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Sir/ Madam

Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD. has 15 years of teaching

experience in MBA Business schools. For last fifteen years
Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD has taught various subjects
from Marketing, Finance, Human Resource Management, Information Systems,
International Business and General Specializations. He has written many
research papers and case studies.

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Assignment Questions – MAA – MGT402

Problem 1 (10 marks)
Journalize the following transactions of M/s.Greenline Enterprises, post the entries to the
Ledger and prepare Trial Balance:
2019
June 01 Business started with cash Rs.5,00,000
June 06 Opened a bank account with ICICI Bank Rs.1,25,000
June 10 Purchases goods for cash Rs.50,000
 June 12 Goods purchased on credit from M/s.Brightline Enterprises
Rs.60,000 June 12 Purchased office furniture and paid by cheque Rs.40,000
June 18 Rent paid by cheque Rs.15,000
June 20 Sale of goods on credit to M/s.Rohit Bros
Rs.75,000 June 24 Cash sales Rs.50,000
June 25 Cash paid to M/s.Brightline Enterprises Rs.55,000 in full settlement
June 27 Received a cheque from M/s.Rohit Bros Rs.50,000 June 30 Salary
paid in cash Rs.25,000

Problem 2 (10 marks)

Show the Accounting Equation on the basis of the following transactions and prepare a
Balance Sheet.
Rs.
1. Maharajan commenced business with cash 2,50,000
2. Purchased goods for cash 70,000
3. Purchased goods on credit 80,000
4. Purchased furniture for cash 30,000
5. Paid rent 22,000
6. Sold goods for cash (costing Rs.45,000) 60,000
7. Paid to creditors 20,000
8. Withdrew cash for private use 10,000
9. Paid salaries 25,000
10. Sold goods on credit (cost price Rs.60,000) 80,000

Problem 3 (5 marks)
st
Startech Ltd. acquired a machine on 1 October 2015 at a cost of Rs.60,00,000. It charges
depreciation on straight line method at the rate of 12% every year. The company purchased
st
a new machine worth Rs.15,00,000 on 1 April 2017. Show the Machinery Account and
st
Depreciation Account for the year ending 31 March 2016, 2017 and 2018.
Problem 4 (10 marks)

The following are the key Financial Ratios of Hindustan Unilever Ltd for the year 2015 to
2019. Analyze the different ratios and give suitable relevant interpretations for each
category of ratios.

Mar 19 Mar-18 Mar-17 Mar-16 Mar-15

Per Share Ratios

Basic EPS (Rs.) 27.97 24.09 20.68 19.1 20.17

Diluted EPS (Rs.) 27.96 24.08 20.67 19.09 20.16

Cash EPS (Rs.) 30.67 26.61 22.79 20.89 21.71

Book
Value[ExclRevalReserve]/Shar 36.5 33.8 31.32 30.52 18.7
e (Rs.)
Book
Value[InclRevalReserve]/Shar 36.5 33.8 31.32 30.52 18.7
e (Rs.)
Revenue from
181.99 164.56 153.53 149.01 147.78
Operations/Share (Rs.)

PBDIT/Share (Rs.) 43.66 36.5 31.06 29.83 27.64

PBIT/Share (Rs.) 41.04 34.09 29.06 28.19 26.15

PBT/Share (Rs.) 39.83 33.81 30 27.97 29.21

Net Profit/Share (Rs.) 28.06 24.2 20.79 19.26 20.22

NP After MI And SOA / Share

28.03 24.14 20.72 19.16 20.17
(Rs.)

Profitability Ratios

PBDIT Margin (%) 23.98 22.17 20.23 20.01 18.7

PBIT Margin (%) 22.55 20.71 18.92 18.92 17.69

PBT Margin (%) 21.88 20.54 19.53 18.77 19.76

Net Profit Margin (%) 15.41 14.7 13.53 12.92 13.68

NP After MI And SOA Margin

15.4 14.66 13.49 12.85 13.64
(%)
Return on Networth/Equity
76.95 71.61 66.37 62.96 108.5
(%)
Return on Capital Employed
88.98 82.03 78.54 53.56 83.49
(%)

Return on Assets (%) 32.49 29.19 28.49 27.97 30.23

Total Debt/Equity (X) 0.01 0 0.04 0.03 0.01

Asset Turnover Ratio (%) 211.01 198.99 211.14 217.56 221.55

Liquidity Ratios

Current Ratio (X) 1.37 1.31 1.32 1.46 1.08

Quick Ratio (X) 1.08 1.03 0.99 1.08 0.77

Inventory Turnover Ratio (X) 15.27 14.14 13.05 11.81 11.22

Dividend Payout Ratio (NP)

75.09 74.72 79.78 81.03 74.38
(%)
Dividend Payout Ratio (CP)
68.68 67.94 72.75 74.66 69.26
(%)

Earnings Retention Ratio (%) 24.91 25.28 20.22 18.97 25.62

Cash Earnings Retention Ratio

31.32 32.06 27.25 25.34 30.74
(%)

Coverage Ratios

Interest Coverage Ratios (%) 268.64 283.19 179.34 358.24 319.66

Interest Coverage Ratios (Post

268.64 283.19 179.34 358.24 319.66
Tax) (%)

Valuation Ratios

3,65,244.8 2,85,089.4 1,94,977.0 1,85,000.0 1,86,230.2

Enterprise Value (Cr.)
0 0 0 0 7
EV/Net Operating Revenue
9.29 8.02 5.88 5.75 5.82
(X)

EV/EBITDA (X) 38.73 36.17 29.06 28.71 31.14

MarketCap/Net Operating
9.38 8.12 5.93 5.84 5.91
Revenue (X)
 Retention Ratios (%) 24.9 25.27 20.21 18.96 25.61

Alliance Solved Assignment Solution

Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD. has 15 years of teaching experience in MBA Business

schools. For last fifteen years Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD has taught various
subjects from Marketing, Finance, Human Resource Management, Information Systems, International
Business and General Specializations. He has written many research papers and case studies.

Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD organizes online MBA subject coaching / MBA

Assignment help and MBA Project help. Many clients national and international has appreciated
Prof.Dr.N.Palaniappan.,MBA., MCom.,MPhil.,PhD for his timely help in the assignments and projects
and MBA subject coaching.

You can call him on his mobile no. 09025810064 (whatsapp available)   or mail him at
palaniappanmail@gmail.com. He does help/guide for the below question. If urgent or any query’s, Please
feel free to call him on his mobile no. 9025810064 (whatsapp available) or do mail on
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Assignment
Principles of Management
Read the case given below and answer the questions that follow

Helping or Hurting?

Exit interviews were usually handled by junior managers on the HR team, but Amrita felt that given the high rate of attrition among doctors
at Krisna Hospital over the past year, it was her responsibility as head of HR to talk to Dr. Vishnu Patel, a respected cardiologist who’d just
given his notice. “Everyone is always very polite in these interviews, but I need your honesty,” Amrita told him. Dr. Patel shifted in his chair.
“There are a host of reasons for my departure, many of which you can’t do anything about. My family obligations, for example, and the
demands in my own practice.” Most of the physicians at Krisna saw patients in their private practices, but they also partnered with and
referred patients to the hospital for procedures that weren’t possible in an office setting. As the largest multispecialty hospital in Noida, in
the National Capital Region of India, Krisna provided secondary and tertiary services in cardiology, orthopedics, neuroscience, oncology,
renal care, and gastroenterology. “Is there anything that would’ve made you stay? Anything in particular that made you decide to leave
now?” Amrita prodded. “There was that argument I had with a PCE,” Dr. Patel said after a pause. He was referring to a relatively new
position in the hospital: the patient care executive. Three years ago, in response to patient complaints about not understanding doctors’
explanations about their diagnoses and treatments, Krisna had introduced this liaison role. It was meant to be a win-win: Patients and their
families would get a better, more personalized hospital experience, and doctors could spend less time managing patients and more time
practicing medicine.

The program fit well into the hospital’s brand as an expensive but high-quality care center with the best talent, technologies, and services.
Unfortunately, Amrita had heard grumbling from physicians from the moment she’d hired the first PCE. Dr. Patel explained how the PCE
assigned to one of his more complicated cases—a patient who had bypass surgery and needed a pacemaker—had caused the patient’s
family to lose trust in him. “I don’t know what he said to them during the operation, but from then on, they wanted to talk only with him and
acted like I was an enemy. It was definitely the PCE and the family against me.” “To make matters worse,” he continued, “he gave them
misinformation about the pacemaker, and when I tried to explain that he’d been wrong, they didn’t believe me.” It was true that Krisna’s
PCEs didn’t have medical training. Most had MBAs but only a few years of experience in health care. And Dr. Patel wasn’t the first to
complain about PCE interference in the doctor-patient relationship. But thanks to higher customer-satisfaction scores, senior leaders were
happy with the PCEs. “Is the PCE program the reason you’re leaving us?” Amrita asked. Dr. Patel reluctantly admitted that it was. “To be
honest, it just makes the job that much harder. I already have to answer to the patient, the patient’s family, and the administration. Now I
also have to answer to the PCE. It’s too many people to please. Why wouldn’t I prefer to work in a hospital that doesn’t interfere in the same
way?” Amrita didn’t have a good response, and she was pretty sure Dr. Patel wasn’t expecting one. “Could we convince you to change your
mind?” she asked instead. “Fire that
PCE. Actually, fire them all. And let us doctors do our jobs. Then maybe I’ll stay.” LEAVING IN DROVES Later that day, Amrita sat down
at a table in the hospital’s cafeteria with Meera Kumar, Krisna’s chief medical officer. The two executives had worked together for
nearly 20 years, and despite their hectic schedules, they tried to meet for lunch each month.

Amrita was still thinking about her conversation with Dr. Patel and broached the issue of PCEs with Meera. “I wish I could tell you that
he is an anomaly,” Meera said, “but he’s not. Many of our doctors are unhappy about the PCEs.” “Why didn’t you tell me this earlier?”
Amrita asked. “I did. You said, ‘Give it time.’” Amrita smiled sheepishly. Meera continued, “I know I’m biased because of my position,
but I agree with my physicians that the PCEs are unnecessary and, in a lot of cases, do more harm than good. From the stories I hear,
they seem inexperienced and intrusive. They understand the lingo, but they don’t really understand medicines and treatments.”
“That’s not fair,” Amrita said. “It’s not as if they’re making medical decisions for patients. The doctors are still in complete control. The
PCEs are just helping patients better comprehend their options.” “That’s not what I hear,” Meera said. “A doctor told me that a PCE
talked one of his patients out of an important diagnostic test because she was having panic attacks about the procedure. The doctor
tried to explain that they could treat the anxiety and that the test was critical, but the PCE wouldn’t budge.” Amrita took a breath,
about to speak. “I know what you’ll say,” Meera cut in. “‘That’s one bad apple.’ But I hear more stories like that every day. This is why
our doctors are leaving in droves.” The hospital’s attrition rate had been between 20% and 25% for the past 18 months. It was true
that because of the current doctor shortage across India, many hospitals were fighting talent wars, but Krisna ranked among the worst
on this metric. And it was the only medical center to have the patient care executive role. Amrita was beginning to wonder if they
were ahead of the pack or venturing in the wrong direction. GOOD OR BAD ATTRITION? A week later, Ghiridhar Iyer, Krisna’s CEO,
called Amrita and Jai Srinivasan, the head of patient services, to his office to discuss doctor turnover.

He explained that the issue had come up at the last board meeting. “Have we identified any patterns or root causes?” he asked.
Amrita glanced at Jai, and then answered, “There are the usual reasons, of course, but I’m starting to wonder about the PCE position.”
She could see Jai tense up next to her. The PCE program had been his baby, and his body language suggested he would not take
criticism well. Still, she pressed on, summarizing her conversations with Dr. Patel and Meera. “We wouldn’t need PCEs if the doctors
had a better bedside manner,” Jai interrupted. “I’m sick of trying to keep them happy at all costs. We are a ‘patient-focused care
center,’” he said, citing Krisna’s mission statement. “Yes,” said Ghiridhar, “but we can’t deliver patient care if we don’t have doctors.”
Krisna’s compound annual growth rate was 82%, and it had been struggling to keep positions filled. “There is no doubt that the PCE
program has been great for the hospital,” Amrita said, hoping to defuse Jai’s agitation. “Revenue is up, as are patient retention rates
and referrals—” “That’s right,” Jai said. “When we treat patients with dignity and care, they come back to our hospital for all their
health concerns and tell their friends and families to come here as well. And the customer satisfaction scores say it all: They love the
PCEs.” “We aren’t debating that,” Ghiridhar said. “Who wouldn’t love a person whose primary job is to hold your hand through a
difficult time? The question is: What are we losing as a result?” Jai jumped back in. “I don’t believe that the PCEs are driving the
doctors out. I think the doctors are tired of splitting their revenue with us. And they’re not happy that the patients would rather come
to see the PCEs than go to the doctor’s private practice. They’re also jealous that the PCEs get paid no matter who comes through the
door.” At Krisna, and most Indian hospitals, physicians’ salaries reflected the number of patients they treated. “We could consider
more training,” Amrita suggested. “We did sessions when we launched the role, but maybe it’s time to bring the doctors and PCEs
together again to share best practices.”

“We had enough trouble getting the doctors to show up the first time,” Jai said. “What we need to do is find doctors who believe in
the hospital’s mission and want to collaborate— not put their own interest first.” “According to Meera, those are exactly the doctors
we’re losing,” Amrita said. “We all know that there is good attrition and bad attrition, and Meera assures me that we’re now dealing
with the bad kind.” “This is a top priority for me,” the CEO said. “I know where you stand, Jai. And I agree that we need to be careful
not to alienate patients. But we don’t want this to escalate into a crisis. We need to think about remedies.” AN EMOTIONAL DECISION
On the elevator ride down from the CEO’s office, Amrita replayed the meeting in her mind. She took issue with Jai’s characterization of
the doctors as money-hungry and selfinvolved. She knew that most of them could live comfortably on the revenue from their private
practices, but they chose to take on challenging cases and bring them into the hospital, splitting the revenues, because they wanted to
help people. If PCEs were making the doctors’ jobs more difficult, she had to do something about it. The elevator stopped, and the
doors opened. A woman stepped in, crying into her cell phone. “They don’t seem to care if he lives. They do test after test, but no one
decides what to do. The only person I trust is Karthik.” Amrita recognized the name. He was a recently hired PCE, and when the doors
opened again on the first floor, the man she remembered was waiting there. He caught Amrita’s eye but then focused his attention on
the woman, who fell into his arms sobbing. They spoke quietly, then hugged again. As Amrita watched them, she couldn’t help but
think that the PCEs were indeed filling a critical role. She doubted any of Krisna’s competitors were providing this level of service.
Amrita now felt weepy herself. This was business, yes, but emotions invariably played a huge role. She needed to make sure that both
doctors and patients trusted Krisna to do right by them.

Answer the questions

1. Identify (giving justifications) the external environmental factors that predominately played dominant role in influencing
the above mentioned situation. (10 marks)
2. According to you what are the strengths and weakness of the organization? (10 marks)
3. Suggest ways by which the situation can be dealt with. (10 marks)
4. Identify and explain any one of the management principles that accordingly to you would be useful in justify the your
suggestion (s) as par question no. 3 (10 marks)

N.B. Each answer is expected to be written within the word limit of 150 words

Alliance Solved Assignment Solution

Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD. has 15 years of teaching experience in MBA Business
schools. For last fifteen years Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD has taught various
subjects from Marketing, Finance, Human Resource Management, Information Systems, International
Business and General Specializations. He has written many research papers and case studies.

Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD organizes online MBA subject coaching / MBA

Assignment help and MBA Project help. Many clients national and international has appreciated
Prof.Dr.N.Palaniappan.,MBA., MCom.,MPhil.,PhD for his timely help in the assignments and projects
and MBA subject coaching.

You can call him on his mobile no. 09025810064 (whatsapp available)   or mail him at
palaniappanmail@gmail.com. He does help/guide for the below question. If urgent or any query’s, Please
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BC Assignment
Max Marks : 40

1.Write a brief report on the communication process in your organisation. You

can start with defining the role of business communication in your organisation.
Also write about the role of Kinesthetics in bringing effectiveness in
communication in your organisation."

2.      As a customer service manager write a letter responding to a customer

complaint regarding poor customer service in the Big Bazaar Super Center in
M.G.Road.
3.    Many new recruits are joining your company, which is on an expansion path.
This growth means that several officials have to travel to introduce the company to
the new batch of employees. You feel that a video about the company would do the
job. Write a letter to your manager about the advantages and disadvantages of
using a video to showcase the company to the new employees and how it can help
reduce the cost.
4.     There has been a lot of negative news floating around in the media about your
company. When you contact the PR team, it blames the marketing department,
mentioning that the latter does not pass on information in time. The marketing
department says it lacks the time and resources to be more proactive. In addition,
employees are using every possible avenue to write blogs, bringing disrepute to the
company. What are the corrective measures that you will take?

Alliance Solved Assignment Solution

Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD. has 15 years of teaching experience in MBA Business

schools. For last fifteen years Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD has taught various
subjects from Marketing, Finance, Human Resource Management, Information Systems, International
Business and General Specializations. He has written many research papers and case studies.

Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD organizes online MBA subject coaching / MBA

Assignment help and MBA Project help. Many clients national and international has appreciated
Prof.Dr.N.Palaniappan.,MBA., MCom.,MPhil.,PhD for his timely help in the assignments and projects
and MBA subject coaching.

You can call him on his mobile no. 09025810064 (whatsapp available)   or mail him at
palaniappanmail@gmail.com. He does help/guide for the below question. If urgent or any query’s, Please
feel free to call him on his mobile no. 9025810064 (whatsapp available) or do mail on
palaniappanmail@gmail.com. He does help/guide for the below question
TERM 1
ORGANIZATIONAL BEHAVIOUR & HUMAN RESOURCE MANAGEMENT ASSIGNMENT
Total :40 Marks (Part A- 10 Marks +Part B- 30 Marks)

PART A:AnswerTwo Case Studies

(One case study{CS} from OB and One case study from HR) -(2CS X5M=10 Marks)

ORGANIZATIONAL BEHAVIOUR CASE STUDIES:

1. Read the case carefully and answer the questions that follow :

Ramesh Ambani was appointed as Operations Planning Manager in the Surepleasure Airlines last month. Immediately after
reporting to his new job, Ramesh recognized that there were difficulties with the time control section. This section consisted of
sixteen junior clerks, eight senior clerks and a supervisor who reported to him.

The basic function of time control section is to maintain records of all rotatable parts used on a fleet of eighty-five passenger
aircraft. Records reflect the date on which a part was installed or removed and total aircraft flying time. To maintain
identification, serial numbers are recorded for each controlled part. The Airport Authority rules require strict control of parts
having limited life. Parts that have operated beyond their approved limit have to be removed and overhauled.

The problem that Ramesh noticed was that there were numerous instances of inaccurate records. The records were in violation
of Airport Authority regulations and poor record-keeping resulted in excessive overhaul costs. When Ramesh studied the
situation, he observed that the employees had formed an extremely strong informal work-group. The members would accept or
reject new employees into the work-group based on factors completely unrelated to the job. Some outsiders observed that if a
new employee's behavior was not in tune with the informally determined norms, he or she had little chance of success within
the group.

The group members arranged for contributory dine-and-dance party every week-end and had a great time together. Those who
did not like to participate and socialize were ignored and 'made to feel uncomfortable to the point that they would quit the
organization. This resulted in an annual turnover rate of approximately 200 percent. Ramesh realized that this problem had to
be solved immediately or major problems could result for the Sure pleasure Airlines in future.

Questions

(a) What are the dysfunctions of informal organization in the Surepleasure Airlines?

(b) Could there be any benefits of informal organization in this company?

(c) What suggestions would you give to the management of this company to cope with the informal organization?

2. Read the following case carefully and answer the questions given at the end :

In 1995 Ford Motor Company announced a major reorganization called "Ford 2000". The idea, championed by
Chairman and CEO, Alex Trotman and Vice Chairman Edward E. Hagenlacker, eliminated more than a dozen
engineering design centers around the world and consolidated them into only five - of which four are in Dearborn,
Michigan, and one in Europe. The one in Europe was responsible for creating one basic design for small cars for the
world market and then making minor modifications for local markets. For example, the same template will be used in
Europe, South America, and Asia. The four design centers in Dearborn will do the same for large front-wheel-drive
cars, rear-wheel-drive cars, pick-up trucks, and commercial vehicles. The consolidation effort requires that more than
twenty-five thousand salaried employees relocate or at least report to new managers. Manufacturing and assembly will
still take place in plants around the world.

The purpose is to integrate Ford's operations around the world and revolutionize the way it designs and builds more
than seventy lines of cars and trucks, which it sells in more than two hundred markets. The goals are reduced
duplication of effort, increase volume purchasing, save more than $4 billion per year, and double profitability. All this
for a company that made $3.8 billion profit from automotive operations in 1995, and $5.3 billion overall. Trotman
continues to have the support of the Ford family, two still controls 40 percent of the voting stock in the company.

Part of the new plan is a top-secret strategic document that outlines every new car and truck Ford will design,
produce, and sell around the world through 2003. The plan calls for reducing the basic design platforms from 24 to 16
and increasing the total number of models by 50 percent, while saving billions of dollars, For example, the new 1996
Taurus serves as the platform for several other models, both in the United States and around the world.

In structure, the new system is really a matrix. Rather than working in a functional organization with traditional
hierarchies and centralized decision making, employees are assigned to a design centre, such as small cars, and then
to a group according to their specialties, such as drive trains. Managers then mediate the disputes that occur between
the design centers and the specialties. Employees will have to change their ways of doing their work as they design
cars and trucks to fit global markets rather than a single, relatively homogeneous one. Management knows that
employees feel a great deal of insecurity and uncertainty about the company and their jobs as they make the shift.
Carrying the message to all employees has been a constant Job for Trotman and Hagenlacker since the original
announcement.

Management also knows that Ford tried a similar design integration with their "World Car" in the late 1970s, which
failed primarily due to turf battles among designers and engineers. The cars that resulted were rarely the cost savers
Ford hoped for and were so dull in their design that no one bought them. Trotman expects different results this time
because of the consolidation of the design centers, the new organization structure, and because advances in
technology have made the inner working of cars so similar that only the outer, visible portions of the cars need to be
different to satisfy regional tastes.

By mid-1996, however, the reorganization was not going so well. The transition had left many employees still
wondering whom they worked for and with a feeling that everything was out of control. The culprit seems to have
been a reorganization of the reorganization! Trotman now plans to reduce the number of design centers from five to
three. People are moving and reporting relationships are changing once again. Group Vice President Jacques A.
Nasser, who may succeed Trotman by 1998 or so, has promised $11 billion in savings under the new system. Some
have claimed that the "new" reorganizations really puts things back the way they were before the first reorganizations.
However, three design centres is a lot fewer than the dozens that existed before. But this second reorganization,
before employees really got settled into the first one, may have devastating effects. Suppliers and employees do not
know whom to contact to get questions answered or disputes resolved. All they get on the phone is voice mail, since
everyone is in meetings trying to work out the new reorganization. Top management claims that these problems are
inherent trying to turn around such a big organization that has been relatively successful through the years. They say
that the organization needs to evolve to meet their ambitious goals and the competition.

Questions:

(a) Describe the changes in structure that Ford expects from the Ford 2000.

(b) How do you explain the continuing problem that employees are having with adapting to the new structure of Ford
2000?

(c) Is a matrix structure the proper structure for Ford 2000?

(d) Does frequent changing of Organization Structure impact Organizational Behaviour

3. Read the following case carefully and answer the questions given at the end :
Mr. Anand occupies No. 2 position in the Corporate Planning Department of multi-product company having a turnover
of more than Rs. 900 crores and operating in a high technology (hi-tech) industry. For the last five years, Anand has
been associated with strategic planning of the company and recently he has been deputed to a task force to
reorganise the company to cope up with the changing technology and environment.

At the last meeting of the Board of Directors of the company, the members expressed their concern about the falling
competitive position of the company in the industry. The main reason cited by the Chief Executive was the outdated
organisation structure which has not undergone any change for the last 10 years though the size, technology and
environment of the company have changed tremendously. It was on the advice of the Chief Executive that the Board
of Directors decided to set up a task force for the company's reorganisation.

At the first meeting of the task force, Anand, who is an expert in planning, convinced the other members to adopt the
following procedure :
(i) Determine exactly what type of structure the company has at present.
(ii) Determine the type of environment the company faces now and the weaknesses of the present structure.
(iii) Forecast the environmental changes in the future and the type of technology to be used by the company.
(iv) Design the organization structure to meet the future challenges.

It was discovered that the company is currently structured along classical lines and the company is operating in a
highly dynamic environment. The environment in future is likely to be more uncertain because of fast changes in
technology and requirements of customers and competition by MNCS. The task force came to the conclusion that the
structural design must be responsive to change and if this is not done, the company's survival in the market would be
made more difficult.

Questions:

(a) How far do you agree with the procedure adopted by the task force?

(b) Explain how the system and contingency approaches can contribute to the analysis of this case.

(c) What type of organisation design should the task force recommend ? Explain its broad features.

HUMAN RESOURCES CASE STUDIES

1. Read the following case carefully and answer the questions given at the end.

Training for Whom ?

Microelectronics, a California-based electronics defense contractor, has enjoyed a smooth growth curve over the past five years,
primarily because of favourable defense funding during the Reagan administration's build-up of U.S. military defenses.
Microelectronics has had numerous contacts to design and develop guidance and radar systems for military weaponry.

Although the favourable funding cycle has enabled. Microelectronics to grow at a steady rate, the company is finding it increasingly
difficult to keep its really good engineers, Based on extensive turnover analyses conducted by Ned Jackson, the human resources
planning manager, Microelectronics problem seems to be its inability to keep engineers beyond the "critical" five year point.
Apparently, the probability of turnover drops dramatically after five years of service. Ned's conclusion is that Microelectronics has
been essentially serving as an industry college. Their staffing strategy has always been to hire the best and brightest engineers
from the best engineering schools in the United States.

Ned believes that these engineers often get lost in the shuffle at the time they join the firm. For example, most (if not all) of the
new hires must work on non-classified projects until cleared by security to join a designated major project. Security clearance
usually takes anywhere from six to ten months. In the meantime the major project has started, and these young engineers
frequently miss out on its design phase, considered the most creative and challenging segment of the program. Because of the
nature of project work, new engineering often have difficulty learning the organizational culture - such as who to ask when you
have a problem, what the general dos and don'ts are, and why the organization does things in a certain way.

After heading a task force of human resource professionals within Microelectronics, Ned has been designated to present to top
management a proposal designed to reduce turnover among young engineering recruits. The essence of his plan is to create a
mentor program, except that in this plan the mentors will not be the seasoned graybeards of Microelectronics, but rather those
engineers in the critical three-to-five year service window, the period of highest turnover, These engineers will be paired with new
engineering recruits before the recruits actually report to Microelectronics for work.

According to the task force, the programme is twofold : (1) it benefits the newcomer by easing the transition into the company, and
(2) it helps the three-to-five-year service engineers by enabling them to serve an important role for the company. By performing
the mentor role, these engineers will become more committed and hence less likely to leave. As Ned prepared his fifteen-minute
presentation for top management, he wondered it he had adequately anticipated the possible objections to the program in order to
make an intelligent defense of it. Only time would tell.

Questions :

(a) Identify the salient issues from HR point of view for this case.

(b) lf you were to study this turnover problem, how would you conduct a needs analysis or evolve a counselling programme ?

(c) What are the causes of dissatisfaction and turnover in Microelectronics ?

(d) Do you find the mentoring programme suitable to reduce turnover ? Justify your answer .

2.Read the following case carefully and answer the questions given at the end.

The eleven workers whose annual increments were stopped made a representation to the management of XYZ Limited
that the action taken was not justified and that they wanted to know what was their fault. The management which
acted upon the recommendation of the department head concerned, Mr. Rog, felt guilty because such an action was
taken for the first time in the history of the company.

XYZ Limited was a large paper manufacturing company in South India. The major departments of the factory were:

1. Chemical processing: The raw material was mixed with certain chemicals for making pulp.

2. Pulp department: Pulp was mixed with other ingredients according to specifications for each order of paper.

3. Paper machine department : This was the heart of the factory where processed pulp was fed into the paper
machines. Act first, a wet weak paper was formed which was subsequently dried and rolled.

4. Finishing department : The paper rolls were then moved to the processing department where the required coating
was given.

5. Grading, winding and packing departments.

6. Quality control department.

Twenty eight workers worked in the paper machine department in four groups - each group attending one machine.
The nature of the work on each machine was such that all the seven workers had to work in cooperation. Because no
individual tasks could be specified, the group was made responsible for the work turned out by them. All the workers
working in the paper machine department had been with the company for over ten years.
The company did not have any incentive wage system for any class of its employees. They were all given straight
salaries with normal annual increments. The annual increments were sanctioned each year in a routine way. It was the
policy of the company that the increments should not be stopped unless the department head concerned
recommended such an action.

Mr. Rog was placed in charge of the paper machine department a year ago. Though Mr. Rog was a newcomer in the
organisation, he proved himself to be a very competent man. The management noted that he was very aggressive and
enthusiastic and that he know his job well. At the end of the year when increments were due to be sanctioned, he
recommended to the management that the increments due to eleven men in his department should be stopped, for, in
his opinion they were lazy and inefficient. The eleven men concerned belonged to all the four groups operating in the
department.

The management, though puzzled about the action recommended by Mr. Rog, acted upon it and sropped the
increments due to the eleven men concerned. The management were aware that such an action was the first of its
kind in the history of the company. Most of the employees were with the company for a fairly long period and there
was never an instance of strained relations between the management and the employees.

Soon after the action was taken, the eleven employees concerned made a representation to the management
requesting them to let them know whatr was wrong with their work as to warrant stopping of their increments. The
management were in a fix because they did not have specific reasons to give except Mr. Rog's report in which he
simply mentioned that the eleven men concerned were "lazy and inefficient".

The management were naturally concerned about the representation and therefore, they tried to ascertain from Mr.
Rog the detailed circumstances under which he recommended the stoppage of increments. When Mr. Rog could not
pin-point the reasons, the management suspected that Mr. Rog's recommendation was based on his "impressions"
rather than on facts. They, therefore, advised Mr. Rog to maintain a register from then on noting the details of day to
day incidents of "lazy and inefficient" workers and obtain the signatures of the workers concerned. Mr. Rog was to
make the final appraisal of each worker in his department on the basis of this register and recommend each case
giving specific reasons why increments should be stopped.

Mr. Rog started maintaining a register as suggested by the management; but he found it difficult to report
satisfactorily any case of laziness or inefficiency for want of specific reasons.

The management were convinced that their action of stopping increments of eleven men on the strength of Mr. Rog's
report was not a proper one. They realised that no similar action in future would be taken based on inadequate
information. But, they were wondering whether the suggestion made to Mr. Rog was the proper course of action to
prevent occurrence of similar situations.

Questions :

(a) Identify and discuss the core issue in the case.

(b) Was management of the company justified in implementing the recommendations of Mr. Rog, in the absence of
proper report ?

(c) How would you view the action of Mr. Rog, if you were the M.D. of the company ?

(d) Do you think the reward system instituted by the company needs to be reviewed ? Substantiate your answer with
logic.

3. Read the case and answer the questions given at the end.
SEWA - The purposeful beginning

SEWA (Self Employed Women's Association) was started in 1972, by Ela Bhatt, in the form of a union of the
unorganized sector, which was to be incorporated into the mainstream. It was observed that most of the production of
goods and services in the country was, at that time, done through the informal sector, and hence the decision was
taken iounionise this informal sector.

SEWA was not like a typical union i.e., unlike the usual union of workers, it (SEWA) spoke about the solidarity of the
workers themselves. It's purpose was fight for the mega system which exploited the vast working force through its
labor contract systems. The whole system typically involves the middlemen and money lenders and the mindsets of
the urban middle class, the educated, the upper castes, their perceptions of development. Thus, through SEWA,
efforts were made to question the whole system of policy making, the census (which had not recorded them as
workers), the definition and purpose of a trade union and the definition of 'worker'.

After the registration of SEWA as a trade union, it was found that the union activity stopped at a certain level and the
informal sector workers were hardly covered by any protective labour legislation. Added to this, profit making,
handling of cash etc., even sometimes caused conflicts of interest in the union. Hence, over a period of time, a
strategy of joint action by union and cooperative - a member based, democratic organization, beneficial to the
unprivileged of society with networks at the state level, national level and international level was chosen.

It was felt that through a cooperative presence, SEWA would be able to obiatn bargaining power for all those who are
members as well as for those who were not a part of the co-operative. On the one hand, the producer's labour value
goes up and she enjoys a better bargaining power. Alongside, the other workers in the villages also have wider choices
in taking decisions related to who and how many have to go for work on the farms, whether the workers should
migrate or concentrate on home-based crafts and so on. And, on the other hand, for all those who were not a part of
SEWA, their wage structure (for both men and women) goes up. For instance, in case of the agricultural workers : the
new jobs create a shortage of labour in the region, so they also get higher wages. Similarly, artisans also get higher
wages. In this way SEWA is able to bring about economic changes in the villages through the joint action of the union
and cooperative.

'SEWA Bank' - A subsidiary

In spite of unionizing the self-employed workers, it was found they faced two common problems:

Shortage of capital, forcing the workers to pay a heavy interest (often paying 10% interest per day). 
Absence of owning their own means of productions (like handlooms, push carts etc.). They had to pay rent on these
from their own meagre income.

These two reasons prompted the decision at SEWA to have their own bank. In a period of six months, the necessary
share capital was collected, and SEWA tried for registration. But many objections were raised - How can SEWA have
cooperatives and a bank ? How to form a bank for workers who were women, undependable, unreliable and who
cannot even sign ?

Inspite of these inhibitions, the strongest point in their favour was that the workers were all economically independent
and generating cash every day. Thus, it was necessary for them to save money and also be able to avail of credit,
whenever necessary, rather than depending upon private money lenders. This necessity finally led to the birth of the
SEWA Bank.

The SEWA Bank is about one of the 10 co-operatives in SEWA with five kinds of primary co-operatives - dairy,
artisans, traders, services and labour. The SEWA Bank has a working capital of about Rs. 26 crores, while, the other
co-operatives registered under SEWA together have a working capital of Rs. 20 crores. When SEWA discovered that
many of its workers were unable to absorb more loans because of the many risks and outside forces which did not
allow them to expand their business, it decided to offer another form of financial services like insurance schemes -
against maternity risk, group insurance scheme to link all member workers with their deposits and integrated social
insurance bank service covering a wide range of services.
Other Activities and Vision for the Future

SEWA has attempted to create co-operatives of various services provided by the labour community especially in the
areas of domestic labour, health care, child care and video production. So as to enable these persons' to market their
services, efforts are being made to provide them training on a continuous basic.

Another effort on the pari of SEWA is to build a management system which wil help the labour force to stand firm in
the market. Such a system should not only help these people to have access to credit but also help them to be literate
enough to have a basic understanding of accounting, the interest rates and accessibility to market infrastructure.

Another attempt of SEWA has been at coming together of women on a common platform, on the basis of work in the
form of co-operatives/union/federations or as workers or producers or economic agents, cutting across barriers of
caste, region and language.

SEWA's Attempt at Empowering Employees

The vision of Ela Bhatt, who started SEWA has always been to ensure that the informal sector is in the mainstream of
labour movement with a leading role to be played by the rural women. SEWA'S aim has been to empower such women
who are poor and illiterate to become economically active through the process of empowerment. This view is slowly
becoming a reality, when, after joining SEWA and attending formal training programmers, such women have become
bold, realized their sense of self through participating, facing, managing situations and other people and thus learning
to become 'leaders' in the true sense. Thus process of empowerment has enabled them to develop an inbuilt strength
to do liaison with the police, take up the causes of fellow workers, actively participate in the decision making process
especially while sitting on committees, travelling and meeting people for the growth of the organization.

At SEWA, there is no formal organisation structure as such. In the words of Ela Bhatt, "SEWA is like a banyan tree, it
grows and takes root, then these roots grow and take root...." i.e.. SEWA's growth is totally dependent on its
mernbers who become owners, managers, beneficiaries and a truely empowered organisation in the long run.

Questions :

(a) What are the unique features of SEWA ?

(b) Discuss the worker oriented development approach of SEWA affecting the performance.

Can you suggest ways in which private corporate organisations can also be involved in developing management
programmes along with SEWA for the upliftment of the rural people ?

PART B
Answer any Six Questions.Answer to the point and briefly with examples ( 6Qx5M=30M)
1.  Define, what is Organizational Behaviour and state why it is importance to study Organizational Behaviour?

2. Describe three level of organization and discuss ethical behavior of formal and informal organization with examples?

3. Define HRM Function in Business Organization? What are the various challenges faced by H R Managers in
managing employees in today’s Industrial Organization

4. Explain the Process of Communication and its significance in an organization.

 5. Explain how personality influences behavior in organizations either using Big Five personality traits or MBTI
Instrument?

6. Identify steps in decision making process in an organization and explain with example?

7. Distinguish between Attitude and Aptitude and how will you explain this with reference to organization?

8. Define motivation?Explain motivation with either Maslow’s Need Hierarchy theory or Herzbergs Two Factor Theory?

9. What is difference between a Leader and a Manager?Explain basic difference between the trait ,behavioral and
contingencies types or categories of leadership theory?

10. Define group and work team.Explain the benefits organization and individuals derive from working in team

11. Define conflict and negotiation in organization and Explain the nature of conflicts in organizations?

12. Describe the steps involved in selection process and explain the challenges when using social media for recruitment
purpose?

13. What is fundamental goal of Training and Development? Explain how training aids organization to achieve that
goal /Explain how development aids organization in achieving that goal?

14. What is performance appraisal and Management? Explain briefly how compensation and rewards are integrated
with performance appraisal?

15. What is Industrial relations and labour laws? Discuss India’s growth in industrial relations under five phases (From
1950 to 2020)?.

Alliance Solved Assignment Solution

Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD. has 15 years of teaching experience in MBA Business

schools. For last fifteen years Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD has taught various
subjects from Marketing, Finance, Human Resource Management, Information Systems, International
Business and General Specializations. He has written many research papers and case studies.

Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD organizes online MBA subject coaching / MBA

Assignment help and MBA Project help. Many clients national and international has appreciated
Prof.Dr.N.Palaniappan.,MBA., MCom.,MPhil.,PhD for his timely help in the assignments and projects
and MBA subject coaching.

You can call him on his mobile no. 09025810064 (whatsapp available)   or mail him at
palaniappanmail@gmail.com. He does help/guide for the below question. If urgent or any query’s, Please
feel free to call him on his mobile no. 9025810064 (whatsapp available) or do mail on
palaniappanmail@gmail.com. He does help/guide for the below question

Marketing assignment

4 x 10 = 40 Marks (each part carries 10 marks respectively)

Reflect on the organization you are currently working in (or immediately prior to this) as to how this brand currently uses
various elements of the integrated marketing mix while delivering value to its target market.  Study across all the marketing
mix elements and analyse the extent to which they are used in this brand’s integrated marketing programs. You should
consider how all the marketing mix elements such as the product (brand), promotions (marketing communications), place
(distribution) and price connect with the company’s target market.

Points for review:

1. Are all the marketing elements used by the brand, integrated and sending a consistent image and message to the target
market? Justify.

2. Provide your recommendations for betterment of the same.

3. Evaluate whether your company possesses the equity of a loyal customer base. Identify the reasons for its high/low
customer loyalty.

4. If you opine that the company suffers from low customer loyalty, provide your recommendations to ensure unflinching
loyalty.

Note :

All assignments should be original in content. Plagiarism from public sources or from other submissions will categorically
disqualify the submission.

If essential, students are encouraged to make references to reliable sources* (such as business books, academic texts,
research papers, industry articles, etc.) but the content of the same should not be plagiarized while creating your
assignments.     

* Students are expected to give credit for such references, by citing the specific sources in the reference list (to be provided
towards the end of the assignment file).
 Alliance Solved Assignment Solution

Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD. has 15 years of teaching experience in MBA Business

schools. For last fifteen years Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD has taught various
subjects from Marketing, Finance, Human Resource Management, Information Systems, International
Business and General Specializations. He has written many research papers and case studies.

Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD organizes online MBA subject coaching / MBA

Assignment help and MBA Project help. Many clients national and international has appreciated
Prof.Dr.N.Palaniappan.,MBA., MCom.,MPhil.,PhD for his timely help in the assignments and projects
and MBA subject coaching.

You can call him on his mobile no. 09025810064 (whatsapp available)   or mail him at
palaniappanmail@gmail.com. He does help/guide for the below question. If urgent or any query’s, Please
feel free to call him on his mobile no. 9025810064 (whatsapp available) or do mail on
palaniappanmail@gmail.com. He does help/guide for the below question

MARUTISUZUKIINDIALIMITED:SUSTAININGPROFITABILITY

AfterIndiaopened upitseconomy intheearly 1990s,theIndianautomobile industry witnessed intense

competition.MarutiSuzukiIndiaLimited(Maruti)hadbeenadominantplayer in theIndianautomobile industry
sinceitbeganoperations in1981.MarutiwassopopularthatinIndiapeoplehadlong usedthe word“Maruti”asasynonym
for“car.”Marutihadexperiencedadream runforthreedecades, achieving
thelargestmarketshareinthepassengercarindustryinIndia.Butforthefirsttimeafter28yearsof
consistentgrowth,Marutiexperienceda fallinsalesvolumein2012(seeExhibit1).Evenin2014, after twoyears, ithadnotyet
recovered.R.C.Bhargava,thechairmanofMaruti,wasconcernedwithhow to turn
thingsaround.HeknewthatMarutihadlittlecontroloverpricing,giventhe fiercecompetitionin the
sector.Despitethepriceofcarsremaining stagnantoverthelastdecade,Marutianditscompetitorswere
2
experiencingdecliningsales. Pricesoffuelhadadverselyaffected demand.Inputcosts formanufacturing
wereincreasingyearafteryear.Withsuchadismaloutlookfortheautomobileindustryandwithpoor
pricemaneuverability,howlongcouldMarutisustainprofits? Thechairmanknewhehadtodecrease the
 3
costsofmanufacturingandhewasconsideringbuildingastate-of-the-artplantinGujarat. Wouldthis reducecostsenough
tohelpMarutibecomemoreprofitable?

INDIANPASSENGERCARMARKET

TheIndianpassengercarmarketwasthefastestgrowinginAsia,drivenbyIndia’slargepopulationof
1.28billionandalowpenetrationoffewerthan12carsper1,000people(seeExhibit2).Priortothe
1990s,theIndianautomobilesectorwasinpoorshapecomparedtotheautomobilesectorsinother
countries,largelybecauseofdemand-sideconstraintssuchasthelowpurchasingpoweroftheaverage
Indianconsumer.Before India’seconomic liberalization, themajority ofIndia’spopulation couldnot afford tobuy
acar,and carpenetrationwasless than threeper1,000 people.Afterliberalization,with risingincomelevelsofmiddle-
classfamilies,thedemandforpassengercarswentupsteadilyoverthe next20years.However,carpenetrationwasstillvery
lowcompared to inBrazil,Russia,China and developedcountries(seeExhibit2).From asupply-
sideperspective,theautomobileindustryhadgreatly benefitedfrom
liberalization,asinternationalautomobilemanufacturerstookadvantageofIndia’s
affordableyethighlytrainedengineers,establishingmanufacturingoperationsthroughoutthecountry.
DuetoIndia’shugepooloftalentandrising incomelevels,India’spassengercarmarkethadgrownin termsofproduction and
4
salesand wasexpectedto growfurtherincoming years.

PassengervehiclesinIndiacouldbebroadlydividedintothreesegments—passengercars,utility vehiclesandmulti-
purposevehicles—withpassengercarscontributing around 80percentoftotalsales
volumes.Asof2014,thissegmentwasexpected togrowatacompoundannualrateof15per centfor the
next15to20years.Apartfromdomesticgrowth,automobileexportsfromIndiawerepredictedtogrow
at12percent.Itmaybenotedherethat,inalowpercapitaincomecountrylikeIndia,two-wheelers (motorcyclesand
scooters)constituted amajormodeof transportation forthelowermiddleclass,who wouldeventually graduate tothesmall-
carsegment.Inmostcitiesandtowns,duetothepoorquality of roadsandexcessivetrafficcongestion,motorcycleswere
thefirstchoice fordailycommutes.However,a carwasconsideredaprized possessionforamiddle-
classIndianfamily,eventhoughitwasnotusedona
dailybasis.Withrisingincomelevels,thisheldgreatpromiseforcarmanufacturers,asfewerthan12
peopleper1,000ownedacarin India, reflectinghugemarketpotential.

MAJORCOMPETITORSOFMARUTI

ThereweremanyplayersinthepassengercarsegmentinIndia.Someoftheseplayersweredomestic, suchasMaruti,
TataandMahindra.OtherssuchasHyundai,HondaandToyotawerefrom otherAsian countries. Thetwo companies
withthelargestmarketsharein Indiawere Maruti,at49 percent,and Hyundai,at21 percent (seeExhibit 3for trends in the
marketshare ofMarutiand itscompetitors).
AlthoughthereweremanyplayersintheluxurysegmentofthemarketsuchasMercedes-Benz,BMW
andAudi,therewerefewbuyerswhohadtheincometosupportsuchpurchases. Therewereother
competitorsforMarutisuchasFord,GM,Nissan,Renault,ŠkodaandVolkswagenthatcompetedin mini- andmid-
segmentcars. Thesecompanieshadtakenconsiderablemarketsharefrom Marutiinrecent years.

MARUTI:THECOMPANY
Establishedin1981,MarutienjoyedthelargestmarketshareintheIndianpassengercarsegment.In 2014, Maruti, withtwo
production facilitiesatGurgaon and Manesar(bothin theNationalCapitalRegion ofDelhi),had
5
aproductioncapacityofmore than 1.4million unitsperyear. Theproduction facilities had
6 7
morethan 12, 000 employees and produced more than 16 automobile models, eachwith multiple
8
variants. ExamplesofMaruti’sproductofferingsincludedsmallcarsliketheMarutiAlto,WagonRand A-
9
Star.Smallcarsmadeup41.2percent ofMaruti’stotalsalesunits.Inthecompactcarsegment,
MarutiofferedcarssuchastheSwift,Estilo,Ritz andCelerio.This segmentmadeup24percentof
Maruti’stotalsales.Inthemid-sizesegment,thecompanyofferedtheSX4andDzire,whichcontributed
19.1percentofsales. Thesportutilityvehiclesegmentmadeup just5.8percentofsalesandcontributed less to
Maruti’sprofitsthansmallandmid-segmentcars.Finally,inthevanssegment,the company was knownfortheOmniand
Eeco,whichcontributed9.6percenttoitsoverallsales. Theremainingsales camefrom othermodelsofMaruticars.From
theMaruti800 in1983up to thelaunchoftheCelerio in February 2014,Marutihad
rolledoutmodelaftermodelandexceededcustomerexpectationsin termsof qualityand value formoney.

Maruti focusedonthreekey strategiestogeneratesales.Firstand foremost,itspricing strategy wasvery

competitive.Forexample,inthesmallcarsegment,theMarutiAltowaspriced 10–20percent lower than competing
modelssuch as theHyundaiSantro, TataIndicaandChevroletSpark (seeExhibit4).Second, Marutispent a great deal on
research and development to create more fuel-efficient engines. This
10
decreasedthecostofowningacarforaconsumer;Indiancustomerswereverysensitive regardingthe
fuelefficiencyofvehicles,sincefuelcostswerehighrelativetoaverageincomelevels.Third,Maruti offeredreliableafter-
11
salesservice,backedbyitsextensiveservicenetworks. Thereweremorethan15
competitorsinthemarketanditwasnevereasyforacompanytoretainmorethan40percentofthe
marketshare.ButMarutihaddoneitconsistentlyoverthreedecades.Maruticarsenjoyedaunique
positionintheIndianconsumer’smind.Marutiscoredhigherthan itscompetitorsintermsofprice,fuel efficiency and
reliability,anditssaleswereboosted by thepromiseofefficientafter-salesservice. The uncertainty ofgetting stuck
onIndian roadsdue tomachinery failure was effectively exploited by Maruti. AsMarutihadanetwork
of3,053servicestations in1,449Indiancities,itspromiseofreliability wasunmatchedby any
ofitscompetitors.Intermsoffuelefficiency,Maruticarsprovidedanaverageofthree
kilometresmoreperlitreofpetrol/dieselcompared toitscompetitors. The resalevalueofMaruticarswas also farhigher than
thatofany ofitscompetitors.MarutioffereditsTrue Valueused-carbusiness,with morethan454
TrueValueoutletsin255Indiancities, reassuring itscustomers thatthey wouldattainthe highestresalevaluefrom
anyMarutibrand.ForanIndianmiddle-classfamilyplanning tobuyanewcar, Maruti wasthefirstand mostobviouschoice.

COMPETINGWITHMARUTICARS
Marutihadimplementedveryfewpriceincreasesinitspassengercarsegmentsoverthelast10–12years.
Nonetheless,competitorshademergedineachofthesesegments.OutofMaruti’s16carmodels,each
modelhadanywherefrom onetosevenclosecompetitorsfrom Hyundai, TataMotors,Volkswagen,
Toyota,HondaorChevrolet(seeExhibit5).However,despiteintensecompetition,Marutihadretained
itsleadershippositionin mostsegments.Infact,itwassopervasiveabrand thatsomeofitsmodels competedamong
themselves.Forexample, itsAltomodelcompetedwith the Maruti800, and the Wagon Rcompetedwith
theRitz.Marutihadmaintained its “people’scar” imagesinceitsinceptionby
strategicallykeepingpriceslowandpositioning entry-levelcarsforfirst-timebuyers.Mini-segmentcars,
whichconstitutedmore than80percentofMaruti’s totalsales,carried price tags thatwereatleast20–30 percentlower
thanthoseoftheirnearestcompetitors.

Thebestselling mini-segmentmodelsofMarutiwere theAltoand the800.Thepricesof thesecarshad

remainedstagnantforalongtime.Infact,inmanyinstances,thepricesofthesecarshadbeenreduced. Forexample,thelaunch
12
priceoftheAltoLXmodelwasINR299,000 in2002,andthepricewas subsequently
reducedyearafteryearuntil2009,whenthepricewasINR257,000,a reductionof approximately14percent
aftersevenyears.Thepriceof the800modelwasINR281,000 in2002,which wasreduced
toINR221,000in2010,adropof21percent. ThepriceoftheWagonRwasreduced from INR359,000toINR338,000during
thesameperiod. However,Marutiwasabletoincreasetheprice marginally forthecompactandmid-sizesegmentcars
overthisperiod,whichboosted therevenueofthe company.

ThepassengercarmarketinIndiahad witnessed intensepricecompetition.Itwassointense thatnota

singlepricechangebyanyoftheplayershadgonewithoutareactionfromrivalfirms.Ifonelooked
carefullyatallthemodelsofthedifferentbrands,theintensityofthepricewarwasevident.Specifically,
inthecaseoftheMarutiAlto,evenMaruti’sclosecompetitors—HyundaiandTata—couldnotraise thepricesoftheircarsover
theyears; they hadtoreducethepricesoftheirmodelstoretainmarketshare.
Forexample,inApril2004,whenthepriceoftheMarutiAltofellby around7to8percent,theHyundai
Santropricecorrespondinglyfellby4.6percent.Similarly,in June2009,whentheMarutiAltopricefell by 8.8percent,
theHyundaiSantropricefellby 7.7percent,whilethe TataIndicapricefellby 9.8per cent.Though
itwasnevereasyforcarmanufacturersto reduceprices, theywereleftwith nochoicebutto
selltheirproductsatreducedorstagnantprices.Evenforthemid-sizeandcompactsegments,Maruti
couldnotincreasepricewhenitwishedtoduetopricecompetition.Thoughthecompanyhadbeenable
toretainitsleadershipposition, itsmarketsharehadfallenovertheyearsduetotheintenseprice competition.

In2001,MarutihadtotalrevenueofINR70.21billion,whichincludedotherincomewithnetsales. There wasasteady rise

inMaruti’s revenueeventhoughsalesvolumesfellfrom 2011
to2014.In2014,MarutiregisteredsalesrevenueofINR445.43billion,ariseofmorethan 500percentin14years(seeExhibit6).
EventhoughMaruticouldnotraisethepricesofitsmini-segmentcars,theriseinsalesrevenuewas mainlydue to arisein
unitsalesand marginalincreases inthepricesofitscompactcars.

INPUTCOSTS
Thepricesofrawmaterialsforcarshadrisensignificantly since2001.Basicmetalpriceshadincreased sharply,exceptfor
thepriceofaluminum.Steelwas themajorrawmaterialforcars,andthepriceofsteel had increasedbyatleast
13
threetimes(seeExhibit7)since2001. Apartfrom steel,otherinputsfor
automobilessuchascopper,leadandrubber(seeExhibit7)hadgoneupincostbyatleast240percent.

Eventhepriceofaluminumhadexperiencedamarginalriseof7percent.Theonlyrawmaterialfor
whichtherehadbeennosignificantprice risewaspalladium,butitsusageincar-making wasrelatively negligible.Apartfrom
thesematerials,thepricesofothermaterialsandinputssuchaselectricityandfuel
hadgoneupduringthesameperiod.Theriseininputpriceshadbeenasmuchas300–400percent. Specifically,
steelandrubberpriceshad significantly raised thecostofproduction.

LabourCosts
The costoflabourhadgoneupsignificantly dueto therise ingeneralprice levels(inflation) inIndia. Though
Marutidepended heavilyon contractuallabourers tocutdown onlabourcosts, ithad to keeppace
withthemarketintermsofcompensationandperksinordertoretainemployees.Thewagedisparity
betweenMaruti’sregularemployeesandcontractualemployeesinthepasthadledtoHR issues thathad
14
givenMarutimuchbadpublicity.ThetragediesoftheManesarplant hadforcedMarutitorevisitthe
compensationpackagesgiventoitsemployees. Thishad resulted in furtherrisingemployeecosts. The
employeecosthadbeena mereINR1.99billionin2001,buthad risentoINR10.69billionin2013–2014 (seeExhibit6).Itmay
benotedthatalong withMaruti’scosts,thelabourcostsperunitfor itscompetitors had alsorisen
accordinglyduringthesametimeperiod.

SellingCosts

Withtheautomobilesectorbeing sofiercely competitive,Marutineededto spendalotonpromotional

15
activities.Thedistributionandchannelcostshadalsorisenwiththeriseinfuelprices. ForMarutito retain itsmarketshare,
ithadtoengageinextensiveadcampaignsontelevisionand throughother promotionalavenues. Thecostofadvertising
ontelevisionhadriseneachyear,resulting in increased spendingonpromotion.
ThepromotionandtelevisioncostshadrisenfromINR6.33billionin2001to
INR64.99billionin2014(seeExhibit6).Inpercapitaterms,expenseshadrisenfromamereINR18,069to
awhoppingINR56,266 percarduringthesameperiod.

KEEPINGDOWNCOSTS

Theautomobile industrywasatacrossroadswhere thecostsofrawmaterialsandoperationscontinued to

increasesubstantiallywithoutacorrespondingriseinthepricesoftheproductssold.Forcompaniesin thissector, itwasvery
difficult tosustain profit levelsthatmettheexpectations ofstakeholdersandthe market.Itseemedthatthesolutionlay in the
implementationofmoreefficientproduction.Aspriceshad remainedsticky
foranextendedperiodoftimeandcostskeptrising,firmsneededtoinnovatetobring costsdown.Manufacturerscontinued
toaddnew featurestotheirproductsandintheprocessdiscovered cost-cuttingmeasures.
Marutihadbeendoing thissuccessfully formorethantwodecades.However,inthescenarioofrising costs, thecompany
faced majorchallenges, as therewasno cushion allowing it to passon theburden to
consumers.AnyattemptonMaruti’sparttoraisepriceswasmetwithapricecutbyitsrivals.Yetthe
rivalfirmswerealsofacingthesamechallenges;infact,thechallengeswereworseforthemthanfor
Maruti.Theonlyalternativeforthemanufacturerswastokeepthecostsofproductiondownthrough

increasedefficiency.Asincreasing thepriceformostMarutimodelswasoutof thequestion,theonly solutionlay inachieving

technicalefficiency andeconomiesofscale.Thegapbetween theaveragecost andthepricewasquickly shrinking
foreachmodel.Therefore,to remainrelevantin themarket,Maruti hadto innovateconstantly tocutdowncostsand
achievethe rightscaleofproduction.Achieving economiesofscalewastheonlysolution inthe faceofrisinginputand
labourcosts.

FUELPRICESANDDEMANDFORPASSENGERCARS

TheriseinthepriceofcrudeoilhadnothelpedthecauseoftheautomobilesectorinIndia.Fuelprices
hadincreased,whichsignificantlyimpactedthegrowthofthesector.In2014,whileaddressingthe
media,MarutichairmanR.C.Bhargavainfactput the blamefordeclining sales squarely on increases in
thepricesofpetrolanddiesel. Thesepriceshadincreasedby20percentinthelasttwoyears,adversely impactingcarsales.
ThepriceofpetrolwasderegulatedinIndiaandwaslinkedtocrudeoilprices. The priceofcrudeoilhadincreasedfrom
$25.64perbarrelin2001 toaround$110perbarrelin2014(see Exhibit7).Apartfrom
theriseincrudeprices,localtaxesonpetroleumproducts wereveryhighinIndia,
whichfurtherraisedtheprices.Thedieselpricewasregulatedandkeptlowthroughsubsidies.This
helpedcarmanufacturerslikeMarutitochargeapremiumondieselcars.However,thepriceofdiesel wasslowly being
deregulatedinIndia. Withanewuniongovernmentthatwasfirmly focused onreforms,
thedieselpricewouldsoonbederegulated.Oncethisoccurred,dieselvariantsofcarswouldlosetheir
edgeoverpetrolvariants.Thederegulateddieselpricewouldfurtheradverselyimpactthedemandfor automobilesin India.
PROFITABILITY
Marutihadbeenabletomaintainasteadyriseinprofitsdespitechallengesthatwerebeyondthecontrol
ofthecompany,suchasincreasedcostsandfuelpricesthataffectedthedemandforcars.In2002,it
16
postedanetprofit ofINR1.04billion,amere1.5percentofnetsales.In2014,Maruti’snetprofitshad risento INR27.83billion
or6.3percentofnetsales (seeExhibit6).Marutiremained focused on maximizing shareholders’wealthdespite
thecompetitivemarketenvironment.Each year,Maruti’sfinancialresultsexceededmarketexpectations.

DECISIONTOENTERGUJARAT

Marutihad beencontemplating entering Gujaratand setting upaplantwith aninstalledcapacity of

300,000unitsperyearwithaninvestmentofINR60billion.Itwasexpectedthatanynewfacilitywould
bemoreefficient,asitwoulduse thelatest technologyandsubsequently thecostofproductionwouldbe
lower.Therefore,onceoperational,thefacilitywouldhelpMarutiachievebettereconomiesofscaleso
thatitcouldcompetebetterandsustain itsprofits.However,setting upanewplantwasamessy affairin
India,withregulationsrelatedtoeverything from landacquisitiontoobtainingclearances from several
17
ministries.TheTataNano’sSingurplantdebacle wasstillfreshineverybody’smemory.Bhargavahad variousquestions
toconsider.Couldhe findaway toincreaseprices toachievehigherprofitability,thus
avoidingthecapitalexpenditureofbuildingaplant?Wouldthebuildingofanewplantreallysustain
profitsorwouldittakesolongthatitwould notbeworththeinitialinvestment?

EXHIBIT1:DOMESTICSALES,EXPORTSANDTOTALSALES(UNITS)OFMARUTICARS
 2013-14 1155041

2012-13 1171434

2011-12 1133695

2010-11 1271005

2009-10 1018365

2008-09 792167

2007-08 764842

2006-07 674924

2005-06 561822

2004-05 536301

2003-04 472122

2002-03 362426

2001-02 352404
Total Exports Domestic
2000-01 350814

Source:VariousannualreportsofMaruti;“OurFinancials,”MarutiSuzuki,www.marutisuzuki.com/financial.aspx,accessed
September12,2014.
 EXHIBIT2:MOTORVEHICLEPRODUCTION,CARPENETRATIONANDPERCAPITAINCOMEOF
SELECTCOUNTRIES

Country MotorVehicle Automobile PerCapita

Production Density(Cars Income
(in2014) per1,000 inUS$PPPin
People) 2013–14

India 4,145,194 12 $3,843

China 19,271,808 44 $9,055
Brazil 3,342,617 178 $11,747
Russia 2,231,737 233 $17,518
U.K. 1,576,945 457 $36,569
France 1,967,765 481 $35,295
U.S. 10,328,884 423 $51,714
Japan 9,942,711 453 $35,855
Germany 5,649,269 517 $38,666

Note:Percapita income (PPP)refers to howmanyU.S.dollars are required to buya pre-defined basketofcommoditiesin

differentcountries.Itisdifferentfrom theofficialexchangerateconversionofpercapitaincome.Itdiffersfrom countryto
country,basedonthepurchasingpowerofacurrencyinthedomesticeconomy.Forexample,ifonerequiresUS$100to buya
predefined basketin theUnited States,and ifthe same basket can be purchased in IndiaforINR4,000,then the PPP exchange
rate isINR40/US$1,whereastheofficialexchange rate isaroundINR60/US$1.Percapita income in US$PPPisa betterindicatorof
the affordabilityofbuying a carthan nominal percapita income.
Source:The WorldBank,“Passengercars(per1,000people),”http://data.worldbank.org/indicator/IS.VEH.PCAR.P3,accessed
September12,2014.

EXHIBIT3:TRENDSINMARKETSHAREOFMARUTIANDITSCOMPETITORSININDIA

(MarketSharein Percentages)

Year Maruti Hyundai Tata Mahindra Toyota Others

Suzuki Motors Motors &Mahindr Motors
a
2002 50 13 13 7 4 13
2003 46 15 15 7 4 13
2004 46 14 16 8 5 11
2005 46 13 17 8 4 12
2006 46 14 17 7 4 12
2007 46 14 16 6 4 14
2008 46 14 15 8 4 13
2009 47 16 15 8 3 11
2010 45 16 15 8 3 13
2011 45 14 14 7 3 17
2012 44 14 13 8 6 14
2013 49 21 6 7 3 13

Note:Figureswere rounded off.

Source:DatacompiledbytheauthorfromSocietyofIndianAutomobileManufacturers,www.siamindia.com/;ICRALimited,
www.icra.in/Files/ticker/PV-Industry-201103.pdf;ShallySethMohile,“MarutiSuzuki’sMarketShareRisestoHighestin
ThreeYears,”LiveMint,January13,2014,www.livemint.com/Companies/z2zcAjzlyOe1IlqMiRfkwJ/Maruti-Suzukis-market-
share-rises-to-highest-in-three-years.html;andRaviKishoreOakuri,“MarketShareofAutomobileCompaniesinIndia2013: Top
Player in Industry,” July 6, 2014, www.currentweek.com/market-share-of-automobile- companies-in-india-2013top-
players-in-industry/.Sources accessed September18,2014.
 EXHIBIT4: EX-
SHOWROOMPRICESOFMARUTICARSANDCOMPETITORS

(INRin hundredthousand)

MarutiSwift SX4
Maruti Maruti Hyundai Tata Chevrolet Dzire VXI
Year AltoLX 800 Santro Indica Spark LXI
Aug-02 2.99 2.81 3.36 3.19 ** ** **
Apr-03 2.99 2.56 3.36 3.17 ** ** **
Nov-03 2.87 2.56 3.46 3.14 ** ** **
Apr-04 2.65 2.26 3.3 3.14 ** ** **
Aug-06 2.81 2.24 3.24 2.75 ** ** **
Sep-07 2.81 2.2 3.28 3.38 3.09 ** 6.18
Oct-08 2.82 2.29 3.48 3.65 3.17 4.89 6.54
Jun-09 2.57 2.06 3.21 3.29 3.17 4.54 6.36
Feb-10 2.5 2.21 3.44 3.38 3.19 4.6 6.68
Oct-11 3.01 2.22 3.76 3.24 3.54 5.32 7.73
Apr-12 3.01 2.22 3.76 3.24 3.75 5.3 7.73
Sep-13 3.12 2.42 3.76 3.4 3.57 5.38 7.73
Apr-14 ^^ ^^ 3.66 3.85 3.45 4.85 7.15

EXHIBIT5:MARUTI
’SCOMPETITORS
BYMODEL

Model LaunchDate Competitors

800 1983 TataNano
Omni 1984 TataNano,TataVenture
Gypsy 1985 MahindraTHARcRDe,TataSumo,MahindraXylo
WagonR 1999 NissanMicraActive,Hyundaii10
Alto 2002 HyundaiSantro,ChevroletSpark,TataIndica
Swift 2005 TataVista,Hyundaii20, ŠkodaFabia,VolkswagenPolo,ToyotaEtiosLiva
SX4 2007 FordFiesta,HyundaiVerna,HondaCity,ŠkodaRapid,VolkswagenVento,
RenaultScala,NissanSunny
SwiftDzire 2008 HondaAmaze,HyundaiXcent,MahindraVerito,ToyotaEtios,FordClassic,
ChevroletSail,TataManza
A-Star 2008 ChevroletBeat,NissanMicraActive,FordFigo
Ritz 2009 TataVista,HyundaiGrandi10,HondaBrio,NissanMicra,RenaultPulse,
ToyotaEtiosLiva
Eeco 2010 TataVenture,TataWinger
AltoK10 2010 ChevroletSpark, TataIndica,Hyundaii10
Ertiga 2012 Toyota Innova, Mahindra Xylo, Nissan Evalia, Tata Sumo Grande,
ChevroletTavera,ChevroletEnjoy
Alto800 2012 TataNano,ChevroletSpark, TataIndica,HyundaiEon
Stingray 2013 ChevroletBeat,ChevroletSail
Celerio 2014 Hyundaii10,ChevroletBeat,HondaBrio

EXHIBIT6:YEARWISEREVENUE,COSTSANDNET
PROFITSFORMARUTI

(Asof March31 of each year;INR inbillions)

Year Total Raw Employee Selling&Admin NetProfit

Revenue Materials Cost istrative
&Other
Manufacturing
Expenses
2001 70.2 58.8 1.99 6.33 -2.69
2002 75.3 58.3 2.27 6.95 1.04
 2003 73.6 55.6 2.17 6.78 1.46
2004 94.8 69.7 2.93 6.07 5.42
2005 114.6 85.6 1.91 6.72 8.53
2006 126.8 93.3 2.11 8.09 11.89
2007 150.5 107.3 2.26 10.95 15.62
2008 190.6 137.9 3.46 13.39 17.30
2009 211.7 157.6 4.63 18.08 12.18
2010 301.2 223.6 5.38 24.31 24.97
2011 375.2 285.5 7.03 35.22 22.88
2012 364.1 282.3 8.43 32.67 16.35
2013 444.1 305.7 10.69 64.99 23.92
2014 445.5 313.14 13.68 59.22 27.83
Source:CapitalineDatabases,www.capitaline.com,accessedSeptember12,2014;andv
ariousannualreportsfrom Maruti, MarutiSuzuki India Limited,
“OurFinancials,”www.marutisuzuki.com/financial.aspx,accessed September12,2014.

EXHIBIT7:TRENDSIN
COMMODITYPRICES(MAJORRAWMATERIALS),2001–2014

Year Aluminum Copper Lead Rubber Palladium Brent Iron,

US$/Tonne US$/Tonne US$/Tonne US$/Tonne US$/Ounce Crude Steel&
Prices Ferro
$/Barrel Alloys
(Index)
2001 1,615.65 1,787.05 477.89 693.70 1,041.55 25.64 137
2002 1,368.59 1,503.60 512.84 647.90 409 19.48 137
2003 1,378.28 1,647.35 444.78 1,011 255.32 31.29 150
2004 1,606.49 2,423.11 758.82 1,371 216.58 31.18 201
2005 1,833.94 3,169.18 953.61 1,329.40 186.03 44.28 244
2006 2,377.45 4,733.67 1,256.62 1,932.40 274.32 63.57 237
2007 2,808.34 5,668.69 1,665.11 2,110 337.05 54.30 271
2008 2,445.08 7,060.10 2,608.47 2,705 374.20 91.45 337
2009 1,412.79 3,220.20 1,134.64 1,607 188.63 44.86 307
2010 2,234.84 7,385.67 2,370.22 3,202.40 434.10 76.37 310
2011 2,439.13 9,554.75 2,597.44 5,591.90 793.10 96.29 349
2012 2,143.82 8,042.97 2,093.74 3,856.90 659.14 110.99 386
2013 2,037.70 8,048.76 2,339.82 3,271 712.59 112.93 405
2014 1,726.20 7,299.46 2,150.20 2,365.90 734.14 107.57 412*

1. Outline the important determinants of demand for automobiles. How are cross and
income elasticity of demand relevant to Maruti’s managerial decisions? (10 Marks)

2. What are economies of scale? Where do the economies of scale for Maruti come
from? (10 Marks)

3. What kind of market structure prevalent in the Indian Automobile

industry? What are the Maruti’s competitive advantages? How can
Maruti sustain its profitability in the future? (10 Marks)
4. Explain the challenges and opportunities for car manufacturers in
Indian Market? (10 Marks)
 Alliance Solved Assignment Solution

Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD. has 15 years of teaching

experience in MBA Business schools. For last fifteen years
Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD has taught various subjects
from Marketing, Finance, Human Resource Management, Information Systems,
International Business and General Specializations. He has written many
research papers and case studies.

Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD organizes online MBA

subject coaching / MBA Assignment help and MBA Project help. Many clients
national and international has appreciated Prof.Dr.N.Palaniappan.,MBA.,
MCom.,MPhil.,PhD for his timely help in the assignments and projects and
MBA subject coaching.

You can call him on his mobile no. 09025810064 (whatsapp available)   or mail
him at palaniappanmail@gmail.com. He does help/guide for the below question.
If urgent or any query’s, Please feel free to call him on his mobile no.
9025810064 (whatsapp available) or do mail on palaniappanmail@gmail.com.
He does help/guide for the below question

EPGDM TERM II GRADABLE ASSIGNMENT

1. Evaluation of employee group housing offer 20 Marks
A Pharma company has recently recruited 4 scientists at an average age of 27 and is looking to
develop quite a few pharmacological formulations. With a view to retain them the company
proposes to offer a housing scheme to them on the following terms and conditions:
1. The number of beneficiaries will be four in number
2. The total cost of purchasing apartments will be Rs.1 crore
3. PNBHFL offers an 18 year term @ 9.00% interest and HDFC offers 15 years term @ 8%
interest.
 4. The company will pay the housing finance company on an installment basis.
5. A Down payment of 5% of the cost of the apartment has to be made and recoverable from
the employee in 24 installments. The upfront payment will be made by the company.
6. In case of availing the loan from HDFC,50% of the installment will be recovered from the
employee on a monthly basis and in case of availing the loan from PNBHFL 45% will be
recovered from the employee. The option of choosing the service rests with the company
only.
7. Assume that employee deductions happen on the first day of the month and housing loan
payments made by the company happens on the last day of the year.
8. The housing loan is offered on a fixed interest basis and EMI will not change.
9. Assume the individual apartments are of equal value.
You are called upon to do the following:
1. Calculate the two EMI options and choose the best one.

2. Case Let on Agency Conflict 20 Marks

Lean Conductors Ltd is a mid-sized Public limited company engaged in the manufacture and sale
of electrical cables. As a public limited company the organization was performing reasonably well,
earning steady profits and declaring a stable dividend of 12-15%.
The CEO was feeling the urge to expand the business and taste the growth of business operations
and profits. He started addressing various options and shortlisted 2 options namely manufacture of
LED bulbs and solar panels.
He called the Gen Mgr. - Finance for a discussion in this regard to probe the matter further. He
also went on to share his dream of making the company a larger one and his belief in people like
the GM who needs to stay and grow with the organization.
The GM felt excited at this prospect and started making a project report. He decided in his own
mind the solar panel project with a larger profit margin looked to be a better one than LED bulbs
which was dealer intensive and lesser in terms of unit margin.
Feeling the need to expand rapidly on the investment of the company and make it bigger and
become a CFO in the bargain, he chose the solar panel project which was more capital intensive.
An assumption about a capital structure and cost congruent to the existing structure was assumed
and the projected financials were prepared.
The board of directors representing the majority of shareholders believing in the recommendations
of the report adopted it for implementation.The project faced various hurdles in its implementation
such delay in signing collaboration agreements, inflated cost due to poor supply of money in the
market, downturn of the economy and so on. The project cost started spiraling up and to fund the
expansion the funds of the existing business line were inducted into the new project since no
further borrowing could be made.The company slipped into the red and reached a stage of
bankruptcy without the new project even taking off.
Questions:
1. Trace the conflict between the management and the shareholders in this case study.
2. Is the act of the GM Finance an error or sin?
3. Where do you think the CEO went wrong?
3. What according to you is the approach the CEO should have taken?

Alliance Solved Assignment Solution

Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD. has 15 years of teaching

experience in MBA Business schools. For last fifteen years
Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD has taught various subjects
from Marketing, Finance, Human Resource Management, Information Systems,
International Business and General Specializations. He has written many
research papers and case studies.

Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD organizes online MBA

subject coaching / MBA Assignment help and MBA Project help. Many clients
national and international has appreciated Prof.Dr.N.Palaniappan.,MBA.,
MCom.,MPhil.,PhD for his timely help in the assignments and projects and
MBA subject coaching.

You can call him on his mobile no. 09025810064 (whatsapp available)   or mail
him at palaniappanmail@gmail.com. He does help/guide for the below question.
If urgent or any query’s, Please feel free to call him on his mobile no.
9025810064 (whatsapp available) or do mail on palaniappanmail@gmail.com.
He does help/guide for the below question

QUANTITATIVE METHODS FOR MANAGERS

MAXIMUM MARKS: 40
1. Using the Excel file Sales transaction find the following 15 Marks
a. Identify the levels of measurement for each variables
b. Construct a cross tabulation to find the number of transactions by product and
region, total amount of revenue by region, and total revenue by region and
product.
c. Calculate the descriptive statistics and infer.
d. Find the average sales by source (web or e-mail). Do you think this
information, could be useful in advertising? Explain how and why or why not.
e. Find the proportion of customers who used PayPal and the proportion of
customers who used credit cards. Also find the proportion that purchased a
book and the proportion that purchased a DVD.
f. Summarize your findings a present a brief report

2. An employee of a vending concession firm at the Subiaco Oval needs to choose

between two options. He can work behind a hamburger counter and receive a fixed
sum of $100 per game. Alternatively, he can walk around the stands selling beer and
snacks on a commission basis. On this second option, the employee can expect to earn
$180 on a good day, $100 on an average day and $70 on a poor day. The probabilities
of a good, average and poor day are 0.30, 0.40 and 0.30 respectively.
(a) What would be the expected earnings and the standard deviation in
earnings for the employee under the commission option?
(b)Which job should he take and why? 5 marks

3. Suppose it is known that the distribution of purchase amounts by customers entering a

popular retail store is approximately normal with mean $75 and standard deviation
$20.

a. What is the probability that a randomly selected customer spends less than $85
at this store?
b. What is the probability that a randomly selected customer spends between $65
and $85 at this store?
c. What is the probability that a randomly selected customer spends more than
$45 at this store?
d. Find the dollar amount such that 80% of all customers spend at least this
amount.
e. Find two dollar amounts, equidistant from the mean, such that 90% of all
customer purchases are between these values. 10 marks
4. Using the Excel Home Market Value
a. Identify if there is any outlier in square feet and Market Value
b. Draw a scatter plot and infer about correlation
c. Identify the dependent and independent variable(s)
d. Fit a simple linear regression ( Market value on Square feet)
 e. Predict the market value for 1450 square feet
f. Calculate coefficient of determination and comment 10 marks

Alliance Solved Assignment Solution

Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD. has 15 years of teaching

experience in MBA Business schools. For last fifteen years
Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD has taught various subjects
from Marketing, Finance, Human Resource Management, Information Systems,
International Business and General Specializations. He has written many
research papers and case studies.

Prof.Dr.N.Palaniappan.,MBA.,MCom.,MPhil.,PhD organizes online MBA

subject coaching / MBA Assignment help and MBA Project help. Many clients
national and international has appreciated Prof.Dr.N.Palaniappan.,MBA.,
MCom.,MPhil.,PhD for his timely help in the assignments and projects and
MBA subject coaching.

You can call him on his mobile no. 09025810064 (whatsapp available)   or mail
him at palaniappanmail@gmail.com. He does help/guide for the below question.
If urgent or any query’s, Please feel free to call him on his mobile no.
9025810064 (whatsapp available) or do mail on palaniappanmail@gmail.com.
He does help/guide for the below question