1. INDIAN SCHOOL OF MANAGEMENT AND STUDIES
Sub: Business Administration Max Marks: 100
Masters Program in Business Administration (MBA)
Sub :- BusinessAdministration
Note :-
(i) Attempt any four Cases
(ii) All Cases carry equal marks.

2. INDIAN SCHOOL OF MANAGEMENT AND STUDIES
Sub: Business Administration Max Marks: 100
Case 1 :-
“ Leftor Right?”
RajinderKumarwasa productionworkerat CompetentMotorsLimited(CML),whichmade components
and accessoriesforthe automotive industry.He hadworkedatCML foralmostsevenyearsasa welder,
alongwithfifteenothermeninthe plant.All hadreceivedtraininginwelding,bothonthe joband
throughcompany-sponsoredexternal programmes.Theyhadfriendlyrelationsandgotalongverywell
withone another.Theyplayedvolleyballinthe playgroundregularlybefore retiringtothe quarters
allottedbythe company.Theyate togetherinthe companycanteen,cuttingjokesoneachotherand
makingfunof anyone whodaredto peepintotheirprivacyduringlunchhour.Most of the fellowshad
beenthere forquite some time,exceptfortwomenwhohadjoinedthe ranksonlytwomonthsback.
Rajinderwasgenerallyconsideredtobe the leaderof the group,soit was nosurprise thatwhen
the foremanof the departmentwastransferredandhisvacancywas announced,Rajinderappliedfor
the job andgot it.
There were onlyfourotherapplicantsforthe job,twofrom mechanical sectionandtwofrom
outside.Whenthere wasaformal announcementof the appointmentonaFridayafternoon,everyone
inthe groupcongratulatedRajinder.Theyliterallycarriedhimsnacksandcelebratedthe event
enthusiastically.
On Monday morning,RajinderjoineddutyasForeman.Itwascompanypractice for all foremento
wearblue jacketanda white shirt.Eachman’scoat had hisname badge sewnontothe leftside pocket.
The company hadgiventwopairsto Raijnder.He wasproud to wearthe coat to work onMonday.
People whosawhimfroma distance wentuptohimandadmiredthe new blue coat.There was a
lotof kiddingaroundcallingRajinderas‘Hero’,‘RajaBabu’and ‘Officer’etc.One of the guyswentback
to hislockerand returnedwithalongbrushand acted as thoughhe were removingdustparticlesonthe
newcoat. Afteraboutfive minutesof horseplay,all of the menwentbackto work.
Rajinderwentbackto hisoffice togetmore familiarwithhisnew jobandenvironmentthere.
At noon,all the menbroke for lunchandwentto the canteento eatand enjoyfunas usual.
Rajinderwasbusywhentheyleftbutfollowedafterthemafew minutes,later.He boughtthe food
coupon, tookthe snacks and teaand turnedto face the opencanteen.Backin the leftside cornerof the
room washisoldwork group;on the right handside of the canteensat all the otherforemeninthe
plantall observedintheirblue coats.

3. INDIAN SCHOOL OF MANAGEMENT AND STUDIES
Sub: Business Administration Max Marks: 100
At that pointof time,silence descendedonthe canteen.SuddenlybothgroupslookedatRajinder
anxiously,waitingtosee whichgrouphe wouldeatwith.
QUESTIONS:
1. Whom doyou thinkRajinderwilleatwith?Why?
2. If you were one of the otherforemen,whatcouldyoudoto make Rajinder’stransitioneasier?
3. What wouldyouhave done if youwere inRajinder’sshoes?Why?
Case 2 :-

4. INDIAN SCHOOL OF MANAGEMENT AND STUDIES
Sub: Business Administration Max Marks: 100
“NaughtyRule”
Dr. ReddyInstrumentsisamedium-sizedthe IndustrialEstate onthe outskirtsof Hyderabad.The
company isbasicallyinvolvedwithmanufacturingsurgical instrumentsandsuppliesformedical
professionalsandhospitals.
Abouta year ago,Madhuri, aged23, niece of the firm’sfounder,Dr.RajaReddy,washiredto
replace RangaRao qualitycontrol inspector,whohadreachedthe age of retirement.Madhuri had
recentlygraduatedfromthe Delhi Collegeof Engineeringwhere she hadmajoredinIndustrial
Engineering.
Balraj Gupta,aged52, is the productionmanagerof the prosthesisdept.,where artificial devices
designedtoreplace missingpartsof the humanbodyare manufactured.GuptahasworkedforDr.
ReddyInstrumentsfor20 years,havingpreviously beenaproductionline supervisorand,priortothat, a
workeron the productionline.Gupta,beingthe eldestinhisfamily,hastakenupthe jobquite earlyin
life andcompletedhiseducationmostlythroughcorrespondencecourses.
From theirfirstmeeting,itlookedasthoughGuptaand Madhuri couldnot get alongtogether.
There seemedtobe an underlyinganimositybetweenthem, butitwasnevertooclearwhatthe
problemwas.
VenkatKumar,age 44, isthe plantmanagerof Dr. Reddyinstruments.He hasoccasionally
observeddisagreementsbetweenMadhuri andGuptaon the productionline,Absenteeismhasrisenin
Gupta’sdepartmentsince Madhuri washiredasqualitycontrol inspector.Venkatsecretlydecidedto
issue a circularcallingfora meetingof all supervisorypersonnel inthe productionandtwelvequality
control departments.The circularwasworkedthus:
Attention:All SupervisorsProductionQuality Control Departments
A meeting is scheduleon Monday,Feb 20, at 10 a.m.in room18. The purposeis to sort out
misunderstandingand differencesthatseemto exist between production and QCpersonnel.
Sd. VenkatKumar
PlantManager

5. INDIAN SCHOOL OF MANAGEMENT AND STUDIES
Sub: Business Administration Max Marks: 100
Venkatstarredthe meetingbyexplainingwhyhe hadcalleditandthenaskedGupta for hisopinionof
the problem.The conversationtookthe followingshape:
Gupta: That Delhi girl yourecruitedisa‘faultfindingmachine’inourdept.Until she washired,we
hardlyevenstoppedproduction.And whenwe did,itwasonlybecause of amechanical defect.But
Madhuri hasbeenstopping everythingevenif ‘one’defective partcomesdownthe line.
Madhuri: That’snot true.You have fabricatedthe storywell.
Gupta: Venkat,ourqualityhasnotundergone anychange inrecenttimes.It’sstill the same,consistently
goodqualityitwas before she came butall she wantsto do isto trouble us.
Madhuri: May I clarifymy positionatthisstage?Mr. Gupta, youhave neverrelishedmypresence inthe
company.I still remembersome of the derisive remarksyouusedtomake behindmyback.Ididtake
note of themquite clearly!
Suresh(another qualitycontrol supervisor): I agree withMadhuri Venkat.Ithinkthat everyone knows
that the rules permitqualitycontrol tostopproductionif rejectionsexceedthreeanhour.Thisis all
Madhuri hasbeendoing.
Gupta: Nowlistentome.Madhuri starts countingthe hourfrom the momentshe getsthe firstreject.
Ranga Rao neverreallyworriedaboutabsolute rejectrule whenhe washere.She wantstopaintmy
departmentinblack.Isnot thattrue RiazAhmed?
Ahmed(another productionsupervisor): It sure is Gupta.Everytime Maduri stopsproduction,she is
virtuallyputtingthe companyonfire.The productionlosseswouldaffectourbonusesaswell.Howlong
can we allowthis‘nuisance’tocontinue?
ThirtyminuteslaterMadhuri andGupta were still lashingoutateach other.Venkatdecidedthat
endingthe meetingmightbe appropriateunderthe circumstances.He promisedtoclarifythe issue,
afterdiscussion withmanagement,sometime nextweel.
QUESTIONS:
1. ShouldVenkathave calledameetingtosortoutthisproblem?Whyor Why not?
2. What do yousay aboutthe rule callingforproductiontohaltif there are more thanthree rejects
inan hour? Shouldithave beenenforced?Explain.
3. What do youfeel isthe majorprobleminthiscase?The solution?

6. INDIAN SCHOOL OF MANAGEMENT AND STUDIES
Sub: Business Administration Max Marks: 100
Case 3 :-
ABC LIMITED
M/s. ABC Ltd.is a medium – sizedengineeringcompanyproductionalarge-range of productlines
accordingto customerrequirements.Ithasearneda goodreputationasa quickand reliable supplierto
itscustomersbecause off whichitsvolume of businesskeptonincreasing.However,overthe pastone
year,the managingdirectorof the companyhasbeenreceivingcustomercomplaintsdue todelaysin
dispatchof productsand at times,the companyhas to paysubstantial penaltyfornotmeetingthe
schedule intime.
The managingdirectorconvenedanurgentmeetingof variousfunctional managerstodiscussthe
issue.The MarketingManagerquestionedthe arbitrarymannerof givingpriority toproductsin
manufacturingline,causingdelaysinproductsthatare ingreat demandandover-stockingof products
whichare notrequiredimmediately.Productioncontrol managercomplainedthathe doesnothave
adequate staff toplanand control the productionfunction;andwhateverlittle planninghe does,is
generallyoverlookedbyshopfloormanager.Shopfloormanagercomplainedof unrealisticplanning,
excessivemachine breakdowns,powerfailure,shortage of materialsforschedule.Maintenance
manager,say thathe doesnotget importantsparesrequiredforequipmentmaintenance because of
whichhe cannot repairmachinesata fasterrate. Inventorycontrol managersaysthaton the one hand
the companyoftenaccesshimof carryingtoo much stockand on the otherhand people are grumbling
overshortages.
Fedup by mutual mud-slinging,the managingdirectordecidedtoappointyou,abright
managementconsultantwithtraininginbusinessmanagementtosuggestwayandmeansto put his
“house inorder”.
QUESTIONS:
1. How wouldyouexamine if thereis anymeritinthe remarksof variousfunctional managers?
2. What, inyour opinion,couldbe the reasonsfordifferentmanagerialthoughtsinthiscase?
3. How wouldyoudesignasystemof gettingcorrectinformationaboutjobstatustoidentify
delaysquickly?
4. List some scientificdecisionaidsthatyoumayprescribe toimprove the situation.

7. INDIAN SCHOOL OF MANAGEMENT AND STUDIES
Sub: Business Administration Max Marks: 100
Case 4 :-
In Search of GreenerPastures
RohitjoinedABCLtd.,a heavyengineeringunit,havingaturnoverof aboutRs. 20 crores,inthe junior
managementcadre asa directrecruit. Duringhistenure withthe company,Rohitprovedtobe a
dedicatedandsincere workerwhichearnedhimquickpromotionsinthe organization.He hadmade a
mark inwhicheverdepartmenthe hadworkedandhisdepartmental headswere happywith hiswork.
Afterservingthe companyfora periodof tenyears,Rohitfeltthatthere wasno scope for further
improvementinhispositionandstartedapplyingforbetterjobscommensurate withhisexperience.He
finallysucceededingettingajobbut his new employerwantedhimtojoinwithinone month.Tothis,
Rohitpleadedinability,ashe wasrequiredtogive three month’snotice tohispresentemployer,asper
companyrules.However,he saidhe woulddiscussthe matterwiththe personnelmanagerandtryto
reduce the periodtoone monthby payingtwomonth’ssalaryinlieuof the required notice.Rohit
accordingly,submittedhisresignationtothe presentemployerandrequestedthe departmental headto
recommendhiscase to the personnel managerforrelievinghimafterone month.The departmental
head,saidthat he woulddiscussthe matterwiththe personnel managerandtryhis bestto helphim.
However,the latterturneddownRohit’srequeststatingthatthe rulesrequire himtogive three month’s
notice andthat the alternative suggestedbyRohitwasnotacceptable.
WhenRohitlearntaboutthe personnel manager’sresponse,he approachedhisprospective
employertoexplainhisdifficulty,whichwasbeyondhiscontrol,andrequestedthemtoextendhis
joiningperiodtothree months.Thiswasacceptable bythem, asa special case.
The departmental headtookupRohit’scase withthe managementandsuggestedthatinfuture,
the officerswhoresignedmaybe permittedtogive one month’snotice andtwomonth’ssalaryinlieuof
a furthertwomonth’snotice,if required,soasto ensure againstanyunnecessarydelayinthe workof
the department.But,the managementrefusedtoaccept thisproposal,statingclearlythatthe
company’spolicycannotbe changed.
QUESTIONS:
1. Didthe managementtake acorrect decisioninRohit’scase underthe circumstances?
2. What stepsshouldthe departmentalheadtake todonot adopt an indifferentattitude towards
theirworkduringthe three month’snotice period?
3. If you were inthe positionof the management,how wouldyouhave handledthe situation?

8. INDIAN SCHOOL OF MANAGEMENT AND STUDIES
Sub: Business Administration Max Marks: 100
Case 5 :-
Ramesh PublishingCompany
Mr. Rameshwasthe founderof a publishingcompanyspecializinginaccountingbooks.Withinashort
span of time,the companyprosperedandgrew veryfast.Itssalesrose fromRs 60,000 the firstyearto
Rs 6lakhsthree yearslater.The editing,productionandsalesstaff grew almostasfast.
But the companywashavingproblems,andof late uncertainlyandconfusedgrew inthe
company.Newpeople weremakingdecisionstothe bestof theirabilitybutmanyof themdidnot fit
together.One of Mr. Ramesh’skeyassociatessuggestedthat the companyoughttohave better
planningandcertainlyneededclearpoliciestoguide decisionsmaking,butMr. Rameshwas
unimpressed.Hisresponsewasthatif he took time off toplanand developpoliciestoday,he mightnot
have a companytomorrow,and that he had nochoice but to spendhistime meetingtoday’sproblems
as theycame up.
QUESTIONS:
1. If you were one of the newermanagersinthe companyand had takena course inthe basicsof
management,whatwouldyousaytoMr. Ramesh?
2. Outline exactlyhow wouldyoushow himthatplanningandpolicymakingare importanttothe
companyif it has to groweffectively.

9. INDIAN SCHOOL OF MANAGEMENT AND STUDIES
Sub: Business Administration Max Marks: 100
Case 6 :-
THE Marquee Garment Retailer
I knewwe were right,Neil Simonthoughthimselfasthe stewardbroughthima glassof Cardhusingle
malt.The Whiskyfeltgoodafterweekwhenhe wasallowedtodrinknothingbutchampagne byhis
hostsin India.Ah,butthentheyhad reasontocelebrate. Simonsignaledtothe stewardthathe’d like a
refill - he plannedtotake histime overthe secondone – and thoughtaboutthe weekthathadbeen.
Simon,the director-in-charge of international franchise operationsatSmith&Robin, a $8-billion
marquee garmentretailer,hadarrivedinIndiaexactlysevendaysback,withmixedfeelings.He’dbeen
at S&R Less the eightmonths-he hadbeenhiredwhenthe companydecidedtoabandonitstwenty-year
oldstrategyof expandinggeographically throughownedoutletsasagainstfranchisedones-buthe knew
the Indiatripwas one of those thingsthatcouldmake or breakhiscareer.
This wasn’thisfirstvisittoIndia.He’dvisiteditasa backpackerinhis secondyearat collage,then
as a middle-levelexecutive of acolacompany,and thenagain,soonafterhe joinedS&R.Itwasduring
the last visitthathe noticedthe kindof brand equitythe companyenjoyedinIndia.S&Rwasa know
name and there washuge demandforits offerings.The greymarketdida thrivingbusinessinbothreal
S&R products,smuggledintothe country,andersatzones.So,he had gone back and made case for
India.
“Let us go innowand seedthe marketand leverage ourequitythere“He’dtoldthe board.
Convincingthe boardhadn’tmade hisjobany easier.Then,there weretalesof poorinfrastructure,
horror storiesabouthowforeigninvestorswere treated,andwhollyinappropriate real estateoptions.
Worse,some membersof the boardweren’tfullyconvinced aboutthe ‘franchise strategy’,S&Rhad
movedto.“I see that we are shuttingthree of ourprofitable shopsinLondon,“one of the board
membersBarbaraRutherfordhadshifted.FortunatelyforSimon,the chairpersonlucyWaltershadto
come to hisrescue. “we decide thatfranchisingwasthe bestwayto grow last yearBarbara; thismeeting
isn’taboutthat.
Finally,acompromise hadbeenreached.S&Rwouldenterthe countrythroughone or twopilot
outlets’.To Simonwentthe taskof finding asuitable franchise.Thathadbeeneasy.The Kathuriafamily
that ran S&R Malaysiafranchise hadbusinessinterestsinIndia,andithadn’ttakenSimonmuchto
convince themtotake on the Indiafranchise.
The twoKathuria-ownedfranchisestore had openedinupmarketmalls,DelhiandMumbai,the
previousweekandSimonhadwingeditdowntobe there atthe opening.The Mumbai outlet7,000
square feetlarge;the Delhi one,3,000 square feet.Andbothsolda range of garmentsformenand
women,lingeries,andtoiletries-all imported,andall underthe S&R brand name,inkeepingwiththe

10. INDIAN SCHOOL OF MANAGEMENT AND STUDIES
Sub: Business Administration Max Marks: 100
company’spolicyof onlysellingthe bestqualityproductssourcedatthe leastpossible costatall its
outlets.
The tariff regime inIndiamade some prices lookLudicrous-awomen’sshirtcostoverRs2,500;
men’sjeans,Rs3,200-andmade S&R, whichwasperceivedtobe a high-endvalue-for-moneybrandinto
a premiumone withaspirational trimmings.Indeed,the onlyotherstoresthatstockedmerchandiseof
compatable priceswere boutiquesdevotedtodesignerwear.
The India–strategy’sdetractorsatHQ had raisedobjectionsoverthe size of the Delhi outlet(“S&R
isn’tassociatedwithcrampedbuyingspaces”) andthe price-tags(“Indiansaren’tdumb,youknow).But
Simonmanagedtosteerclearof the flak.The fact that leadingconsultingfirmsestimatedIndia’s
organizedretail businesstozoomfromRs5,500 crore in2000, to Rs 35,000 crore in2005, helpedhis
cause.
Then,he had landedinIndia;the Kathuriashadwelcomedhimlikehe wasroyality;he hadbeen
allowedtodrinknothingbutchampagne (“Here’stothe stopreopening”;“Here’stoour firstsale”,
“Here’sto our firstindividual sale overRs100,000”….); andthingshad gone like adream.
The launcheshadcoincidedwithIndia’sequivalentof the Christmasseason-the festival of lights,
theycalledit,Diwali.The twostores’initial stockhadbeensoldoutinthree daysflat.Andthe fact that
S&R’S Long–term Prospects
Best-case Scenario Worst-case Scenario
 Indiancustomerscontinue treatingS&Ras
an aspirational brand.
 The company isable to sustainits
premiumpricingin India.
 S&R repeatsthe Delhi-andMumbai-model
inothermetros.
 The scalabilityacrosscentersmakesS&R’s
local franchise profitable.
 The noveltyfactors surroundingS&R’s
launchwearsoff.
 Customersstartaskingquestionsabout
the super-premiumpositioning.
 Salesplateauinthe Delhi andMumbai
stores.
 The franchise showsnointerestin
expandingaloss-makingoperation.

11. INDIAN SCHOOL OF MANAGEMENT AND STUDIES
Sub: Business Administration Max Marks: 100
some of the productsstill carriedtheirdollarprices-anoversightbythe storesanda full 40 per cent
lowerthantheirpricesinIndianrupees,thankstothe duties- hadn’tdeterredshoppers.True,there
appearedtobe more demandforlingerie andcosmetics,butthe otherproductshadtakerstoo.
Simonwassurprisedbythe reaction.He knew that he wouldhave towaita few monthsto
understand the real demandforS&R productsinIndia.Onlyonce the initial noveltyhadwornoff,would
the companyhave betterideaof what Indiancustomersbought,andwhattheydidnot.He wasalso
aware that while the mere factS&R productswere available inthe countrycouldhave encouraged
customerstooverlookthe 40 percentmark-up(thanks toimportduties),they’dsoonmove tothe
‘value’buyingbehaviourIndianswerefamousfor.
Simonhad raisedthese issuesathislastmeetingwiththe Kathurias,buttheywere still celebrating
the phenomenal successof theiropeninggambitandtheironlyresponse hadbeentoplySimonwith,
whatelse,more champagne.Still,he hadtoadmit,it had beenagood beginning.
Simonsignaledthe stewardforanotherrefill.Whatthe heck..he’dearnedit.
QUESTION:
1. Has Smith& Robin(S&R) chosenthe rightentrystrategyfor the Indianmarket?
2. “S&R has takena riskin enteringamarketthat islarge,but offerslittleflexibilityintermsof
price and businessenvironment”Discuss.
3. What kindof advance planningandstrategicthinkingshouldgointoS&R’scorporate planning
effortssothat the Indianconsumer gets‘value formoney’?