Ignou Question Bank (432)
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MC0-03 Question Bank, Research Methodology And Statistical Analysis
Ms-11 june 2007
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-11 June, 2007
MS-11 : STRATEGIC MANAGEMENT
l. Why do firms need to have specific set of objectives ? Do objectives form an integral part of Strategic Management ? Critically evaluate the importance of objectives taking into consideration any organisation of your choice. .
2. Briefly discuss McKinsey's 7-S framework. Explain as to how PESTEL grid can be used to understand the role of McKinsey's 7-S framework.
3. Explain the concept of l;ocus as a business level strategy. What are the variants of focus strategy ? discuss the advantages and risks involved. Explain using an example from the automobile sector.
4. What are the factors, which conlribute to successful strategic alliances ? Explain each of them briefly. Give some examples of successful strategic alliances.
5. Do you think that functional strategies are important for a business organization ? Bring out these strategies for all the functional areas of a business organization .
6. Read the following case and answer the questions given at the end
A BRIEFCASE CASE
The time is 8.55 in the morning. Mr. Mehta of Vishala Printers, a division of ABC, has called a meeting of his senior managers at 10.00 . a.m. to discuss a situation. tsy 2.00 p.m. the firm has to submit its bid to its major customer CIMC in a sealed envelope. All the quotations received till the deadline will be opened in front of those present at 3.00 p.m. As he sits in his car, Mr. Mehta is not panicky, but is in a reflective mood
THE HISTORY
The Firm
Associated Business Corporation (ABC) is a diversified, ffiulti-divisional company having business presence in capital-industrial products, consumer durables, and services industries. Through use of strategic planning tools, the company has successfully evolved a strategy of high-specialization and differentiation for its products.
Combined with the company's philosophy of high-ethic practices, the firm has established for itself a reputation for high quality products in each of its three businesses.
Customers perceive the firm and its products as extremely reliable and which give full value for money. As such they readily pay higher prices charged by the company. All the three businesses have an equal prominence in the firm's business portfolio in terms of contribution to sales and net profits and each business unit has a healthy rivalry with the other units for superior results each year.
THE BACKGROUND
The Printing Division
Vishala Printers is a division of Associated Business Corporalion, which specializes in publishing of scientific journals, annual reports and business catalogues. the firm
has a most modern laser printing and computer type-setting unit . It takes pride in the amount it invests (approx. 10 percent of ils annual sales) in maintaining its technological leadership through continuous development of employee skills and purchase of latest computer hardware and soflware. the Chief Executive of this division, Vipul Mehta,: 38 years of age, is a cofounder of ABC, He is a professionally qualified engineer and MBA from one of the premier management institutes of the country. He takes personal care that each and every product that comes out from the Printing Division is impeccable in quality. He started the venture in partnership with lwo other people, after having worked for 3 years in a multinational company in India. Over the past few years, lhe firm has shown consistent pattern in rate of growth and profitability. The market-to-book ratio has usually been above 5 for the previous three years.
A DILEMMA
Central India Manufacturing Corporation (CIMC) One of Vishala Printers' major customers is Central India Manufacturing Corporation. CIMC is a high-profile public sector unit manufacturing strategic goods for the country. It is one of the few PSUs making consistent profits. The yearly volume of business that CIMC
provides to Vishala Printers is roughly 20 percent of.the latter's annual turnover. CIMC's top management regularly publishes performance reports, catalogues, brochures, periodicals, field survey reports, etc., some of which are sent at the highest levels of Government of India including the Prime Minister and concerned Cabinet minister. Of late, some competitors of Vishala Printers who were doing day.to-duy printing jobs in which quality requirements are not stringent, have beeq pressing the
Finance and Accounts (F/A) people in CIMC to do something' so that they could also get a share in the seemingly high-margin quality jobs. These are the jobs which presently Vishala Printers undertakes for CIMC. These printers had also developed personal contacts with some influential persons in the organization. Some
officers and staff from the f / A and stores offices had earlier visited Mr. Mehta and tried to negotiate with him an understanding so that the obligation could become 'mutual'. they had also dropped suitable arm-twisting hints that 'although
we could have done so, we have never delayed your payments or made any adverse comments on the bills presented for payment'. Mr. Mehta had clearly instructed his staff not to encourage such
activities or dealings, and hence the F/A people were politecly refused.
The Decision Problem
Recently, the stores department of CIMC has taken a policy decision that all printing jobs will be awarded to one firm on a yearly contract basis. The acceptance of the tender and final award will be based purely on lowest rates offered. the rates, once accepted, will be valid for a period of one year and remain frozen till the end of the period. Mr. Mehta feels lhis is a trick devised by some
vested interests in the F / A and stores sections in connivance with other printers to eliminate his organization from future contracts with CIMC. It is universally known that the rates charged by Vishala Printers are as much as 40 -50 percent higher than the other'local' printers. Mr. Mehta justifies the difference saying, 'despite the apparently high differential in rates, the net margins for us are only about 15 - 18 percent on the quoted price. Our competitors in their ignorance do not realize the additional fixed and variable costs that we incur and also the extent' of expertise involved.' Mr. Mehta feels that his rates are extremely reasonable and fair and any downward price revision will not justify the amount of his personal and organizational expertise and investments made in executing high-quality printing work.
With the consolidation of all printing work on a yearly basis, even the director of CIMC would not be able to use his discretionary powers to award orders to Vishala Printers as the value of one single contract will far exceed his authority. Till the new policy, the director was using his discretionary authority, for ,!u prestigious and time-bound jobs. Another usual practice had been to form purchase-committees for 'important jobs. The purchase-committee chairman could place orders directly on the firm on the basis of recommendations of the job-committee.
The committee took decisions taking into consideration several other factors such as the nature of job, its purpose, timeliness of delivery, quality of workmanship required, which, in turn, depended upon the skills and resources that the printcr had, past experience of the printer in undertaking similar jobs, etc.
The committee members even visited the printer premises to make an on-the-spot assessrnent. Now this would also not be possible as under the new rules all printing orders were to be given only on the lowest quotation basis. According to Mr. Mehta, 'the work involves lot of value-addition particularly in respect of intangibles, and these additions cannot be neatly quantified for the purpose of calculating and evaluating the rates offered by different competitors. the top management and scientists of CIMC know that nobody else can provide the kind of service required, yet they cannot put this down on paper.'
The Case for Vishala Printers
One senior executive of CIMC made this comment on the quality provided by Vishala Printers : "Previously, we had to run around the printers and chase them for
getting the job done. the proofs usually got delayed and once they were received, carried many mistakes. The superscript and subscript notations and mathematical equations used in our scientific papers particularly were never done properly even after we corrected the proofs. the aesthetic appeal of the catalogue or report would
,always give impressions of shoddiness and corner cutting. I cannot say exactly why the final product was never up to the mark, but causes probably lay in a combination of factors such as the quality of inks used, the layout perspective of the designers employed by the presses, the quality of skills of the machine-men operating the offsets, or God knows what Now since Vishala Printers started doing our prestigious jclbs, all our problems seem to have been taken care of. It is they who chase us for expediting the proof reading and return.
Their usual practice is to sit with us and understand every detail of the job before commencing work. As customers, we were first uncomfortable with this attitude from a supplier but then understood that ultimately we are the beneficiaries in terms of a superior product, , timely delivery, and sustained commitment. This keeps everybody on the toes. You know what, once they even refused to go ahead with our job because our man failed to deliver the proofs for two days, and were ready to bear as losses, all the costs that they had incurred till then on the work. They often improve upon the grammar of the sentences. I am not a technical man but the scientists admit that errors of scientific and technical notations (otherwise hard to detect) which inadvertently ueep in the original typed manuscript get corrected at Vishala. Probably, Mr. Mehta's engineering and rnanagement background' is the reason behind this. We even got the appreciation for improved quality and presentation of our reports from our top boss the Secretary in the ministry. With this new rule about annual rate contract being introduced, I do not know how we will tackle a new printer. "
Questions :
(a) What is the basic problem of CIMC ? How can it be overcome ?
(b) Do you think that the rationale behind opening a printing division was good ? Justify your answer, using the knowledge of Strategic Management.
Ms-11 june 2008
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-11 June, 2008
MS-11 : STRATEGIC MANAGEMENT
1. (a) Discuss the different levels of strategy. Illustrate your answer with suitable examples
(b) Assume that you are the chief strategist
for an organization. As a strategist discuss the importance of strategy framework for your organization
2. Briefly discuss the concept and relevance of Porter's five forces framework
3. (a) 'Differentiation is normally costly.' Critically comment on this statement giving examples.
(b) Explain in brief the advantages and disadvantages of differentiation strategy.
Give suitable examples.
4(a) What is the rationale behind diversification ? Explain giving examples.
(b) what are the different ways to implement diversification strategies ? Give examples.
5. Briefly explain BCG's growth-share matrix in the context of Business portfolio Analysis.
6. Assume that you are the CEO of a commercial airline. The airline has a long-standing history in the airline industry but now it has to compete with the low-cost strategy of competing airlines.. Describe an appropriate organizational culture for your company so that it is able to maintain its position in the market.
7.Select a public library, which has now decided to serve its constituents and stakeholders even better. From your experience, delermine how the library should formulate and implement an effective strategy to improve its performance.
Ms-11 june 2009
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-11 June, 2009
MS-11 : STRATEGIC MANAGEMENT
1. a) What do you understand by a mission statement' ? Give two examples of
organizations having a well-formulated 'mission statement'.
(b) Suppose an organization does not have a well stated mission statement. Explain how will the firm be affected ? What is your opinion on the characteristics of Good Mission Statement ?
2. Take the example of Telecom industry and critically evaluate the impact of Porter's Five Forces that drive competition in that industry.
3. How does an organization expand by applying an 'integration strategy' ? Discuss keeping in mind the vertical and horizontal integration. Give Suitable examples.
4 a) Discuss how 'corporate culture influences the behaviour of the employees in the organisation. Illustrate with the help of examples.
(b) How manager as a header taking Corporate Culture into account handles people
effectively ? Explain.
5. Write short notes on any two of the following :
a) Balanced Score Card
b) Leadership in Indian context
c) Differentiation Strategy
d) Ansoff's product-market expansion grid
6. Read and analyze the case nnd finswer the questions given at the end.
Dell Computers aims to stretch its way of business In an interview with the Financial Times in November 2003, Kevin Rollins, the CEO of Dell Computers, explained how he was putting his job on the line by leading a major strategic change in the company.
The US company famous for selling PCs is planning a big push into consumer electronics. If things go according to plan, Michael Dell could eventually become the Henry Ford of the information age
For a maker of desktop personal computers who founded his company, famously, in a University of Taxas dormitory 20 years ago, this may sound unlikely. But the ambitions of Dell Inc are boundless and thanks to a simple business idea that has proved highly adaptable, and a fearsome relentlessness... Consumer electronics
are about to proaide what could well be the biggest test of the Dell way of doing business. Until now, the company has sold mainly to corporate customers : only a fifth of its sales in the US are to consumers, and much less than that elsewhere.
...Dell's simple but effective idea has been to sell standardised electronic products direct to customers, usually over the internet. That removes most of the research and development that is normally required, while also cutting out retailers and other middlemen. Armed with the information it gets from taking orders directly from customers. Dell has gained two other powerful advantages. One is the ability to build products to match orders as they come in, slashing its inventory costs. The second is a highly efficient marketing machine that can adapt its message based on real-time results as orders arrive.' With its lower costs, Dell sets out to undermine profits in the markets it enters and destroy the margins that sustain its more entrenched competitors.
'Our goal is to shrink the profit pool and take the biggest slice,' says Mr Rollins. Consumer electronics companies, often with gross profit margins of more than 30 per cent, make an obvious target for this ruthless approach. 'Our gross marigins are in the L8-19 per cent range : we don't need 40 per cent' he says. A former partner from Bain (management consultants), the Dell president applies the cool analystics and familiar jargon of the strategy consultant to this relentless expansion : search out the markets with the biggest 'profit pools' to be plundered; pick ones with close
'adjacencies' to those DeIl already serves to reduce the risk of wandering into unknown territory; and apply its .'core competences' to conquering new ground. As
a textbook case of applying a proven and repeatable formula, Dell takes some beating. It used the formula to move from selling PCs to businesses to selling them to consumers. Next it followed its businesses customers into servers, then into storage hardware. Now it wants to follow consumers into other areas of electronics as well. Lt has started with products closely linked to the PC. Such as MP3 digital music players and l-7-inch flat-panel television sets that resemble computer monitors. According to Dell’s rivals, success in the PC business in the US has disguised the fact that the company has found it harder to break into other products and new geogaphic regions.
'Dell's success is backward-looking' , claims Jeff Clarke, head of global operations at Hewlett-Packard. According to Steve Milunovich, technology strategist at Merrill Lynch, not all markets are as susceptible to all aspects of the Dell approach as the PC business. Yet he adds that the company has shown great discipline in attacking only those areas where its strengths still give it a clear economic and operational advantage.
Even most of the company's competitors concede that the shift in consumer electronics from analogue to digital technology plays to Dell's strengths. It is already the biggest purchaser of Iiquid crystal display screens and computer hard-drives, for instance, putting it in a strong position as these components come to play a bigger role in television sets and other household items.
When you combine monitors and LCD televisions, we will blow away the consumer electronics grys,'says Mike George, chief marketing officer. More importantly, Dell also benefits from the standardisation that brings down the cost of components and removes the advantage once enjoyed by companies that invest in their own technology. As more of a product's functions come to reside in standardized components such as microprocessors and hard drives, the differentiation that comes from making new versions declines The contrast with others is stark. Sony chief Nobuyuki ldei, for instance, told the FT that the Japanese company was putting a growing emphasis on proprietary components to differentiate its products. In the past four years, 70 per cent of Sony's investment has been in
silicon chips. While the digitisation of consumer electronics may have played to Dell's core strengths, though, there are at least three things about the market that are likely to test its business model. One is the fact that it will rely, at least for now/ on manufacturing by other companies,
reducing its ability to drive down costs. Also, the consumer electronics business is based on comrnon products that are not configured individually for different customers : according to Mr Clarke, that removes one main advantages of Dell's build-to-order model, the ability to customise products for each buyer. Using outside manufacturers is also likely to mean the company 'will not be able to operate on inventory that is as thin as it is in PCs,' says Charlie Kim, a consultant at Bain. Company executives suggest that once manufacturing volumes reach a high enough level, Dell is likely to start production itself. Also, while the cost advantages may be less in 'back-end' activities such as production and sourcing, the real opportunity for Dell in consumer electronics lies in the 'front-end' marketing and sales area, says Mr. Milunovich. 'There's a big chunk of money to be taken out of distribution' he says.
Whether Dell can take advantage of this opportunity with its direct sales system will be the second big challenge. Retail stores suit consumer products best because they bring an instant mass market and let users test the look and feel of products, says Mr Clarke. That is particularly important for products such as television sets, which buyers want to see, or handheld devices, which they want to pick up, say rivals.
Dell executives retort that similar doubts were once expressed about its efforts to sell PCs online, and that its early sales of personal digital assistants suggest that consumers familiar with the quality and style of the company's PCs are willing to buy other items online too. The third test will be whether the Dell brand and marketing approach can be adapted to suit the new market. High name-recognition helps, but will get Dell only part of the way. 'Everyone knows who Dell is-but it's still a PC-focused brantd,' says Mr Kim at Bain. For a company that still relies heavily on selling to corporate customers this will pose a big challenge. 'I,we're very humbled by the fact that there are virtually no other companies that are both consumer and enterprise brands,' says Mr. George. He adds, though, that the basic attributes of the Dell brand-with its connotations of a certain level of value, quality and service-should extend across both types of market. Overcoming obstacles such as these will stretch the Dell model in ways that it has never been stretched before.
Questions
(a) why were the issues facing Dell Computers described as strategic ?
(b) Identify examples of issues that fit each of the different levels of strategy ?
Ms-11 june 2010
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-11 June, 2010
MS-11 : STRATEGIC MANAGEMENT
1. Explain the process of strategy formulation. Illustrate your answer with the help of examples.
2. Explain different types of resources involved in Internal Analysis and discuss their strategic importance. Also explain the relationship between resources, competencies and competitive advantage with suitable examples.
3. Discuss various techniques used in strategic control systems. Analyse the importance of each giving examples.
4(a) What do you understand by 'survival strategy' ? Discuss its various types and explain them with the help of suitable examples.
(b) Explain the Retrenchment Strategy as a Strategic Alternative with suitable examples.
5. Write short notes on :
a) Hofer's Product/Market Evolution. Matrix
b) Shell's Directional Policy Matrix
Case study
6. What are Mergers and Acquisitions as a part of Strategic Alliance ? Discuss
the concept in the light of the case given above ?
7. How Mergers and Acquisition helped the organisation in becoming global leaders ? Discuss.
Ms-11 june 2011
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-11 June, 2011
MS-11 : STRATEGIC MANAGEMENT
1. What are the different steps involved in the implementation of strategy ? Discuss each of them in brief giving examples.
2. Explain the concept of Critical Success Factors (CSFs). Take a firm of your choice, which is into consumer durables. Select any two products the firm manufactures and list out the critical success factors that are important for tleP.- firm's success.
3. (a) Explain in brief different types of differentiation, giving examples.
(b) Explain the difference between a niche - low cost - differentiation strategy and a
low-cost differentiation strategy. Support your answer with the help of examples.
4. Differentiate between Vertical integration and Horizontal integration under which conditions each would be advisable ? Discuss.
5. Write short notes on any two.
(a) GE's strategic business planning grid
(b) Mission and vision
(c) Global Product structure
(d) Balanced Score Card (BSC)
6. Read the following illustrations and answer the questions given at the end.
Culture and strategy
Newspapers are about news
the top management team of a newspaper business had spent the morning in small groups analysing the changes in the business environment they faced. They concluded that they faced many major challenges, including changing demographics, electronic media and the growth in free newspapers. Also over 70 percent of their revenue was from the sale of advertising space rather than the newspaper itself. Indeed there seemed
to be so many threats that one group decided that ' the end of the world is night'
In the afternoon they turned their attention to the future strategy of the organisation. This quickly became a series of proposals about how they could improve the coverage of news and sport and the physical presentation of the newspaper itself.
One of the younger members of the team suggested that they might consider a more fundamental question '.... whether we are really in the news business or if we are an advertising medium ?' He was met with astonished silence from his colleagues.
So, in the morning, these managers were quite able to undertake a 'rational' analysis which raised questions about the traditional role of a newspaper. But, in the same afternoon, when it came to what they should do, the paradigm 'newspapers are about news' drove their thinking.
IKEA
In the mid - 2000s the Swedish company IKEA was the leader in the European 'flat-pack' householder furniture business. It had a presence in some 30 countries and was famous for its good -quality products marketed at low prices. This had been achieved
by the vision of the founder, Ingvar Kamprad, and an almost obsessive attention to every item that would add to cost -so much so that cost reduction became ingrained in the company culture. Kampard himself drove an old Volvo and bought fruit and vegetables in the afternoons at markets when they were cheap. IKEA staff always travelled economy class and took buses not taxis. There were wall stickers urging staff to turn off lights, taps and computers. There were prizes for the store or office that saved most electricity.
Cross-border mergers
French and British companies approach business in different ways -strongly shaped by
the different national cultures. This can be an important impediment to successful mergers unless managers are aware of these differences and able to manage their impact
within the merged companies. The impact of national culture is seen in the day -to -day ways that companies function. The French are much more committed to rational, analytical approaches to decision making whereas the British tend to get straight to the point and rely more on 'gut feel'. Meetings in France are held mainly to rubber stamp what has already been decided by 'the boss'. The British expect to go to meetings to influence decisions. The membership of meetings tends to reflect these different purposes. The French have more people involved - since it is part of the education and communication process. In Britain the membership is usually confined to those who have a 'right' to influence the decision.
Questions
(a) For each of the three illustrations make lists of advantages and disadvantages of the (four) corporate cultures described.
(b) Imagine that you work for a French company that is considering a merger with a British company. Write a short executive report to your CEO listing the cultural clashes that might arise and how they could be handled.
Ms-11 Dec 2007
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-11 Dec, 2007
MS-11 : STRATEGIC MANAGEMENT
1. Identify an organization of your choice. Explain how technological and economic forces can present opportunity as well as a threat to the organization..
2. Diflerentiate between a business level strategy and corporate level strategy. Illustrate your answer with the help of an example and its relevance in the present context.
3. Explain the various steps involved in the Merger and Acquisition deals. Give suitable examples.
4. Explain the methods and techniques used in strategic control systems. Support your answer with examples.
5. a) What are the major factors, which are necessary to match the structure of the organization with the needs of the strategy ?
b) Why is it necessary for the top management in a business organization to match the structure to the strategy ?
6. Assume that you and your friend are investors and wish to start a restaurant in the same city. You wish to cater to family food needs, whereas your friend wishes to cater to the needs of people who pref.er specialized foods like continental, with nice surroundings. It is clear that both the businesses will need different functional strategies. How would you suggest the planning and implementation of functional strategy for each restaurant ?
7. Assume. that you wish to open a bookstore close to your campus. You have already conducted the market research to assess the need for a bookstore. Assume that you belleve that any of the two generic strategies could be' successful for the bookstore : niche low-cost strategy and niche-differentiation strategy. Answer the following for both the strategies separately.
(a) What type of physical store should you create ?
(b) What kind of books would you have as the inventory of the bookstore ?
(c) What kind of in-store services would you provide to customers ?
Ms-11 Dec 2008
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-11 Dec, 2008
MS-11 : STRATEGIC MANAGEMENT
1.a) Strategy making requires personwith vision, while strategy implementation requires a person with administrative ability. Critically comment on the statement with respect to implementation of strategy.
(b) Explain the importance of evaluation and control in strategy making process.
2. Explain Critical Success Factors (CSF) and value chain framework as a guide to analyse a firm's strengths and weaknesses.
3.Focus is different from other business strategies'. Explain, how Focus Strategy is different from other business strategies giving examples.
4. Discuss the important issues involved in turnaround strategy. Support your answer with example.
5. a) What do you understand by Strategic Control Process ?
(b) Briefly explain different methods of control.
6. Think of an organization, which is using a corporate growth strategy :
(i) Analyze as to how the organization's strategy has influenced its structure.
(ii) Looking at the present trends, is its current structure the optimal structure for this enterprise ? Discuss.
7. Select a company, which is well-known in the automobile sector. From your
understanding of the PESTLE framework, identify different opportunities and threats
for the following:
- political
- legal
- economical
-technological and
- social forces
Ms-11 Dec 2009
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-11 Dec, 2009
MS-11 : STRATEGIC MANAGEMENT
1. Briefly discuss two important changes in the Indian Business Environment in each of the following areas giving examples.
—Economic
- Social
—Political
---Technological
2. Explain the different levels of strategy. Discuss the importance of strategy for an organisation.
3. What are Mergers and Acquisitions as a part of diversification strategy ? Discuss the different forms of Mergers with suitable examples. Give five reasons of Merger and Acquisition Strategy
4. Critically discuss the perspectives on strategy and structure with respect to :
a) Porter's Perspective
b) Peter and Waterman's Perspective
5. Write short notes on any two of the following :
a) Leadership styles
b) Diversification
c) Experience curve
d) Mckinsey's 7s framework
6. Read the analyse the case and answer the questions given at the end.
The mobile phone industry
Competitive rivalry
By 2004 the competitive rivalry between network operators was becoming intense in most countries. In the UK numerous different packages were on offer. Initially if a customer threatened to withdraw, operators would offer a new free phone and several free months of line rental as an enticement to stay. However, as markets matured, emphasis was placed on price, coverage, general customer service and the offering of new products and services (with the advent of 3G technology).
Buying power
Buying power of consumers was high as they had so much choice. The danger for providers was confusing potential customers with over-complex offers. Independent retailers (e.g. in the UK Carphone Warehouse) competed with those owned by network operators (e.g. Vodafone). Others offered cheaper deals through newspaper adverts and the internet.
Power of suppliers
Equipment manufacturers competed for market share. Prior to 3G launch the big manufacturers-
Nokia, Motorola and Ericsson - had concerns about market saturation. Supplier power was increasing as their sector consolidated through alliances (such as 'Casio and Hitachi in 2003). Network operators could be held back by supply difficulties as with the Hutchison (3-UK) launch of 3G services in 2003/4.
Threat of substitutes
In the 1990s the main threat of substitution was 'technological regression' where customers returned to fixed-line telephony because of high mobile call charges. By 2000 price decreases and the 'need' for everyone to have a mobile phone reduced this threat. By 2004 the greatest threat was the convergence of mobile telephony with PDAs (Personal Digital Assistants) and with the internet (e.g. MSN Messenger). This could switch both voice and text messaging onto the internet -avoiding mobile phone operator networks.
Location technology in mobile phones (making the caller easy to find) might encourage this 'drift'.
Threat of entry
The threat of entrants was low because of the enormous cost in both licences (-E22bn (€33bn) in the UK alone) and in the general investment needed to be a player in new 3G (broadband) technology.. Power was a function of who was ahead of the game in 3G and had the licences to operate a service. There was only a threat of entrants if public policy towards this heavy regulation of the sector changed in future.
Questions :
Viewing this industry through the eyes of a network operator (such as Vodaphone).
1. Which would you regard as the three most important threats to your business ?
2. How could you respond to each of these to lessen their impact ?
3. Answer questions 1 and 2 for an equipment manufacturer - such as Nokia.
4. What are the main benefits and limitations of five forces analysis ?
Ms-11 Dec 2010
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-11 Dec, 2010
MS-11 : STRATEGIC MANAGEMENT
1. Briefly discuss the process of strategy
(a) for a Single Business Unit (SBU)
(b) for a Multiple Business Units. Illustrate your answer with the help of examples.
2. 'Technological factors represent major opportunities and threats which must be taken into account while formulating strategies. Critically comment on the statement keeping in mind the technological advances in the field of agriculture. Also explain how these advances have affected in tapping the opportunities available overseas.
3. Explain the relationship between corporate level strategy, business unit strategy and functional strategy. How are these strategies different from each other ? Explain with the help of examples.
4. Briefly explain 'Ansoff's Product Market Expansion Grid', as a useful tool in discovering growth opportunities.
5. Write short notes on any two of the following:
(a) Shell's Directional Policy Matrix
(b) Mother - Daughter Type structure
(c) Business Portfolio Analyks
(d) Strategic Alliances.
6. Read the following illustration and answer the questions given at the end : Agility through outsourcing with British Telecom
British Telecom (BT) promotes its outsourcing business with the strap-line 'Agility
through Outsourcing'. Many organisations both in the public and private sector have reviewed their internal processes and found that they lack the necessary resources to meet the increasing challenges put on them by changing demands of their customers... They have turned to companies whose core competences fill the gaps in their internal structure. They hand over the running of whole business functions, such as payroll or training, gaining the expertise they need to meet that step change requirement forced on them by the expectations of their customers, but at a predictable cost.
BT offers its clients the opportunity to outsource its information, communication and technology (ICT) functions to provide them with 'freedom from technology' : Making an investment in technology requires a great deal of expert knowledge to ensure that it becomes an enabler for business rather than a barrier to it. Often organisations find they don't have that expertise in - house. The solution is either buying that expertise in, further raising the level of investment, or handing over the responsibility of managing their ICT systems to a third party like BT that has the relevant skills at its core.
BT has such skills, it argues, because in its own transformation from a public sector organisation to a private company, it placed ICT processes and management at its core, reducing its own cost base and focusing on competitive advantage and customer care by aligning its people, processes and technology. The result is that it believes it can offer a:
Totally integrated approach to IT infrastructure, software systems and applications which enables us to manage more effectively on behalf of our customers... BT can take some or all of the operational responsibility on behalf of the clients' ICT departments.
We are able to provide a customised communication service that involves taking over the customer's existing network, including services from other carriers. All solutions are tailored to meet the specialised needs of each customer... our services will go to the extent of transferring assets including staffing resources. We buy the assets from our customers that we need to serve their top technology needs. As a result they get a capital injection by removing those assets from the balance sheet... these organisations can then plough the money they saved into products that benefit their core competences, focused on giving a high quality service to their customers.
BT suggests further benefits to potential clients. Its services : Greatly benefit organisations that have a specific process or service, which depends greatly on leading edge technology, but for which there is little in-house expertise. The benefits include :
• Achieving costs savings and predictable costs, improving piece of mind through reduced risk.
• Gain access to funds which otherwise would not be available for potential large scale projects.
• Reduce the risk of business change by involving economies of scale from BT.
• Increased agility to reach new markets or new geographies.
• Increased agility to change your business in line with changes in the environment.
• Take advantage of access to resources in expertise not available internally.
• Improve access to technology, innovation and scarce technical skills.
• Reduce management overheads and supplier interfaces.
• Achieve productivity gains leading to lower costs.
Questions :
(1) Other than ICT, what other areas of business operations might benefit from outsourcing ? Specify some of the benefits that might be gained.
(2) Given the benefits stated in this illustration why might businesses choose to keep their ICT or other business operations in-house ? Explain.
Ms-11 Dec 2011
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-11 Dec, 2011
MS-11 : STRATEGIC MANAGEMENT
1. Distinguish between
(a) Strategy v/s Policies
(b) Strategy v/s Tactics and explain giving examples.
2. How does the value chain framework work as a guide to any firm's strengths and weaknesses? Give examples in support of your answer.
3. (a) Discuss the cost of differentiation under following leads :
(i) Training.
(ii) Promotion of a product.
(iii) Hiring skilled workforce.
(iv) I mproving quality of the product.
(b) Discuss the Advantages and Disadvantages of Differentiation.
4. ' An organization can "go international" by crossing domestic borders as it employs various growth stratagies'. Keeping the statement in mind explain various ways through which a firm can expand internationally. Give examples in support of your answer.
5. What are the different methods of control ? Discuss them in brief giving examples.
6. Read The following case and answer the questions given at the end.
Abhinav Kumar never failed to enjoy his company's establishment-day jamboree. That was one time in the year when his company, Total Industries, really splurged on its employees. Assistant managers and about 122 of them-would be flown into Mumbai from all the branch offices, and lodged in hotels for 2 days.
The get-together cost the company Rs. 50 lakhs, but Kumar knew it was a small price to pay for the credibility it generated. After all, Total was no longer the textile peddling, one-man outfit his grandfather had founded back in 1927. Rather, it was a Rs. 6,000 crores plus conglomerate with interest in consumer electronics, switchgears, batteries, soaps and oils.
Being a largely family managed company, Total is likely to be perceived as a benevolent
employer. Today, watching is employees come together. like a big family, Kumar felt proud about his grand-father and father. He turned his gaze to where his father was sitting, 2 tables away to his right, chatting animatedly with Srikant Suresh, President (Consumer Durables Division). In another 5 minutes, Kumar Senior would be up on the dais, making his annual address to the empolyees. Kumar knew what his father would be talking about. They had discussed it over dinner last night. Ratika Sahai, the young President (Batteries), took the microphone as soon as the evening's last item, a dance recital, came to an end. "Thank you Rachana for your wonderful performance. Ladies and Gentlemen, before we wrap up this evening. I would like to invite our Chairman to the dais for his customary address". Amidst loud applause, Deepak made his way to the dais.
"I hope all of you had a good time over the last 2 days. Although this is only our fourth get-together in as many years, I feel a tremendous sense of belonging. I hope you feel the same because, as a company, we will prosper only when all of us contribute our
best".
Total Vision 2010'
To become a market-leader in each of the four business segments by ensuring total
quality, customer satisfaction, and continuous innovation.
"As I see it, " Deepak continued," the challenges before us are many. We need to become a more efficient company. We need to become more cost-competitive. Our products need to be of better quality, and we need to become more customer-friendly. The business environment today is vastly different from what it was when I joined Total. Unless we regularly re-vitalise the organization, change our mindsets, and revisit our basics, we cannot be competitive. What kind of company should Total be in another decade?"
For about half a minute nobody replied. Then, Manoj Kohli, the President of the switchgears division, stood up to answer the question. "Probably the largest company in the country", he said.
"Certainly the largest company, Manoj, but also the market-leader in all the segments we choose to be in", Deepak elaborated. "Do all of you feel that way ?" he threw the question at the audience.
"Yes," pat came the chorus.
"Let's keep that in mind when we return to our jobs tomorrow morning, and work towards making it happen. Once again, thank you all for being here, and I hope it was worth your while," Deepak said concluding his address. Kumar met up with his father near the exit, "Sir can you give me a ride back home," he asked. Kumar always "Sir-ed" his father in front of other executives.
"What happened to your car ?"
" I have it but I want to talk to you".
Deepak gave him a quizzical look but did not say anything. After saying good bye to his departing colleagues, Abhinav joined his father who was already seated in the car.
"So, what do think dad? Did it go off well ?"
"Of course, it did. Do you have any doubts?"
"Not about the party but something did strike me as odd."
"What ?" Deepak asked, his curiosity piqued.
"Remember when you asked what kind of a company Total should be in another 10 years?"
"Yes, What about it ?"
Didn't it strike you as odd that there was a long silence before Manoj replied ?
"I think they were hesitant. It's not everyday that I ask them a question like that."
"They were hesitant, dad, but not because they were shy. Don't you realize they don't know what we want Total to be ?rThey do not know what our vision for Total is."
"Bah ...don't give me your management jargon. I don't care if they don't know of our
"vision". We have done perfectly well over the last 73 years without your 'vision' thing," Deepak scoffed.
"Those days, our executives just took orders from you and grandpa. But, today we are asking them to act like profit-centres: Don't you think having a common vision which
everybody knows about will help ?"
"Do you think Total got to where it is today without a vision ?"
"No. But the vision is locked up inside the heads of people like you, me, and our top executives. We have not discussed its contours and documented a formal statement".
"I don't know' Abhi, I would still trust my gut feel than go by some fancy vision
statement. It looks good hanging from your office wall".
"No, dad," Abhinav persisted. "It's just like you and I having our breakfast or dinner
talks. Only, this time it will be communicated to all the employees in the company".
"I don't feel comfortable about your management mumbo-jumbo. But we will do it
anyway".
The car pulled into the drive-way of their sprawling mansion.
"Thanks, dad. Eventually, you'll see that it works."
"I hope so, Good night, son". Next morning, Abhinav asked his four presidents-Srikant
Suresh of Durables, Manoj Kohli of Switchgears, Guneen Roy of soaps and oils, and
Ratika Sahai of Batteries-to join him in the conference room. Without much ado, he
got to the point as soon as the meeting began.
"Tell me something frankly. Do you think Total has a vision where it wants to go?"
His audience of 4 was momentarily taken aback by the question. They looked at each
other, before Guneen replied : "Of course, aren't all of us committed to making Total
the best company in the industry?"
There are two things involved here, Guneen. One, only you and I seem to know where
Total is headed. And two, even we see the final goal differently. We have been so
caught up with our day-to-day operations that we haven't articulated the big picture".
"You are right, "Kohli said.
"But how do you develop a vision, for a company that is as diversified as ours ?"
Questioned Ratika. "Should we find a common thread that runs across all our businesses and build the vision around it, or develop separate vision statement for each of them?"
"I think the unit-specific vision would make sense provided we were to spin off our divisions into separate companies, "Guneen said... "Given our current position, we should identify the unique set of skills that straddles the 4 divisions".
"In fact, I do see some common characteristics," said Kumar "One, our businesses are volume-driven. Two, the sales are largely dealer-led. Three, our products cater to the mass market, and they are sold on the economy plank. So, what is the core proposition
that binds them all ? Obviously, it is value-for-money. So, should our vision be built
around this proposition ?"
It's my sense that we should," Kohli said "Look at our market shares. In refrigerators, we have 1/5 th of the market; it's 23 percent in switchgears, and 17 percent in CTVs.
Our market share in batteries is modest because it's a relatively new business for us. Of course, soaps and oils is a legacy business, which Guneen is trying hard to turn around".
I feel that connected to the issue of vision is also the question of strategy," Ratika noted.
"It must make a fit with the vision."
"I think this is what we should do", Kumar opined. "As a first step, do an in-house vision poll to find out what our people feel about it. We'll work on the strategy thereafter."
It took Total about 2 months to finish the in-house poll. The results were revealing.
There was a stark absence of vision awareness below the middle-management level. In fact, the clerical cadre was not even sure that Total had a vision.
"This is scary, dad," Kumar had told his father the evening the poll results came in.
"But do you think all our employees are capable of understanding the complexities of the business ?" his father had asked.
"May be not, but they'll appreciate transparency. And if we keep our vision simple-not simplistic, though I don't see why they won't buy it".
"I have my reservations, Abhi. Can we develop a meaningful, shareable vision for all our businesses ? How should the vision be put across, and how should we manage the mechanics of developing this vision without trivialising what we have toiled to build over the years, or scaring our employees away with too high a vision ?"
QUESTIONS :
(a) What should be the basis of the vision statement of Total Industries: Value for money or anything else ? Explain clearly.
(b) How can Total Industries develop a meaningful shareable vision for all its businesses ?
(c) Is it possible for Total Industries to develop the vision statement through active employee involvement and participation ? If yes, outline the steps in a sequential way.
(d) What are the dangers of building a vision statement through a bottom-up process ?
More...
Ms-10 june 2007
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-10 june, 2007
MS-10 : ORGANISATIONAL DESIGN, DEVELOPMENT AND CHANGE
1.Distinguish between the Functional and Product organisation and Une & Staff organisation. List out their merits and demerits with examples.
2. Describe the skills required for becoming a successful change agent and briefly discuss the role of a change agent.
3. Briefly describe the erherging trends in work organization and discuss how they affect the quality of work life of employees, with suitable examples.
4. Describe the meaning and purpose of job design and various approaches to job design and their relevance.
5. Write short notes on any threeof the following :
(i) Inverted pyramid structure
(ii) Intervidru as a diagnostic tool
(iii) Organisation vs. institution
(iv) T-Group training
v)Mechanistic vs. Organic organization
6. Read the following case carefully and answer the questions given at the end :
If lean and mean could be personified, Percy Barnevik would walk through thr door a thin bearded swede Barnevik is Europe's leading hatchet man. He is also the creator of what is fast becoming the most successful cross-border merger since Royal Dutch Petroleum linked up with Britain's Shell in 1907.
In four years, Barnevik, 51, has welded ASEA, a Swedish engineering group, to Brown Boveri, a Swiss competitor, bolted on 7 more companies in Europe and the [J.S., and created ABB, a global electrical equipment giant that is bigger than Westinghouse and can go head to head with GE. It is a world leader in high-i peed trains, robotics, and environmental control.
To make this monster dance, Barnevik cut more than one in five jobs, closed dozens of factories, and decimated headquarters staffs around Europe and the [J.S. Whole businesses were shifted from one country to another. He created a corps of just
25 global managers to lead 21,000 employees. IBM has talked with Bamevik and his team. about how to pare down its own overstaffed bureaucracy. Du Pont recently put Barnevik on its board. Says a senior executive at Mitsubishi Heavy Industries :
"They're as aggressive as we are, I mean this as a compliment. They are sort of super-Japanese." ABB isn't Japanese, nor is it Swiss or Swedish. It is multinational without a national identity, though its mailing address is in Zurich. The company's 13 top managers hold frequent meetings in different countries. Since they share no common first language, they speak only English, a foreign tongue to all but one. Like their boss, senior ABB managers are short on sentiment and long on commitment. An oil portrait of a l9th-century founder of Brown Boveri hangs in ABB's headquarters, but few are sure what his name is. (lt's Charles Brown.) Ask for a fax number, though, and you're likely to get two, office and home.
To Barnevik, today's competitive market economy is a "cruel world". Not making it any kinder, he has launched a personal war on what he sees as excess capacity
- 2% to 3% in the electrical equipment industry in Europe alone. Educated in Sweden and the U.S. (he studied Business Administration and Computer Science at
Stanford in the mid-1960s), Barnevik thinks European industry must be restructured massively to become competitive in world markets. He foresees billions of dollars of mergers and acquisitions in the next three to five years. Europe's best strategy against the Americans and Japanese, he national markets. believes; is to break free of, protected
Before the merger, Brown Boveri had 4 people in Baden, Switzerland. ASEA had as nrqny as 2, in Vasteros, Sweden. The combined company now employs just 15 in a modest six-storey building across from a train station in west Zurich. Where did everybody go ? Many were fired. The rest were sent to subsidiaries or off ered jobs in new companies set up to assume rnany headquarters functions. (ABB Marketing Services, for exarnple, creates. and mns and campaigns for ABB, but
. also takes on a few other clients. And Bamevik expects it to make money.) It's not just cost cutting Barnevik is after, though that is obviously irnportant. Says he : "ldeally you should have a minimum of staff to disturb the operating people and prevent them from doing their more importdnt jobs. "
Bamevik's master matrix gives all employees a country manager and a business sector manager. The country managers run traditional, national companies with local boards of directors, including eminent outsiders. ABB has about 2 such managers, most of them citizens of the country in which they work. Of more exalted rank are 65 global managers who are organized into eight segments : transportation, process automation and' engineering, environmental devices, financial services electrical equipment (mainly motors and robots), and three electric power businesses : generation, transmission, and distribution. Barnevik is well aware that the once popular management by matrix is in disfavour in the U.S. business schools and has been abandoned by most multinational companies. But he says he uses a loose
Decentralized version of it the two bosses are not always equal that is particularly suited to an organization composed of many nationalities
The matrix system makes it easier for managers like Gerhard Schulmeyer, a German who heads ABB's U.S. businesses as well as the automation segment, to make use of technology from other countries. Because of the matrix, Schulmeyer has a better idea of what is available where. He says that the techniques developed by ABB in
Switzerland that he uses to serviee U.S. steam turbines are more reliable and efficient than those of General Electric and Westinghouse, his main American competitors. Schulmeyer also relied on European technology to convert a Midland, Michigon, nuclear reactor into a natural gas-fired plant, ... ABB executives say the value of the company's matrix system extends beyond the swapping of technology and products. For example, the power transformer business segment consists of 31 factories in 16 countries. Barnevik wants each of these businesses to be run locally with intense global coordination. So every month the business segment headquarters in Mannheim, Germany, tells all the factories how all the others are
doing according to dozens of measurements. If one factory is lagging, solutions to common problems can be discussed and worked out across borders.
Questions
(a) How is ABB achieving integration and coordination of its global operations ?
(b) Which of the four basic departmentalization formats Explain.
(c) Has Barnevik created an effective balance between centralization and decentralization ?
(d) How does ABB apparently avoid unity-of-command problems with its matrix structure
Ms-10 june 2008
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-10 june, 2008
MS-10 : ORGANISATIONAL DESIGN, DEVELOPMENT AND CHANGE
l. Describe Organisational Design. By focussing on efficiency, highlight some of the factors affecting organizational design.
2. Compare the vertical and project organisation structures and their relevance in the present-day context. Illustrate with suitable examples.
3. Identify the emerging issues related to quality of working life. What is the relevance of QWL in the modern context, with suitable illustrations ?
4 Discuss resistance to change with reference to individuai and organisation. How would you overcome it ? Cite an example from organisational context.
5. Write short notes on any three of the following :
(a) Questionnaire as a diagnostic tool
(b) Business Process Reengineering
(c) Task force
(d) Architectural Ergonomics
(e) Role of CEO in Institution Building
6. Read the following case carefully and answer the questions given at the end :
The middle managers of a large firm were told by the corporate human resources office that a group of consultants would be calling on them later in the week.
The purpose of the consultants' visit would be to analyze cross-functional relations throughout the firm. The consultants had been very effective in using an OD intervention called team building. Their particular approach used six steps. When their approach was explained to the managers, a great deal of tension was relieved. They had initially thought that team building was a lot of hocus-pocus, like sensitivity training, where people attack each other and let out their aggressions by
heaping abuse on those they dislike. By the same token, these managers generally felt that perhaps the consultants were not needed. One of them put it this way : "Now that we understand what is involved in team building, we can go ahead and conduct the sessions ourselves. All we have to do is to choose a manager who is liked by everyone and put him or her in the role of the change agent/consultant. After all, you really don't need a high priced consultant to do this team-building stuff. You just hgve to have a good feel for human nature." The other managers generally agreed. How ever, the corporate human resources director turned down their suggestion. He hired the OD consultants to do the team building.
Questions :
(a) Bring out the main features of this case.
(b) What is a team building approach to organization development ? Do you think the managers had an accurate view of this OD technique ?
(c) Do you think that the managers had an accurate view of the role of external consultants ?
(d) What will be your plan of action in the situation
Ms-10 june 2009
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-10 june, 2009
MS-10 : ORGANISATIONAL DESIGN, DEVELOPMENT AND CHANGE
1. Describe the importance of organizational diagnosis and different perspectives which could be used for analysing organisations and their purpose.
2. Discuss the various approaches in understanding organisation.
3. Explain the factors for an effective job design. Describe any two approaches to job design and their merits and demerits.
4. Discuss various steps involved in phases of planned change and their relevance
J. Write short notes on any three of the following :
(a) Skills of a change agent.
(b) Matrix organisations.
(c) Stages in organisation Development.
(d) Task force.
(e) MacDonaldisation.
6. Read the following case carefully and answer the questions given at the end.
Mr. Krishna Rao was utterly baffled. He took over office four months ago and has since initiated. several changes all of which are good. His main intentions in making the changes were that the office should look more professional and the employees should be facilitated to become productive without making them work too hard. The office now indeed looks more spacious with the new layout, and in fact, his colleagues from the other departments who pass by comment on how nice and professional the office looked ! Mr. Rao had put the secretaries' desks close to their bosses' cabins so that they did not have to walk up and down all the time. Previously, they were huddled together in the secretaries' pool, and whenever they had to take dictation which was several times a day they had to walk quite a bit.
He also purchased new calculating machines for the department which are quick, efficient, and accurate, so that the assistants now do their calculations without making mistakes. In fact, he had just placed an order for a high-speed computer
which would take away the boredom and monotony of all the laborious human calculations and would be a boon to all. Actually, once the computer is installed, the managers will not have to be dependant on the lower level staff. Whatever statistics or information the managers need, the computer will generate the data in no time at all. And the computer manufacturer was going to offer free programming sessions for all those who wanted to attend them. Manuals will also be made available to all the staff. It was the best of all possible worlds for the entire department and Mr.Rao could not understand why the staff were not more enthusiastic and some acfually seemed rather unhappy.
Questions :
(a) Identify the problems in this case.
(b) what kind of changes were prescribed by Mr.Rao and why ?
(c) Discuss why the changes did not produce the desired results in this situation.
(d) If you were Mr.Rao, how you would have handled the situation ?
Ms-10 june 2010
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-11 june, 2010
MS-11 : ORGANISATIONAL DESIGN, DEVELOPMENT AND CHANGE
1. Describe any two types of organisation structures and relate their significance to restructuring. Explain with suitable examples.
2. Discuss the current trends in the study of work organisation and their effect on the work culture.
3. Describe Questionnaire as a tool for analysing an organisation and its merits and demerits.
4. Explain Lewin's model in process of change and interventions in Managing Resistance to change.
5. Write short notes on any three of the following :
a) Task force.
b) Process consultation.
c) Quality of work life.
d) Institution Building.
(e) Competencies required for a change agent.
6. Read the following case carefully and answer the questions given at the end.
In mid-1984, Mr. Mahmood, the general manager of Westward Exports Ltd., Karachi, Pakistan was striving to implement a management information system. He was facing resistance from Mr. Saleem, his most senior supervisor. Mr. Mahmood wondered what he could do to overcome this resistance.
Westward Exports was an exporter of ladies' cotton garments. It was a private company established in 1971, a family-run business, all four directors being brothers.
Over the past 14 years, the exports of the company had grown from Rs. 0.71 million in 1972-73 to Rs. 59.76 million in 1984. Almost 90 per cent of the exports went to the USA. It owned no manufacturing facility of any kind. It purchased cotton cloth from six different textile mills and had the cloth dyed and printed. This fabric was then passed on to 138 stitching subcontractors. The company had been expanding the product line over the years, and by 1983 it was exporting about one million garments in over 100 basic designs. 'The 100 designs were presented in a range of fabric types, shades, designs and sizes. When seen in the context that the company got all these things done through subcontractors, the managerial control of the operations became quite challenging. The directors, who had always been actively involved in each and every aspect of the business, and made all the decisions themselves, felt the heat of the changing situation. They appreciated the problem, and decided to hire some professional assistance to bring more control to their operations.
Mr. Mahmood was hired in late 1983 to be the new general manager. He was an agricultural graduate who had about 15 years of marketing and sales experience with a multinational organization. He had also attended more than a dozen management development courses. The directors were confident that he could introduce some new control measures to help ensure the continued success of the company. Mr. Mahmood quickly determined that if Westward Exports was to remain in business, it must immediately eliminate the haphazardness in its operations. No proper costing, no scheduling, no progress sheets or order status reports, no follow-up charts, or for that matter no control procedure worth the name existed. "It was all so nebulous," he concluded. He worked late hours to comprehend fully the nature and scope of the company's business and its coordination and working relationships with the contractors.
Almost immediately, he started to design a proper system to help cure the lack of control
and information available.
Out of about 200-odd employees in the company, the key operating manager was Mr. Saleem. Saleem joined the company in 1973 as a production officer, nearly the lowest rung in the company's hierarchy. He distinguished himself because of his hard work and was promoted to be a supervisor. By 1982, Saleem under direct supervision of the directors, was looking after every activity in manufacturing. Right from raw material procurement to packing and shipping of finished garments, he was coordinating all the activities. Because of the varied nature of his duties and his dedication to work, he was able to learn all the ins and outs of the business. Saleem was also considered to be a man with a photographic memory. He virtually ran the whole business from the information stored in his head. "I have an abhorrence for paperwork," said Saleem. "My work-load is so great that I am always engrossed in my job. Even my dreams are job-related," he added, "but due recognition has always been accorded to me by my directors." Saleem initially cooperated with Mahmood.
However, when Mahmood started to implement some of the new systems and procedures, Saleem refused to go along with them. Saleem even questioned the very need for such a drastic change. "Ask me about anything — any detail of a fabric, any garment, any export order — for that matter anything that has happened in this company since I joined, and I will tell you instantly. Why are you bothering the people here with such clerical burdens ? These luxuries are alright for big companies, but not for us. We cannot spare people for such unproductive things." Mahmood understood that Saleem was close to the director and was the seniormost supervisor. Therefore, his opposition could not be taken lightly. Mahmood also felt that the other might say that he had neither the general management experience, nor any particular experience in the garment industry.
Nevertheless, Mahmood was confident that the company did need the change, and as soon as possible. He was troubled, however, with the resistance of Mr. Saleem. Unless he could somehow overcome Saleem's reluctance to accommodate his new systems, he would not be able to do the job.
Questions :
a) Discuss the main issues reflected in the case.
b) What mistake did Mr. Mahmood make ?
(c) How should Mr. Mahmood handle the current situation ?
