over this matter and create a creative campaign for bringing masses with us.” After reading the ideas of all these speakers, you have to present your ideas. Ram: “There is no need of any brand ambassador here. We have to undertake puppet shows for this We should go from mohalla to mohalla.” Dhaval: “people work on emotions. People donate blood on some emotional reasons. People will donate blood on some anniversary. People will easily donate blood on Gandhi Jayanti etc.” Pankaj: “We need to carry out a survey and identify about the perception of people.”
  35. 35. Swati : “Survey is necessary, when we will go to the people and come to know about why people are skeptical. When we come to know about their thinking, we can convince them about importance of this work.” Vivek : “people want to donate blood. We have to form voluntary groups, which will go from home to home and they should make others members of this group. Members of this group should donate once in 3 month. This group will expand and thus we will be able to form a big group for this social cause.” Pratibha: “People donate blood on their own. We have to organize camps for this and people will come and donate.” Ajay : “We will carry out survey and identify why people don’t donate blood. We will also ensure that people come to see the blood donation process and this will work.” 1. NEW BUSINESS CHALLENGES Nikhil always wanted to set up a business of his own. He used to prepare business plans and discuss it with his friends. While working in the USA, he realized the importance of low cost airlines. He prepared a business plan on low cost airlines. He had following mix in his plan: 1.Don’t offer any meal or other things on airlines, to reduce cost 2.Don’t use regular airports (which charge very high amount), instead of these use low cost airports 3.Use only one type of aircrafts - so that maintenance cost is minimum 4.Hire less experienced staff to reduce operation and staffing cost - have less staff and use them interchanging and in more shifts. Bob was a financier, who used to run his own venture capital financing firm. Nikhil (nic) met him with his proposal. Nic presented his ideas, which was liked by the financer and thus Nikhil got the finance. It was a 20 million project financed by the financer. Thus the business started. Soon Nic Airlines started. Now they used to fly in nonconventional routes. The airplanes used to take up routes unexplored so far. Soon his company became very popular. As per the plans, the first 3 years were in losses, but the company reached BEP level in the 4th year. Now the company was soon to become profitable company. 4 venture capitalists approached Nic to expand his business to international level. They asked Nic to take money from them and make it a global company. During discussion, they gave following ideas : 2.No frill airlines of Nic should become a global airlines, and should take up those routes which are not taken up by any airlines 2.Another idea was to be like other international airlines and run them just like