ISMS – Eighteen – year old Shawn “NAPSTER” Fanning, then a freshman at Northeastern University, dropped out of school and founded Napster Inc. (website was at w.w.w.napster.com) in San Mateo, California in May 1999.

Eighteen – year old Shawn “NAPSTER” Fanning, then a freshman at Northeastern University, dropped out of school and founded Napster Inc. (website was at w.w.w.napster.com) in San Mateo, California in May 1999. 
 
Eighteen – year old Shawn “NAPSTER” Fanning, then a freshman at Northeastern University, dropped out of school and founded Napster Inc. (website was at w.w.w.napster.com) in San Mateo, California in May 1999. 

 

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Business Ethics

 
Case NO. 5
 
NAPSTER’S REVOLUTION
Eighteen – year old Shawn “NAPSTER” Fanning, then a freshman at Northeastern University, dropped out of school and founded Napster Inc. (website was at w.w.w.napster.com) in San Mateo, California in May 1999.  Two months earlier, working in his college dorm room, he had developed both a website that let users locate other users who were willing to share whatever music files they had in MP3 format on the hard drives of their computers and a software program (called “Napster) that let users copy these music files from each other over the Internet.  When an early free version of the program he posted on Download.com received more than 300,000 hits and was named “Download of the week,” he decided to devote himself full time to developing his program and website.  The final version of his version of his program was officially released August 1999, and in May 2000, with more than 10 million people – most of them students on college campuses where Napster was especially popular – signed up at its website, Shawn’s company received $ 15 million of start – up funds from venture capital firms in California’s “Silicon Valley.”
            Fanning grew up in Brockton , Massauchettes, the son of a nurse’s aid and the stepson of a truck driver, in a family of four half-brothers and half-sisters. He got the nickname “Napster” during a basketball game when a player commented on his closely cropped sweaty head of hair.  Fanning had taught himself programming and had held several summer programming jobs.
            The company Shawn helped establish gave the Napster program away for free and charged users nothing to use its website to post the URL addresses where personal copies of music could be downloaded.  Nevertheless, a month later, Shawn found himself embroiled in a legal and ethical controversy when two record tables, two musicians (Metallica and Dr. Dre), and two industry trade groups of music companies (the National Music Publishers Association and the Recording Industry Association of America) filed suits against his young company claiming that Napster’s software was enabling other to make and distribute copies of copyrighted music that the musicians and companies owned.
           
            On June 12, the two industry trade groups filed preliminary injunctions against the company demanding that it remove all the songs owned by their member companies from Napster’s song directories.  According to the two groups, a survey of 2555 college students showed a correlation between Napster use and decreased CD purchases.  College students were outraged, especially fans of Metallica and Dr. Dre. Supporters of Napster argued that Napster allowed people to hear music that they then went out and purchased, so Napster actually helped the music companies.  Music sales had increased by over $500 million a year since Napster had started to operate, but the music companies claimed that this was a result of a booming economy.  Supporters of Napster also argued that individuals had a moral and legal right to lend other individuals a copy of the music on the CDs that they had purchased.  After all, they argued, the law explicitly stated that an individual could make a copy of copyrighted music he or she had purchased to hear the music on another player.  Moreover, according to Fanning, Napster was not doing anything illegal, and the company was not responsible if other people used its software and website to copy music in violation of copyright law any more than a car company was responsible when its autos were used by thieves to rob banks.  Much of the music that was downloaded using Napster, they claimed, was in the public domain (i.e.not legally owned by anyone) and was being legally copied.  The music companies countered that an individual had no right to give multiple copies of their music to others even if the individual had paid for the original CD.  If everyone was allowed to copy music without paying for it, they charged, eventually the music companies would stop producing music and musicians would stop creating it.  Other musicians claimed, however, that Napster and the Web gave them a way to put their music before millions of potential fans without having to beg the music companies to sponser them.
            In March 2000, the band Metallica hired consultant PDNet to electronically “evesdrop” on users who assumed they were anonymously accessing Napster’s website.  The following week the band’s lawyers handed Napster a list with the names of 300, 000 people that Metallica claimed had violated its copyrights using Napster’s service and that Metallica now wanted removed from Napster’s services.  Fanning complied with the demand of Metallica, whose drummer, Lars Ulrich, was one of his musical heros.  “If they want to steal our music,” said Ulrich, “ why don’t they just go down to Tower Records and grab them off the shelves ?”  Many young people protested that the bands should not be alienating their own fans in this way.  One fan posted a note on an MP3 chat room : “Give me a break !  I have been dropping 16 bucks an album for Metallica’s music since I was a teenager.  They made a fortune off us and now they accuse us of stealing from them.  What nerve !”  Howard King, a Los Angeles lawyer for Metallica and Dr. Dre, stated that “I don’t know Shawn Fanning but he seems to be a pretty good kid who came up with a sensational program.  But this sensational program has allowed people to take music without paying ………. Shawn probably had no idea of the legal ramifications of what he created.  I’m sure the though never crossed his mind.”
            In August 2000, a federal judge in San Francisco , Marilyn Patel, responded to the suit against Napster.  Judge Patel called Shawn’s company a “monster” and charged that the only purpose of Napster was to copy pirated music without paying for it.  The judge ordered Napster to remove all URLS from its website that referenced material that was copyrighted.
            Judge Patel’s ruling would have shut down the company’s website immediately.  But a few days later, an appeals court reversed Judge Patel and allowed the company to continue operating.  The reprieve was only temporary.  On Monday February 12, 2001 , the Ninth Circuit Court of Appeals in San Francisco affirmed Judge Patel’s ruling.  The company attempted to circumvent the ruling by negotiating agreements with the music companies that would pay them certain annual fees in return for withdrawing the suit.
            Napster was not the only software that allowed individuals to swap files from
One personal computer to another over the Internet.  The software program named “Gnutella”  let individuals swap any kind of files – music, text, or visuals – over the Internet, but Gnutella did not operate a centralized index like the website that Napster had established.  Observers predicated that if Napster was put out of business, numerous underground websites would be created providing the kind of listing service that the company had earlier provided on its website.  Already a website named zeropaid.com provided free copies of Gnutella and many other Napster clones that users could download and use to share digital music files with each other.  Unlike Napster, these software products did not require a central website to connect users to each other, making it impossible for music companies to find and target single entity whom they could sue.  Many observers predicated that Napster was only the beginning of an upheaval that would revolutionize the music industry, forcing music companies to lower their prices, make their music easily available on the Internet, and completely change their business models.  
Questions :
  1. What are the legal issues involved in this case, and what are the moral issues ? How are the two different kinds of issues different from each other, and how are they related to each other ?  Identify and distinguish the “systemic, corporate and individual issues”   involved in this case.  
 
  1. In your judgment, was it morally wrong for Shawn Fanning to  develop and release his technology to the world given its possible consequences ?  Was it  morally wrong for an individual to use Napster’s website and software to copy  for free the copy righted  music on another person’s hard drive ? If you believe it was wrong, then explain exactly why it was wrong.  If you believe it was not morally wrong, then how would you defend your views against the claim that such copying is stealing ?  Assume that it was not Iillegal for an individual to copy music using Napster.  Would there           be anything immoral with doing so ?  Explain ?
 
  1. Assume that it is morally wrong for a person to use Napster’s website and software to make a copy of copyrighted music.  Who, then, would be morally responsible for this person’s wrong doing ? Would only the person himself be     morally responsible ?  Was   Napster, the company, morally responsible ? Wash shawn Fanning morally responsible? Was any employee of Napster, the company,  morally responsible ? Was the operator of the server or that portion of the Internet that the person used morally responsible ?  What if the person did not know that the music was copyrighted or did not think that it was illegal to copy copyrighted music ?
 
  1. Do the music companies share any of the moral responsibility for   what has happened ?  How do you think technology like Napster is  likely to  change the music industry ?  In your judgment, are these changes ethically good or ethically bad ?
Eighteen – year old Shawn “NAPSTER” Fanning, then a freshman at Northeastern University, dropped out of school and founded Napster Inc. (website was at

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ISMS – During the Industrial Revolution a century ago, workplace injuries were so commonplace that they were simply considered one of the hazards of having a job. Children and adults were often maimed or disfigured in factory accidents.

During the Industrial Revolution a century ago, workplace injuries were so commonplace that they were simply considered one of the hazards of having a job. Children and adults were often maimed or disfigured in factory accidents.
 
During the Industrial Revolution a century ago, workplace injuries were so commonplace that they were simply considered one of the hazards of having a job. Children and adults were often maimed or disfigured in factory accidents.

 

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Human Resource Management

 
Case 6 :-
OSHO and Unions versus Manufactures: Is Workplace Ergonomics a Problem?
During the Industrial Revolution a century ago, workplace injuries were so commonplace that they were simply considered one of the hazards of having a job. Children and adults were often maimed or disfigured in factory accidents. Today strict regulations cover safety in the workplace, guided by the U.S. Department of Labor’s Occupational Safety and Health administration (OSHO).
          During the past couple of decades, as industry itself has changed, a different type of injury has emerged; musculoskeletal disorders (MSDs). MSDs are injuries resulting from overexertion and repetitive motion, such as constantly lifting heavy loads or grabbing and twisting a piece of machinery. People who sit at computer workstations all day are susceptible to MSDs as well, particularly carpal tunnel syndrome, which affects the nerves of the hand, wrist, and arm. According to OSHO, about one third of repetitive stress injuries, or 600,000, are serious enough to require time off the job, which means that businesses pay for these injuries not only in medical costs but in lost productivity. They can also contribute to high employee turnover. No one disputes that these injuries occur. But various experts, industry leaders, and politicians argue about how severe the injuries are, who should pay for them, what should be done about them, and who takes ultimate responsibility for the safety of workers.
          One aspect of the whole issue of workplace injuries is ergonomics: “The applied science of equipment design, intended to reduce operator fatigue and discomfort, or as OSHO puts it, the science of fitting the job to the worker.” Ergonomics involves everything from developing new equipment, including desk chairs that support the back properly and flexible splints to support the wrist while typing, to designing better ways to use the equipment, such as the proper way to hold a computer mouse.
          OSHO has proposed new guidelines for better ergonomic standards, targeting jobs where workers perform repetitive tasks, whether they are in processing poultry or delivering packages. The proposal required employers that received reports from workers who were suffering from MSDs to respond promptly with an evaluation and follow-up health care. Workers who needed time off could receive 90 percent of their pay and 100 percent of their benefits. Not surprisingly, arguments for and against the proposal broke out. OSHO spokesperson Charles Jeffers claimed that the guidelines “will save employers $9 billion every year from what they’ve currently been spending on these problems.”  Peg Seminario of the AFL-CIO noted that the guidelines did not go far enough because they did not cover “workers in construction, agriculture, or maritime, who have very serious problems.” Pat Cleary of the national Association of Manufacturers argued that “there’s a central flaw here and that is that there is no . . . consensus in the scientific or medical community about the causes of ergonomics injuries.” Debates over the proposed ruled’ merit were further clouded by the Small Business Administration’s prediction that implementing the standards would cost industries $18 billion. OSHO had forecast a mere $4.2 billion.
          Just before he left office, President Bill Clinton signed the bill into law which was overturned by incoming President George Bush and the new Congress. Calling the workplace safety regulations “unduly burdensome and overly broad,” Bush signed a measure to roll back the new rules.
          Where do these actions leave workers and businesses in regard to workplace injuries? Legally, businesses are not required to redesign work systems or continue full pay and benefits for an extended period after work-related injury. But if the goal of a company is to find and keep the best employees, perhaps developing good ergonomic practices makes good business sense. The high cost of treatment and turnover, not to mention lowered productivity, points toward prevention as a competitive strategy. “Good ergonomics in the office should not be a big burden in a company and may be a way to retain good employees.”
Questions
  1. Do you agree or disagree that ergonomics in the workplace should be covered by federal regulations? Explain your answers.
 
  1. Choose a job with which you are familiar and discuss the possibilities for repetitive stress injuries that could occur on this job and ways they could be prevented.
 
  1. Imagine that you are the human resources manager for a company that hires workers for the selected in question 2. What steps might you encourage company officials to take to identify and prevent MSDs?
During the Industrial Revolution a century ago, workplace injuries were so commonplace that they were simply considered one of the hazards of having a job. Children and adults were often maimed or disfigured in factory accidents.
During the Industrial Revolution a century ago, workplace injuries were so commonplace that they were simply considered one of the hazards of having a job. Children and adults were often maimed or disfigured in factory accidents.

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ISMS – Dr. Reddy Instruments is a medium-sized the Industrial Estate on the outskirts of Hyderabad. The company is basically involved with manufacturing surgical instruments and supplies for medical professionals and hospitals.

Dr. Reddy Instruments is a medium-sized the Industrial Estate on the outskirts of Hyderabad. The company is basically involved with manufacturing surgical instruments and supplies for medical professionals and hospitals.
Dr. Reddy Instruments is a medium-sized the Industrial Estate on the outskirts of Hyderabad. The company is basically involved with manufacturing surgical instruments and supplies for medical professionals and hospitals.

 

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Business Administration

 
Case 2 :-
“Naughty Rule”
Dr. Reddy Instruments is a medium-sized the Industrial Estate on the outskirts of Hyderabad. The company is basically involved with manufacturing surgical instruments and supplies for medical professionals and hospitals.
          About a year ago, Madhuri, aged 23, niece of the firm’s founder, Dr. Raja Reddy, was hired to replace Ranga Rao quality control inspector, who had reached the age of retirement. Madhuri had recently graduated from the Delhi College of Engineering where she had majored in Industrial Engineering.
          Balraj Gupta, aged 52, is the production manager of the prosthesis dept., where artificial devices designed to replace missing parts of the human body are manufactured. Gupta has worked for Dr. Reddy Instruments for 20 years, having previously been a production line supervisor and, prior to that, a worker on the production line. Gupta, being the eldest in his family, has taken up the job quite early in life and completed his education mostly through correspondence courses.
          From their first meeting, it looked as though Gupta and Madhuri could not get along together. There seemed to be an underlying animosity between them, but it was never too clear what the problem was.
          Venkat Kumar, age 44, is the plant manager of Dr. Reddy instruments. He has occasionally observed disagreements between Madhuri and Gupta on the production line, Absenteeism has risen in Gupta’s department since Madhuri was hired as quality control inspector. Venkat secretly decided to issue a circular calling for a meeting of all supervisory personnel in the production and twelve quality control departments. The circular was worked thus:   
Attention: All Supervisors Production Quality Control Departments
 A meeting is schedule on Monday, Feb 20, at 10 a.m. in room 18. The purpose is to sort out misunderstanding and differences that seem to exist between production and QC personnel.
 Sd. Venkat Kumar  Plant Manager  enkat starred the meeting by explaining why he had called it and then asked Gupta for his opinion of the problem. The conversation took the following shape:
Gupta: That Delhi girl you recruited is a ‘fault finding machine’ in our dept. Until she was hired, we hardly even stopped production. And when we did, it was only because of a mechanical defect. But Madhuri has been stopping everything even if ‘one’ defective part comes down the line.
Madhuri: That’s not true. You have fabricated the story well.
Gupta: Venkat, our quality has not undergone any change in recent times. It’s still the same, consistently good quality it was before she came but all she wants to do is to trouble us.
Madhuri: May I clarify my position at this stage? Mr. Gupta, you have never relished my presence in the company. I still remember some of the derisive remarks you used to make behind my back. I did take note of them quite clearly!
Suresh (another quality control supervisor): I agree with Madhuri Venkat. I think that everyone knows that the rules permit quality control to stop production if rejections exceed three an hour. This is all Madhuri has been doing.
Gupta: Now listen to me. Madhuri starts counting the hour from the moment she gets the first reject. Ranga Rao never really worried about absolute reject rule when he was here. She wants to paint my department in black. Is not that true Riaz Ahmed?
Ahmed (another production supervisor): It sure is Gupta. Every time Maduri stops production, she is virtually putting the company on fire. The production losses would affect our bonuses as well. How long can we allow this ‘nuisance’ to continue?
          Thirty minutes later Madhuri and Gupta were still lashing out at each other. Venkat decided that ending the meeting might be appropriate under the circumstances. He promised to clarify the issue, after discussion with management, sometime next weel.
QUESTIONS:
  1. Should Venkat have called a meeting to sort out this problem? Why or Why not?
  2. What do you say about the rule calling for production to halt if there are more than three rejects in an hour? Should it have been enforced? Explain.
  3. What do you feel is the major problem in this case? The solution?
Dr. Reddy Instruments is a medium-sized the Industrial Estate on the outskirts of Hyderabad. The company is basically involved with manufacturing surgical instruments and supplies for medical professionals and hospitals.
Dr. Reddy Instruments is a medium-sized the Industrial Estate on the outskirts of Hyderabad. The company is basically involved with manufacturing surgical instruments and supplies for medical professionals and hospitals.

 

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ISMS – Does Shobha have enough needed data on consumer behaviour? What type of consumer research should Shobha conduct

Does Shobha have enough needed data on consumer behaviour? What type of consumer research should Shobha conduct
 
Does Shobha have enough needed data on consumer behaviour? What type of consumer research should Shobha conduct

Consumer Behavior

 
Case IV
Mouse-Rid
 
One hot May morning, Shobha, general manager of Innotrap India Ltd., entered her office in Delhi. She paused for a moment to contemplate the quote, which she had framed and hung on a wall facing her table.
“If a man can make a better mousetrap than his neighbour, the world will make a beaten path to his door.” She vaguely recalled that probably it was Ralph Waldo Emerson who said this. Perhaps, she wondered, Emerson knew something that she didn’t. She had the better mousetrap – Mouse­-Rid – but the world didn’t seem all that excited about it.
Shobha had just returned from a Trade Fair in Kolkata. Standing in the trade show display booth for long hours and answering the same questions hundreds of times had been tiring. Yet, this show had excited her. The Trade Fair officials held a contest to select the best new product introduced at the show. Of the more than 150 new products, her mousetrap had won first place. Two women’s magazines had written small articles about this innovative mousetrap, however, the expected demand for the trap had not materialised. Shobha hoped that this award might stimulate increased interest and sales.
A group of investors who had obtained rights to market this innovative mousetrap in India had formed Innotrap India in January 2001. In return for marketing rights, the group agreed to pay the inventor and patent holder, a retired engineer, a royalty fee for each trap sold. The group then appointed Shobha as the general manager to develop and manage Innotrap India Ltd.
The Mouse-Rid, a simple yet clever device, is manufactured by a plastics firm under contract with Innotrap India Ltd. It consists of a square, plastic tube measuring about 6 inches long and one and one-half inches- square. The tube bends in the middle at a 30-degree angle, so that when the front part of the tube rests on a flat surface, the other end is elevated. The elevated end holds a removable cap into which the user places bait (piece of bread, or some other titbit). A hinged door is attached to the front endofthe tube. When the trap is “open”, this door rests on two narrow “stills” attached to the two bottom corners of the door.
The trap works with simple efficiency. A mouse, smelling the bait enters the tube through the open end. As it moves up the angled bottom toward the bait, its weight makes the elevated end of the trap drop downward. This elevates the open end, allowing the hinged door to swing closed, trapping the mouse. Small teeth on the ends of stills catch in a groove on the bottom of the trap, locking the door closed. The mouse can be disposed of live, or it can be left alone for a few hours to suffocate in the trap.
Shobha felt the trap had many advantages for the consumer when compared with traditional spring-loaded traps or poisons. Consumers can use it safely and easily with no risk for catching their fingers while loading. It poses no injury or poisoning threat to children or pets.
Shobha’s personal and informal inquiries with acquaintances and friends suggested that women are the best target market for the Mouse-Rid. Most women stay at home and take care of household chores and their children. Thus, they want a means of dealing with the mouse problem that avoids any kind of risks. To reach this market,
Shobha decided to distribute Mouse-Rid through grocery stores, and kitchenware stores. She personally contacted a supermarket and some departmental stores to persuade them to carry the product, but they refused saying that they did not sell such contraptions. She avoided any wholesalers and other middlemen.
The traps were packaged in a simple cardboard, with a suggested retail price ofRs.150 for a piece. Although this price made Mouse-Rid about five 1;0 six times more expensive than standard traps, those who bought it showed little price resistance.
To promote the product, Shobha had budgeted approximately Rs. 300,000 toward advertising in different women’s magazines, such as Grah Shobha, and Good Housekeeping. Shobha was the company’s only salesperson, but planed to employ sales people soon.
Shobha had forecasted Mouse-Rid’s first year sales at 2 million units. Through Aril, however, the company had sold only few thousand units. She wondered if most new products got to such slow start, or if she was doing something wrong.
Shobha knew that the investor group believed that Innotrap India Ltd. had a “once-in-a­ lifetime chance” with its innovative mousetrap. She sensed the group’s impatience. To keep the investors happy, the company needed to sell enough traps to cover costs and make a profit.
QUESTIONS
 
  1. Has Shobha identified the best target market for Mouse-Rid? Why or why not?
 
  1. Does Shobha have enough needed data on consumer behaviour? What type of consumer research should Shobha conduct?
 
 
  1. What type of advertising can influence consumers for this type of product?
Does Shobha have enough needed data on consumer behaviour? What type of consumer research should Shobha conduct
Does Shobha have enough needed data on consumer behaviour? What type of consumer research should Shobha conduct

ISMS – Business Communications – Does Arvind Pandey really face a dilemma

Business Communications – Does Arvind Pandey really face a dilemma
Business Communications – Does Arvind Pandey really face a dilemma
 

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Business Communications

 
CASE III
Arvind Pandey Caught in Business Web
Arvind Pandey is a project manager at Al Saba Construction Company in Muscat.   It s a flourishing company with several construction projects in Muscat and abroad.  It is known for completing projects on time and with high quantity construction.  The company’s Chairman is a rich and a highly educated Omani.  A German engineer is Arvind’s Vice – President for urban and foreign construction projects.
Three months ago, Al Saba had submitted a tender for a major construction project in Kuwait.  Its quotation was for $ 25 million.  In Kuwait the project was sponsored and announced by a US – based construction company called Fuma.  According to Al Saba, their bid of $ 25 million was modest but had included a high margin of profit.
On 25 April, Arvind was asked to go to Kuwait to find out from the Fuma project manager the status of their construction proposal.  Arvind was delighted to know that Fuma had decided to give his company, (Al Saba) the construction project work.  The project meant a lot of effort and money in planning the proposed construction in Kuwait.
But before Arvind could tank the Fuma project manager, he was told that their bird should be raised to $ 28 million.  Arvind was surprised. He tried to convince the Fuma project manager that his (Arvind company had the bast reputation for doing construction work in a cost effective way.  However, he could always raise the bid by $ 3 million. But he wanted to know why he was required to do so.
The Fuma manager’s reply was, “That’s the way we do our business in this part of the world, $ 1 million will go to our Managing Director in the US, I shall get $ 1 million, you, Mr. Pandey, will get $ 1 million in a specified account in Swiss Bank.
Arvind asked, “But why me?”  “So that you never talk about it to any one.”  The Fuma Project Manager said.  Arvind promised never to leak it out to any one else.  And he tried to bargain to raise the bid by $ 2 million.  For Arvind was familiar with the practice of “pay – offs” involved in any such thing.  He thought it was against his loyalty to his company and his personal ethics.  Arvind promised the Fuma project manager that the bid would be raised to $ 28 million and fresh papers would be put in. He did not want to lose the job. He came back to Muscat and kept trying to figure out how he should place the whole thing before his German Vice President.  He obviously was at a loss. 
Questions:
 
  1. Analyse the reasons for Arvind Pandey’s dilemma.
 
  1. Does Arvind Pandey really face a dilemma?
 
  1. In your view what should Arvind Pandey do? Should he disclose it to his German Vice President?
Business Communications – Does Arvind Pandey really face a dilemma
Business Communications – Does Arvind Pandey really face a dilemma

 

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ISMS – Do you think that VSNL should have changed its thrust from basic telephony to cellular services

Do you think that VSNL should have changed its thrust from basic telephony to cellular services
 
Do you think that VSNL should have changed its thrust from basic telephony to cellular services
 

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General Management

 
CASE III
 
COMPETITION AHEAD: VSNL AT CROSS ROADS
The telecom sector had been functioning as a typical government department right from its inception. With the Department of Telephones (DoT) being under the exclusive control of the Ministry of Communications, Government of India (GO!), the system functioned more as a monopoly., With the advent of the LPG process (liberalization, privatization and globalization) in the early nineties, the telecom department went through a phase of modernization. A number of new and sophisticated electronic exchanges were installed which enhanced the capacity and lead to the disappearance of waiting list for telephone connections. In a landmark decision in 1995-96, the Government of India threw open its gates for private players in the area of cellular services. LCG and ACG were the two major players to enter this area in Karnataka region, while DoT decided to remain as an observer and continued as a provider of basic services only. Subsequently the Internet, ISD and other services were also opened to private participation.
Do you think that VSNL should have changed
The year 1998 saw the entry of Vikas Telenet (VTNL) as a basic service provider in the state of Karnataka. It launched its basic services in Bangalore district, the commercial capital of the state, in January 1998. The impact of this entry was felt by DoT as it resulted in a mass customer churning, challenging the market leadership of DoT in basic services. This growing challenge from VTNL made General Manager DoT Indore, R.L. Rawat realized the need for a comprehensive review of the competitive scenario. The situation faced by the Bangalore district was one of its kind. It was the only city where four companies were providing telephone services. LCG and ACG were providing cellular services while VTNL and DoT were providing basic services. To attract the customers all the providers had attractive tariff plans. DoT’s market share was not affected by the entry of LCG and ACG as – they operated only as cellular service providers and their services carried a premium price. But the entry of VTNL as a basic service provider with attractive tariff plans showed a marked shift in customer base from DoT to VTNL specially in case of heavy users make it necessary for DoT to come up with similar competitive tariff plans.
General Manager Operations DoT Bangalore, S.N. Dutt, felt that improved services, customer care and proper pricing would help in winning back the heavy users who accounted for almost 60 to 65% of the total revenue. Keeping this in mind, a review of VTNL’s tariff plans was done (Annexure I). The review revealed that the customers were getting a distinct price advantage in the rentals and free calls given by VTNL.
Along with this, a discount ranging from 2.5 to 16% was also announced by VTNL. S.N. Dutt formulated a comprehensive plan to guard DoT’s market share. Officers were appointed as account holders and were responsible for rendering personalized customer care to commercially important customers hoping to retain them with better services. He also formulated a proposal of discounts which was forwarded to the Circle Head Office (Annexure-II) and a presentation was made by DGM – Marketing K.K. Sen, highlighting the rate at which customer churning was taking place and the need for implementation of new tariff plan. He pleaded with the senior officers that DoT needed to be at least reactive if not proactive, to sustain itself in the market. The proposal was well received and forwarded to the Ministry of Communications for approval. Responding to the need of the hour, the Ministry decided to offer a comprehensive discount of 2.5 to 16% for its heavy users. The scheme was introduced in Bangalore, which was extended first to the state of Karnataka and later on to the entire nation.
Do you think that VSNL should have changed
VTNL, which had so far been concentrating only on the heavy users, decided to now expand its network to get a wider customer base. With this view in mind, a number of promotional schemes were introduced e.g., web phone, a facility for internet usage where access to the net was provided at a cost of 60 paise per call only. It also announced free Internet facility for a year on every new connection. Besides this, VTNL went in for heavy promotion of its schemes. The careful wording of the schemes and enhancement of the number of free calls made the customers feel that they were gainers as far as rentals were concerned. These schemes when launched created very difficult times for VTNL during May -August 2001. By then, DoT had been Corporatised (October 1, 2000) and came to be known as VSNL. The Bangalore office was extremely hopeful that the corporatisation would facilitate. the implementation of new innovative schemes. For drafting a proposal of innovative schemes, VSNL first conducted a market research where in -the database of surrendered connections was used as sample and effort were made to identify the cause of disconnections. The survey revealed that of the total number of disconnections 30% were due to economic recession while 40% were due to customer turning in favor of VTNL while the remaining were due to a multitude of factors interplaying with one another.
To redeem the situation, VSNL, Bangalore prepared an innovative plan known as Business Special Plan – Plan 600-800, which offered 800 free calls on a monthly rental of Rs.600 only. The plan was put forward to Chief General Manager at Bangalore for approval. The persistent efforts of K.K. Sen bore fruits and the proposal was approved at the Circle level.
However, at the time of launch K. K. Sen realized that they needed TRAI’s (Telecom Regulatory Authority of India) approval for going ahead. To ensure the unhindered approval of TRAI, modified tariff plans called 500-700 and an economy plan were suggested and sent for approval. While formulating these plans, an attempt was made to segment the market with an intention to target each segment with a customized/specific set of services. Plan 500-700 was targeted at high end users. Here, 700 calls were offered free on a monthly rental of Rs. 500 only. The economy plan carried a rental of just Rs.160 per month with a rate of Rs.l.20 per call. This plan was specially targeted at customers who had more of incoming calls and needed a facility for meeting their specific requirements. The rolling out of these schemes had an immediate impact with nearly 8,000 customers coming over to VSNL Bangalore. Along with these new tariff proposals a number of innovative strategies were introduced by VSNL, Bangalore.
  • The initial registration amount was reduced and new subscribers were offered the facility of paying the amount in installments.
  • Call centre functioning since February 2001 to deal with customer grievances was made proactive to ensure better customer care.
  • Training was given to the front-end-people for updating their skills and changing the mindsets.
  • Tele-shopping service was started which provided a one stop shopping facility, giving the customers the option to choose their telephone numbers, instrument and service.. Installation was assured within 48 hours.
  • Phone-on-Phone facility was started wherein customers could obtain a connection installed by simply ringing up for it.
  • A bill collecting facility was also introduced to further assist the customers.
  • VCC Le., prepaid cards were introduced and even delivered at the doorsteps of the customers.
  • Bill collection in the rural areas by mobile vans was introduced.
  • Linemen were given pagers to facilitate prompt servicing of faulty telephone lines.
  • Regular meetings between call centre members and maintenance staff were held to exchange information and solve grievances.
  • For motivating and facilitating their employees, free telephone service was provided to all the employees.
  • An advertising budget of Rs.30,00,000 (0.2% of the total sales revenue) was outlined for launching a comprehensive promotion programme using both indoor and outdoor media ensuring a good coverage of the market.
Do you think that VSNL should have changed
VSNL – Tariff Structure
Scheme
Rental (Rs.)
Free Colis
Facilities
Business Plan – 500-700*
500 (Monthly)
700
Without STD
Economy Plan **
160 (Monthly)
Nil
With STD
Standard Plan*
500 (Bimonthly)
150
With STD
* 0.80 Per Call
** Rs.1 .20 Per Call
Do you think that VSNL should have changed
VTNL – Tariff Structure
Scheme
Rental (Rs.)
Free Calls
Silver 300
349 (Monthly)
300
Golden – 500
499 (Monthly)
500
Do you think that VSNL should have changed
 
Questions:
 
  1. What were the strengths and weaknesses of VSNL?
 
  1. Do you think that VSNL should have changed its thrust from basic telephony to cellular services?
 
 
  1. If you were the Deputy General Manager, what strategies would you have undertaken to deal with the competition?
Do you think that VSNL should have changed its thrust from basic telephony to cellular services

 

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ISMS – Do you think that Kozmo promised what its supply chain could not bear? What could have prevented its shut-down

Do you think that Kozmo promised what its supply chain could not bear? What could have prevented its shut-down
 
Do you think that Kozmo promised what its supply chain could not bear? What could have prevented its shut-down

 

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Supply chain Management

           
Q 2 . Read the following case and answer the questions given at the end.
Kozmo, the Online convenience store to shut down
New York-based Kozmo, the 3-year-old company announced that it would stop delivery service in all nine cities it operates. New York-based Kozmo, which dispatched legions of orange-clad deliverymen to cart goods to customers’ doors, is the latest dot.com dream to evaporate in the market downturn. Amazon com, venture capital firm Flatiron Partners and coffee giant Starbucks were among the investors in Kozmo.
Kozmo said in December that investors promised a total of $30 million in private funding. But last month the company learned that an investor had backed out of a $6 million commitment. Kozmo executives had been working on a merger deal with Los Angeles-based PDQuick, another online grocer, sources said. The deal collapsed when funding that was promised to PDQuick did not materialize. Sources said Kozmo still has money but decided to close now and liquidate to ensure that employeesc ould receive a severance package.
Just last month, Kozmo Chief Executive Gerry Burdo was upbeat about Kozmo’s future, saying he was looking to steer Kozmo away from its Internet-only business model and toward a “clicks and bricks” approach. But some analysts say Kozmo’s business model only made sense in the context of a densely packed city such as New York. Vern Keenan, a financial analyst with Keenan Vision, said the service had a chance to work in only a few other cities around the world, such as Lonclon, Stockholm or Paris. “This seemed like a dumb idea from the beginning,” Keenan said. “This grew out of a New York City frame of mind and it simply didn’t translate.”
Kozmo was started by a pair of twenty-something former college roommates. They got the idea for the company on a night when they craved videos and snacks and wished a business existed that would deliver it to them. Kozmo offered free delivery and charged competitive prices when it launched in New York. Though customers loved the service, the costs of delivery were high.
After co-founder and former Chief Executive Joseph park stepped down, Burdo slashed Kozmo’s overhead, instituted a delivery fee and oversaw several rounds of layoffs. The company also closed operations in San Diego and Houston. Burdo said last month that profitability was not far away. The company had reached a milestone last December when it reported profits at one of its operations for the first time. Kozmo later saw two more operations reach profitability as a result of brisk holiday business.
Online delivery companies have been among the most ravaged by the Internet shakeout. Kozmo’s rival in New York, Urbanfetch, shuttered its consumer operations last fall. Online grocers such as Webvan and Peapod have also struggled, and smaller operations such as Streamline.com and ShopLink.com have dosed down. Peapod was days away from closing last year when Dutch grocer Royal Ahold agreed to take a majority stake.
From the very beginning, supply chain management was to be a core competency of Kozmo. The promising dot.com would deliver your order everything from the latest video to electronics equipment in less than an hour. The technology was superior, the employees were enthusiastict, the customers were satisfied. But eventually, Kozmo ran out of time and money.
Questions:
(a) What, in your opinion, is the major reason for the failure of Kozmo?
(b) Do you think that Kozmo promised what its supply chain could not bear? What could have prevented its shut-down?
Do you think that Kozmo promised what its supply chain could not bear? What could have prevented its shut-down
Do you think that Kozmo promised what its supply chain could not bear? What could have prevented its shut-down

 

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ISMS – Do you think such promotions are likely to influence the quality image of the retail store? Explain.

 Do you think such promotions are likely to influence the quality image of the retail store? Explain.
 
 Do you think such promotions are likely to influence the quality image of the retail store? Explain.

 

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Consumer Behavior

 
CASE VI
 
Impact of Retail Promotions on Consumers
Shoppers’ Delight, a large retail store, had above-average quality and competitive prices. It advertised its retail promotions in local newspapers. Its TV advertising was mainly aimed at building store image and did not address retail promotions. The management knew it well that they had to advertise their retail promotions more, but they did not feel comfortable with the effectiveness of present efforts and wanted to better understand the impact of their present promotions.
To better understand the effectiveness of present efforts, a study of advertising exposure, interpretation, and purchases was undertaken. Researchers conducted 50 in-depth interviews with customers of the store’s target market to determine the appropriate product mix, price, ad copy and media for the test. In addition, the store’s image and that of its two competitors were measured.
Based on the research findings, different product lines that would appeal to the target customers were selected. The retail promotion was run for a full week. Full-page advertisements were released each day in the two local Hindi newspapers, and also in one English newspaper that devotes six pages to the coverage of the state.
Each evening, a sample of 100 target market customers were interviewed by telephone as follows:
  1. Target customers were asked if they had read the newspaper that day. This was done to determine their exposure to advertisement.
  2. After a general description of the product lines, the respondents were asked to recall any related retail advertisements they had seen or read.
3,      If the respondents were able to recall, they were asked to describe the ad, the promoted products, sale prices, and the name of the sponsoring store.
  1. If the respondents were accurate in their ad interpretation, they were asked to express their intentions to purchase.
  2. Respondents were also asked for suggestions to be incorporated in future promotions targeted at this consumer segment.
Immediately after the close of promotion, 500 target market customers were surveyed to determine what percentage of the target market actually purchased the promoted products. It also determined which sources of information influenced them in their decision to purchase and the amount of their purchase.
Results of the study showed that ad exposure was 75 per cent and ad awareness level was 68 per cent and was considered as high. Only 43 percent respondents exposed to and aware of the ad copy could accurately recall important details, such as the name of the store promoting the retail sale. Just 43 per cent correct interpretation was considered as low. Of those who could accurately interpret the  ad copy, 32 per cent said they intended to respond by purchasing the advertised· products ‘ and 68per cent sad they had no intention to buy. This yields an overall intention to buy of 7 per cent. The largest area of lost opportunity was due to those who did not accurately interpret the ad copy.
The post-promotion survey indicated that only 4.2 per cent of the target market customers made purchases of the promoted products during the promotion period. In terms of how the buyers learned of the promotion, 46 per cent mentioned newspaper A (Hindi), 27 per cent newspaper B (Hindi), 8 per cent newspaper (English), and 15 per cent learned about sale through word-of mouth communication.
The retail promotion was judged as successful in many ways, besides yielding sales worth
Rs 900,000. However, management was concerned about not achieving a higher level of ad comprehension, missing a significant sales opportunity: It was believed that a better ad would have at least 75 per cent correct comprehension among those aware of the ad. This in turn would almost double sales without any additional cost.
 
QUESTIONS
 
  1. Why would some consumers have high-involvement levels in learning about this sales promotion?
 
2          Is a level of 75 per cent comprehension realistic among those who become aware of an ad?  Why or why not?
 
  1. Do you think such promotions are likely to influence the quality image of the retail store? Explain.
 
 Do you think such promotions are likely to influence the quality image of the retail store? Explain.
Do you think that Kozmo promised what its supply chain could not bear? What could have prevented its shut-down

 

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ISMS – Do you think leaders in other contexts (business’, sports, religious) exhibit the same qualities of great or near-great U.S. presidents

Do you think leaders in other contexts (business’, sports, religious) exhibit the same qualities of great or near-great U.S. presidents
 
Do you think leaders in other contexts (business’, sports, religious) exhibit the same qualities of great or near-great U.S. presidents

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Organizational Behaviour

 
CASE IV
 
WILL GEORGE W. BUSH BE A GREAT PRESIDENT?
What does it take to be a great U.S. president? A survey of 78 history, political science, and law scholars rated the U.S. presidents from George Washington to Bill Clinton. Here are the presidents who were rated “Great’’ and “Near Great.’’
            Great
            George Washington
            Abraham Lincoln
            Franklin D. Roosevelt (FDR)
            Near Great
            Thomas Jefferson
            Andrew Jackson
            James Polk
            Theodore Roosevelt
            Harry Truman
            Dwight Eisenhower
            Ronald Reagan
Among recent presidents, Presidents Nixon, Ford, and Carter were ranked “Below Average’’ and Presidents G. H. W. Bush (the first President Bush) and Clinton were ranked “Average’’.
            So what explains these ratings? The following are some qualities of presidents who have stood the test of time.
  1. Great presidents are transformational leaders who engender strong emotions – that is, you either love them or you hate them (it’s hard to hate someone who made little difference). And great presidents enact a vision that may not respond to popular opinion. Lincoln and FDR were beloved, and hated, by millions.
  2. Great presidents are bold and take risks, and almost all great presidents emerge successfully from a crisis. A great president is perceived as “being there’’ when a crisis emerges and taking bold action to lead the nation out of the crisis – for example, Lincoln in the Civil War and Roosevelt in WWII.
  3. Great presidents are associated with a vision. Most people, for example, are able to associate the great presidents with defining moment where a clear set of principles was articulated – for example, FDR’s speech to Congress after the attacks on Pearl Harbor, and Lincoln’s Gettysburg Address.
  4. Great presidents are charismatic. They are engaging, articulate, and expressive, which helps capture the public’s attention and rallies people around a president’s cause. One leadership expert argues that the best presidents create colorful personas with their language by using words with basic emotions – for example, good versus evil or love versus hate.
So what about President George W. Bush (the second President Bush)? Shortly after his second inauguration, President Bush embarked on an ambitious agenda of legal reform, transforming the Social Security system, tax reform, and revising immigration laws. One writer commented, “Bush has always thought big, and always believed you earn political capital by expending it.’’ However, the closeness of the 2004 election (Bush received 51 percent of the vote and Kerry received 48 percent) suggests that Bush may not have overwhelming support.
 
Questions
 
  1. How would you rate President George W. Bush on the four characteristics outlined at the beginning of the case? How would you contrast his reaction to Hurricane Katrina with his reaction to the terrorist attacks of September 11, 2001? What do you think his handling of these two events says about his leadership?
 
  1. Do you think leaders in other contexts (business’, sports, religious) exhibit the same qualities of great or near-great U.S. presidents?
 
  1. Do you think being in the right place at the right time could influence presidential greatness?
Do you think leaders in other contexts (business’, sports, religious) exhibit the same qualities of great or near-great U.S. presidents
Do you think leaders in other contexts (business’, sports, religious) exhibit the same qualities of great or near-great U.S. presidents

 

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ISMS – Do you think individuals can learn empathy from something like a 1-month CIP experience? Explain why or why not.

Do you think individuals can learn empathy from something like a 1-month CIP experience? Explain why or why not.
 
Do you think individuals can learn empathy from something like a 1-month CIP experience? Explain why or why not.

 

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Organizational Behaviour

 
Case V
 
A UNIQUE TRAINING PROGRAM AT UPS
Mark Colvard, a United Parcel manager in San Ramon, California, recently faced a difficult decision. One of his drivers asked for 2 weeks off  to help an ailing family member. But company rules said this driver wasn’t eligible. If Colvard went by the book, the driver would probably take the days off anyway and be fired. On the other hand, Colvard was likely to be criticized by other drivers if he bent the rules. Colvard chose to give the driver the time off. Although he took some heat for the decision, he also kept a valuable employee.
            Had Colvard been faced with this decision 6 months earlier, he says he would have gone the other way. What changed his thinking was a month he spent living in McAllen, Texas. It was part of a UPS management training experience called the Community Internship Program (CIP). During his month in McAllen, Colvard built housing for the poor, collected clothing for the Salvation Army, and worked in a drug rehab center. Colvard gives the program credit for helping him empathize with employees facing cries back home. And he says that CIP has made him a better manager. “My goal was to make the numbers, and in some cases that meant not looking at the individual but looking the bottom line. After that 1-month stay, I immediately started reaching out to people in a different way.’’
            CIP was established by UPS in the late 1960s to help open the eyes of the company’s predominantly white managers to the poverty and inequality in many cities. Today, the program takes 50 of the company’s most promising executives each summer and brings them to cities around the country. There they deal with a variety of problems- from transportation to housing, education, and health care. The company’s goal is to awaken these managers to the challenges that many of their employees face, bridging the cultural divide that separates a white manager from an African American driver or an upper-income suburbanite from a worker raised in the rural South.
Questions
 
  1. Do you think individuals can learn empathy from something like a 1-month CIP experience? Explain why or why not.
 
  1. How could UPS’s CIP help the organization better manage work-life conflicts?
 
  1. How could UPS’s CIP help the organization improve its response to diversity?
 
  1. What negatives, if any, can you envision resulting from CIP?
 
  1. UPS has 2,400 managers. CIP includes only 50 each year. How can the program make a difference if it includes only 2 percent of all managers? Does this suggest that the program is more public relations than management training?
 
  1. How can UPS justify the cost of a program like CIP if competitors like FedEx, DHL, and the U.S. Postal Service don’t offer such programs? Does the program increase costs or reduce UPS profits?
 
Do you think individuals can learn empathy from something like a 1-month CIP experience? Explain why or why not.
Do you think individuals can learn empathy from something like a 1-month CIP experience? Explain why or why not.

 

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We at Case Study offer all types of online academic assistance, be it homework help, coursework help, case study help, Assignment help, Project Reports, Thesis, Research paper writing help.
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We keep the quality measures for all papers which mean we will provide best essays. Our editing services are also excellent. Before submitting any essays, we will check whether the papers writer well or not. The high standards of academic writing will exceed your expectations. With our quality service, we have satisfied more number of people across the world and also work with different universities in Australia, UK, USA, Dubai, Oman, etc.
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