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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 ...

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.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
  • 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. 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
  • 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
  • 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.
  • 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
  • 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
  • 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
  • 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,
  • 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
  • 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
  • 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 2.to start a restaurant near the ice house, so that people could get some refreshment and he could get some earning 3.to 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.
  • 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
  • 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
  • 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 3.business communication designing including website and overall business presentation. She has designed her business in such a way that it requires more of imagination,
  • 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: 1.in 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
  • 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
  • 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
  • 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.
  • 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.
  • 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
  • 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
  • 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
  • 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?
  • 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 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
  • 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
  • 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?
  • 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
  • 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.
  • 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.
  • 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: 1.it offers 80% discount if booking is done 6 months earlier 2.it 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.
  • 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
  • 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.”
  • 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
  • other airlines 3.Another idea was to go for small aircrafts and use them more frequently. In your opinion what should nic DO? Jitendra and Pravesh are working in an engineering organisation - a reputed one where excellence goes hand-In-hand with every new imperative flexibility. By laying down its clear-cut policies and procedures and corporate plans. this organisation has earned the distinction of being one of the best managed companies. always striving for excellence by keeping itself abreast of the developments in the endlessly changing scenario. During the recent review of the functioning of one of the departments headed by Pravesh , it was discovered that his department had been continuously showing declining trend in terms of meeting the targets fixed for them and the problems of high rate of turnover/absenteeism came to light. Majority of the subordinates working under Pravesh were dissatisfied with their job and were feeling frustrated and depressed over the way they were being handled by him. There was a breakdown of communication and innumerable complaints about the rude behaviour of Pravesh started pouring in, Pravesh , on the other hand, had been in this department for the last so many years and was In the habit of treating his subordinates in the traditional style. The situation started aggravating day-by day. The workers under Pravesh had to take the shelter of Unions for airing their grievances and the Management was naturally disturbed over the state of affairs and could no longer afford to be a silent spectator. Search for a suitable replacement of Pravesh was accordingly initiated and Jitendra was identified for the purpose. Jitendra was selected for replacing Pravesh as he possessed the skills of managing different types of people under different situations. His acceptability and credibility have all along been of the highest order. Initially, of course, this sudden change was a painful surprise for Jitendra and as it always happens any change in status quo affects people and Jitendra was no exception. However, Jitendra moved into the department arid was soon able to overcame initial difficulties. With his concerted efforts and sincerity of purpose, he was soon able to create a strong trust-bond with his subordinates. He gave them a free hand in setting time-bound goals for themselves. The subordinates were by then participating in arriving at the vital decision in regard to their production and productivity. A very cordial and harmonious atmosphere prevailed upon in this department under John. All this naturally resulted in “a blessing in disguise” both for the Management and the workers in as much as that this department paved the way in Improving the climate and culture of the organisation. Questions : (a) Identify the Issues Involved in the above case. (b) Do you agree with the statement that ‘‘a true manager should know the art of managing his people”? Comment. (c) “Developing an effective team having healthy Interpersonal relationships Is the need of the hour.” Please comment.
  • Solution : (a)In the case there is a decline in the working of the organisation. The department had been continuously showing declining trend in terms of meeting the targets fixed for them and the problems of high rate of turnover/absenteeism came to light. Majority of the subordinates working under Pravesh were dissatisfied with their job and were feeling frustrated. Pravesh was not cordial in his treatment, rather, he was rude. He was in the habit of treating his subordinates in the traditional style. The situation started aggravating day-by day. The workers under Pravesh had to take the shelter of Unions for airing their grievances and the Management was naturally disturbed over the state of affairs. Ultimately they had to take a decision. They replaced him with Jitendra, who was participative in his style. He possessed the skills of managing different types of people under different situations. Thus he could handle the troubled situation. (b)Yes, a true manager should know the art of managing people. Ultimately, a manager has to get the work done from people. He should handle people tactfully. He should focus on goals and also establish good human relations. He should have some characteristics, which can help him in winning confidence of people. A true manager should be a person, who can make people work for the objectives of the organisation and at the same time feel passionate for those goals. If a person is not able to handle people well, the ultimate outcome will be the case similar to Pravesh in this case, who had to be removed (due to continous complaints). (c)Team building is central in the growth and development of an organisation Effective teams are those which focus on goals, set positive work norms and try to cultivate an environment for development of a positive work culture. A good organisation is one, where people are trained to work in team and a culture for shared responsibility is developed. Kalyani Electronics Corporation Ltd., recently diversified Its activities and started producing computers. It employed personnel at the lower level and middle level. It has received several applications for the post of Commercial Manager- Computer Division. It could not decide upon the suitability of the candidate to the position, but did find that Mr. Prakash is more qualified for the position than other candidates. The Corporation has created a new post below the cadre of General Manager i.e., Joint General Manager and decided Mr. Prakash to join the Corporation as Joint General Manager. Mr. Prakash agreed to it viewing that he will be considered for General Managers position based on his performance. Mr. Anand, the Deputy General Manager of the Corporation and one of the candidates for General Manager’s position was annoyed with the management’s practice. But, he wanted to show his performance record to the management at the next appraisal meeting. The management of the Corporation asked Mr. Sastry, General Manager of Televisions Division to be the General Manager in-charge of Computer Division for some time, until a new General Manager is appointed. Mr. Sastry wanted to switch over to
  • Computer Division in view of the prospects, prestige and recognition of the position among the top management of the Corporation. He viewed this assignment as a chance to prove his : performance. The Corporation has the system of appraisal of the superiors performance by the subordinates. The performance of the Deputy General Manager, Joint General Manager and General Manager has to be appraised by the same group of the subordinates. Mr. Prakash is a stranger to the system as well as its Modus Operandi. Mr. Sastri and Mr. Anand were competing with each other in convincing their subordinates about their performance and used all sorts of techniques for pleasing them like promising them a wage hike, transfers to the job of their Interest, promotion etc. However, these two officers functioned in collaboration with a view to pull down Mr. Prakash. They openly told their subordinates that a stranger should not occupy the ‘chair’. They created several groups among employees like pro-Anand’s group, pro-Sastry’s group, Anti-Prakash and Sastry Group, Anti-Ariand and Prakash group. Mr. Prakash has been watching the proceedings calmly and keeping the management In touch with all these developments. However, Mr, Prakash has been quite work- conscious and top management found his performance under such a political atmosphere to be satisfactory. Prakash’s pleasing manners and way of maintaining human relations with different lewels of employees did, however, prevent an anti- Prakash wave in the company. But in view of the politicalisation, there is no strong pro-Prakash’s group either. Management administered the performance appraisal technique and the subordinates appraised the performance of all these three managers. In the end, surprisingly, the workers assigned the following overall scores - Prakash : 560 points, Sastry: 420 points, and Anand : 260 points CASE : 3 : The ABC Manufacturing Company is a metal working plant under the direction of a plant manager who is known as a strict disciplinarian. One day a foreman noticed Bhola, one of the workers, at the time-clock punching out two cards his own and the card of Nathu, a fellow worker. Since it was the rule of the company that each man must punch out his own card, the foreman asked Bhola to accompany him to the Personnel Director, who interpreted the incident as a direct violation of a rule and gave immediate notice of discharge to both workers. The two workers came to see the Personnel Director on the following duy. Nathu claimed innocence on the ground that he had not asked for his card to be punched and did not know at the time that it was being punched. He had been offered a ride by a friend who had already punched out and who could not wait for him to go through the punch-out procedure. Nathu was worried about his wife who was ill at home and was anxious to reach home as quickly as possible. He planned to take his card to the foreman the next morning for reinstatement, a provision sometimes exercised in such cases. These circumstances were verified by Bhola. He claimed that he had punched Nathu's card the same time he punched his own, not being conscious of any wrongdoing. The Personnel Director was inclined to believe the story of the two men but did not feel he could reverse the action taken. He recognized that these men were good workers and had good records prior to this incident. Nevertheless, they had violated a rule for which the penalty was immediate discharge. He also reminded them that it was the policy of the company to enforce the rules without exception.
  • A few days later the Personnel Director, the Plant Manager, and the Sales Manager sat together at lunch. The Sales Manager reported that he was faced with the necessity of notifying one of their best customers that his order must be delayed because of the liability of one department to conform to schedule. The department in question was the one from which the two workers had been discharged. Not only had it been impossible to replace these men to date, but disgruntlement over the incident had led to significant decline in the cooperation of the other workers. The Personnel Director and the Sales Manager took the position that the discharge of these two valuable men could have been avoided if there had been provision for onsidering the circumstances of the case. They pointed out that the incident was costly to the company in the possible loss of a customer, in the dissatisfaction within the employee group, and in the time and money that would be involved in recruiting and training replacements. The Plant Manager could not agree with this point of view. "We must have rules if we are to have efficiency; and the rules are no good unless we enforce them. Furthermore, if we start considering all these variations in circumstances, we will find ourselves loaded down with everybody thinking he is an exception." He admitted that the grievances were frequent but countered with the point that they could be of little consequence if the contract agreed to by the union was followed to the letter. Questions (a) Identify the core issues in the case (b) Place yourself in the position of the Personnel Director. Which of the following courses of action would you have chosen and why ? (i) Would you have discharged both men ? (ii) Would you have discharged Bhola only ? (iii) Would you have discharged Nathu only ? (iv) Would you have discharged neither of them ? Justify your choice of decision. (c) What policy and procedural changes would you recommend for handling such cases in future ? . LOSING A GOOD MAN Sundar Steel Limited was a medium-sized steel company manufacfuring special steels of various types and grades. It employed 5,000 workers and 450 executives. Under the General Manager operation, maintenance, and headed by a chief. The Chief of and under him Mukherjee Maintenance Engineer. The total was 500 workers, 25 executives, (Production), there were services groups, each Maintenance was Shukla was working as the strength of Maintenance and 50 supervisors. Chatterjee was working in Maintenance as a worker for three years. He was efficient. He had initiative and drive. He performed his duties in a near perfect manner. He was a man of proven technical ability with utmost drive and dash. He was promoted as Supervisor. Chattejee, now a Supervisor, was one day passing through the Maintenance Shop on his routine inspection. He found a certain worker sitting idle. He pulled him up for this. The worker retaliated by abusing him with filthy words. With a grim face and utter frustration, Chatterjee reported the matter to Mukherjee. The worker who insulted Chatterjee was a "notorious character" , and no supervisor dared to confront him. Mukherjee took a serious view of the incident and served a strong warning letter to the worker. Nothing very particular about Chatterjee or from him came to the knowledge of Mukherjee. Things were moving smoothly. Chatterjee was getting along well with others But after about three years, another serious incident took place. A worker came drunk to duty, began playing cards, and using very filthy language. When Chatterjee strongly objected to
  • this, the worker got up and slapped Chatterjee. Later, the worker went to his union - and reported that Chatterjee had assaulted him while he was performing his duties. Chatterjee had no idea that the situation would take such a turn. He, therefore, never bothered to report the matter to his boss or collect evidence in support of his case. The union took the case to Shukla and prevailed over him to take stern action against Chatterjee. Shukla instructed Mukherjee to demote Chatterjee to the rank of a worker. Mukherjee expressed his apprehension that in such a case Chatterjee will be of no use to the department, and.the demotion would adversely affect the morale of all sincere and efficient supervjsors. But Chatterjee was demoted. Chatterjee continued working in the organisation with all his efficiency, competence, and ability for two months. Then he resigned stating that he had secured better employment elsewh ere. Mukherjee was perturbed at this turn of events. While placing Chatterjee's resignation letter before Shukla, he expressed deep concern at this development. Shukla called Chief of Personnel for advice on this delicate issue. The Chief of Personnel said, "l think the incident should help us to appreciate the essential qualification required for a successful supervisor. An honest and hardworking man need not necessarily prove to be an elfective supervisor. Something more is required for this as he has to get things done rather than dohimself." Mukherjee said, "l have a high opinion of Chatterjee. He proved his technical compe tence and was sincere at his work. Given some guidance on how to deal ,with the type of persons he had to work with, the sad situation could h.ave been avoided." Shukla said, "l am really sorry to lose Chatterjee, He was very honest and painstaking in his work. But I do not know how I could have helped him; I wonder how he always managed to get into trouble with workers. we know they are illiterates and some of them are tough. But a supervisor must have the ability and presence of mind to deal with such men. I have numerous supervisors, but I never had to teach anybody how to supervise his men." Transforming Torex Rangarajan or Ranga joined Torex India office. It was a time when Torex was in difficult conditions. Once a market leader, Torex 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 responsibel 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, 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 Torex . 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? Torex 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. Marketing Herbal Products 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 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. Chetan Bhai had two objectives for life : 1. earn good bread and butter 2. promote positive thinking in the society He was now well established - as he was in a good service. He had discontent that he was not doing much for the second objective. He decided to start something new for the second objective. Chetan decided to take help of his friend, who was a professor in a local business school. His friend organised a brain-storming session for identifying ideas. There were many ideas that emerged - Chetan decided to adopt the idea which was to focus on bringing good ideas to people. Chetan started from his home. He started discussions on burning issues. He would take up those issues, which would really affect society. Chetan prepared a leaflet - which read the following message :
  • "It is the ideas that shape the society. People have power. If we can raise consciousness among people, we can change society. I invite intellectuals to discuss on current issues, so that our ideas can become powerful ideas in society. I invite you to discuss on the following matter…..". Chetan used to organise discussions every Sunday in evening at 5 pm. He would invite some media representatives also. He also used to invite leaders from social, religious, and political instituitons. He also used to invite experts and authorities on the matter to share their ideas. All his discussions used to be the occasions for heated discussions. He would pick up the matters on which people took keen interest. He started with matters like child labour, education as fundamental rights, and transparancy in election process etc. His efforts brought some good results. He had now a group of 30 persons who used to regularly participate in the discussions organised by him. He used to prepare detailed press reports based on the discussion, and also publish short reports based on the discussions. He used to circulate these publications widely among media, libraries, clubs, associations. Chetan used to invite prominent speakers, groups and voluntary organisations all over India to come and share their ideas on important matters. His initiatives were liked by many persons. After 6 months, Chetan was about to review his progress. He carried out a SWOT of his work as under : Strengths : 1.He was able to start his work with no investment and he was successfully doing this without any financial hurdles. 2.He was now a well known person in the city and his work was very much appreciated by every person. 3.His work resulted in change in level of awareness among people. Whichever issues he took up, were now hot matters in the city. 4.He became a part of many public movements. Right to information act was enacted by the government under pressure of public movement. Chetan was also a part of this movement. 5.Chetan was now sure that he could influence the society. He was now sure that individuals can become powerful when they join together. 6.It was a very open, flexible, and dynamic organisation that he had created. WEAKNESSES : 1. it was a very small organisation. They had very limited financial power. Chetan was using his small savings in this organisation. He was not sure about how to make this organisation financially viable. 2.His organisation was known within the city, but Chetan wanted to work globally - but with such structure, it was impossible to become a global organisation. 3.His organisation had no concrete plans - except to organise discussions and discussions. 4.Raising public opinion was good, but Chetan was able to focus only on a small group - which consisted of intellectuals, and some public representatives. Truly it was not a public opinion raising organisation. OPPORTUNITIES : 2.Chetan could sense huge opportunities for someone to work in social sector. Now lots of funding agencies were there willing to support iniatives like that of Chetan. Chetan was sure that if he could organise it well, he would get lot of funding. It would be easier for Chetan to take off. 2.He had established his credibility as a social worker in the field of ideas. Now he could use his capability in expanding his work. He was sure that he could now start some public campaigns also. He had earlier become an important part in some public campaigns. He knew that his efforts can influence policy makers - if he could involve public in his initiatives. 3.There was a lot of scope for his work in sectors like government budgeting, government policies, social sector supports etc. He knew that this was the sector,
  • which would become very important sector with development in the country. THREATS : 3.Looking at the success of Chetan, there were now many critics of Chetan also. His own colleagues, and well wishers had now become his critics. Many people made his mockery - as just discussion organisers. 2.He knew that his organisation had to now transit to next stage of development. He didn’t know how to proceed, but he was sure that he had overstretched the present form of organisation. His family was also feeling the pinch. He used to spend a great deal of resources in these activities - while he could easily convert it now into a professional organisation. He was now sure about future and he didn’t have a vision about his organisation and its structure. Assume yourself to be in the position of Chetan and prepare your action plan at this junction. HRP at Infocom Highways Rohit is now 45. However, he is planning to retire from his company. He is the CEO of Infocom Highways. He submits his resignation to his board of directors and gives intimation of this to his juniors. He is now planning to join a business school, in which one of his friends is a faculty member. It all happened when he and his family visited his friend. He was really fascinated by the cool and stress free job of his friend. More than that he was impressed by the academic contribution of his friend. He wanted to lead a similar life. He was thinking after all this work, he doesn’t have any academic contribution. He wanted to write books, share his corporate experience with students and engage in learning exercises. There was nothing to learn in his usual role that he had been performing for last 10 years. He wanted to learn and grow. When his friend offered him to join his institution as a faculty member, he immediately agreed. Here comes the next problem. The board of director is adamant that he should continue. The wants him to select and groom the next candidate for the post of CEO. The board argues that the company that he has shaped for years should not be allowed to be ruined by someone experienced and someone having no idea of this comopany’s values. The board infact is surprised at his decision to resign abruptly – without giving the new successor to the company. Question : what should be the strategy of Rohit now? How should he plan and design his future course of action. ROLE OF HR IN AN ORGANISATION Ravi has come to participate International Conference of CEOs. Ravi being marketing executives, is going to present his paper on marketing challenges for the corporate world. During informal discussion, Ravi has a talk with Mohan, who is HR head of a company. Their conversation is reproduced here : Ravi :”Please don’t mind, but HR department has no role to play in today’s competitive world.” Mohan : “You are mistaken, most of the companies are having HR problems and that is the reason for slowdown. We need HR department, just like we need other departments like marketing, production etc.” Ravi : “You cant compare HR to marketing. Marketing is ubiquitous and it is the bread earner of every organization.” Mohan : “you may go and talk to any executive, he would tell you that HR is the
  • main issue. Every organization has a team of persons in marketing, but there is hardly any person in HR and so they face problems.” Ravi : “Let us go and talk to executives, you will find that it is the marketing, which is the most important. HR really has no role to play. HR executives earn for doing nothing. They don’t have any targets to achieve.” Mohan : “OK, let us go and have a sample survey.” Both Ravi and Mohan go to interview executives. Ravi asks executives about the most important problem their company is facing: 1st executive : “The most important problem that our company is facing is high employee turnover. Large attrition rate among executives creates all the problems. “ 2nd executive : “the most problem that we are facing is strike by union. Poor industrial relations are creating all types of problems in our production processes.” 3rd executive : “our most important problem is lack of motivation among employees. If our employees work with motivation, our organization can achieve miracles.” 4th executive : “ our most important challenge is to intall an effective incentive plan for our workers, so that they continue to be motivated in this time of recession.” As Ravi was interviewing executives, he was realizing that HR is equally important. Organizations consist of people and therefore managing people and building their capabilities for organizational excellence is certainly an important task. He realized that HR is as important as any other function. Question: Undertake research on organizations you know and try to identify the role of HR department in that organization. INTERNATIONAL HR AT SOFTEL Softel has undergone massive changes in the last 15 years. It was the company once managed by a community and having all its employees from one region only. However, now this company has 51 international offices and over 50% of its employees are from other countries. As the composition of employees is changing, the company is adoping changes in its HR policies. In the last 5 years, the company has taken over 5 companies and has thus acquired 40 offices. This company has in the process absorbed 5000 employees of these companies. Now this company has total strength of 12000 employees. The challenges now are to introduce a global work culture. In order to bring a global orientation and to develop a global work culture, the company has now installed cross cultural training as essential training for every new recruit. The company now has a very comprehensive training programme. Each new
  • recruit undergoes comprehensive training and learns about different cultural practices. In the global training academy of this organization, new recruits join and undertake training. Every new recruit undertakes 6 months comprehensive training programme. In the training programme, employees from different parts of the world interact and learn from each others. They are thus able to develop a global vision. 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 transportationion 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 restructing 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. 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 reduing its margings by 20%). This firm is making lot of money. As the firm has no fixed investments. 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 business scope. Give your suggestions. 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 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. You are required to critically evaluate the strategy of Rishi. 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 3.business communication designing including website and overall business presentation. She has designed her business in such a way that it requires more of imagination, 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. RECRUITMENT SYSTEM OF MR. DAGA D.L. Daga has established a nation wide company today. With over 50 branches spread out across the country, his company is a pride place to work for. Mr. Daga has delegated most of his work to his team that he has developed over time. He doesn’t delegate two activities – that he does on his own. One is recruitment of employee and the other is performance review of senior executives. He spends most of time recruiting people. It takes him at least one hour to interview the prospective candidates. It is not like other recruitment tests. Mr. Daga would take thorough interview of the candidates and inquire about every aspect. He would inquire about every matter. He would involve his local team in recruitment process. He would observe new recruits for 15 days before putting them in charge of the
  • work. He would take feedback from every employee about new recruits. JRD Tata Biography Born: July 29, 1904 Died: on November 29, 1993 Achievements: He had the honor of being India's first pilot; was Chairman of Tata & Sons for 50 years; launched Air India International as India's first international airline; received Bharat Ratna in 1992. JRD Tata was one of the most enterprising Indian entrepreneurs. He was a pioneer aviator and built one of the largest industrial houses of India. JRD Tata was born on July 29, 1904 in Paris. His mother was a French, while his father was Parsi. JRD's full name was Jehangir Ratanji Dadabhoy Tata and he was popularly known as Jeh to his friends. JRD's father Ratanji Dadabhoy Tata and Sri Jamsetji Tata shared their greatness from the same great-great-grandfather, Ervad Jamsheed Tata, a priest of Navsari. JRD Tata was the second of four children. He was educated in France, Japan and England before being drafted into the French army for a mandatory one-year period. JRD wanted to extend his service in the forces but destiny had something else in store for him. By leaving the French army JRD's life was saved because shortly thereafter, the regiment in which he served was totally wiped out during an expedition in Morocco. JRD Tata joined Tata & Sons as an unpaid apprentice in 1925. He has great interest in flying. On February 10, 1929, JRD became the first Indian to pass the pilot's examination. With this distinctive honor of being India's first pilot, he was instrumental in giving wings to India by building Tata Airlines, which ultimately became Air India. His passion for flying was fulfilled with the formation of the Tata Aviation Service in 1932. In 1938, at the age of 34, JRD was elected Chairman of Tata & Sons making him the head of the largest industrial group in India. He started with 14 enterprises under his leadership and half a century later on July 26, 1988, when he left , Tata & Sons was a conglomerate of 95 enterprises which they either started or in which they had controlling interest. JRD was the trustee of Sir Dorabji Tata Trust from its inception in 1932, which remained under his wings for over half a century. Under his guidance, this Trust established Asia's first cancer hospital, the Tata Memorial Center for Cancer, Research and Treatment, Bombay, 1941. It also founded the Tata Institute of Social Sciences, 1936 (TISS), the Tata Institute of Fundamental Research, 1945 (TIFR), and the National Center for Performing Arts. In 1948, JRD Tata launched Air India International as India's first international airline. In 1953, the Indian Government appointed JRD as Chairman of Air-India and a director on the Board of Indian Airlines-a position JRD retained for 25-years. For his crowning achievements in Aviation, JRD was bestowed with the title of Honorary Air Commodore of India. In 1956, JRD Tata initiated a program of closer "employee association with management" to give workers a stronger voice in the affairs of the company. He
  • firmly believed in employee welfare and espoused the principles of an eight-hour working day, free medical aid, workers' provident scheme, and workmen's accident compensation schemes, which were later, adopted as statutory requirements in India. JRD Tata cared greatly for his workers. In 1979, Tata Steel instituted a new practice; a worker is deemed to be "at work" from the moment he leaves home for work till he returns home from work. The company is financially liable to the worker if any mishap takes place on the way to and from work. Tata Steel Township was also selected as a UN Global Compact City because of the quality of life, conditions of sanitation, roads and welfare that were offered by Tata Steel. JRD Tata received a number of awards. He received the Padma Vibhushan in 1957 on the eve of silver jubilee of Air India. He also received the Guggenheim Medal for aviation in 1988. In 1992, because of his selfless humanitarian endeavors, JRD Tata was awarded India's highest civilian honor, the Bharat Ratna-one of the rarest instances in which this award was granted during a person's lifetime. In the same year, JRD Tata was also bestowed with the United Nations Population Award for his crusading endeavors towards initiating and successfully implementing the family planning movement in India, much before it became an official government policy. JRD Tata died in Geneva, Switzerland on November 29, 1993 at the age of 89. On his death, the Indian Parliament was adjourned in his memory-an honor not usually given to persons who are not Members of Parliament. B.M. Munjal Profile Achievement: Chairman of the Hero Group; Honored with Ernst & Young's Entrepreneur of the Year award in 2001 B.M. Munjal (Brij Mohan Lall Munjal) is the Chairman of the Hero Group. He is a first generation entrepreneur who started very small and through sheer hard work and perseverance made it to the top. Today, Hero Group is the largest manufacturer of two-wheelers in the world and Brij Mohan Lal Munjal is the man widely credited with its success. B.M. Munjal's journey began in 1944 at the age of 20. Brij Mohanlall along with his three brothers, Dayanand (32), Satyanand (27) and Om Prakash (16) moved from his birthplace Kamalia in Pakistan to Amritsar. The brothers started supplying components to the local bicycle business. After partition in 1947, the family was forced to move to Ludhiana. The town of Ludhiana was already a major hub of the Indian bicycle business and an important textile center. The Munjals slowly spread their bicycle component distribution network in other parts of the country and became one of India's largest bicycle parts suppliers. In 1952 Munjals made a shift from supplying to manufacturing. They started manufacturing handlebars, front forks and chains. In 1956, the Punjab state government announced the issue of twelve new industrial licenses to make bicycles in Ludhiana. The Munjal brothers cashed on this opportunity. Helped by the Punjab government financing of Rs 600,000 to supplement their own limited capital resources, the Munjals set up Hero Cycles. Hero Cycles was registered as a 'large-scale industrial unit' and it initially produced 7,500 units per year. Soon Hero Cycles started giving well-established players such as Raleigh, Hind Cycles, and Atlas Cycles a run for their money. The hero cycle was comparatively cheaper and was sturdy and reliable. It gave the customers value for their money. In January 1984, Japan's Honda, the world's largest manufacturer of motorcycles, elicited interest in collaborating with the Hero Group to manufacture motor cycles in India. An agreement was signed and on 13 April 1985, the first Hero Honda
  • motorbike was rolled out. Today, the company is the largest manufacturer of motorcycles in the world. For his outstanding contribution to the success of Hero Group, B.M. Munjal was honored with Ernst & Young's Entrepreneur of the Year award in 2001. Born: April 10, 1894 Achievement: Laid the foundations of the Birla Empire; founder of the Federation of Indian Chambers of Commerce and Industry (FICCI). Ghanshyam Das Birla is considered as a doyen of Indian Industry. He was the man who laid the foundations of the Birla Empire. G.D. Birla was a multi-faceted personality. He was a close associate of Mahatma Gandhi and advised Gandhiji on economic policies. He was the most important pre-Independence contributor to the Indian National Congress. Ghanshyam Das Birla was the founder of the Federation of Indian Chambers of Commerce and Industry (FICCI). He is also popularly known as the builder of Birla Mandirs. Born on April 10, 1894, G.D. Birla, was a native of Pilani. His grandfather Shiv Narayan Birla was a traditional marwari moneylender. Ghanshyam Das Birla entered the business arena during the time of First World War. He established a cotton mill in Sabzi Mandi, and later on established Keshoram Cotton Mills. Along with cotton mills he diversified to jute business and shifted his base to Calcutta city in Bengal, the world's largest jute producing region. He established Birla Jute Mills in Bengal, much to the consternation of established European merchants. In 1919, with an investment of Rs. 50 lakhs, the Birla Brothers Limited was formed and a mill was set up in Gwalior. In 1930s, G.D. Birla set up Sugar and Paper mills. In 1940s, he ventured into the territory of cars and established Hindustan Motors. After independence, Ghanshyam Das Birla invested in tea and textiles through a series of acquisitions of erstwhile European companies. He also expanded and diversified into cement, chemicals, rayon and steel tubes. Ghanshyam Das Birla also founded several educational institutions. Birla Institute of Technology and Sciences (BITS) Pilani has today evolved into one of India's best engineering schools. He also established many temples, planetariums, and hospitals. Ghanshyam Das Birla died in 1983 at the age of 90. In his honour, G.D. Birla award for scientific Research has been established to encourage scientists for their contribution in the various fields of scientific Research. Born: December 28, 1932 Died: July 6, 2002 Achievements: Dhiru Bhai Ambani built India's largest private sector company. Created an equity cult in the Indian capital market. Reliance is the first Indian company to feature in Forbes 500 list Dhirubhai Ambani was the most enterprising Indian entrepreneur. His life journey is reminiscent of the rags to riches story. He is remembered as the one who rewrote Indian corporate history and built a truly global corporate group. Dhirubhai Ambani alias Dhirajlal Hirachand Ambani was born on December 28, 1932, at Chorwad, Gujarat, into a Modh family. His father was a school teacher. Dhirubhai Ambani started his entrepreneurial career by selling "bhajias" to pilgrims in Mount Girnar over the weekends. After doing his matriculation at the age of 16, Dhirubhai moved to Aden, Yemen. He worked there as a gas-station attendant, and as a clerk in an oil company. He returned to India in 1958 with Rs 50,000 and set up a textile trading company.
  • Assisted by his two sons, Mukesh and Anil, Dhiru Bhai Ambani built India's largest private sector company, Reliance India Limited, from a scratch. Over time his business has diversified into a core specialisation in petrochemicals with additional interests in telecommunications, information technology, energy, power, retail, textiles, infrastructure services, capital markets, and logistics. Dhirubhai Ambani is credited with shaping India's equity culture, attracting millions of retail investors in a market till then dominated by financial institutions. Dhirubhai revolutionised capital markets. From nothing, he generated billions of rupees in wealth for those who put their trust in his companies. His efforts helped create an 'equity cult' in the Indian capital market. With innovative instruments like the convertible debenture, Reliance quickly became a favorite of the stock market in the 1980s. In 1992, Reliance became the first Indian company to raise money in global markets, its high credit-taking in international markets limited only by India's sovereign rating. Reliance also became the first Indian company to feature in Forbes 500 list. Dhirubhai Ambani was named the Indian Entrepreneur of the 20th Century by the Federation of Indian Chambers of Commerce and Industry (FICCI). A poll conducted by The Times of India in 2000 voted him "greatest creator of wealth in the century". Dhirubhai Ambani died on July 6, 2002, at Mumbai. Vijay Mallya Profile Achievement: Chairman of the United Beverages (UB) Group; Launched a new domestic airline called Kingfisher Airline; Rajya Sabha M.P. Vijay Mallya is the Chairman of the United Beverages (UB) Group. He recently launched a new domestic airline called Kingfisher Airline which is making great waves. Vijay Mallya is famous for his flamboyant and flashy lifestyle. Vijay Mallya is the son of a famous industrialist Vittal Mallya. He assumed the Chairman of the UB Group in 1983 and took the company to great heights. Under his dynamic leadership the group has grown into a multi-national conglomerate of over sixty companies. During this process United Beverages acquired several companies abroad. The UB Group has diversified business interests ranging from alcoholic beverages to life sciences, engineering, agriculture, chemicals, information technology and leisure. In 2005, Vijay Mallya established Kingfisher Airlines. In a short span of time Kingfisher Airline has carved a niche for itself. It was the first airline in India to operate with all new aircrafts. Kingfisher Airlines is also the first Indian airline to order the Airbus A380. Vijay Mallya has other interests too apart from business. He has won trophies in professional car racing circuits and is a keen yachtsman and aviator. Vijay Mallya has also won numerous trophies in horse racing including several prestigious Derbies. In 2000, Vijay Mallya entered politics superceded Subramaniam Swamy as the president of Janata Party. Presently, he is a Rajya Sabha M.P. She is one of the most prominent personalities of the corporate world. She is making a constant effort to beautify the skin of people with her beauty products.
  • She has been continuously striving hard to slow down the aging process and nourish the skin of people and thus make them look younger than their age. Well, we are talking about none other than the ruler of the beauty world, Shahnaz Hussain. In this article, we will present you with the biography of Shahnaz Hussain. She comes from a royal Muslim family and her father was a very powerful man. She did her schooling from the Irish convent. Since a very young age, she had an interest in poetry and English literature. She grew up in a traditional family, but was privileged to receive modern education. She got married, when she was only fifteen years old. The next year after her marriage, she became a mother. When she went to Teheran along with her husband, she developed a keen interest in beauty treatments. Eventually, she decided to study the cosmetology course. She wanted to be self independent and so she began writing articles for the Iran Tribune on varied subjects. While pursuing studies, she learnt about the harmful effects of chemicals on human body. She studied Ayurveda and believed that it is the best alternative to chemical cosmetics. After leaving Teheran, she took an extensive training in cosmetic therapy for a long period of 10 years from the leading institutions of London, Paris, New York and Copenhagen. She returned to India in the year 1977 and established her first beauty salon in her abode. Unlike other salons, she did not use chemical cosmetics. Rather, she made use of Ayurvedic products that are absolutely safe on the human body. She has ushered an era of herbal cosmetics. The products launched by her Company head their way to leading global stores such as Blooming Dales (New York), Harrods and Selfridges (London), Seibu (Japan), Galleries Lafayette (Paris), and La Rinaeccente (Milan). Her beauty products are very skin friendly and give a beautiful glowing look. She has not only been able to tap the markets of India, but made her presence felt in international market too. Now, her aim is to set her foothold in the space. People who go to space usually suffer from skin problems. At present, Shahnaz Hussain is focusing her attention on creating products that can prove to be beneficial for the astronauts. To know the complete life history of Shahnaz Hussain, read on. Her company Shahnaz Husain Herbals has witnessed tremendous growth throughout these years. She has launched more than 400 different kinds of beauty products. In the contemporary times, people are becoming more and more conscious about the way they look. It is here that Shahnaz Hussain comes to play a major role by providing people with products that can bring the glow back to their skin. She has dominated the market from the USA to Asia. During 1990s, the average growth rate of her company, which is based in New Delhi, was nearly 19.4%. In the year 2002, her Company touched $100 million. Her works are real praiseworthy and have been appreciated all over the world. She has received many awards such as "The Arch of Europe Gold Star for Quality", "The 2000 Millennium Medal of Honor", "Rajiv Gandhi Sadbhavana Award" and many more. Born: December 28, 1937 Achievement: Honored with Padma Bhushan, one of the highest civilian awards in 2000. Ratan Tata is presently the Chairman of Tata Sons, the holding company of the Tata Group. Ratan Naval Tata is also the Chairman of the major Tata companies such as Tata Steel, Tata Motors, Tata Power, Tata Consultancy Services, Tata Tea, Tata Chemicals, Indian Hotels and Tata Teleservices. He has taken Tata Group to new heights and under his leadership Group's revenues have grown manifold.
  • Ratan Tata was born on December 28, 1937, in Bombay. He received a Bachelor of Science degree in architecture from Cornell University in 1962. Ratan Tata had a short stint with Jones and Emmons in Los Angeles, California, before returning to India in late 1962. He joined the Tata Group and was assigned to various companies before being appointed director-in-charge of The National Radio & Electronics Company (NELCO) in 1971. Ratan Tata was appointed Chairman of Tata Industries in 1981. He was assigned the task of transforming the company into a Group strategy think-tank, and a promoter of new ventures in high technology businesses. In 1991, Ratan Tata took over the Chairmanship from JRD Tata. Under him Tata Consultancy Services went public and Tata Motors was listed in the New York Stock Exchange. In 1998, Tata Motors came up with Tata Indica, the first truly Indian car. The car was the brainchild of Ratan Tata. Ratan Tata was honored with Padma Bhushan, one of the highest civilian awards in 2000. He was also conferred an honorary doctorate in business administration by Ohio State University, an honorary doctorate in technology by the Asian Institute of Technology, Bangkok, and an honorary doctorate in science by the University of Warwick. orn: August 15, 1931 Achievement: Chairman of DLF Group; Recipient of the 'Delhi Ratna' Award for his valuable contribution to Delhi K.P. Singh is the Chairman of DLF Group and can be christened as the real estate baron of India. DLF has a strong leadership presence in Indian real estate industry and the company is credited with developing the modern township of Gurgaon. K.P. Singh (Kushal Pal Singh) was born on August 15, 1931 at Bulandshahar in Uttar Pradesh. After graduating in Science from Meerut College, he went to UK to study Aeronautical Engineering. While pursuing engineering in UK, K.P. Singh was selected to the prestigious Indian Army, by British Officers Services Selection Board, UK. He joined the Indian Military Academy at Dehradun and was later on commissioned into The Deccan Horse-a renowned cavalry regiment of The Indian Army. In 1960, K.P. Singh joined American Universal Electric Company, a joint venture between Universal Electric Company of Owosso, Michigan and his family. Thereafter, K.P. Singh promoted another company, i.e. Willard India Limited in collaboration with ESB inc of Philadelphia for manufacturing automatic and industrial batteries in India and became its Managing Director. In 1979, K.P. Singh joined DLF Universal Limited. When American Universal Company merged with DLF Universal Limited, K.P. Singh became the Managing Director of the new company. K.P. Singh had the vision to buy land in Gurgaon, which was then a barren village on the outskirts of Delhi. He had the foresight to saw the untapped potential of the place and today Gurgaon is one of the real-estate hotspots of the country. Presently, DLF has 100 million square feet under development in residential, commercial and retail projects all over the country. Kushal Pal Singh also held a number of professional positions in India. He was the President of the ASSOCHAM (Associated Chamber of Commerce and Industry of India) and the PHD Chambers of Commerce & Industry. K.P. Singh is also the recipient of the 'Delhi Ratna' Award for his valuable contribution to Delhi. Verghese Kurien Profile Born: November 26, 1921 Achievement: Known as the "father of the white revolution" in India; Winner of Ramon Magsaysay Award; Awarded with Padma Shri (1965), Padma Bhushan (1966), and
  • Padma Vibhushan (1999). Dr. Verghese Kurien is better known as the "father of the white revolution" in India. He is also called as the Milkman of India. Dr. Varghese Kurien was the architect behind the success of the largest dairy development program in the world, christened as Operation Flood. He was the chairman of the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) and his name was synonymous with the Amul brand. Born on November 26, 1921 in Kozhikode, Kerala, Dr. Verghese Kurien graduated with Physics from Loyola College, Madras in 1940. Subsequently, he did his B.E. (Mechanical) from the Madras University and went to USA on a government scholarship to do his Masters in Mechanical Engineering from Michigan State University. In between, he completed special studies in engineering at the Tata Iron and Steel Company Institute at Jamshedpur, Bihar, in February 1946 and underwent nine months of specialized training in dairy engineering at the National Dairy Research Institute of Bangalore. Dr. Verghese Kurien returned from America in 1948 and joined the Dairy Department of the Government of India. In May 1949, he was posted as Dairy Engineer at the Government Research Creamery, a small milk-powder factory, in Anand, Gujarat. Around this time, the newly formed cooperative dairy, Kaira District Cooperative Milk Producers' Union Limited ((KDCMPUL), was engaged in battle of survival with the privately owned Polson Dairy, which was a giant in its field. Enthused by the challenge, Dr. Verghese Kurien left his government job and volunteered to help Shri Tribhuvandas Patel, the Chairman of KDCMPUL, to set up a processing plant. This led to the birth of AMUL and the rest is history. In 1965, the then Prime Minister Lal Bahadur Shastri, created the National Dairy Development Board (NDDB) under the leadership of Dr. Verghese Kurien to replicate the success story of Amul throughout the country. In 1973, Dr. Kurien set up GCMMF (Gujarat Cooperative Milk Marketing Federation) to market the products produced by the dairies. Under Dr. Kurien's stewardship India became the as the largest producer of milk in the world, During his illustrious career, Dr. Verghese Kurien won many accolades and awards. These include: Ramon Magsaysay Award for Community Leadership (1963), Padma Shri (1965), Padma Bhushan (1966), Krishi Ratna Award (1986), Wateler Peace Prize Award of Carnegie Foundation (1986), World Food Prize Laureate (1989), International Person of the Year(1993) by the World Dairy Expo, Madison, Wisconsin, USA, and Padma Vibhushan (1999). Subroto Roy Profile Achievement: Chairman of the Sahara Group Subroto Roy, is the head of the $10bn (£5.5bn) Sahara Group. Sahara Group has interests in banking, aviation, media and housing. Subroto Roy began his journey in 1978, when he founded Sahara in 1978 with three workers in the northern state of Uttar Pradesh as a small deposits para-banking business. Today, the group has diversified into a giant business conglomerate with interests in housing, entertainment, media and aviation. Sahara Group presently runs a private airline, entertainment and news television channels, a newspaper, and claims to own some 33,000 acres of real estate across India. It also sponsors the Indian cricket and hockey teams and intends to move into life insurance, housing finance, consumer products, sportswear, and healthcare.
  • Sahara Group has come up with one of the most prestigious real estate projects in India, namely Amby Valley Project. The project boasts some of the biggest name in Indian entertainment and sports arena as well as some former international Olympic medal winners as its brand ambassadors. Sahara Airline was recently in news for its merger with Jet Airlines. But the deal fell through. Sahara Group has a huge complex in Lucknow, Uttar Pradesh. The complex is known as Sahara City. Subrato Roy is famous for his flamboyant lifestyle. The wedding of his two sons became talk of the town. The who's who of Indian elite attended it and its expenditure ran into hundreds of crores. Subroto Roy calls himself as the group's "chief guardian". Sulajja Firodia Motwani Joint Managing Director of Kinetic Engineering Ltd, she is the in charge of the Company's overall business developmental activities. She is also very well performing the role of the Director of Kinetic Motor Company Limited and Kinetic Marketing Services Limited. Well, we are talking about Sulajja Firodia Motwani. In this article, we will provide you with the biography of Sulajja Firodia Motwani, who has made an incredible contribution in making the firm reach heights of success. She is a fitness person, who is very conscious about her health. She is very particular about carrying out one or the other activity for keeping fit and active. She has always been enthusiastic about sports, especially badminton. She has played badminton on the national level. She is also very fond of pursuing adventurous sports like skiing & scuba diving. She tries to spend as much time as possible with her five year old son Sidhant. Read on to know the complete life history of Sulajja Firodia Motwani. Prior to joining Kinetic Company, Sulajja worked for a period of four years with a well known investment analytics company, BARRA International, based in California. She has been an active participant in setting the operations of the company in India. Throughout her studies, she has been a rank holder. She has always cleared exams with merit. Her name appeared in the toppers list in the SSC examinations and HSC examinations. She graduated from the Pune University. Thereafter, she went to the United States for pursuing further studies. She is an MBA degree holder from the reputed Carnegie Mellon University at Pittsburgh. She is an epitome of boldness and courage. With her strong determination and courage, she has been able to establish a niche for the firm in the business world. The Company has witnessed tremendous expansion during her tenure. From being a mere moped manufacturer, today, it has set its foothold in the industry as a manufacturer offering a complete range of two wheelers right from mopeds, scooters to motorcycles. This major transformation can be attributed to the new competitive business strategy that the Company has adopted, which is driven by the market and customers. Kinetic Company has been constantly coming up with new models to cater to all segments of the society. Sulajja has been instrumental in designing and implementing the marketing strategies of the Company. In the recent times, Kinetic has collaborated with the well known Italian company, Italjet Moto. This acquisition has given full rights to the Kinetic Company to launch seven new scooter models in the country. Kinetic is also working in partnership with Hyosung Motors of South Korea. This major collaboration has led to the launching of the most popular Kinetic Aquila and Comet. These motorcycles are very much in demand. Sulajja has played an active role
  • in plotting the course of action for the Kinetic Company. For her great job, she has received many accolades. She has been called upon to deliver speech in a number of public forums. "India Today", a well known magazine honored her by presenting her with the title of business "Face of the Millennium". It ranked her among the top twenty five business entrepreneurs of the country. She was presented with the Society Young Achiever's Award for Business in the year 2002. The same year, she was chosen as the "Global Leader of Tomorrow" by the World Economic Forum. In the year 2003, the Institute of Marketing and Management bestowed her with the award for excellent performance as the woman CEO. She also received the Young Super Achiever Award from the leading magazine "Business Today" in 2003. s Subhash Chandra Profile Achievement: Founder of Zee TV, India's first private TV channel Subhash Chandra is the founder of Zee TV, India's first private TV channel. This onetime rice trader from Hissar, Haryana has today transformed into a media baron and his other interests include packaging, theme parks, lotteries and cinema multiplexes. Subhash Chandra launched Zee Telefilms Limited in October 1992 as a content supplier for Zee TV - India's first Hindi satellite channel. Subash Chandra was the first in India who sought to harness the huge business potential of satellite television channels. Before the launch of Zee TV viewers in India were under the firm grip of Doordarshan, the state-controlled terrestrial network. It was Subhash Chandra's vision that helped give birth to the satellite TV industry in India and inspired others to follow suit. After the launch of Zee TV, he commenced Siticable operations in 1995 and also started a joint venture with News Corp. In 1995, he launched two new channels, Zee News and Zee Cinema. In 2000, Zee TV became the first cable company in India to launch Internet over Cable services. In 2003, Zee TV became the first service provider in India to launch Direct to Home (DTH) services. In a short span of time Zee TV has become a big media and has give tough competition to international media moghuls such as Rupert Murdoch. Subhash Chandra's meteoric rise in the past decade is somewhat similar to the rise of Dhirubhai Ambani in 1980s and 1990s. sShiv Nadar Profile Achevement: Chief Executive Officer of Hindustan Computers Limited (HCL), India's largest infotech conglomerate Shiv Nadar is the Chief Executive Officer of Hindustan Computers Limited (HCL), India's largest infotech conglomerate. He figures in the Forbes list of Indian billionaires. Originally hailing from Moolaipozhi Village,Trichendur,Tutocorin District, Tamil Nadu, Shiv Nadar moved to Delhi in 1968. He worked as an engineer with DCM Ltd. But the entrepreneur in Shiv Nadar wanted to set up his own business. Therefore, he along with six of his colleagues launched a firm making office products like copiers. In late 1970s, when IBM quit India, Shiv Nadar's HCL stepped in to fill the vacuum. In 1982, HCL came out with its first computer. Today, HCL derives 80% of its
  • revenue from computers and office equipment. HCL has also been spreading its global reach. Its Singapore subsidiary, Far East Computers, achieved a breakthrough in imaging technology, which, among other applications, enables computers to read handwritten tax returns. HCL has adopted innovative practices to achieve growth. In the U.S, a software subsidiary, HCL America, has reaped huge dividends by taking advantage of global time zones. Every morning, the company's Chennai office receives software assignments from the U.S, just after work stops there for the night. A team of Indian engineers, with salaries much lower than those of their American counterparts, complete the jobs and send them back in the evening. In a short span of time, Shiv Nadar has reached pinnacle of success by his hardwork, vision, and entrepreneurial spirit. Raunaq Singh Profile Born: 1922 Achievement: Founder of Raunaq Group; Elected as a member of the Executive Board of the International Chamber of Commerce, Paris Raunaq Singh was one of the earliest entrepreneurs of independent India who made it big. He was the founder of Raunaq group. The Raunaq Group's major companies include Apollo Tyres Ltd, Bharat Gears Ltd, Bharat Steel Tubes Ltd, Raunaq International Ltd, Menarini Raunaq Pharma Ltd, and Raunaq Automotive Components Ltd. Raunaq Singh was born in 1922. After initial struggle he went on to become a powerful figure in corporate India. At one point of time in his life he could afford only one paisa a day for meals and when he retired his group was employing 9000 people on his payroll. Raunaq Singh was a great advocate of economic liberalization and globalization of the Indian business. He worked tirelessly to put the Indian industry on the global map. He held several key leadership positions in Industry & Trade Associations. These included President Federation of Indian Chambers of Commerce & Industry (FICCI), President The Associated Chambers of Commerce and Industry of India (ASSOCHAM), Chairman Engineering Export Promotion Council (EEPC), Chairman Automotive Tyre Manufacturers Association, and President Federation of Indian Export Organization. Raunaq Singh won several awards for his entrepreneurship. He was often referred as "Mr. Exporter", because of his inclination for exports and export promotion for Indian Industry. Raunaq Singh also won international recognition for his entrepreneurial skills. was elected as a member of the Executive Board of the International Chamber of Commerce, Paris for a three-year term. Raunaq Singh died on September 30, 2002. Adi Godrej Profile Achievements: Chairman of Godrej Group Adi Godrej is one of the icons of Indian Industry. He is the chairman of Godrej Group. .Adi Godrej was born in a business family. His father's name was Burjorji Godrej and his mother's name was Jai Godrej. More than a century age, the Godrej's were into manufacturing locks and vegetable-based soaps. The Godrej products were among the first indigenously manufactured products to displace entrenched foreign brands.
  • Adi Godrej left India at the age of 17 to enroll at the Massachusetts Institute of Technology. Though he planned to study mechanical engineering but he later on switched to management. After his return to India, Adi Godrej joined the family business. He modernized and systematized management structures and implemented process improvements. Adi Godrej took the Godrej Group to great height during controlled economy era. After the liberalization process, Adi Godrej restructured company's policies to meet the challenges of globalisation. In the early 2000s, the Group completed a 10- year restructuring process through which each business became a stand-alone company with a CEO/COO from outside the Godrej family. Under Adi Godrej's leadership, the group is also involved in philanthropic activities. Godrej is major supporter of the World Wildlife Fund in India, it has developed a green business campus in the Vikhroli township of Mumbai, which includes a 150-acre mangrove forest and a school for the children of company employees. Anil Ambani Profile Born: June 4, 1959 Achievement: Chairman of Anil Dhirubhai Ambani Group; Chosen as the 'CEO of the Year 2004' in the Platts Global Energy Awards and MTV Youth Icon of the Year' in September 2003 Anil Ambani is one of the foremost entrepreneurs of Independent India. He is the Chairman of Anil Dhirubhai Ambani Group. Earlier, before the split in the Reliance Group, Anil Ambani held the post of Vice Chairman and Managing Director in Reliance Industries Limited (RIL). Born on June 4, 1959, Anil Ambani did his Bachelors in Science from the University of Bombay and Masters in Business Administration The Wharton School at the University of Pennsylvania. Anil Ambani joined Reliance in 1983 as Co-Chief Executive Officer. He pioneered India Inc's forays into overseas capital markets with international public offerings of global depository receipts, convertibles and bonds. Starting from 1991, he led Reliance in its efforts to raise, around US$2 billion from overseas financial markets. In January 1997, the 100-year Yankee bond issue was launched under his stewardship. After the split in Reliance Group, Anil Ambani founded Anil Dhirubhai Ambani Group. He is the Chairman of all listed Group companies, which include: Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources Limited. Anil Ambai was elected as an independent member Rajya Sabha MP in June 2004. But he resigned voluntarily on March 25, 2006. Anil Ambani has won several awards and honours. Major among these include: 'CEO of the Year 2004' in the Platts Global Energy Awards, 'MTV Youth Icon of the Year' in September 2003, 'The Entrepreneur of the Decade Award' by the Bombay Management Association, and 'Businessman of the Year Award' by leading Business Magazine, Business India in 1997. Mukesh Ambani Profile Born: April 19, 1957 Achievement: Chairman and Managing Director of Reliance Industries Limited, India's
  • largest private sector company; Chosen as ET Business Leader of the Year 2006; Ranked 42nd among the World's Most Respected Business Leaders and second among the four Indian CEOs featured in a survey conducted by PricewaterhouseCoopers and published in Financial Times, London, November 2004. Mukesh Ambani is the face of new emerging India. He is the Chairman and Managing Director of Reliance Industries Limited, India's largest private sector company. Mukesh Ambani was born on April 19, 1957 in Mumbai. His father Dhirubhai Ambani was then a small businessman who later on rose to become one of the legends of Indian industry. Mukesh Ambani did his Bachelors in Chemical Engineering from University of Bombay and Masters in Business Administration from Stanford University, USA. Mukesh Ambani joined Reliance in 1981 and was the brain behind Reliance's backward integration from textiles into polyester fibres and further into petrochemicals. During the process of backward integration, Mukesh Ambani led the creation of 51 new, world-class manufacturing facilities involving diverse technologies that raised Reliance's manufacturing capacities manifold. World's largest grassroots petroleum refinery at Jamnagar is the brainchild of Mukesh Ambani. He was also the incharge of Dhirubhai's dream project Reliance Infocomm. But after the split in the Reliance Empire, Reliance Infocomm went to his brother Anil Ambani. Mukesh Ambani is now planning to enter retail sector in a big way. He has plans to establish big retail stores all over the country. Recently, he also entered into an agreement with Haryana Government to establish a Special Economic Zone (SEZ) with an investment running into thousands of crores. Mukesh Ambani has many achievements and honours to his name. Mukesh Ambani was chosen as the ET Business leader of the Year 2006. He was ranked 42nd among the World's Most Respected Business Leaders and second among the four Indian CEOs featured in a survey conducted by PricewaterhouseCoopers and published in Financial Times, London, November 2004. He was conferred the World Communication Award for the Most Influential Person in Telecommunications in 2004 by Total Telecom, October, 2004. Mukesh Ambani was also conferred the Asia Society Leadership Award by the Asia Society, Washington D.C., USA, Bhai Mohan Singh Profile Born: December 30, 1917 Achievement: Founder of pharmaceutical giant Ranbaxy Laboratories Ltd; Awarded with Padma Shri Bhai Mohan Singh can be called as the doyen of pharmaceutical industry in India. He is the founder of pharmaceutical giant Ranbaxy Laboratories Ltd. Bhai Mohan Singh was born on December 30, 1917 in Rawalpindi district. His father Bhai Gyan Chand was a Hindu and his mother Sunder Dai was a Sikh. Bhai Mohan Singh began his business career in the construction business during the Second World War. His firm bagged a contract to build roads in the North East. After Partition, he left Rawalpindi and settled down in New Delhi. Bhai Mohan Singh started business as a moneylender. Ranbaxy was started by his cousins Ranjit Singh and Gurbax Singh. Ranbaxy's name was a fusion of Ranjit and Gurbax's names. They were distributors for A. Shionogi, a Japanese pharmaceutical company manufacturing vitamins and anti-TB drugs. When Ranbaxy defaulted on a loan, Bhai Mohan Singh bought the company on August 1, 1952, for Rs 2.5 lakh. Bhai Mohan Singh collaborated with Italian pharma company Lapetit Spa and later on bought it. Bhai Mohan Singh made his mark in the pharmaceuticals industry in the late 1960s when he launched his first superbrand, Calmpose.
  • Calmpose was an imitation of Roche's valium. But Roche had not patented it in India. In early 1970s when Indian adopted a regime of process patents in the Bhai Mohan Singh quickly realised that one could make any product in the world through reverse engineering. He established an R&D facility at Mohali and launched one blockbuster pill after the other, such as Roscillin, Cifran etc. Ranbaxy Laboratories Ltd went public in 1973. At this time Bhai Mohan Singh introduced his eldest son Parvinder Singh in the company, who later on became the company's Managing Director in 1982. Bhai Mohan Singh also co-founded Max India with his youngest son, Analjit Singh. With liberalisation differences arose between Bhai Mohan Singh and Parvinder Singh over the expansion and professionalisation strategy of Ranbaxy. Subsequently, in 1999 in a boardroom coup of sorts Bhai Mohan Singh was forced to bow down and Parvider took over the company. This broke Bhai Mohan Singh's spirit and he retired from active company affairs. He died on March 27, 2006. Bhai Mohan Singh was a former vice president of the New Delhi Municipal Corporation (NDMC) and was awarded the Padma Shri for his contribution in civic matters. For his contribution to the industrial development of Punjab, the Punjab Goverment had named an Industrial Township near Ropar after Bhai Mohan Singh.