The document discusses various case studies, particularly focusing on marketing strategies for products like chicken and antibiotics. It highlights the advertising challenges faced by companies such as Venky’s in promoting frozen chicken, and the unique marketing approach of Alembic Chemical Works for their antibiotic, Alcephin. Additionally, it touches upon the effectiveness and costs associated with Super Bowl advertising, noting the competition from other events and the changing landscape of advertising.

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Case No : 1
VENKY’S OF VENKATESHWARA HATCHERIES
Venkateshwara Hatcheries which went public recently is one of the most modern plants in poultry business
in Asia. They have 60 p.c. market share of chicken marketed in the country. Dr. B.V. Rao of Venkateshwara
Hatcheries expired in 1996. His daughter Anuradha Desai is now the Chairperson and M.D. of VHL. In the
beginning they had an Executive Director Gulam Harjanwalla who professionalized chicken marketing.
Sajid Peerbhoy’s Speer ad agency was chosen. The brief given to Speer was “to market raw chicken in the
form of a full bird. Further, to market legs. To market legs and breast. To market curried pieces. And halfbird.”
The company also planned to market ready-to-fly pre-spiced chicken and to operate a chain of fast-food
outlets serving chicken fast food on the lines of McDonald’s.
Speer did some marketing research by focus group studies in Mumbai and then in Pune. The qualitative
reseaci1 (QR) findings were followed by quantitative research.
The following summarises the findings.
Occasions to use chicken:
(a) On special occasions
(b) On Sundays
(c) As a special treat
(d) Cook it for guests
(e) First non-veg food to which vegetay1ans graduated.
(f) Each mother cherishes her own special recipe for a chicken dish. She prides herself on it.
The ideal chicken was: Freshly chicken.
The convenient option was: Frozen chicken.
The following are the demerits of the frozen chicken:
(a) It does not taste good.
(b) It does not cook fast.
(c) It requires a lot of water to cook.
The Inconveniences in getting fresh chicken were:
(a) It is more and more difficult to get it near-by.
(b) The search consumes time.
(c) It involves transportation cost.
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On deep probing, the consumer psychology while buying fresh chicken was one of guilt and disgust. The
birds look so cute, as they are young. Just a minute ago, they were alive. It is so awful. Those poor
creatures! Imagine them alive one minute, and then being eaten the next. It is so difficult to get used to this
process.
Advertising Strategy
It is not necessary to remind about live chicken. It is not necessary to see and think about raw chicken,
dressed or otherwise. The communication strategy should be to treat chicken as a vegetable. They are not to
be shown alive or in their ugly raw dressed form. The client was led step-by-step and was supportive.
Long-run Objective
Though chicken has high standing as a special food, we have to make it an almost twice or thrice a week
food item.
Positioning
It was necessary to overcome the negative barrier to frozen food. In the market, fresh chicken was in fact
frozen chicken vulnerable to bacterial contamination. The answer was a fact frozen chicken product.
Venky’s chickens were chilled by a special process: blast freezing. The position taken was that of

5. technological superiority. Venky’s unique freezing process makes it taste better and cook faster and melt
quickly.
Differentiation
It was a special breed of chicken, that was extra delicious to eat. It scores over ordinary frozen chicken and
even the freshly killed chicken. Brand Name
In spite of the Agency’s reservations, the Venky’s was chosen as brand name, since it was the name of the
M.D.’s son. The Agency had considered fifty other optional brand names. Marketing research showed
Venky’s connoted a South Indian image and was associated with vegetarian food. There were also
connections with Lord Venkateshwara.
Headlines
These worked hard to ward off negatives:
‘Chicken so fresh, it simply melts in your mouth. Reason: Superior blast freezing process.”
“Chicken so fresh, it’s only minutes old.”
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Promotion of Special Parts
The special parts were promoted as:
“The part you want are the parts you get.”
Execution
A simple mnemonic was used. Chicken was shown in a graphic from; one that did not turn off the house
wife, and yet looked modern.
The colour scheme used was of yellow and red colours, being happy and bright food colours. These colours
are appetising too.
For quick identification, a common symbol was used on all hoardings. ad material and at POP.
Success of the Launch
The launch created tremendous demand but the distribution was weak. There was the problem of spurious
brands.
The company strengthened the distribution network later. However consumer supplies were diverted to
institutional buyers leading to non-availability and spurious brands passing off as Venky’s.
The Agency advised premium pricing and quality policy. Instead, the company lowered the price. So many
persons dealt with the Agency. Each questioned and disagreed with the thinking of earlier persons. Gulam,
their E.D. left Venky’s. The number of out left were increased dramatically.
New Ad Agency
New agency was selected. It brought chicken again to a commodity position A good chicken that makes
tasty chicken dishes). Emphasis on blast freezing was dropped. Emphasis on blast freezing was dropped.
Raw chicken again appeared in the ads, contrary to research findings. Brand or product differentiation
strategy was dropped. Instead, emphasis was on different recipes.
Present Thinking
Venky’s is moving closer and closer to a commodity than a brand. It is fine as long as there is no
competition. The company perhaps believes that no one has the backing or volume of production to be a
threat to them. It is satisfied with a marginal price premium. Being a chicken monopoly, it can afford not to
have a marketing cutting edge. The following is their present ad copy:
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Questions (A)
(a) Comment on the advertising strategy adopted previously and currently.
(b) Comment on branding of food products, and their promotion.
(c) Can you think of a different creative strategy for a product like chicken?
Lip-sticks with permitted colours can also damage the lips since the stainers are tetra-bromo-fluorosine.
When rubbed against the palm, darkness of the stain will indicate the quantity of stainer present.
Darkening of lip colour also depends upon the bio-chemistry of individual’s lips.
Questions (B)
(a) The complete product knowledge is given in the above write-up. What do you think should be the copy
platform for these products? Indicate the theme, the appeal and the buying motives.
(b) Indicate a suitable media mix for advertising these products. Give your reasoning.
Case No : 2
ALEMBIC CHEMICAL WORKS LTD.
DIRECT MAILINGS OF ALCEPHIN: THE LEGEND
AMONG ANTIBIOTICS

6. The pharmaceutical companies have to do direct marketing by necessity as they cannot advertise ethical
products in layman's media for him, but are required to promote only to the medical profession. They
produce fine visual aids and product literature which could either be sent as direct mailings to the medical
profession or can be delivered to them through medical representatives.
The Living Legends
What does one say about Lata Mangeshkar? That she has dominated the Indian film music scene for almost
four decades and promises to do so for atleast another decade? That she became a legend in her own life
time? That here is a musical genius which comes about just once in many centuries? One could say all
these things and yet be merely repeating what has been said a million times over. And yet there is so much
more to one is capturing one more vital as poet which one did not realize had existed in her. Such is the
quality of her singing.
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Very few of those who see her at the pinnacle of her success realise the amount of effort, hard work end
deprivation that have gone into building the facade which is so enviable. Born In Induce on September 28,
1929. Late Mangeshkar is the eldest in family of four sister, and a brother, all of whom have made a name in
the field of music. Daughter of the noted Marathi stage actor-singer Master Dinnanath Mangeshkar, Lata
revealed her musical genius at the tender age of five. Her first guru wee her own father and she avidly
followed his musical stage plays.
Late's mother Mai Mangeshkar ha, one vivid memory of Lata as a child. It would seen that the young Late,
one day, was singing a song from one of her father's. plays when she bumped against something. All rushed
toward the unconscious child and tried to revive her. When she came to, however, Lata continued with the
singing of the song as if nothing had happened. This dedication to music led to her debut on stage.
However, her father's productive shadow was not to last for long. On April 24, 1942 Master Dinanath
passed away reportedly telling her "Except for the tanpura in the corner and these notebooks filled with
classical music and songs and God's blessings. I have nothing elseto give you. "The family'spenury
compelled Lata to sign a contract with MasterVinayak's Huna Pictures as an actress-singer. In the same
year,1942, she made her debut as a playback singer with Vasant Joglekar's Kia Hasool in Marathi under the
baton of shripad Nevrekar .But taking up a career as a playback singer was still impossible. She continued
with her acting career, acting in Pahili Mangeshgar (Marathi 42) Chimna Sansar (Marathi43) More Bal
(Marathi 43) Gajadhan (Marathi 44) Badi Mao (Hindi 45) and Mandir (Hindi 48) With Mandir Lata seemed
to have reached a dead end. Mandir was Master Vinayak's last film, after which he passed away. She was
no great shakes as an actress and her career in playback singing had not really taken off. Two Years earlier
she had made her debut in Hindi playback singing with Vasant Joglekar's Aap Ki Sewa Afein under the
baton of composor Dutta Dawjekar but nothing much had happened. However, stars served more
benevolent. Ghulam Haider, who was then acoring the music for Majboor and who had seen and heard lata
in the early. Forties, signed her up to sing a song for the film. Within a week of singing this song. Lata
became the talk of the music world and was signed up by three other musical giants. Khemchand Prakash
for Mahal.
The most important thing is to make the mundane promotion outstanding by creative ideas. Promotion of
S.S. Oberoi came out with a set of 10 four-page folders for Alcephin based on the theme 'The Living
Legends.' The folders are extremely well-executed - well-designed and printed. The graphics and
typography and illustrations are appealing. The idea is outstanding. Ten living legends are chosen and
include names like Satyajit Ray (since then deceased), Mother Teresa, Baba Ainte, Lata Mangeshkar, Sunil
Gavaskar, R.K. Laxman, Abdul Kalain and Shivram Karanth. Each folder deals exclusively with one
legend. The selection covers a wide cross-section of interests.
Each folder is well-researched. It brings out the circumstances that inspired the magic in each of them. It
becomes a collector's series. The centre-spread has the manufacturer's plug. A short write-up on the
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characteristics of Alcephin and the line 'The Legend Among Antibiotics.' It is not intrusive at all. Yet it is
effective.
Questions
(a) Which other businesses/products can be suitable candidates for direct marketing? What promotional
techniques can be employed?
(b) Please do some research of your own on direct mailings of pharmaceutical companies. What are your
reactions?
(c) Put on your thinking cap. Identify a there for a campaign of one general tonic.
CASE : 3 : IS SUPER BOWL ADVERTISING SUPER EFFECTIVE ?

7. About 140 million Americans and 700 million total global viewers tune in to Super Bowl Sunday, making
the event one of the largest occasions for home entertainment. Advertising time during the Super Bowl is
limited and priced at a premium. The fight for the prime spots starts months in advance of the actual
airtime. In 1993, the cost for a 30 – second time slot was a high $850,000, but by 1997 the cost had shot to
$1.2 million for the same short time frame. In 1998, a 30-second spot during the Super Bowl cost $1.3
million. In 2000, a 30-second spot during the Super bowl cost companies a record average of $2.2 million.
Dot.com companies that have since failed or are struggling to keep their heads above water purchased forty
percent of the Super Bowl ad slots in 2000. For the 2001 Super Bowl XXXVI, the average rate for an
advertising spot was approximately 2.1 million.
In 2002, during Super Bowl XXXVI, Fox Network offered 60 commercial spots for a total of 30
minutes of advertising time. The average selling price for each 30-second spot was just under $2 million, at
$ 1.9 million each. Companies who paid for commercial time during Super Bowl XXXVI included
Anheuser- Busch, who purchased ten 30 – second spots, Pepsi Co, who featured one 90-second commercial
starring Britney Spears, E-trade, M & M/Mars, AT & T Wireless, Levi Strauss, Yahoo, Visa and fast food
chains Quizno’s Taco Bell, and Subway are among others.
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Although Fox did end up selling all of the available ad spots, the network did not sell the final ad
until the Thursday before the game. There are several reasons for the selling delay and for the reduced rates
in 2002. First, marketers were facing the “worst advertising recession in recent memory.” This caused
companies to carefully monitor how they spent their advertising budgets and many decided that the money
could be better applied elsewhere. Many companies chose to advertise during other prime time events that
were more affordable. The average rate for a 30-second spot during the early evening news in 2002 was
$45,900. Even events such as the Golden Globes (estimated price $45,000 per 30-second spot), the
Grammies (estimated price $57,000 per 30-second spot), and the Academy Awards (estimated price $1.6
million per 30-second spot) offer companies ad time at lower rates. However, these events do not draw as
many viewers as the Super Bowl. Secondly, the NFL, for the first time, sponsored a pre-game show on the
Friday night before the Super Bowl. Some companies, such as AOL Time Warner, Phillip Morris, Miller
Brewing Co., and Motorola chose to avoid paying “television’s highest commercial prices” and bought ad
time for lower rates during the pre-game show. A final reason for lower rates and less marketer interest in
Super Bowl ad time was competition from the 2002 Olympic Winter Games. The games began just five
days after the Super Bowl and offered 17 days of events during which advertisers could buy commercial
time. The average selling rate for a 30-second prime time spot during the Olympics was only $600,000, a
bargain compared to the Super Bowl.
Is Super Bowl advertising worth the cost? For many advertisers who bought time slots in previous
games the answer was a resounding no. Nissan, Porsche, Fila and MCI passed on the chance to advertise
during the game. According to marketing consultant Jack Trout, the increasing rates made buying Super
Bowl ad time difficult to justify. Nissan marketing Chief Brad Bradshaw stated that although the company
had intended to advertise during the game, it came to the conclusion that the resources could be better used
to sell its vehicles in other ways.
In addition to the cost factor, many question what effect advertising actually has on the audience.
The purpose of an advertisement is to increase customer awareness for a particular brand. For Super Bowl
ads, however, the brand name often becomes secondary to the commercial itself in terms of viewer
attention. Super Bowl ads have become events in and of themselves, with each firm trying to put out the
next earth-shattering commercial that will stir talk about the commercial itself. Ever since Apple
computer’s classic “1984” ad, firms have been trying to top previous years’ ads. Ad agencies and clients
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often seem to shoot for ads that are extraordinary for the sake or creativity, rather than their intended
purpose, with many attention-getting promotions not translating into product purchases. It is questionable
whether brand name is retained, and so despite having an incredible commercial, many advertisers’ ad
dollars possibly goes into just providing new fodder for water cooler conversation for the week instead of
forming a lasting brand image in the minds of consumers. Without new research into the effectiveness of
Super Bowl advertising and its effect on consumers, many advertisers may be better off avoiding buying
Super Bowl ad time and abandoning the world’s biggest television audience.
Some advertisers like Purina Cat Chow have taken a slightly different approach by purchasing
airtime on the show directly following the Super Bowl. They obtained airtime at one-sixth of the cost
during the game and they believe that they retain approximately 40 percent of the audience. Which
advertiser got the biggest bang for the bucks: M & M/Mars that advertised during Super Bowl 2002, or

8. Purina Cat Chow that advertised after the game? Without systematic marketing research aimed at
measuring Super Bowl advertising effectiveness, questions such as these beg answers. It remains to be
established that Super Bowl advertising is super effective?
Questions:
1. What kind of research design would you recommend for determining the effectiveness of M &
M/Mars advertising during the Super Bowl?
2. If the research design involves a survey of households, which survey method would you
recommend and why?
3. What kind of measures and scales will you employ in your survey?
4. Can the observation method be used to determine the effectiveness of M & M/Mars advertising
during the Super Bowl? If so, which observation method would you recommend and why?
5. Which syndicated services discussed in the book can provide useful information ?
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CASE NO : 4 : NIKE SPRINTS AHEAD OF THE COMPETITION,
YET HAS A LONG WAY TO RUN
Nike, Inc.(www.nike.com), located in Beaverton, Oregon, is the number one U.S. athletic footwear
company and one of the most recognized American brands among foreign consumers. This high degree of
recognition is one of the main reasons Nike has been so successful. For the 2001 fiscal year ended May 31,
2001, the company continued to soar, with sales of over $9.5 billion.
Perhaps such success could be attributed to its concept - based advertising campaigns. The company
uses a process that is often called “image transfer”. Nike ads traditionally did not specifically place a
product – or mention the brand name. A mood or atmosphere was created and then the brand is associated
with that mood. “We don’t set out to make ads. The ultimate goal is to make a connection,” states Dan
Weiden, executive of one of Nike’s ad agencies. One ad featured the Beatles and clips of Nike athletes,
Michael Jordan and John McEnroe, juxtaposed with pictures of regular folks also engaged in sports. It was
used to infer that real athletes prefer Nike and that perhaps if the general audience buys the brand they will
play better too. Nike’s unpredictable image-based ads have ranged from shocking, such as its portrayal of
real blood and guts in a “Search and Destroy” campaign usesd during the 1996 Olympic games, to
humorous, such as the first ad used to launch Michael Jordan’s Jordan brand wear. The latter advertising
made the tongue – in – cheek suggestion that Jordan himself had a hand in production by slipping away
from a Bulls’ game at half time to run over to his company and then return in time for the game’s second
half.
In 1998, Nike shifted to a new phase in its marketing strategy. Nike emphasized more of its product
innovation skills than the jockey, edgy attitude that it displayed in previous years. “We recognize that our
ads need to tell consumers that we’re about product innovation and not just athletes and exposure. We need
to prove to consumers that we’re not just slapping a swoosh (the company trademark) on stuff to make a
buck,” said Chris Zimmerman, director of Nike’s U.S. advertising. With the launch of the “I can”
campaign, Nike showed less of the celebrity athletes that previously adorned its marketing output and
showed more product usage than in the previous “Just Do It” campaign. Competitors Reebok and Adidas
recently featured more product-focused ads and were met with a great deal of success. Despite this
rearranged focus, Nike did not back away from innovative marketing.
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Nike continues to excel in the advertising arena. Nike was named one of 2001’s best in advertising
by Time magazine for its ad featuring expert dribblers doing trick moves. Time is quoted as saying the ad
conveyed a message that “Sport is music. Sport is dance. Sport is art.” Nike states that this ad was their
most popular ad in 20 years. Another popular ad from 2001 was known as the “Take Me Out to the
Ballgame” ad. This particular ad featured professional athletes from varying sports singing one line of the
song. “Take Me Out to the Ballgame” in their native language.
As the company looks ahead to 2010, at the heart of Nike’s future strategy is the international arena,
which could prove to be the most difficult element for Nike to undertake. There seemed to be a pretty
strong recognition that by 2010, Nike would be larger outside of the U.S. than inside. As of 2003,
international sales comprised one-third of Nike’s business. Nike would like to expand into the soccer and
international sports arena, but to do so, it would have to refocus its marketing and distribution in order to
reestablish
itself as an authentic, technically superior sports shoe.
In February 2001, Nike unveiled its latest technological revolution, the Nike Shox, to United
Kingdom consumers. This shoe was in development for 16 years, and Nike hoped it would revolutionize

9. the sports shoe market in much the same way that NikeAir did when it was launched in the UK in the 1980s.
One reporter in London states that his pair of Nike Shox makes him feel like he is “walking on cloud nine
with a spring in (his) step.” The shoes are reported to provide support, comfort, shock absorbency, and style
all at the same time. The Nike Shox line of athletic shoes is shaping up to be very popular in both the U.S.
and the U.K.
Most recently, Nike bought out many of its worldwide distribution centers in order to achieve greater
control of its operations. In the future, Nike would like to build up its presence in the key markets of China,
Germany, Mexico, and Japan. Nike will focus its advertising on sports, and will feature sports that are of a
particular interest in specific regions. Nike realizes that while it is ahead of competition, it still has a long,
long way to run.
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Questions:
1. Should Nike switch from a focus on celebrities to a focus on its products in its advertising?
Discuss the role of marketing research in helping Nike management make this decision. What
kind of research should be undertaken /
2. How would you describe the buying behavior of consumers with respect to athletic footwear?
3. What is the management decision problem facing Nike as it attempts to retain its leadership
position?
4. Define the marketing research problem facing Nike, given the management decision problem
you have identified.
5. Develop two suitable research questions and formulate two hypotheses for each.
6. How can the Internet be used to help Nike in conducting marketing research, and in marketing
its products?
ADVERTISING MANAGEMENT
A) Define Advertising Copy? Please explain various ways of writing print advertising copy with examples?
B) Design an AD campaign for a construction engineering company? (Manufacturers of construction product)?
C) Write short notes on:
1: Characteristics of the ideal print advertisement
2: AIDA Model
3: Medial planning tools
4: ATL / BTL
5: Ad agency organization structure
D) Illustrate positioning statement for:
1: Maruti
2: Nirma washing powder
3: BOSCH
4: Harward business school
5: Apples
Architectural Management
1. By collecting the information from the relevant and authenticated sources, make a report
on the
following:
a) Sustainable development
b) Conservation

10. c) Schemes for slum area improvement
d) Traffic control systems in India in comparison with foreign country.
e) Road transport and Rail transport schemes for city transport and compare them.
f) Parking problems
2. You are entrusted with evaluating a building as a “Complete System”. How would you
do this effectively. You may hold interviews of builders/owners of shops and office
premises and other customers regarding achievements and problems.
3. Carry out a critical study of the Architectural pattern of
a) 19th Century
b) 20th Century
c) Early 21st Century
Based on your study, project your opinions and suggestions for further development.
4. You will agree that all about urban planning and landscape is equally true for rural
design and landscape. However, the scale is different, cost of the land is less, size of
the plot is bigger and with the closeness of nature, achievement is comparatively easy.
What is important is the approach.
Keeping in mind that every village to be developed into a mini town with aesthetic
landscape, what would be your approach in order to achieve the desired level as stated
above.
5. Case Study of a House
The brief
One hall/dining, one bedroom, toilet, kitchenette, verandah, economical structural system,
minimum furniture. Total area around 60 sq. m. The design
“The virtues of geometry” is the theme of this design. Since it is a guest house, the user is
not going to stay for more than two to three days. Thus there will be no specific suggestion
about the shape of the rooms. To achieve economy, the virtue of geometry of a circle is
utilized. The periphery is less for the same area of a circle than a square or rectangular
shaped structure. Thus the length of the wall is reduced to achieve economy. This also
makes the 23 cm load bearing structure more stable, like a well. An open verandah with
built-in seating and kitchenette and with rectangular shaped toilet is added opposite to each
other. A common RCC slab joining these volumes do not allot chajjas for the windows placed
at the junction points. To ensure further economy, the 45 sloping AC sheet roofing allows
storage space for kitchen and conceals the overhead water storage tank over the toilet. The
two skylights, one for dressing in the bedroom and one over the folding dining table allows
adequate light for the central dark portion. Thus, the total composition becomes a unique
combination of cylindrical, cube and triangular shapes. The major furniture is of built-in type
which minimizes the cost, and needs less maintenance. Owners of this guest house wanted
more weightage to be given for economy and maintenance, which I have succeeded in getting.
The Outcome
Virtues of geometry with structural logic can create good designs. Aesthetical and
economical considerations give permanent quality to the structure, making it an architectural
object and not just a building.
Issues to be Addressed :
1. Study all details shown in the plan, the axonometric view and orientation, and comment
on the total planning.
2. Find out the total plinth area by preparing working drawings.
3. State various measures proposed to achieve economy in cost.
4. Give a thought to solar system for heating water, landscaping treatments, and plan’s

11. Usefulness for farm house.
Banking Management
Section I
CASE I : BANKING ON RELATIONSHIP
The birth of ABC Bank took place after the RBI issued guidelines for the entry of new private
sector banks in January 1993. Subsequently, the promoter of ABC Bank sought permission to establish a
commercial bank and retained KPMG, a management consultant of international repute, to prepare the
groundwork for establishing a commercial bank. The Reserve Bank of India conveyed its approval in
principle to establish ABC Bank on February 11, 1994. Thereafter, the Bank was incorporated under The
Companies Act in September 1994. The bank started its operations in November 1995. The ABC Bank was
promoted by the tenth largest development bank in the world, which had a magnificent record of
promoting world-class institutions in India. The promoter was a strategic investor in a plethora of
institutions, which had revolutionized the Indian financial markets.
Keeping in line with its policy of leveraging technology to drive its business, ABC Bank deployed
Finacle, the e-age banking solution from Infosys to consolidate its position, meet challenges and quickly
seize new business opportunities. The entire Finacle rollout was remarkable, considering the fact that it
was implemented across all branches in a record timeframe of 5 months. Finacle provided the critical
technology platform to propel the bank’s operations with new thrust and direction. The bank also
implemented Kondor – a treasury front office software from Reuters and ITMS – treasury back office
software from Synergy Login. The achievement of these significant milestones was consistent with ABC
Bank’s continued focus to create customer and shareholder value through deployment of superior
technology. Investments in technology were a part of the plan to put in place building blocks for creating
the right organizational infrastructure. In future, it would help ABC Bank to consistently deliver superior
products, convenient access channels and efficient service to its retail and corporate customers. Large
investments had been made in back-end technology to strengthen processes, systems and control. This,
in the long run, propelled by a top quality management team, clearly set ABC Bank apart from its
competitors.
ABC Bank was a pioneer and an innovator in bringing state-of-the-art services to its customers. It
was the first private bank to enter and capture new markets. It was the first Indian Bank to provide –
ATM Next (an information portal on ATMs); Instant Account Opening; Talking ATMs; GiftCard (Prepaid Gift
Card); EasyFill (Instant Mobile Refill Service) – along with other services. The Bank introduced a SMS
alert service, which gave the customers, updated information on any transaction. The Bank had
collaboration with other organizations rendering related services –Insurance, National Saving Certificates
and Post office Service –providing a platform to interact with potential customers as well as offering other

12. services to its existing customers. It also tried to tap potential rural market segments, which had not
been explored by any other private bank. A key achievement for the Bank was that it emerged as the
highest distributor for two top Mutual Fund Schemes consistently in the past, thereby demonstrating the
strength of the Bank’s distribution channel of TPD business. It had registered huge success as a collecting
bank to several market IPOs that consequently leveraged the IPO financing business. It launched a
strategic B2B E-Commerce platform with BPCL to facilitate online payments from BPCL to its dealers,
thereby enhancing corporate business through new-age technology and offering Supply Chain Financing
Solutions. Corporate banking relationships were offered at 20 locations across the country and total
Banking Solutions to its corporate customers (Annexure).
The Value Chain Management Group also offered Supply Chain Finance Solutions to various
Corporates and special products like loan against credit card receivables. The lifeline of ABC Bank were its
people, growing at a very fast pace. The average age of the employee at ABC Bank was 31 years.
Approximately 83% of the employee strength was in the junior management category (which included
trainees and probationers), while 14% made up the middle level management. The remaining constituted
the senior and top management. The various business units comprised of 75%, while support functions
made up for 12%, and operations for the remaining 13% of the total manpower strength of the Bank. The
bank had rolled-out broad based grant of stock options covering 75% of the employees to align their
interests with those of its shareholders. The bank had a stats-of-the-art training centre at Mumbai and
every employee received on an average 40 hours of training, annually.
ABC Bank entered Nagpur market in two phases. In the first phase, it started with corporate
banking and established itself as the best service provider. Afterwards, it leveraged its strengths by
entering into retail banking. Although, relatively a late entrant in the retail banking sector, it acquired
easy access in the new segment due to its brand image in corporate banking. In retail banking, ABC Bank
opted for selective penetration based on two main factors – volume of business and credibility of the
account. This enabled them to create greater satisfaction in the customers’ mind. Initially, it started with
the criteria of an average quarterly cash balance of Rs 25,000 focusing on premium segment. Later on, to
further penetrate the market, it reduced the average quarterly cash balance to Rs 5,000 and segmented
the market on the basis of nature of business, volume and number of transactions per month. In this
phase, by reducing the minimum available balance, it tapped other individual customer accounts during
the course of its expansion.
ABC had always been particular about the specific needs of the customer and maintaining
consistency in the quality of products and services provided. The bank emphasized on dealing with them
on a one-to-one basis and providing tailor-made products. In course of penetrating this segment, ABC
bank achieved great success due to its deep understanding of the needs and expectations of local
customers. On the other hand, some of the competitors who displayed grand success in the beginning
could not sustain it because of a mismatch between expectations of the customers and delivery of
services. As promotion was mainly through word-of-mouth, the bank operated on the philosophy that 5
satisfied customers bring 5 new customers whereas 5 dissatisfied customers break 25 existing customers.

13. Therefore, they focused about maintaining quality of services and customer satisfaction. The bank was
very particular about reducing the turnaround time in extending its services to the customers. It also
acted as an investment consultant for their individual customers.
Apart from offering ‘tailor-made’ products, the bank maintained a continuous personal relationship
with each of its existing customer, based on their business potentials. They took regular feedbacks from
the customers and responded sincerely to their suggestions or complaints. They used to call up their
premium customers once a week, asking for their views on the services offered by the bank and
suggestions to improve the same. To enable an impartial communication system, the bank created a
dedicated e-mail ID for customers’ queries and complaints, which established a direct link between them
and corporate office. The complaints and queries received from the customers were then forwarded to the
concerned branch offices for immediate redressal and branch heads were asked to confirm the same.
These complaint redressals formed an important component in performance evaluation of the branch as
well as the concerned employee.
Even though a large group promoted ABC Bank, its independent asset base was limited, which
posed a problem to finance large organizations. The limited asset base of the bank created hurdles in the
expansion of its business. In view of having just two branches, RBI guidelines did not permit ABC to have
its own currency chest at Nagpur, thereby affecting smooth management of hard cash. The bank had an
insurance cover for a given amount of cash it could hold. When the cash inflow increased over the given
limit, keeping additional hard cash with the bank increased risk. Therefore, it became necessary to
transfer it to the right place. In the city of Nagpur, ABC had only two branches, though its customer base
was very large and continuously increasing. The changing economic scenario was expanding business
opportunities for the Bank. Butibori, a place 30 kms from Nagpur, was expected to be declared as a
Special Economic Zone, which would attract more industries and accelerate the related business activities
in the region.
An increasing number of private and foreign banks had begun entering Nagpur. The promotional
activities of these multinational banks increased awareness about private banking amongst the people in
the region. ABC Bank also planned to expand its services in credit cards and other value added services.
With the entry of foreign and private banks in Nagpur, the scenario was becoming more competitive and
complex. As the new players tried to grab experienced employees at higher salaries, the employee
turnover at ABC Bank increased. Looking at the changing business scenario, the Branch Head, Nagpur,
was wondering about the strategies and measures to be taken for sustenance and growth of the bank.
QUESTIONS FOR DISCUSSION
1. Analyze the case, using SWOT.
2. Comment on the strategies used by the bank for penetrating the Nagpur market.

14. 3. Suggest strategies for sustenance and growth of the bank in view of the changing scenario of the
Nagpur region.
Section II
Answer Any six :
1. Explain buyers credit and suppliers credit by giving examples of each type of credit. Also explain
with a case study.
2. What is correspondent banking? Explain briefly the services offered by correspondent banking?
Explain briefly the services offered by correspondent banks to the banks having account
relationship with them? Give some examples?
3. Explain in brief, the role of Reserve bank of India in Indian Exchange control. Explain the role of
EXIM bank in promotion exports, and describe briefly facilities given by EXIM bank? Give
examples.
4. The organizational career is a responsibility of the organization and the individual. Discuss.
5. Explain the general architecture of an integrated banking system. How is it useful? Explain with
examples.
6. What do you understand by MICR? How does it help in clearing of instructions? Explain the field
structure of MICR cheque.
7. Explain how a digital signature is generated? Explain its use with examples.
8. How can Indian banks use legal recognition of digital signature for development of business.
9. What is market segmentation? Why is it important to advertisers? How is it useful for banking.
BANKING MANAGEMENT

15. BANKING MANAGEMENT
Q.1) The exchange rate and forward rate of rupee against US dollar on 3rd November, 2008 is given below:
(20 marks)
Spot rate 1 US dollar Rs 45.36
One month forward 3.72%
Three months forward 3.27%
Six months forward 2.76%
Twelve months forward 2.26%
Calculate the forward rate, forward premium rate and swap rate from the given data.
Q.2) In May beginning you decide that shares in X Ltd. will rise over the next month or so. The current price
is Rs 100 and you hope that the shares will be at Rs. 150 by the end of July. Give your comments if the
Option is traded and if the option is not traded. Make assumptions.
Q.3) (15 marks)
A) The unit price of TSS scheme of a mutual fund is Rs 10. The public offer price (POP) of the
unit is Rs 10.204 and the redemption price is Rs 9.80.
Calculate
i) Front-end load and
ii) Back-end load.
B) Mr. A can earn a return of 16% by investing in equity shares on his own. Now he is considering a
recently announced equity based mutual fund scheme in which initial expenses are 5.5 percent and
annual recurring expenses are 1.5 percent. How much should the mutual fund earn to provide Mr. A
a return of 16%
(5 Marks)
Q.4) The closing price of the stock of Veryfine Ltd. at the stock exchange for 20 successive days was as
follows: (20 Marks)
Day 1 2 3 4 5 6 7 8 9 10
Closing
25 26 25 24 26 26 28 26 25 27Price(R

16. s.)
Day 11 12 13 14 15 16 17 18 19 20
Closin
g
27 25 26 28 26 26 24 25 26 25
price(R
s)
You are required to calculate a 7 day moving average of stock price of the company and comment on its
short-term trend
BIO-TECHNOLOGY MANAGEMENT
Q1) Define Bio technology and explain the meaning of old and new biotechnologies. Comment on
the multidisciplinary nature and the commercial potential of bio technology?
Q2) Discuss the scope and importance of biotechnology in promoting human Welfare?
Q3) Define vector. Briefly describe the various kinds of vector in E. coli?
Q4) Describe in some detail the various strategies for the integration of DNA inserts into the vector?
Q5) Explain PCR procedure under the following heads:-
a) PCR primers
b) PCR efficiency
c) Annealing temperature and
d) Amplicon size.
Q6) List various variations of PCR Procedure and briefly describe the methods, logic and
applications of any tow of these variations?
Q7) Briefly describe the various approaches for the production of virus resistant transgenic plants and
compare their merits, demerits, and applications?
Q8) Discuss the various applications of transgenic plants, and the problems encountered in their
productivity utilization?
Q9) Briefly describe the meaning of oil quality and explain the various approaches for the
modification of oil quality through genetic transformation?
Q10) Briefly describe the meaning of starch quality and explain the various strategies for starch quality
modification?
Q11) Discuss the role of biotechnology in health care giving suitable examples to support your views?
Q12) Define Vaccine. Briefly Explain the different types of vaccine and enumerate their advantages
and limitations?
Q13) Define genetic disease. Briefly explain the techniques for their detection and modes of their
therapy?
Q14) What Is drug Targeting?
Q15) Briefly outline the procedure for isolation?
Q16) Define downstream processing. Briefly describe the various steps in down stream processing?
Q17) Define enzyme. Briefly describe the major categories of fermentation, their requirements and
applications.
Q18) What is bioreactor. Briefly describe major categories of fermentation, their requirements and
application?
Q19) List down various types of metabolites produced of enzymes from microbes.
Q20) What are bio-control agents? Discuss their applications using suitable examples?
Q21) Define strain improvement and briefly discuss the various approaches used for strain
improvement?
BUSINESS COMMUNICATION

17. CASE-1 (20 Marks)
Nestle has launched quality street ,lion and after 8 choclates imported from Europe. Qualtty Street is an
assortment of chocolates priced at Rs. 7 5 for 218 gm. After Eight is a popular adult chocolate priced at Rs.25
for 20 gm and Lion is a caramel wafer bar priced at Rs. 20 for a 45 gm bar. (Kit Kat )is priced at Rs. 6 for a 17
gm bar and has a chocolaty taste while Lion has a crunchy taste). The brands have different tastes and will
appeal to different target segments (though the target segment is one which may have already been exposed to
these brands during visits abroad). These brands have been introduced in metros in upmarket stores which sell
brands bears the label "lmported by Nestle India Ltd." indicating that they may be better than smuggled ones
(which may be stale).
Question :
1 Suggest suitable media /media vehicles for promoting these brands. Give reasons in support of your answer
2 What business communication media you will utilize if you have to launch a soap in rural India?
CASE -2 (20 Marks)
The herbal shampoo market is valued at around Rs. 100 crores. Ny/e, Ayur, Dqbur and Biotique are some of the
established brands in the market.
Helene Curtis (JK Group) has introduced a premium herbal shampoo (with variants Shikskai, henna and qmla
and brqhmi and josur) priced between Rs. 80 and Rs. 90 (500 ml) for different types of hair. The proposition is
the benefits offered by lhe variant based on the combination of herbs, benefits offered by the variants range
from extra protection and nourishment to colour, body and bounce. The shampoos have been launched under
the brand name Premium Herbsl Shsmpoos and they target urban housewives with a monthly household
income of Rs.25,000. The brand is distributed through 7 0,000 retail outlets and 120 Raymond shops. The
company has planned only point of purchase (POP) posters initially and may consider the electronic media
later. The shampoo has an annual advertising expenditure of Rs. 10 crores.
Question :
1 Comment on the marketing mix of JK's Premium Herbsl Shampoos ?
2 How can you make their communication more effective ?.
Page 2 of 2
CASE 3 (40 Marks)
Attempt all cases of the following: (10 marks each)
(i) Iran Rafsanjan Co., Rafsanjan City, Iran has taken a marine insurance policy No. VB/84/3629/29 dated
20th December, 2005 from Albroz Insurance Co., Kerman City, Iran for the import of 500 tractor gears
from Apex Products (India) Ltd., Delhi. The exporter shipped the cargo on board vessel — SEEMA on
26th December, 2005 for Bandar Abbas Port of Iran.
As per the letter of credit condition, the exporter was required to fax the shipment details to Albroz
Insurance Company within 24 hours of the shipment. However, the exporter could not fax such details due
to change in telephone (fax) number of the insurance company.
Draft an express telegram to intimate shipment details.
ii) Yours is a multinational company having joint venture with a Chinese company. Plant is to be located at
Surat. The company immediately needs an Executive - Foreign Affairs (male/female) with ability of
“writing and speaking Chinese language.
Draft a recruitment advertisement for publication under classified column of a national daily. Salary-is no
bar for the right candidate. E-mail address -info@krishnafashions.com
iii) The local head office of State Bank of India is located at 11, Parliament Street, New Delhi-110001. The
bank wants to construct 76 flats at Noida for its employees and invite applications for pre-qualification of
contractors. Full details are available on its website - www.sbi.co.in or www.statebankofindia.com/
procurement_news.
Draft a notice for pre-qualification of contractors.
iv) The Joint Admission Board (JAB) of Indian Institutes of Technology in its meeting held on 17th
September, 2005 at Kolkata has taken some decisions with regard to Joint Entrance Examination (JEE)
2006, i.e., to appear in JEE, one must secure at least 60% marks (55% for SC/ST and PD) in 10+2
examination; a candidate can have only two attempts with effect from JEE-2006; and a candidate who

18. joins any of the IITs through JEE-2006 will not be permitted to appear in JEE in future.* It was also
decided that candidates, who have passed their qualifying examination in 2005 or earlier, will be allowed
to appear in JEE-2006 as the last chance, witji no consideration of marks or attempts at JEE subject to age
requirements. On behalf of the JAB, draft a suitable press release to be issued by organising chairman
highlighting these decisions.
BUSINESS ENVIRONMENT
CASE 1
Q1) Imagine that you are in-charge of a major chemical plant, manufacturing points. At present, the
general awareness about the mandatory requirements for chemical industry is very low. Even if the
compliance record is maintained, it is not disclosed to all employees. (25 marks)
In a recent seminar of the company, many experts from industry associations like Confederation of
Indian Industries (CII), conducted the seminar. The dangers of non-compliance of ISO 14001 EMS
certification and Trade Sanctions, which are likely to increase, were discussed. Even the senior
managers were involved and a lot of serious discussions took place.
After a span of one month, the In-charge (i.e. you!) received a call from the top management, who
want you to find out more about the ISO Certification. The management, wants to help you, with the
help of other employees to list the critical aspects that have potential environmental impact.
You may be feeling that you have only some vague ideas about air pollution in paint industry
and water pollution, due to paint manufacture. You may also recall the newspaper clipping on
internationalization of paint manufacturing practices, which states the following points:
i) What are the activities that are critical to the company’s environmental management
certification?
ii) List the activities which have potential environmental impacts in a pint industry.
iii) List the legal requirements.
iv) Is there a trade related issue involved in this case
v) Explain, how your company can prepare itself towards certification.
CASE 2 :
Q2) XYZ company is an equal opportunity employer. XYZ Co has always upheld the
spirits of freedom, human welfare, fair practices and fair treatment to all employees. It has the image
of a socially responsible company in India. XYZ Co., has never involved itself in any study deals,
even if it could bring good profits. (15 Marks)
Also, XYZ Co. is a major IT solution provider. XYZ has immense potential for providing
consultancy services in the African nations and South East Asian countries. A request was received
from an African country, stating that they have an assignment for two years. The following
conditions are to be fulfilled.
a) Employees should not bring families with them during the assignment.
b) Women managers should not accompany the team.
c) The country and the collaborating company are not responsible if any accident or any other
untoward incidents take place.
Please answer the following questions :
i) Should XYZ Co take up the assignment?
ii) How can XYZ Co maintain business viability and growth without compromising on basic rights
and values enshrined? In the mission statement of the company?
iii) What alterations may be sought in the agreement and why?
CASE 3
Q3) On the night of December 23, 1983 a dangerous chemical reation occurred in the Union
Carbide factory in Bhopal, when a large amount of water got into the MIC i.e. Methyl Isocyanate
storage tank. When the leak was detected by workers at 11.30 pm, their eyes began to tear and burn.
The rest is history. About 40 tons of MIC poured out of the tank for nearly 2 hours and escaped into
air, spreading within 8 km down wind, About 4000 people were killed in sleep or as they fled in

19. terror, hundreds of thousands were injured or effected the victims who were almost entirely the
poorest members of the population. The poisonous gas, caused death and left the survivors with
lingering disability and diseases.
The Bhopal disaster was a result of the combination of legal, technological, organizational and
human errors. The long term effects were made worse by the absence of systems to care for and
compensate the victims. Also, the safety standards and maintenance procedure at the Union Carbide
plant had been deteriorating and ignored for months.
Questions :
i) From Bhopal Tragedy, what an industrial manager learns? What safety procedures are to be
followed. Study the case deeply and state what were the defects of MIL unit. In view of this case,
prepare a disaster management plan, which could cover be useful to a chemical company. (10 Marks)
Q 4)
i) List the methods of waste management in the order of preference. (5 Marks)
ii) What are the advantages of solid waste incernaton? (5 Marks)
iii) Define hazardous waste (5 Marks)
iv) List the legal provisions in the Environment Protection Act pertaining to hazardous waste
(5 Marks)
Q 5)
i) Discuss the role of CPCB (Central Pollution Control Board) in the pollution control activities in
India. (2 Marks)
ii) Mention the salient points of the 3 Acts : (2 Marks)
The Air (prevention and control of pollution) Act 1981
The Water (prevention and control of pollution) Act 1974
The Environment (Protection) Act 1986
iii) Explain the very elements of EIA (Environmental Impact Assessment) – different types of
Impact Assessments – the benefits of EIA – The EIA process, key points to remember while
conducting an effective EIA. (2 Marks)
iv) Compare and contrast “polluter pays principle” with “beneficiary pays principle”. (2 Marks)
v) What are the tenets of Risk management – explain the steps involved through a chart.
BUSINESS ETHICS
CASE -1 (20 Marks)
Joan, an employee of Great American Market, was warned about her excessive absenteeism several
times, both verbally and in writing. The written warning included notice that "further violations will
result in disciplinary actions," including suspension or discharge.
A short time after the written warning was issued, Joan called work to say she was not going to be in
because her babysitter had called in sick and she had to stay home and care for her young child. Joan's
supervisor, Sylvia, told her that she had already exceeded the allowed number of absences and warned
that if she did not report to work, she could be suspended. When Joan did not report for her shift,
Sylvia suspended her for fifteen days.
In a subsequent hearing, Joan argued that it was not her fault that the babysitter had canceled, and
protested that she had no other choice but to stay home. Sylvia pointed out that Joan had not made a
good faith effort to find an alternate babysitter, nor had she tried to swap shifts with a co-worker.
Furthermore, Sylvia said that the lack of a babysitter was not a justifiable excuse for being absent.
Questions:
1. Was the suspension fair?
2. Did Joan act responsibly?
3. Should she be fired?
CASE-2 (20 Marks)
You own a cement company, and deal with most the local contractors for cement, sand, etc. You have
a reputation of high quality products, and for good customer service with your customers. Your
foreman has just run the standard quality control tests you have performed regularly on your products.
When the test results are ready, you discover that the new batch of product is 9% less durable than

20. your usual material. It is still well above all industry standards and meets all building codes and
requirements for the purposes for which it is intended, but it is, nevertheless, not up to your usual
standards. Throwing it away would cost your company many thousands of dollars.
You decide to sell the cement anyway.
Questions:
1) Should you tell your customers?
2) Should you discount the price?
3) Should you tell your employees, so they will be knowledgeable with the customers?
4) Would you use this cement on foundations for your own house?
Page 2 of 3
CASE-3 (20 Marks)
Fred, a 17-year employee with Sam's Sauna, was fired for poor job performance and poor attendance,
after accruing five disciplinary penalties within a 12-month period under the company's progressive
disciplinary policy. A week later, Fred told his former supervisor that he had a substance abuse
problem.
Although there was no employee assistance program in place and the company had not been aware of
Fred's condition, their personnel director assisted Fred in obtaining treatment by allowing him to
continue receiving insurance benefits and approved his unemployment insurance claim.
Fred subsequently requested reinstatement, maintaining that he had been rehabilitated since his
discharge and was fully capable of being a productive employee. He pointed to a letter written by his
treatment counselor, which said that his prognosis for leading a "clean, sober lifestyle" was a big
incentive for him. Fred pleaded for another chance, arguing that his past problems resulted from drug
addiction and that Sam's Saunas should have recognized and provided treatment for the problem.
Sam's Saunas countered that Fred should have notified his supervisor of his drug problem, and that
everything possible had been done to help him receive treatment. Moreover, the company stressed that
the employee had been fired for poor performance and absenteeism. Use of the progressive discipline
policy had been necessary because the employee had committed a string of offenses over the course of
a year, including careless workmanship, distracting others, wasting time, and disregarding safety rules.
Questions:
1) Should Fred be reinstated?
2) Was the company fair to Fred in helping him receive treatment?
3) Did the personnel director behave ethically toward Fred?
4) Did he act ethically for his company?
5) Would it be fair to other employees to reinstate Fred?
CASE-4 (20 Marks)
In January of last year, the S.S. Vulgass, an oil tanker of the Big Dirty Oil Company ran around in the
area just north of Vancouver, spilling millions of gallons of crude into the waters and onto the beaches
of British Columbia and southern Alaska. The damage to the beaches and wildlife and consequently to
the tourist industry, the ecology and the quality of life of the local residents is incalculable, but in any
case will require many millions of dollars for even the most minimal clean-up.
The ship struck a small atoll, well-marked on the navigational maps, but it was a dark night and the
boat was well off course. On further investigation, it was discovered that the Captain of the Vulgass,
Mr. Slosh, had been drinking heavily. Leaving the navigation of the ship to his first mate, Mr. Mudd,
he retired to his cabin, to "sleep it off." Mr. Mudd had never taken charge of the ship before, and it is
now clear that he misread the maps, misjudged the waters, maintained a speed that was inappropriate
and the accident occurred. Subsequent inquiries showed that Captain Slosh had been arrested on two
drunk driving convictions within months of the accident. The Vulgass itself, a double-hulled tanker,
was long due for renovation and, it was suggested, would not have cracked up if the hull had been
trebly reinforced, as some current tankers were.
Page 2 of 3
R. U. Rich, the Chief Executive Officer of Big Dirty Oil declared the accident a "tragedy" and offered
two million dollars to aid in the clean up. The Premier of British Columbia was outraged.
Environmental groups began a consumer campaign against Big Dirty Oil, urging customers to cut up
and send in their Big Dirty Oil credit cards in protest. In a meeting to the shareholders just last month,
CEO Rich proudly announced the largest quarterly profit in the history of the Big Dirty Oil Company.
He dismissed the protests as "the outpourings of Greenies and other fanatics" and assured the
shareholders that his obligation was, and would always be, to assure the highest profits possible in the
turmoil of today's market.

21. Questions:
1) The question is, who is responsible?
2) Against whom should criminal charges be leveled?
3) What should be done, if anything, to punish the corporation itself?
4) What about the CEO?
BUSINESS MANAGEMENT
No : 1
REMAINS OF A DREAM
This is a tragic story, narrated in first person, of an entrepreneur who became bankrupt
for no fault of him, without producing anything, mostly because of the irresponsible political
and government environment. This case study, documented by Bibek Debroy and P.D.
Kaushik and published in Business Today is reproduced here with permission.
In the 1980s, I worked as a chemical analyst for a transnational in Germany, but kept
thinking about shifting to India.
Opportunity knocked when I saw an advertisement by the Uttar Pradesh government
inviting NRI professionals to start a chemical unit in the newly identified Basti Chemical
Industrial Complex. I hail from Lucknow. Hence, this was attractive. I inquired from the
Indian High Commission and was told that there is single window clearance for NRI
investors. The brochure said several things about the benefits – excise and sales tax holiday
for five years, uninterrupted power supply, low rate of interest on loans, and clearance of
application within 30 days.
I started the application formalities for a chemical unit. Once the application was
accepted, I requested for long leave from my employers. I also inquired from my relatives in
Lucknow and was told that the Uttar Pradesh government’s intentions are clear, and
developmental work is progressing at fast speed.
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
Every now and then, I received a letter from the ministry of industry in Uttar Pradesh
to furnish some paper or the other, as part of procedural formalities. After three months, I
received my provisional sanction letter for allotment of land, and term loan. The letter also
stated that within six months, I must take possession of the land, and initiate construction.
Otherwise, the deposited amount (Rs 1 lakh as part of my contribution) will be forfeited. I
resigned from the company, and shifted permanently to India, since my employer turned
down my request for long leave.
On reaching the complex, I was surprised to see that the Uttar Pradesh State Industrial
Development Corporation (UPSIDC) had actually developed the land in terms of markers,
and signboards, compared to what I had seen on my last visit.
Though roads were not fully laid, it was evident that work was in progress. I took
possession of my land and started construction.
Meanwhile, I approached the UPFC for granting me the term loan for ordering the
plant and machinery. The first obstacle came from the Uttar Pradesh State Electricity Board
(now Uttar Pradesh Power Corporation). The electricity supply to the complex was not yet
available. On inquiring, I was told that the plan had been sanctioned, but required clearance
from the power ministry, before undertaking further work. The approximate time to get grid
supply ranged between four and six months.
The next obstacle came from the Uttar Pradesh Financial Corporation (UPFC). It
could release the first instalment after I completed construction till the plinth level. I
continued work with the help of a diesel generating set. It took another month to reach the
plinth level.
But before I could request UPFC to release my first instalment, I received a letter from
UPFC that I had to deposit interest against the amount paid to the UPSIDC for land
possession. This was a shock, because interest had to be paid even before anything was
produced.
But I had no alternative, because the first insatlment was due. The UPFC promptly
released the first instalment after inspecting the construction. It helped me continue
construction work, and also book for plant and machinery.

22. Six months went by. Construction was almost complete. I had received three
instalments from the Uttar Pradesh Financial Corporation (UPFC). Each time the payment of
interest was due, the required sum was adjusted from the instalment released. If there was
any shortfall in money required for construction, I paid from my own pocket.
But after nine months, my coffers went empty. Machinery suppliers were after me, for
payment. UPFC insisted on interest payments, because this was the last instalment of my
term loan and interest due couldn’t be deducted from future instalments. I borrowed from
family and friends and paid up. Then I received the final instalment from UPFC for plant and
machinery, with another notice that the yearly instalment for the principal was due.
Within two months, machinery was commissioned at the site. But electricity was yet
to reach the complex. In the previous year, I had visited the Uttar Pradesh State Electricity
Board (UPSEB) office innumerable times. I also approached the industry association to
assist me. But all my efforts were in vain. This did not help me, or others like me, to get the
grid supply.
There were 14 other who were in the same boat. The biggest company of them all –
obviously with contacts at higher levels – arranged for grid supply from the rural feeder. But
that plan also did not take off, because the rural feeder supplied poor quality power for a
mere six hours. A process industry requires 24 hours of uninterrupted electricity supply
without load fluctuations. It is precisely because of this that all 15 of us, who were waiting
for electricity, had insisted on industrial power from UPSEB.
All plans failed. Captive generation was not a viable alternative now. And we
continued to wait for the grid supply. We met the former minister for industry and pleaded
our case. He assured us that he would take up the case with the power ministry.
Meanwhile, I defaulted on interest payment. So did the others. The final blow came in
the Assembly elections, when both the sitting : Member of Legislative Assembly, from Basti,
and the state industrial minister lost their seats. Suddenly, everything – from road
construction work, to the laying of sewer and phone lines – came to a standstill.
Only the police post and the UPSKB rural feeder office remained. The new incumbent
in the industrial ministry hailed from Saharanpur, so the thrust of the ministry changed. Basti
was not on their priority list anymore. After waiting for tow years, UPSEB was not able to
connect the complex with grid supply.
In the end, UPFC initiated recovery action and sealed my unit. Besides, they claimed
that I could not get NRI treatment, with preferential interest rates, because I had permanently
moved to India. Thus, there were also plans to file a case against me on account of
misinforming the corporation. Experts suggested I should file for insolvency if I wanted to
avoid going to prison. This I did in 1994. I spent Rs. 15 lakh from my own pocket.
Now, all that remains of an entrepreneurial dream is a sealed chemical unit in Basti
and a complex legal tangle.
I was better off working for the transnational in Germany. Power does not come out of
the barrel of a gun. A gun’s barrel comes of power, especially when the latter does not exist.
QUESTIONS
1. Identify and analyse the environmental factors in this case.
2. Who were all responsible for this tragic end?
3. It is right on the part of the government and promotional agencies to woo
entrepreneurs by promising facilities and incentives which they are not sure of
being able to provide?
4. Should there be legislation to compensate entrepreneurs for the loss suffered
due to the irresponsibility of public agencies? What problems are likely to
be olved and created by such legislation?
5. What are the lessons of this case for an entrepreneur and government and
promotional agencies?
No : 2
THE COSTS OF DELAY
The public sector Indian Oil Corporation (IOC), the major oil refining and marketing
company which was also the canalizing agency for oil imports and the only Indian company
I the Fortune 500, in terms of sales, planned to make a foray in to the foreign market by
acquiring a substantial stake in the Balal Oil field in Iran of the Premier Oil. The project was
estimated to have recoverable oil reserves of about 11 million tonnes and IOC was supposed

23. to get nearly four million tonnes.
When IOC started talking to the Iranian company for the acquisition in October 1998,
oil prices were at rock bottom ($ 11 per barrel) and most refining companies were closing
shop due to falling margins. Indeed, a number of good oil properties in the Middle East were
up for sale. Using this opportunity, several developing countries ``made a killing by
acquiring oil equities abroad.’’
IOC needed Government’s permission to invest abroad. Application by Indian
company for investing abroad is to be scrutinized by a special committee represented by the
Reserve Bank of India and the finance and commerce ministries. By the time the government
gave the clearance for the acquisition in December 1999 (i.e., more than a year after the
application was made), the prices had bounced back to $24 per barrel. And the Elf of France
had virtually took away the deal from under IOC’s nose by acquiring the Premier Oil.
The RBI, which gave IOC the approval for $15 million investment, took more than a
year for clearing the deal because the structure for such investments were not in place, it was
reported.
QUESTIONS
1. Discuss internal, domestic and global environments of business revealed by this
case.
2. Discuss whether it is the domestic or global environment that hinders the
globalization of Indian business.
3. Even if Elf had not acquired Premier Oil, what would have been the impact of
the delay in the clearance on IOC?
4. What would have been the significance of the foreign acquisition to IOC?
5. What are the lessons of this case?
No : 3
NATURAL THRUST
Balsara Hygiene Products Ltd., which had some fairly successful household hygiene
products introduced in 1978 a toothpaste, Promise, with clove oil (which has been
traditionally regarded in India as an effective deterrent to tooth decay and tooth ache) as a
unique selling proposition. By 1986 Promise captured a market share of 16 per cent and
became the second largest selling toothpaste brand in India. There was, however, an erosion
of its market share later because of the fighting back of the multinationals. Hindustan
Lever’s Close-up gel appealed to the consumers, particularly to the teens and young, very
well and toppled Promise form the second position.
Supported by the Export Import Bank of India’s Export Marketing Finance (EMF)
programme and development assistance, Balsara entered the Malaysian market with Promise
and another brand of tooth paste, Miswak.
The emphasis on the clove oil ingredient of the Promise evoked good response in
Malaysia too. There was good response to Miswak also in the Muslim dominated Malaysia.
Its promotion highlighted the fact that miswak (Latin Name : Salvadora Persica) was a plant
that had been used for centuries by as a tooth cleaning twig. It had reference in Koran.
Quoting from Faizal-E-Miswak, it was pointed out that prophet Mohammed used ``miswak
before sleeping at night and after awakening.’’ The religious appeal in the promotion was
reinforced by the findings of scientists all over the world, including Arabic ones, of the
antibacterial property of clove and its ability to prevent tooth decay and gums.
Market intelligence revealed that there was a growing preference in the advanced
counties for nature based products. Balsara tied up with Auromere Imports Inc. (AAII), Los
Angeles. An agency established by American followers of Aurobindo, an Indian philosopher
saint. Eight months of intensive R & D enabled Balsara to develop a tooth paste containing
24 herbal ingredients that would satisfy the required parameter. Auromere was voted as the
No. 1 toothpaste in North Eastern USA in a US Health magazine survey in 1991.
The product line was extended by introducing several variants of Auromere. A
saccharine free toothpaste was introduced. It was found that mint and menthol were taboo for
users of homoeopathic medicines. So a product free of such mints was developed. Auromere
Fresh Mint for the young and Auromere Cina Mint containing a combination of cinnamon
and peppermint were also introduced. When the company relaised that Auromere was not
doing well in Germany because of the forming agent used in the product, it introduced a
chemical free variant of the products.

24. QUESTIONS
1. Explain the environmental factors which Balsara used to its advantage.
2. What is the strength of AAII to market ayurvedic toothpaste in USA?
No : 4
THE SWAP
The Economic Times, 20 October 2000, reported that Reliance Industries entered into
a swap deal for the export and import of 36 cargoes of naphtha over the next six months.
Accordingly, three cargoes of 50,000 tonnes each were to be exported every month from
Reliance Petroleum’s Jamnagar refinery and three cargoes of the same amount were to be
imported to the Reliance Industries’ Hazira facility. The deal was done through Japanese
traders Mitsubishi, Marubeni, ltochu, IdCmitsu and Shell. The export was done at around
Arabian Gulf prices plus $22.
Reliance, needs petrochemical grade naphtha for its Hazira facility which is not being
produced at Jamnagar. Therefore, its cracker at Hazira gets petrochemical grade naphtha
from the international markets in return for Reliance Petroleum selling another grade of
naphtha from its Jamnagar refinery to the international oil trade.
If RIL imports naphtha for Hazira petrochemical plant, the company does not have to
pay the 24 per cent sales tax, which it will have to pay on a local purchase, even if it is from
Reliance Petro. Besides Reliance Petro will also get a 10 per cent duty drawback on its crude
imports if it exports naphtha from the refinery at Jamnagar.
The export of naphtha with Japanese traders is being looked as a coup of Reliance as it
gives the company an entry into the large Japanese market.
Indian refineries have a freight advantage over the Singapore market and can quote
better prices.
QUESTIONS
1. Examine the internal and external factors behind Reliance’s decision for the
swap deal.
2. What environmental changes could make swap deal unattractive in future?
3. Could there be any strategic reason behind the decision to import and export
naphtha?
4. Should Reliance import and export naphtha even if it does not provide any
profit advantage?
No : 5
A QUESTION OF ETHICS
TELCO opened bookings for different models of its proud small car Indica in late
1998. The consumer response was overwhelming. Most of the bookings were for the AC
models, DLE and DLX. The DLE model accounted for more than 70 per cent of the
bookings.
Telco has planned to commence delivery of the vehicles by early 1999. However,
delivery schedules for the AC models were upset because of some problems on the roll out
front. According to a report in The Economic Times dated 13 March 1999, Telco officials
attributed the delay to non-availability of air conditioning kits.
Subros Ltd. supplies AC kits for the DLE version and Voltes is the vendor for the
DLX version. Incidentally, Subros is also the AC supplier to Maruti Udyog Ltd.
Telco officials alleged that Subros was being pressured by the competitor to delay the
supply of kits. ``If this continues, we will be forced to ask Voltas to supply kits for the DLE
version too,’’ a company official said.
QUESTIONS
1. Why did Telco land itself in the problem (supply problem in respect of AC
kits)?
2. If the allegation about the supplier is right, discuss its implications for the
supplier.
3. Evaluate the ethical issues involved in the case. (Also consider the fact Maruti
was 50 per cent Government owned.)
No : 6
DIFFERENT FOR GAMBLE
Product and Gamble (P & G), a global consumer products giant, ``stormed the
Japanese market with American products, American managers, American sales methods and

25. strategies. The result was disastrous until the company learnt how to adapt products and
marketing style to Japanese culture. P & G which entered the Japanese market in 1973 lost
money until 1987, but by 1991 it became its second largest foreign market.’’
P & G acclaimed as ``the world’s most admired marketing machine’’, entered India,
which has been considered as one of the largest emerging markets, in 1985. It entered the
Indian detergent marketing the early nineties with the Ariel brand through P & G India (in
which it had a 51 percent holding which was raised 65 per cent in January 1993, the
remaining 35 per cent being hold by the public). P & G established P & G Home products, a
100 per cent subsidiary later (1993) and the Ariel was transferred to it. Besides soaps and
detergents, P & G had or introduced later product portfolios like shampoos (Pantene)
medical products (Viks range, Clearasil and Mediker) and personal products (Whisper
feminine hygiene products, pampers diapers and old spice range of men’s toiletries).
The Indian detergent and personal care products market was dominated by Hindustan
Lever Ltd. (HLL). In some segments of the personal care products market the multinational
Johnson & Johnson has had a strong presence. Tata group’s Tomco, which had been in the
red for some time, was sold to Hindustan Lever Ltd. (HLL). HLL, a subsidiary of P & G’s
global competitor, has been in India for about a century. The take over of Tomco by HLL
further increased its market dominance. In the low priced detergents segment Nirma has
established a very strong presence.
Over the period of about one and a half decades since its entry in India, P & G
invested several thousand crores. However, dissatisfied with its performance in India, it
decided to restructure its operations, which in several respects meant a shrinking of activities
– the manpower was drastically cut, and thousands of stockists were terminated. P & G,
however holds that, it will continue to invest in India. According to Gary Cofer, the country
manager, ``it takes time to build a business category or brand in India. It is possibly an even
more demanding geography than others.’’
China, on the other hand, with business worth several times than in India in less than
12 years, has emerged as a highly promising market for P & G. when the Chinese market
was opened up, P & G was one of the first MNCS to enter. Prior to the liberalisation,
Chinese consumers had to content with shoddy products manufactured by government
companies. Per capita income of China is substantially higher than India’s and the Chinese
economy was growing faster than the Indian. Further, the success of the single child concept
in China means higher disposable income.
Further it is also pointed out that for a global company like P & G, understanding
Chinese culture was far easier since the expat Chinese in the US was not very different from
those back home where as most Indian expats tended to adapt far more to the cultural
nuances of the immigrant country.
One of P & G’s big in India was the compact technology premium detergent brand
Ariel. After an initial show, Ariel, however, failed to generate enough sales – consumers
seem to have gone by the per kilo cost than the cost per wash propagated by the promotion.
To start with, P & G had to import the expensive state-of-the-art ingredients, which attracted
heavy customs duties. The company estimated that it would cost Rs. 60 per kilo for Ariel
compared to Rs. 27 for Surf and Rs. 8 for Nirma. Because of the Rupee devaluation of the
early 1990s, the test market price of Rs. 35 for 500 gms was soon Rs. 41 by the time the
product was launched. HLL fought Ariel back with premium variants of Surf like Surf Excel.
It is pointed out that, ``in hindsight, even P & G managers privately admit that
bringing in the latest compact technology was a big blunder. In the eighties, P & G had taken
a huge beating in one of its most profitable markets, Japan, at the hands of local company
Kao. Knowing the Japanese consumer’s fondness for small things, Kao weaved magic with
its new-found compact technology. For a company that prided itself on technology, the
drubbing in Japan was particularly painful. It was, therefore, decided that compacts would
now be the lead brand for the entire Asia-Pacific region. When P & G launched Ariel in
India, it hoped that the Indian consumer would devise the appropriate benchmarks to
evaluate Ariel. As compacts promised economy of sue, P & G hoped that consumers would
buy into the low-cost-per-wash story. But selling that story through advertising was
particularly difficult, especially sine Indian consumers believed that the washing wasn’t over
unless the bar had been used for scrubbing. Even though Ariel was targeted at consumer with
high disposable income, who represented half the urban population, consumers simply

26. baulked at the outlay.
Thereafter, one thing led to another. Ariel’s strategy of introducing variants was a
smart move to flank Lever at every price point by cleverly using the brand’s halo effect. And
by supporting the brand in mass media and retaining the share of voice. By 1996, it had
become clear that Ariel’s equity as a high-performance detergent had begun to take a
beating. Its equity as a top-of-the-line detergent was getting eroded….Nowhere in P & G’s
history had a concept like Super Soaker been used to gain volumes…. It was decided that
Super Soaker would no longer be supported, nor would Ariel bar be supported in media.
QUESTIONS
1. Discuss the reasons for the initial failure of P & G in Japan.
2. Where did P & G go wrong (if it did) in the evaluation of the Indian market
and its strategy?
3. Discuss the reasons for the difference in the performance of P & G in India and
China.
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27. BUSINESS PLANNING & POLICY MANAGEMENT
Q1) XYZ Ltd. Wishes to adopt the cost-leadership business strategy for one of its SBUs. How
should it ensure operational effectiveness in terms of productivity, processes, people and pace?
If, after 1 year, the company wishes to change over to a differentiation business strategy,
identify the changes it should bring in its approach to attain operational effectiveness.
(10 marks)
Q2) Take an example of any service institution of your choice (example: hospital) and suggest how
operational control will work in such an institution. (10 marks)
Q3) Discuss the importance of strategic changes for the following organizational systems (a)
Information, (b) Control, (c) Appraisal, (d) Motivation, (e) Development and (f) Planning
(10 marks)
Q4) Take an example of an Indian company. What steps should it undertake for resource allocation
for implementing its strategies? What difficulties could be expected while doing so and how can
they be dealt with? (10 marks)
Q5) In what way is the concept of life cycle and SWOT analysis helpful in making strategic choice
at the business level? (10 marks)
Q6) Explain why business policy is a capstone, integrative course. How can an understanding of
business policy help in a career choice? (10 marks)
Q7) Explain the meaning of strategic management in your own words. Identify the roles that CEOs
play in strategic management. (10 marks)
Q8) Describe the essential characteristics of a mission statement. In what different ways can a
mission statement be formulated? (10 marks)
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
Q9) Explain the technique of ‘balanced scorecard’.
OR
Q9) Explain the term ‘corporate restructuring’. (10 marks)
Q10) Explain the following terms: (10 marks)
1) Cost leadership
2) Differentiation
3) Focus
BUSINESS ETHICS

28. Q1) What is Ethical Analysis and discuss its Application: in Corporate Decision
Making? (10 Marks)
Q2) Define Corporate Ethical Leadership and discuss its nature and features? (10 Marks)
Q3) What is Corporate Social Responsibility? Explain its characteristics? (10 Marks)
Q4) Enumerate and explain the Ethical Implications of Technology? (10 Marks)
Q5) Write short notes (any two) (10 Marks)
a) Ethical Analysis and its Application in Personal Decision Making.
b) Corporate Culture
c) Reputation Management.
Q6) Explain the following concept (any two) (10 Marks)
a) Social Reporting.
b) Ethics in Finance Accountancy.
c) Values in the Employment Relationship.
Q7) Define Ethics. Discuss the relation of Ethics and Human Resources Management? (10 Marks)
Q8) What is the role of Ethics in Marketing? (10 Marks)
CLINICAL PHARMACOLOGY
CASE STUDY: 1
Rancip co. wants to discover and develop a new drug costs $ 800-1000 million and takes
longer than 12 years. Clinical development the most important step prior to a drug entering
the market takes 7 years. Each day’s delay in completing the drug development and
launching the product in the market means a revenue loss of $ 1 million. So they appoint
Mr. Kate as a project mager and the company expects the company expects the project
management techniques to reduce this increasing cost and time pressure.
Questions:-
Q.1) What are the important responsibilities of Mr. Kate?
Q.2) What are the different stages Mr. Kate will use in the Process to set up the project and
run it?
Q.3) On what elements will Mr. Kate focus?
Q.4) What are your Suggestions?
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
2
CASE STUDY: 2
IPTA lab discovered one drug on white cells and the company wants a clinical trial which
is properly planned and executed for assessing the effectiveness of intervention, company
appoints Mr. Simpson as a planner for above because company knows careful planning is
required before the collection of data begins for conducting successful clinical research.
Now Mr. Simpson appoints two investigators who knows the planning process and to
recognize the difficulty encountered in studies with human subjects and planning any
clinical trial and attempt to estimate the magnitude of participant’s failure to protocol
compliance.
Questions:-
Q.1) What is a clinical trial?
Q.2) What is the process of designing and carrying out clinical research?
Q.3) Explain the Planning Steps of Mr. Simpson.
Q.4) What are the important considerations to conduct of any type of clinical trial?
3
CASE STUDY: 3
Dr. Reddy is a leading pharma company; they discover lot of new products or drugs in
last 20 years. Over the years it has become more and more necessary to have
multidisciplinary specialist approach in planning & Conducting clinical trials. The team
conducting the clinical trial usually consist of the principal investigators, the company
investigators and the clinical research associates (CRAS). The clinical Research Coordinators

29. (CRC’S) because Dr. Reddy knows the CRC and CRA are like the two pillars of
any critical trial and they are the key members who ensure that the data is obtained faster
and is clean.
Questions:-
Q.1) Define CRC
Q.2) Define CRA
Q.3) Who can be appointed as a CRC/CRA?
Q.4) Elaborate the responsibilities of the CRC and CRA?
4
CASE STUDY: 4
Fraud and misconduct in clinical research has received intense attention in medical field,
literature and media in the recent years.
Dr. Rajesh was working with Damur India Limited as a chief nutritionist. He started
working on the project of effectiveness of multivitamin in improving cognitive dysfunction
in elderly patients. In 2006, he allegedly produced fraudulent data on the effectiveness of
multivitamin in improving cognitive dysfunction in elderly patients.
Suspicion of the data presented arose because of values that were abnormal and a full
investigation uncovered the fact that the data was concoted. The company came to know
about this when they appointed Dr. Kunte to investigate the effectiveness of research done
by Mr. Rajesh.
The investigation study nurse testified before the committee enquiring into the matter. A
full investigation of his previous publications appeared to prove that he has a long record of
similar fabrication and falsifications. Company asked Dr. Rajesh to resign.
Questions:-
Q.1) What is the definition of fraud and misconduct in clinical research?
Q.2) According to you what are the steps and procedures adopted by Mr. Kunte to
investigate fraud?
Q.3) What are the penalties you can suggest to Dr. Kunte for proven fraud and
misconduct?
Clinical Research
A) While understanding headache what are the sensitive to mechanical stimulations? Explain
Migraine & Tension headaches. State the Limitations of symptoms?
B) What are the reasons of the use of animals for clinical research? How the Guinea Pigs, Mice &
albino rats, the hamster, rabbits & dogs are useful in clinical research?
C) What are the purpose of Laboratory tests carried out or employ by a clinicians?
D) What are the diagnostic errors? State the role or ancillary examinations?
E) How are new therapies introduced? What are the objectives of therapy?
F) Write as short note on : ( Any 2 ) Mammography
Electronic Foetal Monitoring Tonsillectomy
G) In obtaining a medical history from a patient the clinician should posses some qualities. Explain
them in details.
H) Human Nutrition needs or essential minerals name them & explain the importance of each?
COST & MANAGEMENT ACCOUNTING

30. CASE STUDY : 1
J P Ltd manufacturers of a special product, follows the policy of EOQ for one of its components. The
components’s details are as follows.
Purchase price per component, Rs 200
Cost of an order Rs 100
Annual cost of carrying one unit in inventory,
10 per cent of purchase price
Annual usage of components, 4000
The company has been offered a discount of 2 per cent on the price of the component provided the lot size is
2000 components at a time.
Q1) You are required to compute the EOQ?
Q2) Advise whether the quantity discount offer can be accepted (assume that the inventory carrying cost
does not vary according to discount policy).
Q3) Would your advise differ if the company is offered 5 per cent discount on a single order?
Q4) Explain the term EOQ?
CASE STUDY : 2
In an engineering concern, the employees are paid incentive bonus in addition to their normal wages at
hourly rates. Incentive bonus is calculated in proportion of time taken to time allowed, of the time saved.
The following details are made available in respect of employees X, Y & Z for a particular week.
X Y Z
Normal Wages (Per hour) (Rs) 4 5 6
Completed units of Production 6000 3000 4800
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
Time allowed per 100 Units
(hour)
0.8 1.5 1.0
Actual time taken (hours) 42 40 48
Q1) You are required to work out for each employee the amount of bonus earned?
Q2) Explain the term incentive?
Q3) You are required to work out for each employee the total amount of wages received?
Q4) You are required to work out for each employee the total wages cost per 100 units of output?
CASE STUDY : 3
Following particulars have been extracted from the books of Supreme Engineers Ltd.
Time allowed for the job (hours) 15 15 15
Time take (hours) 15 12 9
Bonus ratio for Halsey (per cent) 50
Rate per Hour Rs. 2
Q1) You are required to compute the quantum of wages under Halsey Scheme and Rowon Scheme?
Q2) Which of these schemes would you like to introduce in this company if the time taken to complete the
job is likely to reduce to 6 hours after three months.
Q3) An alternative method of payment by results by a straight piece work rate for completion of the job in 7
hours is feasible. Would you like to switch over to this method of payment given further that hourly rate
would be reckoned at Rs 1.50 for fixation of the price rate?
Q4) Give reasons for your advice?
CASE STUDY : 4
The soft flow Ink Ltd’s income statement for the preceding year is presented below. Expect as noted the cost
/ revenue relationship for the coming year is expected to follow the same pattern as in the preceding year.
Income statement for the year ending March 31 is as follows.
Rs. Rs.
Sales (2,00,000 bottles @ Rs 2.5
paise each)
5,00,000
Variable Costs 3,00,000
Fixed Costs 1,00,000 4,00,000
Pre-Tax Profit 1,00,000
Less : Taxes 35,000
Profit After Tax 65,000
Q1) What is the break-even point in account and units?

31. Q2) Suppose that a plant expansion will add Rs 50,000 to fixed costs and increase capacity by 60 per cent.
How many bottles would have to be sold after the addition to break even?
Q3) At what level of sales will the company be able to maintain its present pre-tax profit provision even
after expansion?
Q4) Suppose the plant operates at full capacity after the expansion, what profit will be earned?
CONSUMER BEHAVIOR
CASE 1 (20 Marks)
Sports marketing strategy: A consumer behavior case analysis in China. Marketing research that
targets consumers' influences and financial implications is a worthwhile sports marketing effort. To
implement effective marketing strategies in a specific country, it is pertinent to understand consumer
behavior in that country. In this paper, 11 major findings related to the unique behavior, attitudes, and
buying patterns of Chinese sports consumers are highlighted. From the results of questionnaires
administered to 2,155 mainland Chinese consumers in 10 selected cities, different economic, social,
and personal factors in the China's environment are determined. The marketing implications of the
Chinese culture and lifestyle are also discussed.
With a quarter of the world's population and a fast-growing economy, China is rapidly turning into
one of the busiest market centers in the world. Sports marketing has the potential to emerge not only
as an effective vehicle in imitating the development of the Chinese economy, it also affects the
Chinese culture and lifestyle.
Since sports marketing in China has not been analyzed or researched, it is appropriate to study the
consumer as well as general financial implications. A look at American success in sports marketing
will be helpful. However, implementing such strategies in China creates special considerations
because of the existence of cultural and economic differences between the two countries. This study
attempts to identify the proper marketing strategies in China through an analysis of Chinese
consumers' behavior, attitudes, and buying patterns.
METHODOLOGY
The methodology used in this study consisted of exploratory research of interviewing managers of
retail outlets, secondary research of literature review, and primary research of a total of 4,000
questionnaires distributed in 10 selected cities (Beijing, Chendu, Guangzhou, Nanjing, Qindao,
Shanghai, Shenzhen, Tianjin, Xian, and Xiamen) in China. Questionnaires were administered to a
judgmental quota sample and assigned to one of four age groups with equal males and females. The
rate of response was 53.9%; 2,155 questionnaires were returned.
The analysis of the data include editing, coding, analyzing coded observations, and interpreting
results for solutions to the research problems. Tabulations and measures of central tendency were
used to describe the distribution of characteristics in the subject population. Crosstabulation and chi
square statistics were also used to show relationships between consumer segments.
SURVEY FINDINGS
Eleven major factors affecting consumer purchasing emerged from the questionnaire data analysis: 1.
purchasing reasons; 2. purchasing experience evaluation; 3. income level relative to the expense
level; 4. type of sporting goods purchased; 5. product factors affecting purchasing; 6. people
influencing consumer purchasing; 7. sources of information about where and how to purchase;8.
influence of advertisements; 9. brands consumers prefer; 10. where goods purchased; and 11. time
spent in sports.
Purchasing Reasons: The major reason why people purchased sports products was "for exercise."
Purchasing Experience Evaluation: Approximately half of the respondents indicated that their
purchasing experience was "positive."
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Income Level Relative to the Expenses Level: The Chinese consumers' income levels range from less
than $173 U.S. per year to over $863 U.S. a year. The middle income level accounted for 72% of the
respondents.
However, most respondents indicated they spent "less than $40 U.S. per year" on the purchase of
sporting goods.
Type of Sporting Goods Purchased: "Shoes" were the No. 1 favorite type of sporting goods for
Chinese consumers. Females tended to purchase apparel; males were more likely to purchase all type

32. of sporting goods.
Product Factors Affecting Purchasing: "Quality," "style," and "price" were the three most important
factors influencing purchasing decisions. People Influencing Consumer.
Purchasing: "Boy-and-girlfriend" had the most important influence in the decision process. "Parents"
had the least important influence.
Sources of Information About Where and How to Purchase: The major information channel for
Chinese consumers was their "going to a shopping mall" experience.
Influence of Advertisements: Of those responding to the survey, more than half said they either
"occasionally" or "rarely" believe advertisements.
Brands Consumers Prefer: Adidas, Asics, Nike, and Reebok were identified by the Chinese
consumers.
Where Goods Purchased: Most of those surveyed purchased their sporting goods from either "a
sporting goods store" or "a department store."
Time Spent in Sports Activities: Almost 90% of the Chinese consumers spent "less than 5 hours a
week" participating in sports activities. However, three meaningful findings emerged: 1) those who
participated "less than 5 hours per week" in sports activities spent more money purchasing sports
products than those who participated "over 5 hours" per week in sports activities; 2) those in the
income level of "$402 to $863 U.S." spent more time participating in sports activities; 3) young
adults and "unmarried" persons spent more time per week participating in activities than those who
were "married" or elderly.
DISCUSSION ON CONSUMER INFLUENCES
The following discussion focuses on economic, social, and personal influences. These three
categories have unique Chinese environmental and cultural meanings and thus need to be considered
when engaging in marketing in China.
Economic Factors: Unlike the past, when most income was spent on basic necessities such as food
and clothing, the current Chinese consumer spends more money on entertainment and durable goods.
However, the general tendency of the Chinese consumer to have stronger purchasing power and the
fact that their buying decisions reflect creative purchasing beyond bare necessities are not reflected in
sports marketing. It could be concluded that not all Chinese consumers are willing to spend a certain
percent of their income on sports products. This phenomenon can be explained either by consumers'
lack of sufficient income or too high a price for sports products. On the other hand, however, a great
potential exits for marketers who appeal to the Chinese consumers with creative strategies. Those
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who know desires and needs in specific areas, while being sensitive to economic restraints, may
capture a slumbering Chinese market.
Social and Culture Factors: With the implementation of an "open-door policy" in China, the lifestyle
of the Chinese people changes constantly. Several social and cultural trends may stimulate marketers
to be optimistic about Chinese consumers.
The most important trend is growing fitness consciousness. No matter the gender, age,
occupation, and education of those surveyed, all tend to tie their purchase of sports products
with exercise and entertainment.
A second trend the survey revealed is a movement toward use of sports products for casual
reasons. Chinese consumers are embracing a more casual and health-conscious lifestyle.
There is a growing consumer preference for international products. The Chinese people,
especially the younger generation, are very fond of wearing and using brand name sporting
goods from around the world. Owning high grade sporting goods seems to be a symbol of
wealth and a new fashion for those young consumers.
The social and culture trends just discussed will lead to different pricing, promotional, and
distributional strategies. Since marketing principles are applicable throughout the international arena,
what has proved successful in the American market could basically be transferred and applied to the
China market.
However, to implement a successful marketing strategy in China, several environmental differences
must be taken into account:
1) "Shopping on Sundays" is a hobby for Chinese consumers. Marketers should create an
attractive shopping environment in a prestigious shopping center.
2) Chinese consumers believe what they see rather than what they hear. They know that some

33. imitation products exist in the market, and dishonesty in advertising is publicized. Marketers
should increase their image by eliminating imitation products and dishonesty advertising.
3) Although consumers' attitudes toward the international sports products are positive, devotion
or loyalty to brands is subject to rapid change. Marketers should have a strategy to keep
consumers' loyalty.
4) Non athletes have greater purchasing power than most athletes or sportspersons. Nonathletes
buy sporting goods either to impress others or simply because their friends have those items.
Marketers should consider how to design sports product with attractive sports features.
5) The type of sporting goods desired by the older and younger generations is widely dissimilar.
And a large gap exists between the desire to purchase and the ability to purchase sporting
goods. It causes problems of bringing the right products to the right person and establishing
an appropriate price policy.
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6) The purchasing decision of Chinese consumers is heavily influenced by social values and the
social environment. Marketers should establish an educational program to either match or
lead a social value.
Personal Factors: Because of recent social changes, Chinese consumers have learned much from
other cultures. They are more independent and more knowledgeable about commerce and business.
There are at least three particular changes which may create opportunities for marketers:
1) The nuclear family has become the baic economic unit, and it has more power to make
purchasing decisions. With the implementation of the "one child per family" policy in China,
the nuclear family, consisting of parents with one child, has replaced the traditional clan
family which consisted of two or more generations living as one family.
2) Chinese wives are viewed as decision makers for goods purchased in families. Since wives
control family finances, it is important to target wives.
3) Individuals who live in the urban locations have stronger purchasing power. The Chinese
government predicts that by the end of 1995, people in large urban areas will increase to
30% of the population. This modernization movement will undoubtedly create business
opportunities.
Questions
Discuss the various factor which influences consumer behavior in china?
What should be the target market and what can be the marketing strategy?
CASE - 2 (20 Marks)
Consumer behavior: yesterday, today, and tomorrow
THE ECONOMIC PARADIGM
The 1940s view of the consumer in the marketplace was rooted in economic theory. Most scholars of
economics probably still hold to the theory of Economic Man. In this paradigm, purchasing decisions
are the result of largely "rational" and conscious economic calculations. The individual buyer seeks to
spend his income on those goods that will deliver the most utility (satisfaction) according to his tastes
and relative prices. This is a normative rather than a descriptive model of behavior, because logical
norms are provided for buyers who want to be "rational."
The model suggests useful behavioral hypotheses, such as: (a) the lower the price of the product, the
higher the sales; (b) the lower the price of substitute products, the lower their sales; (c) the lower the
price of complementary products, the higher their sales, provided they are not "inferior" goods; and
(d) the higher the promotional expenditures the higher the sales. In striving to meet these hypotheses,
consumers are not only assumed to be aware of all available alternatives in the marketplace; they are
also assumed to be able to rationally rank order the available alternatives by preferences. This is the
case of perfect information in the marketplace and unlimited ability of tile consumer.
In applying these assumptions to actual consumption, several problems became apparent. First of all,
consumers do not have perfect information in the marketplace. Second, they do not all have the same
information about the existing alternatives or attributes of known alternatives. instead, each consumer
has fragmented knowledge of his or her own set of known alternatives; as a result, consumers can not
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always rank a set of alternatives available to them. In addition, preferences often violate utility
theory, because different people prefer different styles, have different tastes, and hence make choices
built on preferences rather than objective information such as price.
Problems arise with applying economic theories to gifts. Increasing the price of goods may actually
make them more desirable, defying basic economic theory. Hence, inverted demand curves reflect

34. products where increasing prices stimulate increasing sales. Perfume is a perfect example of this type
of good. Most perfume or cologne is bought as a gift, and the connotations of bringing home a $2
bottle of cologne or a $50 bottle for a loved one are implicit. A relationship may not last upon receipt
of the cheaper good. Hence the economic model ignores the fundamental question of how product
and brand preferences are formed.
THE IRRATIONAL CONSUMER
After becoming aware that goods have "hidden meaning," scholars of consumer behavior in the
1950s took to the notion of the consumer as an irrational, impulsive decision maker. Consumers were
seen as passive, open, and vulnerable to external influences. This position was an obvious reaction to
the "economic man" and also represented a time when business schools were developing. Earlier,
faculty trained in economics were the first to be hired, but in the 1950s psychologists were added to
the payroll. Their insights from Freud to Maslow, from personality to motivation theory, seemed ever
so relevant to our study of the consumer.
The two major psychological theories underlying this era were the Pavlovian learning model and the
Freudian psychoanalytic model. The Pavlovian model is based on four central concepts-those of
drive, cue, response, and reinforcement. Drive or motives can be primary, such as hunger and sex, or
secondary, such as fear. A drive is very general and impels a particular response only in relation to a
particular configuration of cues. The Pavlovian model emphasizes the desirability of repetition in
advertising. Repetition fights the tendency for learned responses to weaken in the absence of practice
and provides reinforcement.
The model also provides guidelines for copy strategy. To be effective as a cue, an advertisement must
arouse strong drives in the person. For candy bars, it may be hunger; for safety belts, fear; for hair
tonics, sex; for automobiles, status.
In the Freudian psychoanalytic model, the guilt or shame man feels toward his sexual urges causes
him to repress them from his consciousness. Through rationalization and sublimation, these urges are
denied or become transmuted into socially approved expressions. These urges are never eliminated or
under perfect control and they emerge in dreams, in slips of the tongue, or in neurotic or obsessive
behavior.
Because of these urges, the consumer's motivations for behavior are not obvious or deeply
understood. As a result, Freudian psychology gave consumer behavior the tool of in-depth
interviewing to get at the motives and symbols behind a purchase. If a consumer is asked why lie
purchased an expensive foreign sports car, he may reply that he likes its maneuverability and its
looks. At a deeper level he may have purchased the car to impress others, or to feel young again. At a
still deeper level, lie may be purchasing the sports car to achieve substitute gratification for
unsatisfied sexual strivings.
Other Freudian consumer research findings included men wanting their cigars to be odoriferous to
prove they were masculine, and women being very serious when baking cakes because unconsciously
they were going through the symbolic act of birth. These theories were certainly more interesting
reading than the graphs and curves of economics.
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One major study of this era (Haire 1950) found that when a shopping list included instant coffee
rather than drip grind, the owner of the list was perceived to be a very different person. The owner of
the list with instant coffee was lazy, a poor planner, a spendthrift, and a bad wife. Meanwhile, the
owner of the list with drip coffee was perceived to be thrifty and a good wife. Fortunately a
replication of this study was done in 1970 and housewives were no longer judged by their coffee
(Wilkie 1986). However, Haire's study provided good insight to the fact that products have meaning
and significance that go far beyond the physical attributes of the products themselves. Furthermore,
these hidden values were thought to be a major influence on consumer decisions. To tap into the
consumers' hidden motives for purchase, more indirect methods of data gathering were necessary.
Toward the end of the 1950s an empirical article started to throw doubt on the heavy reliance on
psychological perspectives. A study by Evans (1959) sought to determine the personality
characteristics of Ford versus Chevrolet owners. In the 1950s these were the major automobile
manufacturers. Wider choice and Japanese imports did not exist. If the differences between the cars
were not major, the train of thought was that the personality of the owner must be significantly
different and motivate the consumer to buy one brand or the other. A carefully controlled survey of
personality characteristics of 1,600 owners of Fords and Chevrolets showed no major significant
differences in personality characteristics of the car owners. The importance of this line of behavioral
research to consumer products was questioned. By this time, in the early and mid-1960s, business

35. schools were producing their own scholars and faculty. Researchers were trained by business schools
rather than only economics and psychology departments. Researchers of consumer behavior gained
from this marriage of economics and psychology and began to develop their own theories of the
consumer.
THE PROBLEM SOLVER
In the 1960s John Kennedy became president of the United States and gave the consumer elevated
status. In his message to Congress on March 15, 1962, he put forth the Consumer Bill of Rights
(1963) as a social contract between business and society. Government was tile ultimate guarantor of
these rights, which included the right to safety, the right to be informed, the right to choose, and the
right to be heard (redress). The government took Kennedy seriously and began an activist role
The marketplace was becoming more diversified. The concept of market segmentation became even
more important. Goods that the consumer ted were now being produced, rather than just the goods
the manufacturer wanted to make. Choice prevailed for the consumer, and the consumer was
recognized by the highest official in the country. Consumers had the right to he informed and
protected.
The government poured millions of dollars into departments whose goal was to make sure the
consumer had access to information. The Federal Trade Commission flourished. Labels were put on
products listing all ingredients. Advertising was regulated and measured; if it was misleading, then
corrective advertising was necessary. Information was in great supply to the consumer. Ralph Nader,
with his book Unsafe At Any Speed, emerged as the hero of the 1970s, taking on corporate giants in
the name of the little man. Consumerism was everywhere.
As a result of this environment, consumer behavior researchers started to see the consumer as a
"cognitive man." The irrational psychotic purchaser of the 1950s and early 1960s was left behind.
The consumer was now a problem solver. He or she was receptive to products or services that
consciously met his or her needs. Consumers were thought to actively search for information about
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the products and services they bought. Consumer Reports was born. Consumers were seen as striving
to make the best decisions possible given their limitations.
However, consumer researchers told us that even though consumers are given information, they often
fail to use it to make decisions. In an initial experiment (Jacoby, Speller, and Kohn 1974) and a
follow-up (Scammon 1975), consumers were given objective product information concerning several
brands available in the marketplace. The results of the first study showed that consumers felt better
about their brand selections with more information, but actually made poorer choices. The study by
Scammon corrected for weaknesses in the original study but still found that recall of product
attributes decreased with increasing information. Consumers were still limited by the extent of their
knowledge about the marketplace and their capacity to store information about the marketplace in
short-term memory. Miller's (1956) rule of seven plus or minus two) pieces of information as
cognitive capacity held for the consumer.
The information in the marketplace was not organized for the ease of the consumer. Unit pricing was
fine, but comparing prices across brands and sizes for products was quite a challenge. Only when unit
prices were posted on one sheet in a simple linear manner by decreasing prices across all sizes and
brands did the consumers shift in their decision making toward lower-priced brands. You can imagine
the national brand manufacturer's enthusiasm toward presentation of this information at point of
purchase.
The overriding conclusion of consumer research in the 1970s was that people can only attend to
limited information at one point in time. The consumers' existing skills, habits, reflexes, values, and
goals shape the way they search and use information to make their decisions. The 1970s told us that
consumers' skills were limited, but at the same time the number of choices available to the consumer
kept increasing. More and more choices became available in the 1980s.
THE COGNITIVE MISER
Today's consumer uses decision-making skills originally developed in the 1970s, but the 1980s
consumer went farther than just recognizing man's cognitive limitations. Researchers have labelled
the low-involvement decision maker (or cognitive miser) as unable or unwilling to engage in
extensive decision-making activities in many cases and settle instead for "satisfactory" decisions
(Olshavsky and Granbois 1979). There is too much choice and not enough discretionary time to
engage in extended cognitive effort for purchases. Instead the consumer develops rules of thumb or
heuristics to simplify purchase behavior. An in-store study showed that consumers go through almost
no brand price comparison behavior (Hoyer 1984). Rules such as "buy the cheapest," "buy name

36. brands," or "buy what my friend bought" give the consumer a satisfactory choice in the marketplace
that supplants an optimal choice. This is a very adaptive and rational course for the consumer to have
taken in the 1980s, given the cluttered choice environment with little time for decision making and
virtually no support in information handling. The cost of thinking was recognized as a limiting factor
in processing choices.
The 1980s brought a focus on business and conservatism, and many came to feel that governmental
regulation was more of a hindrance than a help. This was expressed in the election of Ronald Reagan.
As quickly as Kennedy had made the consumer important, Reagan made him unimportant. With
strokes of a pen, the FTC experienced a sharp reduction in its budget and influence. Whole
departments set up by the government to service the consumer were abandoned. Consumer programs
developed for the 1970s folded.
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The 1980s were for business. This focus was a result of several factors. First, the "baby boomer
bulge" had a greater number of people for a smaller number of jobs. In the early 1970s a college
graduate decided what job to take, or perhaps a trip to Europe, then work. In the early 1980s the
concern was for getting any job at all. The economy was slow and competition was stiff. Business
looked to the MBA to turn companies around. The student was serious and conservative due to the
competitive environment. Business and engineering were in; the humanities were out. The
marketplace became more competitive, more diversified. Deregulation prevailed.
Too many goods cluttered too many store shelves for the consumer. For example, the average number
of products in supermarkets soared from 13,000 in 1981 to 21,000 in 1987. There are said to he 400
different brands of beer available to the American beer drinker. A new car purchaser might have 300
different types of cars and light trucks, domestic and imported, to choose from.
Along with the "over choice" and market diversity of the 1980s came decreased leisure time for the
consumer, not more leisure time as predicted in the 1940s. The number of free hours a person
possesses decreased from four to one since the 1970s. The reason for this is that the average time
spent at work has increased seven to eight hours a week since 1978 (Stern 1987). More than 50
percent of all women are working, so household duties are done after 6 p.m. or on weekends. Single
working mothers have virtually no free time and can't take care of all they want to do. This scenario
has led to a demand for convenience products and convenience shopping. Home catalogs, home TV
shopping, home computer shopping, and home shopping parties are part of this easier access to goods
that will prevail in the 1990s. The efficiency of in-home shopping, especially through direct
marketing, is exemplified by the fact that American Express sold 7 percent of all the luggage bought
in the U.S. by sending mailings to affluent cardholders whose charge records showed they spent
heavily on travel-related merchandise.
This the cognitive miser of the 1980s is a product of decreased time for shopping decisions and
increased choice in the marketplace. It is an adaptive strategy to suit the decision-making
environment.
THE COLLECTIVE BUYER OF THE 1990s
The focus on individual decision processes for personal purchase of products and services will be
replaced by a more collective decision-making style during the 1990s. This will be caused by the
changing cultural patterns of North America combined with the decrease in purchasing power of the
individual consumer. The culture of North America is changing due to: (1) the rapid increase in the
percent of elderly people who are neither healthy nor wealthy; (2) the aging of the baby boomers,
causing a shift in values and needs; and (3) increased immigration from Asian cultures with high
birth rates to offset the North American decline in population. All three categories of this cultural
shift will have to rely on joint decisions for purchase of goods and services, since goods and services
will be shifting to a collective consumption style rather than individual consumption in the North
American marketplace.
Individuals will combine households in an increasing rate to make life more affordable. The evidence
that this joint living may be a trend for the future is exemplified by the fact that 6.2 percent of all
employed people are working two jobs, mainly to meet living expenses. When the economy turns
down these extra jobs will not be available, and people will have to decrease their standard of living
to meet day-to-day expenses. More unmarried people will share apartments, more single-parent
families will couple up, and more children will live at home longer. Thus, more people will be
sharing consumer goods just due to living arrangements. Also, through the changing face of North
American consumers, the marketplace will continue to change and supply more and more services for
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37. these groups. The changing face of the consumer will alter the marketplace and the mode of decision
making.
Much has been written about the marketing opportunities for the senior segment. Right now
approximately 7.3 percent of the population is over 65. By the year 2000, this group will increase by
20 percent, making it the fastest-growing segment of our population. This is one reason why
marketers focus on the elderly. However, this group is not all that wealthy or all that healthy. It is
estimated that 80 percent of people over 65 have chronic health problems, and 16 percent have severe
physical problems. One in five Americans over the age of 85 resides in a nursing home.
The Baby Boomers
A full one-third of the population is bulging at middle age. In the year 2000 they will be 36 to 54
years old and at the middle of peak earnings. They are important to our view of consumer behavior
because they will head 44 percent of all households and still account for a majority of purchasing
power. Due to the conflicting structure of the population versus the corporate culture, there will be
less moving around among this group, and they will be more stable in their jobs. Hence, their values
and attitudes will change dramatically to reflect this stability. The collective decision-making style
will be based on their stable environment.
Questions
Discuss as to how the consumer behavior has evolved post 1950?
CASE - 3 (20 Marks)
Consumer behaviour: Men still major decision-makers
In India, men continue to dominate.
Even today, only 16 per cent of Indian professionals are women. Therefore, consumer decisionmaking
in all areas -- ranging from what cars to buy to what clothes manufacturers to patronize -- is
dictated by men when it comes to the most upscale market segment in India.
'Horizon 2003', a study by BBC World, BBC's 24-hour international news and information channel,
using the latest census as a base, gives some startling insights into the attitudes and activities of
India's leading consumers and decision makers.
The research, conducted by market research agency NFO-MBL across six top metros and profiling
380,000 people, will greatly help media planners, agencies and advertisers to understand this
particular horizon professional.
Life insurance was found to be the biggest financial investment for most Indians, followed by the
stock markets.
Washing machines were the most desirable consumer durable products, followed by cars and desktop
computers.
Forty-two per cent of the respondents owned a mobile phone, of which 52 per cent had a Nokia, and
42 per cent of these subscribed to AirTel cellular service.
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For example, more than half of the people surveyed (56 per cent) felt that it was all right to give or
take bribes to get their work done. A slightly smaller number (40 per cent) thought it perfectly
acceptable 'to make money through underhand means/deals.'
Who decides
Self Spouse Joint Family Elders Children
Buying a house 25% 5.8% 20.8% 30.1% 14% 0.4%
Child's marriage 7.7% 5.9% 21.8% 18.7% 11.5% 4%
Own marriage 20.4% 2.5% 6.2% 22.4% 29.7% 0.9%
Child's education 15.1% 6.6% 34% 12.5% 5.6% 4.6%
Taking a loan 31.4% 5% 24.3% 18.1% 9.2% 0.6%
Fixing monthly budget 24.2% 10.3% 33.3% 18.5% 11.2% 0.6%
Buying entertainment durables, like TVs 21.4% 8.2% 33.4% 26.7% 7.4% 1.6%
Buying durables like washing machines 19.3% 10.7% 33.3% 26.2% 8.2% 1%
Deciding on holiday destinations 20.6% 6.1% 28.4% 31.8% 4.5% 5.6%
"It is very difficult to survey this group by using traditional methods," says Jeremy Nye, BBC
World's head of research, in the study. "However, it is important to know the tastes of these
professionals who will be shaping India's destiny."
Adds Dezma De Melo, research manager, BBC World: "All the individuals in this class are rather
alike. They have similar opinions, attitudes and beliefs."
The study showed the emergence of certain definite trends in the area of just who decides what. For
example, the person in question seemed to play a major role in deciding the monthly budget or

38. whether to take a loan, but when it came to deciding whom he should marry, it was still the older
people in the family who played a key role.
Both, the husband and the wife jointly decided on issues like the marriage of progeny. In a majority
of cases, the whole family got together to decide what kind of house to buy where to go for a holiday.
Alcohol consumption habits indicated that 25 per cent drank alcohol, of which 72 per cent were beer
drinkers. Most executives drank at bars and pubs, while self-employed professionals drank at friends'
homes. Businessmen preferred parties to have a drink or two at.
The research has an entire section focusing on travellers as a separate target audience. This is the first
time that anyone has studied consumer behaviour in this area in such depth.
The study tries to understand the travelling habits -- such as the mode of transport, kind of holidays,
choice of place and media consumption while travelling -- which will be different from normal
household viewership.
The survey sets forth several interesting findings in this area. Sixty per cent people take a holiday in
India, while 5 per cent take a holiday abroad. Eighteen per cent travel on business within India, while
8 per cent travel on business abroad at least once in a year.
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As for international holidays taken in the last one year, people from Mumbai (30 per cent), Bangalore
(35 per cent) and Hyderabad (26 per cent) preferred travelling to the United States, while 35 per cent
from Kolkata and 41 per cent from Chennai travelled to Singapore.
A quarter of the respondents from Delhi went to Nepal for a holiday.
Among domestic business travellers, Jet Airways (60 per cent) is the preferred airline, followed by
India Airlines (53 per cent) and Sahara Airlines (20 per cent). For domestic leisure travel, Jet
Airways and Indian Airlines enjoy an equal share.
Among international leisure destinations, Singapore is the favourite with 23 per cent respondents,
followed by 22 per cent opting to visit the US. International business travellers prefer the US (24 per
cent) followed by Singapore (23 per cent) and the United Kingdom (13 per cent).
Interestingly, people in the six metros surveyed seemed to show entirely different tastes in watching
television. The average number of channels watched was five and an average of 100 minutes of
television is watched a day, with 30 minutes devoted to news.
News and Sports are the most preferred programme genres, followed by general entertainment.
However, 29 per cent of the respondents in Delhi preferred News channels, while only 14 per cent of
those surveyed in Bangalore preferred News. Bangaloreans prefer watching Sports with a high of 34
per cent.
"We look forward to Horizon 2003 being a tool for advertisers and planners to get a better
understanding of this upscale, influential audience. We have been able to offer better solutions on the
channel to advertisers based on the learning of this upmarket audience," Seema Mohapatra, head of
advertising sales for BBC World, says.
The survey also found that 95 per cent of the professionals were proud to be Indians, while 75 per
cent believed risks are worth taking.
Questions
Q1) With reference to case above ,define the terms below,and justify how they influence
consumer behaviour?
Cultural and Cross-Cultural Influences
Subculture and Social Class
Reference Groups and Family
CASE-4 (20 Marks)
After its successful launch of local classifieds, Admanya, India’s leading consumer internet portal
today announced the launch of a free classifieds matrimony service for its users .Based on user
suggestions and requests, Admanya realized the needs of people in India who are extremely busy yet
believe in the traditional way of matchmaking. With its network across 500 cities in India, this new
functionality of Admanya will also help people from smaller cities in their search for life partners.
Ranjana, a 26 year old software professional from Bangalore says, "Admanya has always been
coming up with surprises. With our busy and hectic schedule this is indeed a welcome surprise for us,
seeking a simple platform for matrimonial alliances."
Mr. Jaydeep Bhattacharjee, the founder and CEO of Admanya says, "People in India have always
been rooted in tradition and religious beliefs. They believe in arranged marriages
rather then romanticized tying of partners. So, we are indeed honoured to extend this free service to

39. our members to make their search for a life partner fast and easy. With no elaborate profiles required
posting a matrimonial ad in Admanya will be simple and hassle-free."
Admanya is not only an online classifieds service that caters to the growing requirements of
communities all over the world but is also a place for product reviews, consumer feedbacks and an
emerging social community. You can find a job, recruit people, sell your car or buy one, rent your
house and do much more through Admanya classifieds.
Questions
Matrimonial classified has moved from newspaper to online
CORPORATE LAW
Q1) Write short notes (any two) (10 Marks)
a) Void Contracts and Void able Contracts
b) Standard Terms and Freedom of Contract
c) Banking Law
d) Negotiable Instruments
Q2) Explain the procedure of Incorporation of Companies, issuance of
Prospectus and Rising of Capital? (10 Marks)
Q3) Explain the law of Contract and discuss the term Offer, Acceptance and
Agreement? (10 Marks)
Q4) Discuss the Fundamental Rights of the Business? (10 Marks)
Q5) Discuss the aims and objectives Indian Sale of Goods Act, 1930?
(10 Marks)
Q6) What is the Intellectual Property Rights Law. Discuss its relevance to
liberalization and Globalization? (10 Marks )
Q7) What is the aims and objectives of the Standards of Weights and
Measures Act, 1976? (10 Marks)
Q8) Discuss in brief the Consumer Protection Act 1986? (10 Marks)
CORPORATE FINANCE MANAGEMENT
Q.1) Give A brief On Optimizing the Corporate Finance Function, The External
Business Environment and Corporate Financial Strategy. The Strategic Logic of High Growth?
Q.2) Explain what is Shareholder Value Maximization?
B) Corporate Valuation
C) Valuation Models: Public Company
D) Valuation Models: Closely held Company
E) Corporate Performance Measurement: Economic Value Added (EVA)
Q.3) Explain Financial Policy with the help of the following points?
B Capital Structure
C Operating Leverage
D Dividend Policy
E Pricing Strategy
F Tax Planning

40. G Optimal Capital Budgeting with real Options
H Mergers and Acquisitions
I Asset-Liability Management: Optimizing the Balance Sheet
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42. Q.4) Give an introduction to Risk Management include the following?
a) Identifying and Estimating Risk Exposure
b) Off-Balance Sheet (OBS) Risks
c) Operational Risk Management
d) Enterprise Wide Risk Management (EWRM)
e) Risk Hedging Strategies
Q.5) what is Financial Reporting, Planning and Control
a) Financial Reporting: GAAP Convergence
b) Business and Financial Planning
c) Treasury Management
d) Financial Control and Audit
e) Optimize amid Changing Operating Conditions
Q.6) Corporate Performance Management: The Balancing act?
a) The Execution Problem
b) The Balanced Scorecard
c) Real-time Financial Systems: Corporate Performance Management (CPM)
d) Integrated Financial Management
Q.7) How do we create and measure shareholder value
creation? Q.8) How do we manage financial risk?
Q.9) In what projects are we going to invest our shareholders money (capex)?
Q.10) Why Profit maximization is not the same as shareholder wealth maximization?
Q.11) What investments should we make?
Q.12) How do you know whether an investment generates value for
shareholders? Q.13) Described Traditional appraisal techniques?
What businesses
actually use Payback
Accounting rate of return
Why internal rate of return is still popular
Q.14) Explain The managerial art of investment selection
o Strategy
o Social context
o Expense

43. o Stifling the entrepreneurial spirit
o Intangible benefits
Q.15) Explain The stages of investment decisions ?
o Generation of ideas
o Development and classification
o Screening
o Appraisal
o Report and authorization
o Implementation
o Post completion audit
Q.16) Explain Allowing for risk
What is risk?
Adjusting for risk through the discount rate
Sensitivity analysis
Scenario analysis
Probability analysis
Standard deviation
What risk techniques do managers actually
Q.17) Explain Value managed companies versus earnings managed companies
The pervasiveness of the value approach
Case studies: FT100 companies creating value and destroying value
Why shareholder value?
Earnings-based management’s failings:
o Dicey accounting o
Throwing money in
o Ignoring the time value of money
o Ignoring risk
ROCE has limitations
Focusing on earnings is not the same as value
How a business creates value
The five actions to create value

44. Q.18 ) Explain Strategic position
Strategic business unit management
Do we have any strong business franchises? Industry attractiveness
The strength of our resources The TRRACK system
The life cycle of value potential Strategic choice
What use is the head office?
Q.19) Explain Value creation within strategic business units
Using cash flow to measure value Shareholder value
analysis
Economic profit
Economic value added (EVA)
Q.20) What is the companies cost of capital?
The required rate of return The cost of equity
capital
o The capital asset pricing model
o Gordon growth model
o The cost of retained earnings Debt capital
Preference shares
The weighted average cost of capital, WACC What the WACC tells you
Applying WACC to strategic business units and projects What do managers actually
do?
Implementation issues
o How large is the equity premium?
o Which risk free rate?
o How reliable are the CAPM and beta? Fundamental beta
Q.21) explain the below Mergers: impulse, regret and success
The merger decision
You say merger, I say acquisition Types of merger
Merger statistics
What drives firms to merge?
o Synergy
o Market power
o Economies of scale
o Internalisation of transactions

45. CORPORATE FINANCE
CASE STUDY : 1
Reliance company has a $ 1,000 face value convertible bond issue that is currently selling in the market for $
950. Each bond is exchangeable at any time for 25 shares of the company’s stock. The convertible bond has
a 7 percent coupon. Payable semi-annually. Similar non-convertible bonds are priced to yield 10 percent.
The bond matures in 10 years stock in Reliance sells for $ 36 per share.
Q1) What are the conversion ratio, conversion price, and conversion premium?
Q2) What is the straight bond value?
Q3) What is the conversion value?
Q4) What is the option value of the bond?
CASE STUDY : 2
Suppose your company needs $ 15 million to build a new assembly line. Your target debt equity ratio is
0.90. The flotation cost for new equity is 8 percent, but the flotation cost for debt is only 5%. Your boss has
decided to fund the project by borrowing money because the flotation costs are lower and the needed funds
are relatively small.
Q1) What do you think about the rationale behind borrowing the entire amount?
Q2) What is your company’s weighted average flotation cost, assuming all equity is raised externally?
Q3) What is the true cost of building the new assembly line after taking flotation costs into account?
Q4) Does it matter in this case that the entire amount is being raised from debt?
CASE STUDY : 3
ABC Co. & XYZ Co. are identical firms in all respects except for their capital structure. ABC is all equity
financed with $ 800,000 in stock XYZ uses both stocks and perpetual debt, its stock is worth $ 400,000 and
the interest rate on its debt is 10 per cent. Both firms expect EBIT to be $ 90000. Ignore taxes.
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
Q1) Rico owns $ 30,000 worth of XYZ’s stock. What rate of return is he expecting?
Q2) Show how Rico could generate exactly the same cash flows and rate of return by investing in ABC and
using homemade leverage?
Q3) What is the cost of equity for ABC? What is it for XYZ?
Q4) What is the WACC for ABC? For XYZ? What principle have you illustrated?
CASE STUDY : 4
The Nike Company sells 3000 pairs of running shoes per month at a cash price of $88 per pair. The firm is
considering a new policy that involves 30 days credit and an increase in price to $ 90.72 per pair on credit
sales. The cash price will remain at $ 88 and the new policy is not expected to affect the quantity sold. The
discount period will be 20 days. The required return is 1 percent per month.
Q1) How would be the new credit terms be quoted?
Q2) What investment is receivables is required under the new policy?
Q3) Explain why the variable cost of manufacturing the shoes is not relevant here?
Q4) If the default rate is anticipated to be 10 per cent, should the switch be made? What is the break even
credit price?
COST ACCUNTING MANAGEMENT
CASE STUDY : 1
Materials X and Y are used as follows :
Minimum usage — 50 units each per week
Minimum usage — 150 units each per week
Normal usage — 100 units each per week
Ordering quantities x = 600 units
Y = 1000 units
Delivery period x = 4 to 6 weeks
Y = 2 to 4 weeks
Calculate for each material
a) Minimum level
b) Maximum level

46. c) Order level
d) Explain importance of inventory controls?
AN ISO 9001 : 2000 CERTIFIED INTERNATIONAL B-SCHOOL
CASE STUDY : 2
A company presently sells an equipment for Rs 35,000. Increase in prices of labour and
material cost are anticipated to the extent of 15% and 10% respectively, in the coming
year. Material cost represents 40% of cost of sales and labour cost 30% of cost sales.
The remaining relate to overheads. If the existing selling price is retained despite the
increase in labour and material prices. The company would face a 20% decrease in the
existing amount of profit on the equipment.
Question :
1) You are required to arrive at a selling price so as to give the same percentage of
profit on increased cost of sales, as before.
2) Prepare a statement of profit / loss per unit, showing the new selling price and cost
per unit in support of your answer.
3) What is the anticipated amount of increased material and labour cost.
4) What policy changes should the company make for maintaining the profits.
CASE STUDY : 3
A product passes through two processes. The output of process, I becomes the input of
process II and the output of process II is transferred to wearhouse. The quantity of raw
materials introduced into process I is 20000 Kg at Rs 10 per kg. The cost and output
data for the month under review are as under.
Process I Process II
Direct Materials (Rs) 60,000 40,000
Direct Labour (Rs) 40,000 30,000
Production overheads (Rs) 39,000 40,250
Normal loss 8 5
Output 18000 17400
Loss realization of Re/unit 2.00 3.00
The company’s policy is to fix the selling price of end product is such a way as to
yield a profit of 20% on selling price.
Required :
1) Prepare the process account
2) Determine the selling price per unit of the end product.
3) What are the advantages for preparation of an process account?
4) What is the output of Process I and Process II?
CASE STUDY : 4
A factory manufactures a chemical product with three ingredient chemicals A, B
and C as per standard data given below.
Chemical Percentage of total input Standard Cost per Kg
A 50% 40
B 30 60
C 20 95
There is a process loss of 5% during the course of manufacture.
The management gives the following details for a certain week.
Chemical consumed Quantity Purchased Actual Cost
& issued (Rs)
A 5200 Kg 2,34,000
B 3600 Kg 2,19,600
C 1700 Kg 1,58,100
Output of finished product : 10200 Kg
Calculate all the relevant variances
a) Total material cost variances
b) Material price variance
c) Material mix variance
d) Yield variance
e) Usage variance & give the chart Standard cost of a Chemical
Cost and Management Accounting

47. 1. X is the manufacture of Mumbai purchased three chemicals A, B and C from U.P.The bill gave the following information:
Chemical A: 6000 kgs @ Rs. 4.20 per kg Rs 25,200
Chemical B: 10000 kgs @ Rs. 3.80 per kg 38,000
Chemical C: 4000 kgs @ Rs. 4.75 per kg 19,000
VAT 2,055
Railway Freight 1,000
Total Cost 85,255
A shortage of 100 kgs in chemical A, of 140 Kgs in chemical B and Of 50 kgs in chemical C was noticed due to breakages. At
Mumbai, the manufacture paid octroi duty @ 0.20 kg. He also paid hamali, Rs 20 for the chemical a, Rs 58.12 for chemical B and Rs
35.75 for chemical C. Calculate the stock rate that you would suggest for pricing issue of chemicals assuming a provision of 4 %
towards further deterioration and also show the quantity (kgs) of chemicals available for issue.
2. ABC Ltd has collected the following data for its two activities. It calculates activity cost rates based on cost driver capacity.
Activity Cost driver Capacity Cost
Power Kilowatt hours 50000 hrs Kilowatt Rs 200000
Quality Inspection Numbers of inspection 10000 inspection Rs 300000
The Company makes three products, A, B and C.For the year ended March 31, 2004, the following consumption of cost drivers was
reported:
Product Kilowatt-hours Quality Inspection
A 20000 7000
B 40000 5000
C 30000 6000
Compute the costs allocated to each product from each activity
Calculate the cost of unused capacity for each activity.
3. Reliable company wishes to discontinue the sale of one of the products in vew of unprofitable operations. Following details
are available with regard to turnover, cost and activity for the current year ending 31st
March.
Products
P Q R S
Sales Turnover Rs.600000 Rs.1000000 Rs.500000 Rs.900000
Cost of sales 350000 800000 370000 480000
Storage area (square meters) 40000 60000 70000 30000
Number of cartons sold 200000 300000 150000 350000
Number of bills raised 100000 120000 80000 100000
Overhead costs and basis of apportionatement are:
Fixed Expenses
Basis of Apportionatement
Administration wages & salaries Rs.100000 Number of bill raised
Salesmen salaries a & expenses 120000 Sales turnover
Rent and insurance 60000 Storage area
Depreciation 20000 Number of cartons
Unfixed Expenses
Commission 3 % of sales
Packing material & wages Re 1 per carton
Stationery Re 0.50 per bill
You have to prepare
1. Staement showing summary of Selling & Distribution Costs to the products

48. 2. Profit & Loss Statement showing contribution and profit or loss of each of the products to enable the Company take an appropriate
decision on discontinuance of the sale of a product.
4. The Tata Infrastructure Co. is involved in two contracts Contract 69 & Contract 96 during the current year. The following
information relates to these contracts, which were started on January 1 and July 1, respectively.
Contracts
A B
Contract Price Rs.300000 Rs.400000
Direct material issued 55000 40000
Material returned to store 1500 2500
Direct Labour 36000 22000
Wages accrued on Dec 31 2000 2500
Plant installed (at cost) 30000 40000
Establishment Charges 20000 15000
Direct Expenses 20000 30000
Direct expenses accrued, December 31 2000 3000
Work certified by architect 320000 120000
Cost not work not yet certified 10000 30000
Material on site, 31 December 11000 5500
Cash received from contractees 60000 150000
Depreciation of plant p.a 12 % 34%
Prepare Contract & Contractees Account for Contract 69 & Contract 96.
5. A company manufactures a product which involves two processes, namely, pressing and polishing. For the months of
January, the following information is available:
Pressing Polishing
Opening Stock
Inputs of unit in process 1200 1000
Units completed 1000 750
Unit under process 200 250
Material Cost Rs.69000 Rs.17500
Conversion Cost 328500 82500
For incomplete unit in process, charge material costs at 100% and conversion costs at 60% in the pressing process and 50 % in the
polishing process. Prepare a statement of cost and calculate the selling price per unit which will result in 25 % on the sale price.
6. M/s Modern Company Ltd furnishes the following summary of Trading & Profit and Loss account for the current year
ending March 31.
To Raw Material 140000 By sales (12000 units) 510000
To direct wages 72000 By finished stock (200 units) 6000
To production overheads 45000 By work in Process
To selling & distribution overheads 43500 Material 26800
To administration overheads 41010 Wages 11786
To Preliminary Expenses w/off 3250 Production overheads 8000 46586
To Goodwill w/off 2541 By interest on securities (gross) 5000
To dividend (net) 4000
To income-tax 5870
To net profit 210415
567586 567586
The Company manufactures a standard unit. The scrutiny of cost records for the same period shows that-
1. factory overheads have been allocated to production at 20 percent on prime cost
2. Administration overheads have been charged at Rs.3 per cent on units produced
3. Selling & distribution expenses have been charged at Rs.4 per unit on unit sold.

49. You are required to prepare a statement of cost, to work out profit as per cost accounts, and to reconcile the same with that shown
in the financial accounts.
CUSTOMER RELATION MANAGEMENT
1) Electronics market is a booming market, for a given product there are many
manufacturers having different features in their respective products. A customer,
who does not have knowledge of intricate features at electronic products and
practical significance as features, may choose wrong product. How this situation is
effectively addressed? What principle of CRM is implemented here & how?
2) The difference between physically going to book store & e- shopping is use of a
website as a link between buyer & seller. How this link is made secure &
trustworthy by amazon.com? How does this issue of trustworthiness affect
popularity of company? What steps are taken for customer retention!
3) Practically thousands of products, costing & features are advertised on
amazon.com. These products are viewed, judged & compared by customers from
all over the globe. How is it ensured that every customer gets a personalized
experience of shopping? Does the difference in cultures of customers from different
countries affect policy of marketing?
4) How is effective marketing achieved at minimum cost? What special effort is taken
to meet expectations of customers? Are the strategies of company affected by
global experts? How is why?
5) Enlist the types of problems arising during the process of e-shopping. How are
customers involved in identifying & solving them? Won’t it be enough to appoint a
expert team to do this & rely on their judgment. After all, expert opinion is always
sought by a company while formulating strategies. How transparently is this done?
6) Customers are, in most of cases, unaware of installing method of electronic
products. Trouble shooting too, is a major part of past order follows up. If,
customers are from far distant areas & states, how is all this done with minimum
cost? How is CRM relevant in this contest?
CUSTOMER RELATIONSHIP MANAGEMENT
CASE STUDY : 1
One client of mine when and first began my assignment with them, insisted they already
had CRM which of course was a little perplexing because I had to wonder why, then,
did they here me? In the course of my initial work and went to spend time at one of
their retail stores. While I was there, the store manager showed retail stores. While I
was there, the store manager showed me this big paper mass with records of customers
transactions, mostly orders, that was sitting in a gargantuan binder and was told that this
was their `CRM’ method.
It tooks months to overcome their existing definition or method of CRM, so they could
understand what I was talking about. I have to explain them in detail about traditional
CRM first, then how the version changed from CRM to CMR, about social CRM,
differences between traditional CRM and social CRM.
What do you think about traditional CRM, version changed from CRM to CMR, about
social CRM, comment and explain in detail differences between traditional CRM and
Social CRM.
CASE STUDY : 2
Traditional business models are rapidly losing their oomph. The kind of business
organization that sees itself as a producer / distributor of products or a service provider
and then sees its return based strictly on products or services sold, is becoming the
coclacanth of the 21st Century – a weired looking specimen in a fossilized state.
AN ISO 9001 : 2000 CERTIFIED INTERNATIONAL B-SCHOOL
While the industry has been a great lab for a New Business Model, it is gaining
credence throughout multiple sectors, far beyond the limit. This model is intermeshed
with contemporary social CRM and Customer engagement strategies. These are some
distinct characteristics that define this model.

50. What do you think about the characteristics and the impact of the model explain in
detail.
CASE STUDY : 3
Vinayak is newly appointed in FMCG Co name ITC Liver as a Customer Relation
Manager.
He introduced a new theory named “Social Media” as a customer engagement strategies
and it was splendidly well.
Do you have any idea how many ways social media fits into customer engagement
strategies, explain in detail.
CASE STUDY : 4
These are different sets of expectations when a customer complains as opposed to when
they request something, and each of them has to be handled. But if you handle them
well, whether they are complaints or simply queries, and you provide a customer service
that can exceed expectations – which are low to begin with there is a distinct benefit.
In 2009 J D Power and Associates did their annual ranking, published in Business Week
of customer service champ by using new model.
Can you explain in detail Tenets and principles of the New Model.
WE ARE PROVIDING CASE STUDY ANSWERS
ASSIGNMENT SOLUTIONS, PROJECT REPORTS
AND THESIS
ISBM / IIBMS / IIBM / ISMS / KSBM / NIPM
SMU / SYMBIOSIS / XAVIER / NIRM / PSBM
ISM / IGNOU / IICT / ISBS / LPU / ISM&RC
MBA - EMBA - BMS - GDM - MIS - MIB
DMS - DBM - PGDM - DBM - DBA
www.mbacasestudyanswers.com
www.casestudies.co.in
aravind.banakar@gmail.com
ARAVIND 09901366442 - 09902787224