The Scientific Equipment Manufacturing company is a small manufacturing unit located in Peenya, Bangalore. The company is non-unionised and manufactures analytical equipment for hospital laboratories.
Approximately one year ago, the manager of the Component Assembly Department established three production goals for the department. The goals were : (i) reduce raw material storage costs by 10 per cent ; (ii) reduce variable labour costs (i.e. overtime) by 12 per cent; and (iii) decrease the number of quality rejects by 15 per cent. The manager told the six unit supervisors that the degree to which each supervisor or exceeded these goals would be one of the major inputs for their merit – pay increases for the year. In previous years, merit increases were based on seniority and an informal evaluation by the department manager.
The six supervisors worked on separate but similar production lines. A profile of each supervisor is as follows :
Amitha Aged 28, single; three years with the company after receiving her degree from the Bangalore University. Has a job offer from another company for a similar job that provides a substantial pay increase over her present salary. The scientific Equipment does not want to lose Amitha because her overall performance has been excellent.
Shindhe Aged 32, married with three children; three years with the company, high school education. One of the most stable and steady supervisors. However, he supervise a group of workers who are known to be unfriendly and uncooperative with him and other employees.
Anandan Aged 34, married with four children; high school equivalent learning; one year with the company. Came to Karnataka six years ago from Tamil Nadu. A steady worker, well-liked by his co-workers, but has difficulty in learning the local language. He has, therefore, problems of communication within his group and with others.
Hemalatha Aged 29, divorcee with three children, two years with the company ; high school education. Since her divorce one year ago, her performance has begun to improve. Prior to that, her performance was very erratic; with frequent absences. She is the sole support for her three children.
Eshwar Murthy Aged 27, single ; two years with the company, college graduate. One of the best liked employees at Scientific Equipment. However, he has shown a lack of initiative and ambition on the job. Appears to be preoccupied with his social life, particularly around his recently purchased house.
Cheriyan Aged 24, married with no children ; one year with the company after graduating from a local college. First full – time job since graduation from college. He is liked by all employees and has exhibited a high level of enthusiasm for his work.
Exhibit 11.3 presents summary of the performance of the six supervisors’ during the past year. The data include the current annual salary, the performance level on the three goals, and an overall evaluation by the department manager.
The new budget for the upcoming year has allocated a total of Rs. 1,40,000 for supervisory salaries in the Component Assembly Department, Rs. 40,000, increase from last year. The management has indicated that salary increases should range from five per cent to 12 per cent of the supervisors’ current salaries and should be tied, as closely as possible, to their performance.
In making the merit-pay increase decisions, the following points should be considered.
The decisions will likely set a precedent for future salary and merit increases.
Salary increases should not be excessive, but should be representative of the supervisor’s performance during the past year. It is hoped that the supervisors develop a clear perception that performance will lead to monetary rewards and that this will serve to motivate them to even better performance.
The decisions should be concerned with equity, that is, they ought to be consistent and comparable with each other.
The company does not want to lose these experienced supervisors to other firms. The management of this company not only wants the supervisors to be satisfied with their salary increases, but also to further develop the feeling that Scientific Equipment Manufacturing is a good company for advancement, growth and career development.
Exhibit 11.3
Supervisor
Current Salary (Rs.)
Storage Costs (10%)
Goal Labour Costs (12%)
Attainment Quality Rejects (15%)
Effort
Manager’s Cooperativeness
Evaluation Ability to work Independently
Knowledge of job
Cherian
23,000
12%
12%
17%
Excellent
Excellent
Good
Good
Amitha
24,000
12%
13%
16%
Excellent
Excellent
Excellent
Excellent
Shindhe
24,000
6%
2%
3%
Good
Excellent
Good
Good
Anandan
22,000
4%
4%
12%
Excellent
Good
Fair
Fair
Hemalatha
23,000
11%
10%
10%
Fair
Fair
Fair
Good
Eshwar Murthy
24,000
8%
10%
3%
Fair
Fair
Fair
Fair
Instructions for the exercise
Each person in the class should individually determine the Rupee amount and percentage increase in salary for each of the six supervisors, Individual decisions should be justified by a rationale or decision rule.
After each individual has reached a decision, the group will convene and make the same decision as noted in (1) above.
After each group has reached a decision, a spokesperson for each group will present the following information to the full class:
a) The group’s decision concerning merit pay increase for each supervisor (rupee and percentage)
b) The high, low and average individual decisions in the group.
c) A rationale for the group’s decision.
After each individual has reached a decision, the group will convene and make the same decision as noted in (1) above.
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The Scientific Equipment Manufacturing company is a small manufacturing unit located in Peenya, Bangalore. The company is non-unionised and manufactures analytical equipment for hospital laboratories.
Approximately one year ago, the manager of the Component Assembly Department established three production goals for the department. The goals were : (i) reduce raw material storage costs by 10 per cent ; (ii) reduce variable labour costs (i.e. overtime) by 12 per cent; and (iii) decrease the number of quality rejects by 15 per cent. The manager told the six unit supervisors that the degree to which each supervisor or exceeded these goals would be one of the major inputs for their merit – pay increases for the year. In previous years, merit increases were based on seniority and an informal evaluation by the department manager.
The six supervisors worked on separate but similar production lines. A profile of each supervisor is as follows :
Amitha Aged 28, single; three years with the company after receiving her degree from the Bangalore University. Has a job offer from another company for a similar job that provides a substantial pay increase over her present salary. The scientific Equipment does not want to lose Amitha because her overall performance has been excellent.
Shindhe Aged 32, married with three children; three years with the company, high school education. One of the most stable and steady supervisors. However, he supervise a group of workers who are known to be unfriendly and uncooperative with him and other employees.
Anandan Aged 34, married with four children; high school equivalent learning; one year with the company. Came to Karnataka six years ago from Tamil Nadu. A steady worker, well-liked by his co-workers, but has difficulty in learning the local language. He has, therefore, problems of communication within his group and with others.
Hemalatha Aged 29, divorcee with three children, two years with the company ; high school education. Since her divorce one year ago, her performance has begun to improve. Prior to that, her performance was very erratic; with frequent absences. She is the sole support for her three children.
Eshwar Murthy Aged 27, single ; two years with the company, college graduate. One of the best liked employees at Scientific Equipment. However, he has shown a lack of initiative and ambition on the job. Appears to be preoccupied with his social life, particularly around his recently purchased house.
Cheriyan Aged 24, married with no children ; one year with the company after graduating from a local college. First full – time job since graduation from college. He is liked by all employees and has exhibited a high level of enthusiasm for his work.
Exhibit 11.3 presents summary of the performance of the six supervisors’ during the past year. The data include the current annual salary, the performance level on the three goals, and an overall evaluation by the department manager.
The new budget for the upcoming year has allocated a total of Rs. 1,40,000 for supervisory salaries in the Component Assembly Department, Rs. 40,000, increase from last year. The management has indicated that salary increases should range from five per cent to 12 per cent of the supervisors’ current salaries and should be tied, as closely as possible, to their performance.
In making the merit-pay increase decisions, the following points should be considered.
The decisions will likely set a precedent for future salary and merit increases.
Salary increases should not be excessive, but should be representative of the supervisor’s performance during the past year. It is hoped that the supervisors develop a clear perception that performance will lead to monetary rewards and that this will serve to motivate them to even better performance.
The decisions should be concerned with equity, that is, they ought to be consistent and comparable with each other.
The company does not want to lose these experienced supervisors to other firms. The management of this company not only wants the supervisors to be satisfied with their salary increases, but also to further develop the feeling that Scientific Equipment Manufacturing is a good company for advancement, growth and career development.
Exhibit 11.3
Supervisor
Current Salary (Rs.)
Storage Costs (10%)
Goal Labour Costs (12%)
Attainment Quality Rejects (15%)
Effort
Manager’s Cooperativeness
Evaluation Ability to work Independently
Knowledge of job
Cherian
23,000
12%
12%
17%
Excellent
Excellent
Good
Good
Amitha
24,000
12%
13%
16%
Excellent
Excellent
Excellent
Excellent
Shindhe
24,000
6%
2%
3%
Good
Excellent
Good
Good
Anandan
22,000
4%
4%
12%
Excellent
Good
Fair
Fair
Hemalatha
23,000
11%
10%
10%
Fair
Fair
Fair
Good
Eshwar Murthy
24,000
8%
10%
3%
Fair
Fair
Fair
Fair
Instructions for the exercise
Each person in the class should individually determine the Rupee amount and percentage increase in salary for each of the six supervisors, Individual decisions should be justified by a rationale or decision rule.
After each individual has reached a decision, the group will convene and make the same decision as noted in (1) above.
After each group has reached a decision, a spokesperson for each group will present the following information to the full class:
a) The group’s decision concerning merit pay increase for each supervisor (rupee and percentage)
b) The high, low and average individual decisions in the group.
c) A rationale for the group’s decision.
After each group has reached a decision, a spokesperson for each group will present the following information to the full class
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ABC Company, has three projects to choose from. The Finance Manager, the operations manager are discussing and they are not able to come to a proper decision.
ABC Company, has three projects to choose from. The Finance Manager, the operations manager are discussing and they are not able to come to a proper decision.
ABC Company, has three projects to choose from. The Finance Manager, the operations manager are discussing and they are not able to come to a proper decision. Then they are meeting a consultant to get proper advice. As a consultant, what advice you will give?
The cash flows are as follows. All amounts are in lakhs of Rupees.
If the cost of capital is 8%, which of the 3 projects should the ABC Company accept?
ABC Company, has three projects to choose from. The Finance Manager, the operations manager are discussing and they are not able to come to a proper decision.
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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.
And for each service, each subject and each topic, we dedicate an expert writer who has knowledge in that specific field of study. Experience impeccable academic writing service like never before.
Our experts understand that the time of the customers is very precious. The professors of universities and colleges are very rigorous about the submission deadlines of projects or assignments. Hence, the key objective of our case study help service is to deliver the assignments to the customers even before the promised submission deadlines.
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.
A young, gorgeous woman is standing in front of her apartment window dancing to the 1970s tune, “All Right Now” by the one – hit band free. Across the street a young man looks out of his apartment window and notices her. He moves closer to the window, taking interest. She cranks up the volume and continues dancing, looking out the window at the fellow, who smiles hopefully and waves meekly. He holds up a bottle of wine and waves it, apparently inviting her over for a drink. The lady waves back. He kisses the bottle and excitedly says, “Yesss.” Then, he gazes around his apartment and realizes that it is a mess. “No!” he exclaims in a worried tone of voice. Frantically, he does his best to quickly clean up the place, stuffing papers under the sofa and putting old food back in the refrigerator, He slips on a black shirt, slicks back his hair, sniffs his armpit, and lets out an excited , “Yeahhh!” in eager anticipation of entertaining the young lady. He goes back to the window and sees the woman still dancing away. He points to his watch, as if to say “Come on. It is getting late.” As she just continues dancing, he looks confused. Then a look of sudden insight appears on his face, “Five,” he says to himself. He turns on his radio, and it too is playing “All Right Now.” The man goes to his window and starts dancing as he watches his lady friend continue stepping. “Five, yeah,” he says as he makes the “okay” sign with his thumb and forefinger. He waves again. Everyone in the apartment building is dancing by their window to “All Right Now.” A super appears on the screen: “Are you on the right wavelength?”
A young, gorgeous woman is standing in front
Questions:
What is non – verbal communication? Why do you suppose that this commercial relies primarily on non-verbal communication between a young man and a gorgeous woman? What types of non – verbal communication are being used in this case?
Would any of the non-verbal communications in this spot (ad) not work well in another culture?
What role does music play in this spot? Who is the target market?
Is the music at all distracting from the message?
How else are radio stations advertised on TV?
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And for each service, each subject and each topic, we dedicate an expert writer who has knowledge in that specific field of study. Experience impeccable academic writing service like never before.
Our experts understand that the time of the customers is very precious. The professors of universities and colleges are very rigorous about the submission deadlines of projects or assignments. Hence, the key objective of our case study help service is to deliver the assignments to the customers even before the promised submission deadlines.
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.
A young, gorgeous woman is standing in front of her apartment window dancing to the 1970s tune, “All Right Now” by the one – hit band free. Across the street a young man looks out of his apartment window and notices her.
A young, gorgeous woman is standing in front of her apartment window dancing to the 1970s tune, “All Right Now” by the one – hit band free. Across the street a young man looks out of his apartment window and notices her.
A young, gorgeous woman is standing in front of her apartment window dancing to the 1970s tune, “All Right Now” by the one – hit band free. Across the street a young man looks out of his apartment window and notices her. He moves closer to the window, taking interest. She cranks up the volume and continues dancing, looking out the window at the fellow, who smiles hopefully and waves meekly. He holds up a bottle of wine and waves it, apparently inviting her over for a drink. The lady waves back. He kisses the bottle and excitedly says, “Yesss.” Then, he gazes around his apartment and realizes that it is a mess. “No!” he exclaims in a worried tone of voice. Frantically, he does his best to quickly clean up the place, stuffing papers under the sofa and putting old food back in the refrigerator, He slips on a black shirt, slicks back his hair, sniffs his armpit, and lets out an excited , “Yeahhh!” in eager anticipation of entertaining the young lady. He goes back to the window and sees the woman still dancing away. He points to his watch, as if to say “Come on. It is getting late.” As she just continues dancing, he looks confused. Then a look of sudden insight appears on his face, “Five,” he says to himself. He turns on his radio, and it too is playing “All Right Now.” The man goes to his window and starts dancing as he watches his lady friend continue stepping. “Five, yeah,” he says as he makes the “okay” sign with his thumb and forefinger. He waves again. Everyone in the apartment building is dancing by their window to “All Right Now.” A super appears on the screen: “Are you on the right wavelength?”
Questions:
What is non – verbal communication? Why do you suppose that this commercial relies primarily on non-verbal communication between a young man and a gorgeous woman? What types of non – verbal communication are being used in this case?
Would any of the non-verbal communications in this spot (ad) not work well in another culture?
What role does music play in this spot? Who is the target market?
Is the music at all distracting from the message?
How else are radio stations advertised on TV?
A young, gorgeous woman is standing in front of her apartment window dancing to the 1970s tune, “All Right Now” by the one – hit band free. Across the street a young man looks out of his apartment window and notices her.
Welcome to Case Study Help
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.
And for each service, each subject and each topic, we dedicate an expert writer who has knowledge in that specific field of study. Experience impeccable academic writing service like never before.
Our experts understand that the time of the customers is very precious. The professors of universities and colleges are very rigorous about the submission deadlines of projects or assignments. Hence, the key objective of our case study help service is to deliver the assignments to the customers even before the promised submission deadlines.
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.
A team of psychologists at Moscow’s Institute for Biomedical Problems (IBMP) wanted to learn more about the dynamics of long-term isolation in space. This knowledge would be applied to the International Space Station, a joint project of several countries that would send people into space for more than six months. It would eventually include a trip to Mars taking up to three years.
IBMP set up a replica of the Mir space station in Moscow. They then arranged for three international researchers from Japan, Canada, and Austria 110 days isolated in a chamber the size of a train car. This chamber joined a smaller chamber where four Russian cosmonauts had already completed half of their 240 days of isolation. This was the first time an international crew was involved in the studies. None of the participants spoke English as their first language, yet they communicated throughout their stay in English at varying levels of proficiency.
Judith Lapierre, a French-Canadian, was the only female in the experiment. Along with obtaining a PhD in public health and social medicine, Lapierre had studied space sociology at the International Space University in France and conducted isolation research in the Antarctic. This was her fourth trip to Russia, where she had learned the language. The mission was supposed to have a second female participant from the Japanese space program, but she was not selected by IBMP.
The Japanese and Austrian participants viewed the participation of a woman as a favorable factor, says Lapierre. For example, to make the surroundings more comfortable, they rearranged the furniture, hung posters on the walls, and put a tablecloth on the kitchen table. “We adapted our environment, whereas Russians just viewed it as something to be endured,” she explains. “We decorated for Christmas because I’m the kind of person who likes to host people.”
New Year’s Eve Turmoil
Ironically, it was at one of those social events, the New Year’s Eve party, that events took a turn for the worse. After drinking vodka (allowed by the Russian space agency), two of the Russian cosmonauts got into a fistfight that left blood splattered on the chamber walls. At one point a colleague hid the knives in the station’s kitchen because of fears that the two Russians were about to stab each other. The two cosmonauts, who generally did not get along, had to be restrained by other men. Soon after that brawl, the Russian commander grabbed Lapierre, dragged her out of view of the television monitoring cameras, and kissed her aggressively—twice. Lapierre fought him off, but the message didn’t register. He tried to kiss her again the next morning.
The next day the international crew complained to IBMP about the behavior of the Russian cosmonauts. The Russian institute apparently took no against the aggressors. Instead the institute’s psychologists replied that the incidents were part of the experiment. They wanted crew members to solve their personal problems with mature discussion without asking for outside help. “You have to understand that Mir is an autonomous object, far away from anything,” Vadim Gushin, the IBMP psychologist in charge of project, explained after the experiment had ended in March. “If the crew can’t solve problems among themselves, they can’t work together.”
Following IBMP’s response, the international crew wrote a scathing letter to the Russian institute and the space agencies involved in the experiment. “We had never expected such events to take place in a highly controlled scientific experiment where individuals go through a multistep selection process,” they wrote. “If we had known… we would not have joined it as subjects.” The letter also complained about IBMP’s response to their concerns.
Informed about the New Year’s Eve incident, the Japanese space program convened an emergency meeting on January 2 to address the incidents. Soon after the Japanese team member quit, apparently shocked by IBMP’s inaction. He was replaced with a Russian researcher on the international team. Ten days after the fight—a little over the month the international team began the mission—the doors between the Russian and international crews’ chambers were barred at the request of the international research team. Lapierre later emphasized that this action was taken because of concerns about violence, not the incident involving her.
A Stolen Kiss or Sexual Harassment
By the end of experiment in March, news of the fistfight between the cosmonauts and the commander’s attempts to kiss Lapierre had reached the public. Russian scientists attempted to play down the kissing incident by saying that it was one fleeting kiss, a clash of cultures, and a female participant who was too emotional.
“In the West, some kinds of kissing are regarded as sexual harassment. In our culture it’s nothing,” said Russian scientist Vadim Gushin in one interview. In another interview he explained, “The problem of sexual harassment is given a lot of attention in North America but less in Europe. In Russia it is even less of an issue, not because we are more or less moral than the rest of the world; we just have different priorities.”
Judith Lapierre says the kissing incident was tolerable compared to this reaction from the Russian scientists who conducted the experiment. “They don’t get it at all,” she complains. “They don’t think anything is wrong. I’m more frustrated than ever. The worst thing is that they don’t realize it was wrong.”
Norbert Kraft, the Austrian scientist on the international team, also disagreed with the Russian interpretation of events. “They’re trying to protect themselves,” he says. “They’re trying to put the fault on others. But this is not a cultural issue. If a woman doesn’t want to be kissed, it is not acceptable.”
Question:
Identify the different conflict episodes that exist in this case. Who was in conflict with whom?
What are the sources of conflict for these conflict incidents?
What conflict management style(s) did Lapierre, the international team, and Gushin use to resolve these conflicts? What style(s) would have worked best in the situation?
A team of psychologists at Moscow’s Institute for Biomedical Problems (IBMP) wanted to learn more about the dynamics of long-term isolation in space.
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Our experts understand that the time of the customers is very precious. The professors of universities and colleges are very rigorous about the submission deadlines of projects or assignments. Hence, the key objective of our case study help service is to deliver the assignments to the customers even before the promised submission deadlines.
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A recent case study for a cellular phone service provider in Chennai listed its research objectives and methodology (including sampling plan) for a marketing research
A recent case study for a cellular phone service provider in Chennai listed its research objectives and methodology (including sampling plan) for a marketing research
A recent case study for a cellular phone service provider in Chennai listed its research objectives and methodology (including sampling plan) for a marketing research study as follows:
SKCELL, A CELLULAR OPERATOR/STUDY ON VALUE ADDED SERVICES LIKE SMS (SHORT MESSAGING SERVICE), VOICE MAIL, AND SO ON
Research Objectives
To find out
whether people actually use the mobile phone just for talking
to what extent the mobile phone is used for its VAS (Value Added Services)
factors influencing choice of service provider
awareness of Skycell’s improved coverage
Locations Covered
Chennai city and the suburbs
Methodology
Primary data:
Through questionnaires
Sample Composition
Mobile phone users
Business pesons
Executives
Youth
Sample size: 75
Age group: 18 – 45 years
Questions:
Can you add to methodology section?
Distribute the sample of 75 among the different categories of respondents mentioned under “Sample Composition”.
A recent case study for a cellular phone service provider in Chennai listed its research objectives and methodology (including sampling plan) for a marketing research
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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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Our experts understand that the time of the customers is very precious. The professors of universities and colleges are very rigorous about the submission deadlines of projects or assignments. Hence, the key objective of our case study help service is to deliver the assignments to the customers even before the promised submission deadlines.
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.
A pharmaceutical firm that developed particular drug for women wants to understand the characteristics that cause some of them to have an adverse reaction to a particular drug.
A pharmaceutical firm that developed particular drug for women wants to understand the characteristics that cause some of them to have an adverse reaction to a particular drug.
A pharmaceutical firm that developed particular drug for women wants to understand the characteristics that cause some of them to have an adverse reaction to a particular drug. They collect data on 15 women who had such a reaction and 15 who did not. The variables measured are:
Systolic Blood Pressure
Cholesterol Level
Age of the person
Whether or not the woman was pregnant (1 = yes)
The dependent variable indicates if there was an adverse reaction (1 = yes)
TABLE 1
BP
Cholesterol
Age
Pregnant
DrugReaction
100
150
20
0
0
120
160
16
0
0
110
150
18
0
0
100
175
25
0
0
95
250
36
0
0
110
200
56
0
0
120
180
59
0
0
150
175
45
0
0
160
185
40
0
0
125
195
20
1
0
135
190
18
1
0
165
200
25
1
0
145
175
30
1
0
120
180
28
1
0
100
180
21
1
0
100
160
19
1
1
95
250
18
1
1
120
200
30
1
1
125
240
29
1
1
130
172
30
1
1
120
130
35
1
1
120
140
38
1
1
125
160
32
1
1
115
185
40
1
1
150
195
65
0
1
130
175
72
0
1
170
200
56
0
1
145
210
58
0
1
180
200
81
0
1
140
190
73
0
1
SPSS Output
TABLE 2 Model Summary
Step
-2Log likelihood
Cox & Snell R Square
Nogelkerke R Square
1
21.84 (a)
.482
.643
Estimation terminated at iteration number 7 because parameter estimates changed by less than .001.
TABLE 3 Hosmer and Lemeshow Test
Step
Chi-Square
df
Sig
1
4.412
8
.818
The lack of significance of the Chi-Squared test indicates that the model is a good fit
TABLE 4 Classification Table
Observed
Predicted
DrugReaction
Percentage Correct
0 1
Step 1 DrugReaction
Overall Percentage
0
1
11 4
2 13
73.3
86.7
80.0
The cut value is .500.
The classification table shows that the model makes a correct prediction 80% of the time overall. Of the 15 women with no reaction, the model correctly identified 11 of them as not likely to have one. Similarly, of the 15 who did have a reaction, the model correctly identifies 13 as likely to have one.
TABLE 5 Variables in the Equation
B
S.E.
Wald
df
Sig
Exp (B)
Step 1 (a) BP
-.018
.27
.463
1
.496
.982
Cholesterol
.027
.025
1.182
1
.277
1.027
Age
.265
.114
5.404
1
.20
1.304
Pregnant
8.501
3.884
4.790
1
0.29
4918.147
Constant
-17.874
10.158
3.096
1
0.78
.000
Variable(s) entered on Step 1: BP, Cholesterol, Age, Pregnant.
Since BP and Cholesterol show up as not significant, one can try to run the regression again without those variables to see how it impacts the prediction accuracy. Since the sample size is low, one cannot assume that they are insignificant. Wald’s test is best suited to large sample sizes.
The prediction equation is:
Log (odds of a reaction to drug) = ─17.874─0.018(BP) + (Cholesterol) + 0.265 (Age) + 8.501 (Pregnant)
As with any regression, the positive coefficients indicate a positive relationship with the dependent variable.
TABLE 6 Predicted Probabilities and Classification
BP
Cholesterol
Age
Pregnant
Drug Reaction
Pred_Prob
Pred_Class
100
150
20
0
0
.00003
0
120
160
16
0
0
.00001
0
110
150
18
0
0
.00002
0
100
175
25
0
0
.00023
0
95
250
36
0
0
.03352
0
110
200
56
0
0
.58319
1
120
180
59
0
0
.60219
1
150
175
45
0
0
.01829
0
160
185
40
0
0
.00535
0
125
195
20
1
0
.24475
0
135
190
18
1
0
.12197
0
165
200
25
1
0
.40238
0
145
175
30
1
0
.65193
1
120
180
28
1
0
.66520
1
100
180
21
1
0
.30860
0
100
160
19
1
1
.13323
0
95
250
18
1
1
.58936
1
120
200
30
1
1
.85228
1
125
240
29
1
1
.92175
130
172
30
1
1
.69443
1
120
130
35
1
1
.76972
1
120
140
38
1
1
.90642
1
125
160
32
1
1
.75435
1
115
185
40
1
1
.98365
1
150
195
65
0
1
.86545
1
130
175
72
0
1
.97205
1
170
200
56
0
1
.31892
0
145
210
58
0
1
.62148
1
180
200
81
0
1
.99665
1
140
190
73
0
1
.98260
1
The table above shows the predicted probabilities of an adverse reaction, and the classification of each into group 0 or 1 on the basis of that probability, using 0.5 as the cut-off score.
Question:
Case 4: Using logistic regression proof that particular drug for women has characteristics that cause some of them an adverse reaction to a particular drug.
A pharmaceutical firm that developed particular drug for women wants to understand the characteristics that cause some of them to have an adverse reaction to a particular drug.
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A manufacturer of personal care products in the premium segment starts frequent sales promotions. What is likely to be the impact on the above-mentioned types
A manufacturer of personal care products in the premium segment starts frequent sales promotions. What is likely to be the impact on the above-mentioned types
Consumer buying research has turned a new leaf in India. The era of demographics seems to be on the backbench. Now, Marketing Research people are less likely to first ask you about your age, income, and education etc. Instead, there is a distinct shift towards inquiries about attitudes, interests, lifestyles, and behaviour – in short towards a study of consumers’ minds called psychographics.
Pathfinders, the marketing research wing of Lintas, occasionally came out with its highly respected “Study on Nation’s Attitudes and Psychographics (P:SNAP). The first in this series was released in 1987 with an objective to develop a database of lifestyles and psychographics information on the modem Indian women. The second was in 1993, and the third in 1998. Pathfinders choose woman for the study because of the belief that more often than not, in urban areas, it is the woman who makes buying decision.
The Pathfinders’ study involves interviewing over 10,000 women over the entire country and segmenting them in clusters according to their beliefs, attitudes, lifestyles, and lastly their demographics profile. The idea is to identify groups of consumers with similar lifestyles who are likely to behave towards products or services.
For advertisers and advertising agencies, this profile helps enormously. For example, an advertiser may want to give a westernised touch to a commercial. The profile of the target customer, as revealed by this study, tells the advertising people the perimeter within which she/he must stay, otherwise the ad may become an exaggerated version of westernised India.
For the purpose of this study, Pathfinders divided the Indian women in 8 distinct cluster of varying values and lifestyles. Figures from two studies are available publicly and are given below:
Cluster
1987 (%)
1993 (%)
Troubled homebody
15.9
18.3
Tight-fisted traditionalist
14.8
10.0
Contended conservative
7.0
9.3
Archetypal provider
13.0
8.8
Anxious rebel
14.1
15.8
Contemporary housewife
19.2
22.1
Gregarious hedonist
8.7
6.6
Affluent sophisticate
7.3
9.1
The studies seek to track the macro level changes and movements within these 8 clusters in a period of time.
We note from the table that in 1987, 8.7% of the women could be classified as “gregarious hedonist” – those who consider their own pleasure to be supreme in life. ‘In 1993, this figure fell to 6.6%. The “troubled homebody” segment – those with large families and low-income, increased from 15.9% in 1987 to 18.3% in 1993.
Information, such as this, is obviously useful to assess the collective mood. That’s why Pathfinders have an impressive list of clients fort heir P:SNAP, which includes Hindustan Lever, Cadbury, Johnson and Johnson, and Gillette.
SOME PSYCHOGRAPHICS PROFILES OF INDIAN WOMEN
Rama Devi, the Contended Conservative
The lady lives a ‘good’ life – she is a devoted wife, a dotting mother of two school-going sons, and a God fearing housewife. She has been living her life by the traditional values she cherishes – getting up at the crack of dawn, getting the house cleaned up, having the breakfast of ‘Aloo Parathas’ ready in time before the children’s school-bus honks its horn, laying down the dress her ‘government servant’ husband will put on after his bath, and doing her daily one-hour Puja. She fasts every Monday for the welfare of her family, looks at the ‘freely mixing’ and ‘sexually liberal’ youngsters with deep disdain and cannot understand the modem young woman’ s 19reed’ for money, jewellery, and jobs.
Her one abiding interest outside the household is the Ganesh Mandir that she has visited every Wednesday, ever since she got married. She lacks higher education and hence has little appreciation for the arts, the literature, and the sciences. Her ample spare time is spent watching the TV, which is her prime source of entertainment and information.
Shobha, the Troubled Homebody
Shobha married young to the first person she fell in love with, Prakash. Four children came quickly before she was quite ready to raise a family. Now, she is unhappy. She is having trouble in making ends meet on her husband’s salary who is employed as clerk in a private business and is often required to work up to late hours. She is frustrated, as her desire for an idyllic life has turned sour. She could not get education beyond high school and hence there are hardly any job opportunities for her. Her husband also keeps on complaining of the long hours of backbreaking work he has to put in. He consumes country-made liquor routinely.
Shobha finds escape in Black and White TV soap operas and films that transport her into the world of her dreams. She watches TV almost all through the day and her children roam around in the locality streets and cannot expect any help from their’ ever-grumbling’ mother. Purchases are mostly limited to ‘essentials’ and any discretionary purchases are postponed till it becomes possible.
Neeru, the Archetypal Provider
Neeru epitomises simplicity. Her life is untangled. It runs on a set timetable with almost clockwork precision. She works as a primary school teacher in a rural government school about 50 kilometers from her district town residence. She is married to a social worker in an NGO whose income is erratic. Her three children, two teenaged sons and l0-year old daughter are getting school education.
The day begins with the lady getting up before anybody else and finishing the household chores as fast as she can. There is no room for delay as the State government ‘Express’ bus, on which she ravels to her school will be at the bus stop across the road precisely at 8.00 A.M. If she misses that, the next ordinary bus comes at 11.15 A.M, quite useless as it will reach her school only at 1.00 P.M. The school closes at 2.00 P.M. There are private Jeeps running sporadically, but the fare is high and Neeru does not believe in wasting hard earned money. Besides, she travels on husband’s ‘free pass’. Neeru prides herself on her monthly savings ofRs.1000 for the last many years. The money will go toward the wedding of her daughter.
Vandana, the tight-fisted traditionalist
For Vandana, saving money is ‘in-born’ discipline. When she was young and unmarried, she remembers her mother was extremely tight-fisted and ran the household in under Rs.800 per month. It was the necessity of those times as her father retired at a princely salary of Rs.1800 per month. All through her childhood, she saw deprivation and hardship. She would not join the annual class picnic in her school days as it meant’ avoidable expenditure’.
Now she is married and mother of two school going children. The husband works in a bank as a clerk. He has taken all the loans that he could from the bank and invested the money in real estate. As a result of monthly deductions toward repayment of loans, his take home salary is now very little. But Vandana can manage. The school dresses are sewn by her at home, the stationary required comes from a wholesale market, and the books are second-hand from ‘friends’, cultivated for the purpose. On birthdays, Vandana prepares a sweet dish at home and they spend on a film. There is a cow and calf at home, being kept as a source of revenue and milk. She sells half the milk to a neighbour and the family consumes the rest. Life in general is hard and frugal. There is a colour TV at home, but they disconnected the cable connection ever since the rates went up. Now they watch Doordarshan only.
Aditi, the Anxious Rebel
Daughter of a Freedom Fighter, Aditi has always fought her values and principles.
People still remember when she walked out of the exam half in a huff as a mark of protest against mass cheating’ sanctioned’ by the centre superintendent in a tough paper. While every body else passed with high marks, Aditi failed.
Even though she repeated the paper, Aditi never learned to swim along the flow. She always swam against the current. She joined the Communist Party in her college and gave rousing speeches against the teachers and authorities. This resulted in her getting very poor marks and left her jobless.
Later, Aditi joined an NGO and now works on social issues. She says she is a creature of the mind, not materialism. Her favourite dress is a long flowing Kurta, and slacks. She wears loosened hair and chappals. She reads voraciously. Financially, she is independent and lives with her parents. Her disdain for the institution of marriage and contempt for the modern Indian male keep her single and unattached. She will continue-to be so as she prefers this status, but may adopt a baby later in life.
Reema, the Gregarious Hedonist
Just 19, and Reema is already divorced. Her father is a wealthy businessman. During Reema’s childhood, her father was mostly away in Dubai and Africa, trying to amass a fortune. That he did but he lost on his chance to be a good father. Both his children started feeling like’ orphans’ after their mother got involved with another man.
Reema was ever longing for her family when alone came Harsh, her private high school tuition teacher. Harsh was all of 22 and very caring. He was tall, handsome, and very popular in school and many girls had a crush on him. Reema was sixteen then and a great fan of Harsh. For her, Harsh was a prize catch as he combined the loving qualities of a father with a mix of being a good teacher. She was soon dazzled and surrendered in a physical relationship.
Marriage followed. She never understood how Harsh changed overnight from a caring father figure to a demanding husband. And she could never cope with the six hours she had to spend in the kitchen everyday. Why should she do the cooking, she asked Harsh, as it was something that the ‘Ayas’ did? The reality of a humdrum middle-class existence hit her hard and she soon walked out of ‘the hell’.
Her father understood her need to recover and made her allowance rather generous. He bought her a Red Sports Car and got her an admission in a private college.
College is entertainment for her. She attends college only on days when there is some function like a cultural evening or the sports meet. Now, Reema spends on alcohol, dresses, parties, and holidays. She consumes a mood elevating drug every evening and keeps sending SMS messages on her mobile to her friends all through the night. For her, life means ‘buying pleasure endlessly’.
Shruti, the Contemporary Housewife
Shruti is an urbane woman. She is well educated and genteel. She is an officer in a national bank, and active in her club affairs and community activities. Socialising is an important part of her life. She is a doer, interested in watching cricket, politics, and current affairs. Her life is hectic as she has a lot to do for home and office everyday. Still she often enjoys viewing movies on TV every week.
Shruti shops for Sarees, jewellery, and cosmetics for herself on a regular basis. However, family needs come before her own needs. Her home is a double income household and she has one kid. All the modern gadgets are present and the standard of living is upper middle-class.
A manufacturer of personal care products in the premium segment starts frequent sales promotions. What is likely to be the impact on the above-mentioned types
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A major challenge with an insourcing/outsourcing analysis involves gathering reliable data. Discuss the various groups that should be involved when conducting an insourcing/outsourcing analysis. What information can each of these groups provide
A major challenge with an insourcing/outsourcing analysis involves gathering reliable data. Discuss the various groups that should be involved when conducting an insourcing/outsourcing analysis. What information can each of these groups provide
Consolidated Products is a $21 billion company headquartered in Atlanta, Georgia. The company’s five business units, which offer a wide array of products and services, are the result of an aggressive strategy of mergers and acquisitions starting in the late 1980s. The corporate staff is surprisingly small, comprised of general management, legal staff, and human resources. Part of the reason for this small staff is due to the eclectic array of businesses housed within one corporate entity. A Business Week editor recently commented that “Consolidated Products could easily be broken up into five separate companies, since at one time it was five separate companies.” The editor also said that if the company “ever learned how to leverage its size in the marketplace, Consolidated Products could be a Wall Street powerhouse!”
While Consolidated Products is a global corporation with facilities around the world, it operates each business unit as a highly independent and decentralized company. The corporate culture is best described as entrepreneurial, with each business unit being headed by an executive vice president who has complete profit and loss accountability. One of the business units, Santek Images, is the focus of this case.
A major challenge with an insourcing
Santek Images
Santek Images produces instant film and the imaging products that use that film for industrial applications. Increasingly, Santek has shifted much of its production requirements to oversees producers. The outsourcing of finished products, also called contract purchasing, represents a 180-degree shift from the vertically integrated model that Santek pursued during the 1970s and 80s. A key driver behind the outsourcing of non-core products was the realization that previous ways of doing business could not support 10-20 new-product launches a year, which is the target that Santek’s executive vice president has established.
Many products at Santek use self-contained instant film, which Santek refers to as media. Only one other company in the world has similar technical capabilities. However, Santek now faces intense competition from digital technology, forcing the unit to make digital imagery part of its image acquisition core competency. Most outsourcing at Santek now involves product hardware, such as the product casing, rather than media.
There are several reasons why Santek insources media while outsourcing hardware. Most of the innovation valued by customers occurs within media rather than hardware, making media a primary area to focus research and development efforts. Furthermore, the margins for media products are higher than the margins for hardware products. From an investment and financial perspective, limited corporate resources are best allocated to media rather than hardware. While hardware is necessary, it does not offer the best financial and innovative opportunities. This does not mean that hardware is not important. Santek recently suffered through an embarrassing recall because a contract manufacturer produced a finished product casing that cracked when exposed to high temperatures (above 90 degrees).
Asian suppliers provide virtually all outsourced hardware requirements. While Japan is the epicenter for hardware manufacturing, other low cost areas in Asia are emerging. Outsourcing to Asia offers two major benefits—access to technology and low cost. As with most electronics and their supporting components, U.S. and European producers are no longer competitive.
Beginning in 2002, Santek began to actively search for contract or outsource manufacturers, particularly for camera hardware. Unfortunately, there was no organization in place to formally support that effort. While a small OEM group worked to find contract manufacturers during the 1970s to 1995, Santek did not endorse or focus on outsourcing as a key corporate strategy. As a result, creating an outsourcing organization was not a major concern at Santek.
A major challenge with an insourcing
In 2001, Santek formed a contract purchasing organization, which has primary responsibility for hardware outsourcing. The contract-purchasing director (also referred to as the outsourcing director) reports to the vice president of new product delivery. This group has responsibility for procurement (identifying and qualifying outsource manufacturers), product quality, and working with contract manufacturers during new product development.
To date, the contract-purchasing director believes his staff has done a good job of shifting production from internal to external sources. In addition to managing two international procurement groups, the contract-purchasing director is responsible for managing relationships with the outsource providers. After several years of outsourcing, the director of contract purchasing, Steve Keller, started to notice that the performance gains from outsourcing were flattening out quickly. When he recently surveyed his contract manufacturers about their perception of doing business with Santek, he was surprised by their answers.
Of the 12 contract manufacturers currently used, seven thought of Santek as just another customer. These suppliers did not believe there was anything unique or special about the relationship. Three other suppliers expressed serious concern about doing future business with Santek since they were dedicating their capacity (through longer-term contracts) to other customers (who were not competitors of Santek). Two other suppliers expressed an interest in developing a closer relationship with Santek. It appeared that these suppliers were developing new technology and products that aligned well with Santek’s future product plans. These two also had the longest working relationship with Santek of the current suppliers. Steve could not help but wonder if his group could do more to develop or elevate the relationship with these two suppliers. And, if he could develop the relationship, could his group achieve greater performance improvements?
Questions:
Many outsourcing decisions involve the concept of a core competency. Define what is meant by this term. Discuss if film technology is truly a core competency of Santek.
Develop a process that would guide firms through the insourcing/outsourcing process. Create a process that is robust enough to use across a variety of product/service applications.
A major challenge with an insourcing/outsourcing analysis involves gathering reliable data. Discuss the various groups that should be involved when conducting an insourcing/outsourcing analysis. What information can each of these groups provide?
Do you think hardware suppliers are candidates for alliances or partnerships with Santek? Why?
Partnerships and alliances are special forms of supplier-buyer relationships. First, define the concept of partnerships and alliances. Second, identify when a firm should pursue a partnership or alliance with selected suppliers. Use the portfolio segmentation tool to assist with your answer.
Develop a process that firms can use when identifying and developing supply chain alliances.
3. A major challenge with an insourcing/outsourcing analysis involves gathering reliable data. Discuss the various groups that should be involved when conducting an insourcing/outsourcing analysis. What information can each of these groups provide
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