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Thursday 17 October 2013

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Attempt Only Four Case Studies


CASE – 1   Power for All: Myth or Reality?

The power sector in India is undergoing rapid changes especially for the last few years. The Government has promised “Power for All” by 2012. The growth of power sector in India has been consistent. From a humble beginning of 1,700 MW in 1950-51 to 1,18,400 MW in 2004-05, the development of power sector has traveled a long way. ………………..
power and attract investments, leading to poor quality supply even to the remunerative consumers, resulting in these consumers moving away from the grid. It has resulted in a further deepening of the financial crisis and its concomitant result of poorer quality of supply.



Questions

1.    What are the factors responsible for this excess demand for electricity?

2.    The demand supply gap is reformed by the government intervention. Explain this phenomenon by a demand supply model.

3.    What do you think will happen to the price of electricity?

CASE – 2   Automobile Industry in India: New Production Paradigm

The Industry

The automotive sector is one of the core industries of the Indian economy, whose prospect is reflective of the economic resilience of the country. The automobile industry witnessed a growth of 19.35 percent in April-July 2006 when compared to April-July 2005. As per Davos Report 2006, India is largest three wheeler market in the world; 2nd largest two wheeler market; 4th largest tractor market; 5th largest commercial vehicle market and 11th largest passenger car market in the world and expected to be the seventh largest by 2016. India is ………………
manufacture of diesel engines, petrol engines and transmission assemblies for four wheeled vehicles. The project is being implemented in the existing Joint Venture Company viz. Suzuki Metal India Limited (renamed Suzuki Powertrain India Limited).



Questions

1.    Identify the most important factors of production in case of automobile industry. Also attempt to explain the relative significance of each of these factors.

2.    What more information would you like to obtain in order to draw a production function for Maruti Udyog? Explain with logic.

3.    Automobile industry is a good example of capital augmenting technical progress. Discuss.


CASE – 3   Indian Cement Industry: Riding the High Tide

India is the second largest producer of cement in the world, just behind China. Indian cement industry comprises of 130 large cement plants and 365 mini cement plants with installed capacity of 172 million tonnes per annum (mtpa); these plants are located in states like Gujarat, Rajasthan and Madhya Pradesh. The large cement plants accounts for over 94 percent ………………..
would naturally create a situation of over production. As per estimates, cement industry will face over capacity of 17.7 mtpa in 2008 and 37.7 in 2009. Therefore it is expected that capacity utilisation will fall significantly. Further new players are likely to join the industry with huge production capacities.


Questions

1.    Do you think cement industry in India presents a good explanation of oligopoly? Which characteristics of oligopoly do you find in the above case?

2.    How has decontrolling of cement prices helped the growth of this industry?

3.    Do you see possibilities of cartel or implicit collusion in the above case? How?

CASE – 4   From Wages to Packages: the Journey of Software

Organisations across all industries are undergoing a shift in emphasis from tangible resources to valuable, rare and inimitable human resource in order to attain competitive advantage. Many leading organisations have started adopting an investment perspective towards their employees by moving from a traditional wage and salary system to compensation “………………..
On the whole, all such parameters of compensation strategies should be directed towards providing the ability to reinforce desired behaviours, and also serve the traditional functions of attracting and maintaining a qualified workforce.



Questions

1.    Which factors, according to you, are prompting organisations to adopt a package instead of traditional salary?

2.    Do you think package compensation is more suitable in modern globalised business? Can you draw some lessons from marginal productivity theory?

3.    Do you think that the case supports the efficiency wage theory or bargaining theory? Give arguments in support of your logic.




CASE – 5  India in Search of a Way to Harness the Inflation “Dragon”

India has seen high rates of inflation until the early nineties and faces its attendant consequences. Since mid nineties the priority for policy maker has been to bring inflation to single digit. Just like appropriate diagnosis is must for proper treatment, similarly an inquiry into the causes of inflation in the country is necessary. Today inflation is not ……………..
productivity to fill demand supply gap. One such measure could be revaluation o Indian rupee against dollars. 

Questions :
1.    What are the major factors contributing to inflation in India in the recent past? How have they changed since 1991-92?
2.    What measures do you suggest should be taken up by government of India to handle inflationary pressure?
3.    Evaluate the suggestion of revaluating Indian rupee against dollars to control inflation.

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