Vayu Automobiles, established in 1960, faced intense competition after the 90s leading to a board meeting regarding the expansion of its production facilities. The board, consisting of 8 members, experienced conflicts due to differing opinions on location choices, particularly regarding labor issues in West Bengal. Ultimately, despite initial plans to establish a plant there, political opposition forced a decision to shift operations to Karnataka, raising concerns about internal group dynamics and decision-making processes within the board.

1. GROUP THINK

2. VAYU AUTOMOBILES
HISTORY
• Established in 1960
• Ruled the Automobile Industry till 90’s
• They were in the market for more than 50
years
• It earned high level of trust from their
customers.
• The competition increased intensely after
90’s

3. Cause and Effect
 Cause was due to the high sales of
their Car “BREEZE” the company
wanted to expand its production.
So it chose 3 places in India on the
basis of availability.
Thereby the Board Meeting was
called by in order to address this issue

4. ABOUT BOARD MEMBERES
• Board consist of 8 members
• Out of 8 ,7 were with vayu for 10 years
• Mr. Varun was the one of the board
member who had joined vayu 3 months
back he had 20 years of experience
with Mahindra
• He felt that other board members saw
him still as an outsiders

5. People involved in Vayu Automobiles !!
Mr. Gangadharan
CEO
Mr. Varun Mr. Chandra Mr. GaneshMs. Arthi
BOARD OF DIRECTORS

6. Mr. Gangadharan
CEO
Mr. Varun Mr. GaneshMs. Arthi
BOARD MEMBERS
Mr.chandran

7. BOARD MEETING

8. Mr.Chandra: Noida and Hubli were well
established but getting labor would be difficult &
expensive. Were as Siligiri is not well established as
the two hence labor would be cheap in Siligiri
CEO: Congratulation folks!! Our new compact
BREEZE car s extremely well d stock were up by 5%
,I also have an idea to start our new plant that it
would produce 1000cars/week .our research group had
shorted listed 3 places ie Siligiri in west Bengal ,Hubli
in Karnataka ,and at last Noida in up I would like you
people to suggest the best place.
:
Suggested : West Bengal

9. Mr.Varun: Though labour was cheap & easily avilable
but the problem is with the west bengal because it was
governed by communist party as the result their would be
problem raised by the unions
Mr.Ganesh: Our plant would offer
employment opportunities for 5000 people. It
would rise in their economy.
Ms.Arthi: I agree chandra’s suggestion because
we are the first person to start our new plant that
add an advantage
Opposed: West Bengal
Suggested : West Bengal
Suggested : West Bengal

10. The CEO decided to speak
with the Chief Minister of
West Bengal

11. Mr.Gangadharan : We are planning to
start our manufacturing unit in your
state. It gives opportunity to your state
youth in employment.
I’m very happy to help you to
start your project. I can assure
you of our best cooperation.

12. SLIP IN DECISION
•Vayu started to
construct the plant
•When more then half of
the construction was
over even machinery
were brought
•The opposition party
states that the
Government had
allocated farm lands for
the Industry and started
strike

13. STRIKE
•The strike was
conducted by the
Opposition Party of West
Bengal.
• The reason was that
the Government had
allocated farm lands for
the Industry and
displaced farmers were
given only half the price.
• It gained momentum

14. •The Ceo realized That the intention of the
protest were politically motivated
• Then the Ceo decided to shift the
operation to Karnataka

15. The CEO realises that
Varun’s idea was
right.

16. Q.1
1.What do you think was
the reason for this
problem?

17. Answer
• AS CEO OF THE COMPANY, he should have
given equal importance to all his board of
director’s opinion.
• Reason behind it was, first of all the team i.e.
(board of director) itself have ego problem with
their junior.

18. • AS CM OF WEST BENGAL, he should have said
about the problem that the party raises or he should
have suppressed the problem which was raised by
the party , She failed to do it.
• Moreover, board of directors are higher officials in
the company ,they should know about group
decision making ,but their ego refused to accept the
idea of Varun.
• Electronic meeting is useful for this case to avoid
the problem which arised between the group.

19. Q.2
2.Do you think there is some
problem with the board as a
group?

20. Problem with the group
• To have better group , they should form as a odd
number group, because the majority for decision
will arise only if the total is in odd number.
• There were no unity among the group.
• Domination by one or two members in decision
making.
• Personal prejudice.

21. By
S. Divya
Muthu Raja
D.Perumal