MBA Capstone: MBA600: Contact us for solution at assignmentssolution@gmail.com

Assessment Information
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Assessment Information

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Due Date:	MBA600 MBA Capstone Assessment 2 :Written Review and reflection Infographic poster NA 20% 20 Week 9 Monday 11.55 pm AEST

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Assessment Description
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This assessment is your opportunity to demonstrate your ability to apply and review a current realworld strategic problem. This assessment explores the practice of “Doing”
At the same time, you will need to identify the practical implementation of recommendations and
reflect on what you have learned about strategy and leadership and your role as an effective
manager as a result of the week 6 guest speaker .
Your instructions are therefore as follows:
1. Attend one of the guest speakers in week 6.
2. Identify the strategic problem discussed in the guest speaker’s presentation
a. Conduct analysis of the problem and integrate at least 10 quality practical /academic
secondary sources into your review
3. Develop a set of strategic recommendations arising from the research.
4. Present your findings in an infographic or 1-page snapshot visual.
Some important considerations:
· You can be creative with how you structure your poster/infographic however it must include
written word as well as visuals and it must elaborate and present the speaker, the problem
and your analysis and recommendations. Examples will be shown in class and posted to
moodle
· Make sure your identification of the strategic problem and your recommendations are
supported by references, with each one annotated using the KBS Harvard method.
· You are free to choose any theory, concept or model from any subject in your MBA studies.
And ensure you reference them.
· Save your infographic as a PDF
COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969
This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material in this communication may be subject to copyright under the Act. Any further
reproduction or communication of this material by you may be the subject of copyright protection under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86
098 181 947 is a registered higher education provider CRICOS Provider Code 02426B.
Assessment Marking Rubric

Criteria	Fail	Pass	Credit	Distinction	High Dist’n
CONTENT / RESEARCH	Understanding of the project	Key points left out. No grasp of issues that faced the client. Over reliance on notes.	Includes some issues but analysis glossed over. Team seemed uncomfortable to go beyond key facts.	Includes all issues, analysis and recommendations but with little elaboration. Not integrated with theory or are not justified.	Builds convincing argument showing how key issues, analysis and recommendations are integrated together.	Builds convincing argument showing how all key points are integrated together. Uses examples to elaborate the key points and theory.
Introduction / Conclusion	Introduction missing or underdeveloped. Audience has no idea what the presentation will be or was about. No conclusion. Presentation just finishes.	Limited clarity of purpose / overview. Highlights key issues but interpretation of these. Conclusion weak. Doesn’t tie in with what was introduced.	Provides purpose for presentation, highlights and interprets key issues to be addressed but recommendation but not integrated.	As for level below plus shows consistency between marketing problem identification and final recommendations well established.	Engaging conclusion clearly sums up presentation and relates back to the introduction.
Evidence of analysis	No references to any sources. Suggestions/recommendations just seem appear.	Steps used in analysis shown but little justification why or how these are used to develop recommendations.	Background research and analysis of this is clearly identifiable. Steps used are shown and some rationale for the development of recommendations provided.	Evidence of extensive research and analysis: journals, prescribed text, other books, verified websites, primary research. Used references to justify analysis	As for level below plus able to use references to back up claims and recommendations made. Recommendations clear come from the analysis of the project.
Recommendations	Recommendations missing	Recommendations very general in nature – client would not be able to implement them without doing further analysis.	Recommendations given in a way that they could be implemented but no justification given or benefits explained to the client	Recommendations are logical and feasible. Timelines and justifications for these provided. Ties in with the clients brief.	Recommendations can easily be implemented. Timelines, responsibilities and costs provided.
STRUCTURE	Organisation	No structure to the presentation. Audience cannot follow sequence. No introduction or conclusion. Apparent that group is not working well together. Group members missing (without valid reason) or not contributing.	Ideas not focused. Audience may have difficulty following argument. Main points difficult to identify. No transition between key points. Awkward transition between speakers. Presentation appears to be done by individuals rather than group.	Main ideas presented in logical manner. Flow of presentation may be awkward. Group members demonstrate that they have worked on presentation as a whole. All group members take equal share in presentation.	Main ideas presented in logical manner. Flow of presentation smooth between speakers. Shows that the group has worked collaboratively	Ideas clearly organised so audience can follow easily. The purpose of the presentation is clear in all stages. Seamless transition between speakers.
Question and Answers	No questions to audience. No attempt to involve the client. Cannot answer questions about the project or recommendations from the client.	Attempts to involve client but only with standard or set questions. Avoids giving clear answers to questions or is uncomfortable about answering questions related to the project.	Involves client in question and answer session but fails to generate discussion on the issues. Able to answer questions about the project but is unable to elaborate on answers.	Encourages and involves client in discussion. Gets client thinking about the issues and generates feedback from the client.	Actively involves client in presentation. Able to answer questions with full explanations and elaboration. Shows full knowledge of issues facing the client.
Creativi ty	Use of visual aids	Presents content with no PowerPoint or overhead slides.	Group uses graphics but are not supported by text or presentation. Text is too dense – too much info on slide. Differing styles with differing speakers.	Group uses graphics but often differs from verbal presentation. Not summarised so presenters end up reading off board. Differing styles with differing speakers.	Text clearly summarises the key points. Graphics and text do not distract attention from the speaker or content. Use of visual aids consistent across entire presentation.	Graphics and text well integrated into presentation. Text is appropriate for the content and room size. Visual presentation complements rather than dominates presentation
Total Comments

COMMONWEALTH OF AUSTRALIA Copyright Regulations 1969
This material has been reproduced and communicated to you by or on behalf of Kaplan Business School pursuant to Part VB of the Copyright Act 1968 (‘Act’). The material in this communication may be subject to copyright under the Act. Any further
reproduction or communication of this material by you may be the subject of copyright protection under the Act. Kaplan Business School is a part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN 86
098 181 947 is a registered higher education provider CRICOS Provider Code 02426B.
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Note: Solve any 4 Cases Study’s

CASE: I    Playing to a new beat: marketing in the music industry

Good old fashioned rock ‘n’ roll could be dead. If a mobile phone ringtone in the shape of the vocalizations of the animated Crazy Frog dominates the billboard charts for months on end, then it could well signal the death knell for the industry, and how it operates. If this ubiquitous amphibian’s aurally annoying song, converted from a mobile phone ringtone, outsold even mainstay acts such as Oasis and Coldplay, why should music companies invest millions in cultivating fresh musical talent, hoping for them to be the next big thing, when their efforts can be beaten by basic synthesizer music?
fundamentally change the way people purchase and consume their musical preferences. In forthcoming years the digital format will become more mainstream, leading to a proliferation of channels of distribution for music. However, as with most new channels of technology, catalogue shopping, Internet shopping likewise, and ‘video never really killed the radio star’… but will the Internet kill the record store?


Questions:

1.    Discuss the micro and macro forces that are affecting the music industry.

2.    Based on this analysis, what strategic options would you recommend for both music publishers and music retailers in the current marketing environment?

3.    Discuss the advantages and disadvantages associated with online distribution from a music label’s perspective.




































CASE: II    The Sudkurier

The Sudkurier is a regional daily newspaper in south-western Germany. On average 310,000 people in the area read the newspaper regularly. The great majority of those readers subscribe to its home delivery service, which puts the paper on their doorsteps early in the morning. On the market for the last 35 years, the Sudkurier contains editorial sections on politics, the economy, sports, local news, entertainment and features, as well as advertising. The newspaper is financially independent and its staff is free of any political affiliation. Management at the Sudkurier would like to bring the paper into line with the current needs of its readers. For this purpose, the management team is considering the use of market research.

Management would like to have information about the following.

1.    What newspaper or other media are the Sudkurier’s main competitors?
2.    Do most readers read the Sudkurier for the local news, sports and classified ads, and should these sections therefore be expanded at the expense of the sections on politics and the economy?
3.    Should the Sudkurier’s layout be modernized?
4.    Do mostly lower levels of society read the Sudkurier?
5.    Into what political category do readers and non-readers the Sudkurier?
6.    Which suppliers of products and services consider the Sudkurier especially appropriate for their advertising?
Source: Regional Press Study, Gfk-Medienforschung Contest-Census 



Questions:

1.    Explain how you will methodically go about compiling the requested information covered in the seven questions for management. Include in your explanation an estimate of the expense involved in obtaining the information.

2.    Develop a 10-question questionnaire for the purpose of making a survey.






































CASE: III    Unilever in Brazil: marketing strategies for low-income customers

After three successful years in the Personal Care division of Unilever in Pakistan, Laercio Cardoso was contemplating attractive leadership positioning China when he received a phone call from Robert Davidson, head of Unilever’s Home Care division in Brazil, his home country. Robert was looking for someone to explore growth opportunities in the marketing of detergents to low-income consumers living in the north-east of Brazil and felt that Laercio had the seniority and skills necessary for the project. Though he had not been involved in the traditional Unilever approach to marketing detergents, his experience in Pakistan had made him acutely aware of the threat posed by local detergent brands targeted at low-income consumers.

At the start of the project—dubbed ‘Everyman’—Laercio assembled an interdisciplinary team and began by conducting extensive field studies to understand the lifestyle, aspirations and shopping habits of low-income consumers. Increasing detergent use by these consumers was crucial for Unilever given that the company already had 81 per cent of the detergent powder market. But some ….
esalers had national coverage and economies of scale but did not directly serve the small stores where low-income consumers shopped, necessitating another layer of smaller wholesalers, which increased their cost to US$0.10 per kg. Alternatively, Unilever could contract with dozens of specialize distributors who would get exclusive rights to sell the new Unilever detergent. These specialized distributors would have a better ability to implement point of purchase marketing and would cost less ($0.05 per kg).

Question:

1.    Describe the consumer behaviour differences among laundry products’ customers in Brazil. What market segments exists?

2.    Should Unilever bring out a new brand or use one of its existing brands to target the north-eastern Brazilian market?

3.    How should the brand be positioned in the marketplace and within the Unilever family of brands?






















Case 4   Ryanair: the low fares airlines

The year 2004 did not begin well for Ryanair. On 28 January, the airline issued its first profits warning and ended a run of 26 quarters of rising profits. On that day, when the markets opened, the company was worth €5 billion. By close of business, its value had shrunk to worth €3.6 billion, as its share price plunged from worth €6.75 to €4.86. Investors were dismayed by the airline’s admission …..
•    In April 2005, Ryanair abandoned an experiment in paid-for in flight entertainment, after passengers were reluctant to rent the consoles at the £5 required to receive the service. Apparently, market research discovered passengers are unwilling to invest on such short flights, with the ideal being six-hour flights to longer-haul holiday destinations. When the experiment was launched in November 2004, Michael O’Leary hailed the move as ‘the next revolution of the low-fares industry…we expect to make enormous sums of money’.

Questions:

1.    How does Ryanair’s pricing strategy account for its successful performance to date? Would you suggest any changes to Ryanair’ pricing approach? Why/why not?

2.    Is the ‘no-fares’ strategy a useful approach for Ryanair in the short term? In the long term?

3.    Do the issues facing Ryanair threaten its low-fares model?




















Case V   LEGO:   the toy industry changes

How times have changed for LEGO. The iconic Danish toy maker, best known for its LEGO brick, was once the must-have toy for every child. However, LEGO has been facing a number of difficulties since the late 1990: falling sales, falling market share, job losses and management reshuffles. Once vote ‘Toy of the Century’ and with a history of uninterrupted sales growth, it appears LEGO has fallen victim to changing market trends. Today’s young clued-up consume is far more likely to be seen surfing the web, texting on their mobile phone, listening to their MP3 player or playing on their Game Boy than enjoying a LEGO set. With intensifying competition in the toy market, the challenge for LEGO is to create aspirational, sophisticated, innovative toys that are relevant to today’s tweens.

History

In 1932 Ole Kirk Christiansen, a Danish carpenter, established a business making wooden toys. He named the company ‘LEGO’ in 1934, which comes from Danish words ‘leg godt’, meaning ‘play well’. Later, coincidentally, it was discovered that in Latin it means, ……
still remaining true to its wholesome ‘play well’ brand values? Will LEGO succeed in its attempts to target young girls and its desire to target a more adult audience? Will it succeed in its attempts to reduce costs and improve efficiencies? Will CEO Jorgen Vig Knudstorp succeed where his predecessors have failed? Only in the fullness of time will these questions be answered but one thing is for sure: no brand, no matter how powerful, can afford to become complacent in an increasingly competitive business environment.

Questions:

1.    Why did LEGO encounter serious economic difficulties in the late 1990s?

2.    Conduct a SWOT analysis of LEGO and identify the company’s main sources of advantage.

3.    Critically evaluate the LEGO turnaround strategy.

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Attempt Only Four Case study.

CASE: 1    Absolut Vodka: creating advertising history

The Absolut advertising campaign was often regarded by advertising experts as one of the most brilliant, innovative, successful and long-running campaigns ever. The several prestigious awards that the campaign has won since its first ad was launched stand
Advertising experts felt that even 25 years after its launch, the Absolut advertising campaign was still going strong, innovatively, without changing the central theme. Even while creating music for Absolut Three Tracks, the bottle was used as the central theme. Aril Brikha, one of the artists who created a music track for Absolut Three Track said, ‘I had scanned the shape into a computer program that turns a picture into a tone—a futuristic way of including a picture without letting the listener know. I find it quite similar to previous Absolut projects where the bottle has been hidden in a picture.’ Industry observers as well as customers agreed on one issue: whatever the mode of expression—be it art, photography, technology, fashion or music—Absolut had until now stood for ‘brilliance in advertising’. Said an analyst, ‘We are surprised each year by the creativity and innovation of the brand. It is successful because it is contemporary. There is no end to the campaign.’



Questions:

1.    Discuss the role advertising plays in increasing brand awareness and brand loyalty among consumers, especially for products that have very subtle differentiable attributes. In the above context, examine the impact Absolut advertisements had on its target audience. Do you think the advertisements fulfilled their purpose?

2.    ‘The Absolut advertising campaign is successful because it is contemporary.’ How did TBWA maintain the ‘freshness’ of the Absolut campaign? Discuss with respect to the brand’s association with different media: art, fashion, technology and music.

3.    Even though Absolut ads have been depicted in different media, the central theme of the campaign has remained unchanged (the bottle and the two-word slogan) over the years. In light of the above statement, do you think that the campaign will manage to hold sway or lose in impact in the near future? Give reasons to support your arguments.









CASE: 2       Tesco: the customer relationship management champion

Every three months, millions of people in the UK receive a magazine from the country’s number one retailing company, Tesco. Nothing exceptional about the concept—almost all leading retailing companies across the world send out mailers/magazines to their customers. these initiatives promote the store’s products, introduce promotional schemes and contain discount coupons. However, what sets Tesco apart from such run-of-the-mill initiatives is the fact …
‘Companies should be loyal to their customers—not the other way round.’ Taking into consideration the company’s strong performance since these efforts were undertaken, there would perhaps not be many who  would disagree with Edwina.






Questions:

1.    Analyse Tesco’s Clubcards scheme in depth and comment on the various customer segmentation models the company developed after studying the data gathered.

2.    How did Tesco use the information collected to modify its marketing strategies? What sort of benefits was the company able to derive as a result of such modifications?

3.    What measures did Tesco adopt to support the CRM initiatives on the operational and strategic front? Is it enough for a company to implement loyalty card schemes (and CRM tools in general) in isolation? Why?



































CASE: III   Pret a Manger: passionate about food

Introduction

Pret a Manger (French for ‘ready to eat’) is a chain of coffee shops that sells a range of upmarket, healthy sandwiches and desserts as well as a variety o coffees to an increasingly discerning set of lunchtime customers. Started in London, England, in 1986 by two university graduates, Pret a Manger has more than 120 stores across the UK. In 2002 it sold 25 million sandwiches and 14 million cups of coffee, and had a turnover of over £100 million. Buckingham Palace reportedly orders more than £1000 worth of sandwiches a week and British Prime Minister …
in partnership with McDonald’s. The menu there is described as being 75 per cent ‘classic Pret’ with the remaining 25 per cent designed more to please local tastes. In other international markets, the plan is to move cautiously—Pret’s first move will be to open more stores in New York and Hong Kong, where it has already been successful.







Questions

1.    How has Pret a Manger positioned its brand?

2.    Explain how the different elements of the services marketing mix support and contribute to the positioning of Pret a Manger.













CASE: IV    The Sudkurier

The Sudkurier is a regional daily newspaper in south-western Germany. On average 310,000 people in the area read the newspaper regularly. The great majority of those readers subscribe to its home delivery service, which puts the paper on their doorsteps early in the morning. On the market for the last 35 years, the Sudkurier contains editorial sections on politics, the economy, sports, local news, entertainment and features, as well as advertising. The newspaper is financially independent and its staff is free of any political affiliation. Management at the …
Questions:

1.    Explain how you will methodically go about compiling the requested information covered in the seven questions for management. Include in your explanation an estimate of the expense involved in obtaining the information.

2.    Develop a 10-question questionnaire for the purpose of making a survey.




CASE: V    Marketing Spotlight - Disney

The Walt Disney Company, a $27 billion-a-year global entertainment giant, recognizes what its customer’s value in the Disney brand: a fun experience and homespun entertainment based on old-fashioned family values. Disney responds to these consumer markets. Say a family goes to see a Disney movie together. They have a great time. They want to continue the experience. Disney Consumer Products, a division of the Walt Disney Company, lets them do just that through product lines aimed at specific age groups.
    Take the 2004 Home on the Range movie. In addition to the movie, Disney created an accompanying soundtrack album, a line of toys and kid’s clothing …
Mouse received by children every year. But as Walt Disney said. ``I only hope that we don’t lose sight of one thing – that it was all started by a mouse.’’



Questions :

1.    What have been the key success factors for Disney?
2.    Where is Disney vulnerable? What should it watch out for?
3.    What recommendations would you make to their senior marketing executives going forward? What should it be sure to do with its marketing?

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CASE   01:   TOTAL INDUSTRIES

Abhinav Kumar was totally unprepared for the news.  And what surprised the 34 year old scion of the Kumar family – which had interests in a range of industries including batteries, consumer durables, soaps and oils, and switchgears – was that if was his 36 year-old Wharton School classmate, Rakesh Bhatia, who gave him the scoop  over their dinner meeting.  Bhatia headed a small engineering company in Phoenix, Arizona (US), but was remarkably networked in the industry.

“I hear your competition just got bigger.” He ribbed Kumar.
“What do you mean?” Kumar asked, surprised.

….each of our four divisions their perceptions of our customers, and the nature of competition.”

“Sounds like a good idea,” observed Roy.

“In Phase 3, internal analysis is aimed at enabling managers of individual businesses to look inwards and analyse our performance, and strategic options.  The performance of the group would be measured both on financial parameters and non-financial parameters like customer satisfaction and product quality.  The employees would, then, try and determine the options available to reach business looking at the past strategy. Strategic problems, organisational capabilities, and constraints.”

1.    Identify the problems in this case.

2.    Assume any data regarding strengths and weaknesses etc. What strategic options would you recommend for total?


CASE 02:  PSYCHOFRAPHIC PROFILES – KEY TO BUYERS’ MIND

Consumer buying research has turned over a new leaf in India.  The era of demographics seems to be on the backbench.  Now, Marketing Research people are less likely to first ask you about your age. Income, education, etc Instead, there is a distinct shift towards inquiries about attitudes, interests, lifestyles, and behaviour –in short, a shift towards a study of consumers’ minds called psychographics.

…
Momeeta is a self-confident, on-the-go woman, and not a homebody.  She is fashion conscious and clothes herself in the latest designer dresses.  Even at 40, she can carry off a mini with aplomb.  She is financially very secure and hence does not shop with care.  She shops for quality, expensive, and goes by the brand name, not the price.  She frequently travels abroad, buys expensive gifts for friends, and has an international understanding on what is “chic” at the moment.

QUESTIONS

1.    A manufacturer of personal care products in the premium category wants to develop various products.  Which of the above types should the manufacturer target?  Explain.

2.    How is the above-mentioned information likely to benefit a marketer in selecting marketing communications?

3.    Which of the above-mentioned segments are likely to respond to sales promotion? Explain.



CASE 03:  LOOK MA. FAIR HANDS
The glow on Rakesh Kumar sinha’s face is hard to miss----and ii’s all due to Fair Glow, the fairness soap from the Godrej stable.  No Sinhas isn’t a user, but as vice president for sales and marketing at Godrej consumer Products, he has reason to be bright----again.

…in late-2004 that illustrates the efficacy of the soap.  That’s paid off dividends, and sales are currently up.  Whether they’ll be able to reach their previous highs is anyone’s guess.

QUESTIONS

1.    What is the positioning of Fair glow soap?  Why is this positioning likely to appeal to Indian consumers?

2.    Why was the extension of fair Glow to face cream a bad decision?


CASE 04: TAJ HOTEL

Right from early 1900s, the Taj stood for class and comfort.  It was a place where viceroys of the Empire arrived and departed amidst scenes of splendour, typical of Raj.  From the very beginning it was one of the wonders of the Orient Singapore’s Raffles.  Hong Kong’s Peninsula, and Frank Lloyd Wright’s Imperial did not come up to the level of the Taj in spite of their rich ancestry.  ….
as much.”  Today, after a century since it was established, the Taj is all set to conquer. Economic Times of December 15, 2004 reported I it’s ‘Brand Equity ‘that among hotels.  Taj is ranked as “number one brand followed by Oberoi Hotels, ITC Hotels and Hayatt, respectively.

QUESTIONS

1.    Analyse the case and determine the positioning of Taj.  Do you think the advertising theme that is appropriate to reflect what a aims to communicate?

2.    Why Taj did spent large sums of money to renovate its hotels?

3.    Suggest an appropriate theme for an alternative campaign than the present one.



CASE   05:    BYPASING PRACTICE

Arvind School, like most entrepreneurs, dreamt a lot.  He dreamt customers would eagerly
Phone Woodstock Acoustic Systems in India.  To order the latest, custom made stereo speakers.  He saw demand rising and rising, cash flowing, and his technician producing superior quality products that were delightful and appreciated by the Woodstock customers, and favourable word-of-mouth spreading.

…He knows that there is a considerable potential in the foreign market for his speakers.  Should he use the samedirect marketing strategy for foreign markets, or should he consider distributors.  The dreamer is visualising.

QUESTIONS:

1.    Why did Arvind establish a direct marketing channel?

2.    What objectives and constraints have shaped his channel decision? If you were a consultant, what distribution channel strategy would you recommend Arvind for domestic and foreign markets?



CASE 06:  THE BIG ADVANTAGE

Ten-year old Praveen is hooked on to Candico’s big Bubble Gum after his cousin introduced him to it a few months ago.  Now he asks retailers only for the big Bubble Gum.  The reason:  “It is the only bubble gum with which I can blow large bubbles.  Ask my friends,” he says. Loyalty from numerous such children has enabled Candico to become India’s number one bubble gum company.  Candico (i) Ltd., part of the Sancrop Group, ran full page advertisements in November, 1999, with claims of selling 60 lakh bubble gum pieces a month, Competitiors such as Perfetti and Jayco have not responded to these claims.  It is this silence, which Candico sees as a vindication of its stand.  The vehicle behind its stupendous success has been big Bubble Gum, the 50 paise gum. Launched in June 1999, the market for big Bubble Gum exploded in a span of five months.

…eng made by market analysts for years.  In a country like India, the road to success involves, targeting volumes with low-priced goods.  In that case, Candico has the right ideas.

QUESTIONS

1.    What are the significant issues in the case?

2.    Evaluate Candico’s strategy.  What external factors have been kept in mind while developing the strategy?

3.    Is the competitive advantage of Candico sustainable in the long-run? Explain.




CASE 07: SERVICE DIFFERENTIATION AT BRITISH AIRWAYS

Since, 1990s, international airlines saw increasing competition and providing services became a major factor to differentiate and a key to success. Carriers lost billions of dollars and needed to raise the Airfares.  Some airline executives believed that improved service package would make increased fares more acceptable to the customers.  Adopting this approach, companies started focusing on services rather than competing on price dimension. No one did it better than British Airways and in an annual poll conducted by a magazine, business travellers rated British Airways as providing the best service.

…that the British would have a substantial head start in becoming the first global airline.  British Airways second bid of $ 300 million for 19.9 per cent of US Air was approved in March 1993.  Together, the two carriers were to serve 339 cities in 71 countries.

QUESTIONS:

1.    Analyse the case and identify reasons that made the British Airways a laughingstock in the industry?  Why was it necessary to change the employees’ attitude toward service?

2.    What effect the new alliance would have on the services offered by other airlines?

3.    Why would a passenger pay30 per cent more to fly the same destination?













CASE   08: OFF COLOUR

Despite Periodic makeovers colour cosmetics brand Tips and Toes is losing its sheen. Reinventing a brand is always a challenge in a market where product life cycles are as short as four or five months, driven by fickle trends and seasons.

A strong case in point is Tips and Toes, launched by Paramount Cosmetics in 1979, which started as a nail colour brand and then grew to include lipsticks and other cosmetic and toiletry products.

After a series of brand extensions and re-launches, the brand is looking for some “divine” inspiration to make its mark in an increasingly competitive business.  The latest avatars of Tips and Toes are the Goddess and the Eve Divine ranges, which hit the market early this year.

..it spends about 15 per cent of its turnover on ads and below-the-line activities, lack of consistent mass-media advertising has pushed the brand onto the side lines. Tips and Toes distributors and retailers in Mumbai vouch for that.
“The more visible the brand is, the more customers ask for it. Demand is directly proportionate to advertising in the mass media,” says one of them.  Will tips and Toes listen to its past to add colour to its dull present?

QUESTION:

1.    Study the case and identify the stage of Tips and Toes life cycle.  What mistakes Paramount Cosmetics committed for its brand Tips and Toes.








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CASE – 1   Dabur India Limited: Growing Big and Global

Dabur is among the top five FMCG companies in India and is positioned successfully on the specialist herbal platform. Dabur has proven its expertise in the fields of health care, personal care, homecare and foods.
The company was founded by Dr. S. K. Burman in 1884 as small pharmacy in Calcutta (now Kolkata), India. And is now led by his great grandson Vivek C. Burman, who is the Chairman of Dabur India Limited and the senior most representative of the Burman family in the company. The company headquarters are in Ghaziabad, India, …
time the company is very popular in the rural segment.



Questions

1.    What is the objective of Dabur? Is it profit maximisation or growth maximisation? Discuss.
2.    Do you think the growth of Dabur from a small pharmacy to a large multinational company is an indicator of the advantages of joint stock company against proprietorship form? Elaborate.





















CASE – 2   IT Industry: Checkered Growth

IT industry is now considered as vital for the development of any economy. Developing countries value the importance of this industry due to its capacity to provide much needed export earnings and support in the development of other industries. Especially in Indian context, this industry has assumed a significant position in the overall economy, due to its exemplary potentials in creating high value jobs, enhancing business efficiency and earning export revenues. The IT revolution has brought unexpected opportunities for India, which is emerging as an increasingly preferred location for customised software development. Experts are estimating the global IT industry to grow to US$1.6 million over the coming six years and exports to reach Rs. 2000 billion by 2008. It is envisaged that Indian IT industry, though a very small portion of the global IT pie, has tremendous growth prospects.

Stock Taking

The decade of 1970 may be taken as the stage of introduction of the Indian IT industry. The early years were marked by 75 per cent of software development taking place overseas and the rest 25 per cent in India. Exports of Indian software until the mid-1970s was mainly Eastern Europe, followed by US. Tata Consultancy Services (TCS) was among the pioneers in selling its services outside India, by working for IBM Labs in the US. The hardware segment lagged behind its software counterpart. With instances of exports worth US$ 4 million in 1980, the software segment of the industry has shown an uneven profile. It was not until 1980s that vigorous and sustained growth in software exports begun, as MNCs like Texas Instruments started to take serious interest in India as a centre of software production. Destinations of export also underwent changes, with US dominating the main export market with 75 per cent of the exports. The IT Enabled Services (ITeS) segment, however, had not emerged at this stage.
It was also during the mid to late 1980s that computer firms shifted focus from mainframe computers (the mainstay of MNCs) to Personal Computers (PCs). In March 1985, Minicomp installed the first ever PC at CSI, Delhi; this changed the entire industry for good. With the entry of networking and applications like CAD/CAM, PC sales soared in 1987-88, touching 50,000 units.
From a modest growth in the mid-1980s software exports moved up to Rs. 3.8 billion in 1991-92. Since then, it grew at an incredible rate, up to 115 per cent in 1993. The hardware could also register an annual growth of 40 per cent in this period, backed by a surging demand for PCs and networking. Growth of the industry was also driven by the emergence and rapid growth of the ITeS segment.
IT sector’s share of GDP rose steadily in this period, rate of increase being the highest at 44.91 per cent in 2000-01. It was in the same year that the size of the total IT ….
*A: share of GDP of the Indian IT market, B: size of the Indian IT market (in Rs. crore), C: software and services exports (in Rs. crore), D: size of software and services (in Rs. crore), E: size of the domestic market (in Rs. crore)




Questions

1.    Try to identify various stages of growth of IT industry on basis of information given in the case and present a scenario for the future.

2.    Study the table given. Apply trend projection method on the figures and comment on the trend.

3.    Compute a 3 year moving average forecast for the years 1997-98 through 2003-04.

CASE – 3   Outsourcing to India: Way to Fast Track

By almost any measure, David Galbenski’s company Contract Counsel was a success. It was a company Galbenski and a law school buddy, Mark Adams, started in 1993; it helps companies find lawyers on a temporary contract basis. The growth over the past five years had been furious. Revenue went from less than $200,000 to some $6.5 million at the end of 2003, and the company was placing thousands of lawyers a year.
At then the revenue growth began to flatten; the company grew just 8% in 2004 despite a robust market for legal services estimated at about $250 billion in the United States alone. Frustrated and concerned, Galbenski stepped back and began taking a hard look at his business. Could he get it back on the fast track? “Most business books say that the hardest threshold to cross is that $10 million sales mark,” he says. “I knew we couldn’t afford to grow only 10% a year. We needed to blow right through that number.”
For that to happen, Galbenski knew he had to expand his customer base beyond the Midwest into large legal supermarkets such as Boston, New York, and Washington, D.C. He also knew that in doing so, he could run into stiff competition from larger publicly traded rivals. Contract Counsel’s edge has always been its low price, Clients called when dealing with large-scale litigation or complicated merger and ….
help get the word out, he launched a website (offshore-legal-services.com), which includes a cache of white papers and case studies to serve as a resource guide for companies interested in outsourcing. 



Questions

1.    As money costs will decrease due to decision to outsource human resource, some real costs and opportunity costs may surface. What could these be?

2.    Elaborate the external and internal economies of scale as occurring to Contract Counsel.

3.    Can you see some possibility of economies of scope from the information given in the case? Discuss.










CASE – 4   Indian Stock Market: Does it Explain Perfect Competition?

The stock market is one of the most important sources for corporates to raise capital. A stock exchange provides a market place, whether real or virtual, to facilitate the exchange of securities between buyers and sellers. It provides a real time trading information on the listed securities, facilitating price discovery.
Participants in the stock market range from small individual investors to large traders, who can be based anywhere in the world. Their orders usually end up with a professional at a stock exchange, who executes the order. Some exchanges are physical locations where transactions are carried out on a trading floor. The other type of exchange is of a virtual kind, composed of a network of computers and trades are made electronically via traders.
By design a stock exchange resembles perfect competition. Large number of rational profit maximisers actively competing with each other, trying to predict future market value of individual securities comprises the main feature of any stock market. Important current information is almost freely available to all participants. Price of individual security is determined by market forces and reflects the effect of events that have already occurred and are expected to occur. In the short run it is not easy for a market player to either exit or enter; one cannot exit and enter for few days in those stocks which are under no delivery. For example Tata Steel was in no delivery from 29/10/07 to 02/11/07. Similarly one cannot enter or exit on those stocks which are in upper or lower circuit for few regular trading sessions. Therefore a player has to depend wholly on market price for its profit maximizing output (in this case stock of securities). In the long run players may exit the market if they are not able to earn profit, but at the same time new investors are attracted by rise in market price.
As on 01/11/07 total market capital at Bombay Stock Exchange (BSE) is $1589.43 billion (source: Business Standard, 1/11/2007); out of this individual …..
By design, an Indian Stock Market resembles perfect competition, not as a complete description (for no markets may satisfy all requirements of the model) but as an approximation.



Questions

1.    Is stock market a good example of perfect competition? Discuss.

2.    Identify the characteristics of perfect competition in the stock market setting.

3.    Can you find some basic aspect of perfect competition which is essentially absent in stock market?

































CASE – 5   The Indian Audio Market

The Indian audio market pyramid is featured by the traditional radios forming its lower bulk. Besides this, there are four other distinct segments: mono ….
with powerful regional brands in mono and stereo segments, having a market share of 59% in mono recorders and 36% in stereo recorders. This sector has a strong influence on price performance.


Questions

1.    What major pricing strategies have been discussed in the case? How effective these strategies have been in ensuring success of the company?

2.    Is perceived value pricing the dominant strategy of major players?

3.    Which products have reached maturity stage in audio industry? Do you think that product bundling can be effectively used for promoting sale of these products?

IIBMS MBA Case Studies: Avail answers at assignmentssolution@gmail.com

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.