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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A large city government was putting on a number of seminars for managers of various departments throughout the city. At one of these sessions the topic discussed was motivation—how to motivate public servants to do a good job.
A large city government was putting on a number of seminars for managers of various departments throughout the city. At one of these sessions the topic discussed was motivation—how to motivate public servants to do a good job.
A large city government was putting on a number of seminars for managers of various departments throughout the city. At one of these sessions the topic discussed was motivation—how to motivate public servants to do a good job. The plight of a police captain became the central focus of the discussion: I’ve got a real problem with my officers. They come on the force as young, inexperienced rookies, and we send them out on the street, either in cars or on a beat. They seem to like the contact they have with the public, the action involved in crime prevention, and the apprehension of criminals. They also like helping people out at fires, accidents, and other emergencies. The problem occurs when they get back to the station. They hate to do the paperwork, and because they dislike it, the job is frequently put off or done inadequately. This lack of attention hurts us later on when we get to court. We need clear, factual reports. They must be highly detailed and unambiguous. As soon as one part of a report is shown to be inadequate or incorrect, the rest of the report is suspect. Poor reporting probably causes us to lose more cases than any other factor.
I just don’t know how to motivate them to do a better job. We’re in a budget crunch, and I have absolutely no financial rewards at my disposal. In fact, we’ll probably have to lay some people off in the near future. It’s hard for me to make the job interesting and challenging because it isn’t-it’s boring, routine paperwork, and there isn’t much you can do about it.
Finally, I can’t say to them that their promotions will hinge on the excellence of their paperwork. First at all, they know it’s not true. If their performance is adequate, most are more likely to get promoted just by staying on the force a certain number of years than for some specific outstanding act. Second, they were trained to do the job they do out in the streets, not to fill out forms. All through their careers the arrests and interventions are what get noticed.
Some people have suggested a number of things, like using conviction records as a performance criterion. However, we know that’s not fair—too many other things are involved. Bad paperwork increases the chance that you lose in court, but good paperwork doesn’t necessarily mean you’ll win. We tried setting up the team competitions based on the excellence of the reports, but the officers caught on to that pretty quickly. No one was getting any type of reward for winning the competition, and they figured why should they bust a gut when there was on payoff. I just don’t know what to do.
Question:
What performance problems is the captain trying to correct?
Use the MARS model of individual behavior and performance to diagnose the possible causes of the unacceptable behavior.
Has the captain considered all possible solutions to the problem? If not, what else might be done?
A large city government was putting on a number of seminars for managers of various departments throughout the city. At one of these sessions the topic discussed was motivation—how to motivate public servants to do a good job.
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A handful of major players, compete head-to-head around the world in the chemical industry. These companies are Dow Chemical and Du Pont of the United States
A handful of major players, compete head-to-head around the world in the chemical industry. These companies are Dow Chemical and Du Pont of the United States
A handful of major players, compete head-to-head around the world in the chemical industry. These companies are Dow Chemical and Du Pont of the United States, Great Britain’s ICI, and the German trio of BASF, Hoechst AG, and Bayer. The barriers to the free flow of chemical products between nations largely disappeared in the 1970s. This, along with the commodity nature of bulk chemicals and a severe recession in the early 1980s, ushered in a prolonged period of intense price competition. In such an environment, the company that wins the competitive race is the one with the lowest costs. Dow Chemical was long among the cost leaders.
For years Dow’s managers insisted that part of the credit belonged to its “matrix” organization. Dow’s organizational matrix had three interacting elements: functions (such as R&D, manufacturing, and marketing), businesses (like ethylene, plastics, and pharmaceuticals), and geography (for example, Spain, Germany, and Brazil). Managers’ job titles incorporated all three elements (plastics marketing manager for Spain), and most managers reported to at least two bosses. The plastics marketing manager in Spain might report to both the head of the worldwide plastics business and the head of the Spanish operations. The intent of the matrix was to make Dow operations responsive to both local market needs and corporate objectives. Thus the plastics business might be charged with minimizing Dow’s global plastics production costs, while the Spanish operation might determine how best to sell plastics in the Spanish market.
A handful of major players
When Dow introduced this structure, the results were less than promising: Multiple reporting channels led to confusion and conflict. The many bosses created an unwieldy bureaucracy. The overlapping responsibilities resulted in turf battles and a lack of accountability. Area managers disagreed with managers overseeing business sectors about which plants should be built where. In short, the structure, didn’t work. Instead of abandoning the structure, however, Dow decided to see if it could made more flexible.
Dow’s decision to keep its matrix structure was prompted by its move into the pharmaceuticals business is very different from the bulk chemicals business. In bulk chemicals, the big returns come from achieving economies of scale in production. This dictates establishing large plants in key locations from which regional or global markets can be served. But in pharmaceuticals, regulatory and marketing requirements for drugs vary so much from country to country that local needs are far more important than reducing manufacturing costs through scale economies. A high degree of local responsiveness is essential. Dow realized its pharmaceutical business would never thrive if it were managed by the same priorities as its mainstream chemical operations.
Accordingly, instead of abandoning its matrix, Dow decided to make it more flexible to better accommodate the different businesses, each with its own priorities, within a single management system. A small team of senior executives at headquarters helped set the priorities for each type of business. After priorities were identified for each business sector, one of the three elements of the matrix—function, business, or geographic area—was given primary authority in decision making. Which element took the lead varied according to the type of decision and the market or location in which the company was competing. Such flexibility that all employees understand what was occurring in the rest of the matrix. Although this may seem confusing, for years Dow claimed this flexible system worked well and credited much of its success to the quality of the decisions it facilitated.
By the mid-1990s, however, Dow had refocused its business on the chemicals industry, divesting itself of its pharmaceutical activities where the company’s performance had been unsatisfactory. Reflecting the change in corporate strategy, in 1995 Dow decided to abandon its matrix structure in favor of a more streamlined structure based on global product divisions. The matrix structure was just too complex and costly to manage in the intense competitive environment of the time, particularly given the company’s renewed focus on its commodity chemicals where competitive advantage often went to the low-cost producer. As Dow’s then-CEO put it in a 1999 interview, “We were an organization that was matrixed and depended on teamwork, but there was no one in charge. When things went well, we didn’t know whom to reward; and when things went poorly, we didn’t know whom to blame. So we created a global divisional structure and cut out layers of management. There used to be eleven layers of management between me and the lowest-level employees; now there are five.
Questions
Why did Dow Chemical first adopt a matrix structure? What benefits did it hope to derive from this structure?
What problems emerged with this structure? How did Dow try to deal with them? In retrospect, do you think those solutions were effective?
Why did Dow change its structure again in the mid-1990s? What was Dow trying to achieve this time? Do you think the current structure makes sense given the industry in which Dow operates and the strategy of the firm? Why?
A handful of major players, compete head-to-head around the world in the chemical industry. These companies are Dow Chemical and Du Pont of the United States
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A guest walked up to the front desk agent in an upscale hotel, ready to check out. As she would normally do when checking out a guest, the agent asked the guest what his room number was.
A guest walked up to the front desk agent in an upscale hotel, ready to check out. As she would normally do when checking out a guest, the agent asked the guest what his room number was.
A guest walked up to the front desk agent in an upscale hotel, ready to check out. As she would normally do when checking out a guest, the agent asked the guest what his room number was. The guest was in a hurry and showed his anxiety by responding, “I stay in a hundred hotel rooms and you expect me to remember my room number?” The agent then asked for the guest’s name, to which he responded, “My name is Mr. Johnstein.” After thanking him, the agent began to look for the guest’s last name, but the name was not listed in the computer. Because the man had a heavy accent and the agent assumed that she had misunderstood him, she politely asked the guest to spell his last name. He answered, “What? Are you an idiot? The person who checked me in last night had no problem checking me in.” Again, the agent looked on the computer to find the guest.
The guest, becoming even more frustrated, said, “I have a plane to catch and it is ridiculous that it has to take this long to check me out. I also need to fax these papers off, but I need to have them photocopied first.” The agent responded, “There is a business center at the end of the counter that will fax and photocopy what you for it. Haven’t you ever heard of customer service? Isn’t this a five-star hotel? With your bad attitude, you should be working in a three-star hotel. I can’t believe they let you work here at the front desk. Haven’t you found my name yet?” The agent, who was beginning to get upset, asked the guest again to spell out his full name. The guest only replied, “Here are my papers I want faxed if you are capable of faxing them.” The agent reached to take the papers, and the guest shouted, “Don’t grab them from my hand! You have a bad attitude, and if I had more time, I would talk to someone about getting you removed from your position to a hotel where they don’t require such a level of customer service.” The agent was very upset, but kept herself calm in order to prevent the guest from getting angrier.
The agent continued to provide service to the guest, sending the faxes and making the photocopies he had requested. Upon her return, the agent again asked the guest to repeat his last name, since he had failed to spell it out. The guest replied by spelling out his name, “J-o-h-n-s-t-o-n-e.” The agent was finally able to find his name on the computer and checked him out, while he continued to verbally attack her. The agent finished by telling the guest to have a nice flight.
Questions:
Is it appropriate to have the manager finish the check-out? Or, should the front desk agent just take the heat?
Would you have handled the situation in the same manner?
What would you have done differently?
Communication improvement is required for both of the parties involved or any one of them? Justify your opinion.
A guest walked up to the front desk agent in an upscale hotel, ready to check out. As she would normally do when checking out a guest, the agent asked the guest what his room number was.
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A fictitious data set consisting of thirty respondents was created. The data was mainly constructed to find the relationship between the dependent and independent variable.
A fictitious data set consisting of thirty respondents was created. The data was mainly constructed to find the relationship between the dependent and independent variable.
A fictitious data set consisting of thirty respondents was created. The data was mainly constructed to find the relationship between the dependent and independent variable. Age was taken as the independent variable and choice of a drink as dependent variable. Six brands of soft drinks were considered as the different choices for the respondents.
The age group coded into six categories as 1 to 6 and the brands of soft drinks were coded into six categories and the codings are as follows:
(a) Independent variable Age Coding
<15 1
16 – 25 2
26 – 35 3
36 – 45 4
46 – 55 5
>55 6
(b) Dependent variable Different brands Coding
Coke 1
Pepsi 2
Mirinda 3
Sprite 4
Slice 5
Fruit Juice 6
Chi-square test has been used to cross-tabulate and to understand the relationship between the independent and the dependent variable.
Calculation of contingency coefficient and the lambda asymmetric coefficient is done to find the strength of the association between the two variables.
Sample size is taken as thirty.
Analysis of cross-tabulation.
SPSS software package for the cross tabulation analysis.
Problem
This is a bivariate problem. The basic intention of the problem is to understand the relationship between AGE and BRAND PREFERENCE of different brands of soft drinks.
Input Data Table
Serial No.
Age
AGECODE
SOFT DRINK
DRINK CODE
1
<15
1
FRUIT JUICE
6
2
<15
1
SPRITE
4
3
<15
1
MIRINDA
3
4
<15
1
PEPSI
2
5
<15
1
FRUIT JUICE
6
6
16-25
2
COKE
1
7
16-25
2
SLICE
5
8
16-25
2
COKE
1
9
16-25
2
PEPSI
2
10
16-25
2
MIRINDA
3
11
26-35
3
SLICE
5
12
26-35
3
SPRITE
4
13
26-35
3
FRUIT JUICE
6
14
26-35
3
PEPSI
2
15
26-35
3
SLICE
5
16
36-45
4
MIRINDA
3
17
36-45
4
FRUIT JUICE
6
18
36-45
4
FRUIT JUICE
6
19
36-45
4
SLICE
5
20
36-45
4
PEPSI
2
21
46-55
5
COKE
1
22
46-55
5
SPRITE
4
23
46-55
5
SLICE
5
24
46-55
5
FRUIT JUICE
6
25
46-55
5
SLICE
5
26
>55
6
MIRINDA
3
27
>55
6
COKE
1
28
>55
6
COKE
1
29
>55
6
PEPSI
2
30
>55
6
FRUIT JUICE
6
Output Data
Age by Drink Preference
Age
Drink Preference
Code
<15
16-25
26-35
36-45
46-55
>55
Total
Coke
1
0
2
33.32%
0
0
1
20%
1
40%
5
16.67%
Pepsi
2
1
20%
1
16.67%
1
25%
1
20%
0
1
20%
5
16.67%
Mirinda
3
1
20%
1
16.67%
0
1
20%
0
1
20%
4
13.33%
Sprite
4
1
20%
0
1
25%
0
1
20%
0
3
30%
Slice
5
0
1
16.67%
2
50%
1
20%
2
40%
0
6
40%
Fruit Juice
6
2
40%
1
16.67%
0
2
40%
1
20%
1
20%
7
23.33%
Total
5
100%
6
100%
4
100%
5
100%
5
100%
5
100%
30
100%
Chi-Square
Value
DF
Significance
Pearson
18.22857
25
.08325
Likelihood Ratio
25.52646
25
.04332
Mantel-Haenszel test for linear association
.13961
1
.07086
Minimum Expected Frequency ─.500
Cells with Expected Frequency <5─36 of 36 (100.0%)
Approximate Statistics
Value
ASE 1
VAL/ASE 0
Significance
Contigency Coefficient
.61479
.08325*1
Lambda:
Symmetric
.18750
.08892
1.99754
With ‘DRINK CODE’ dependent
.21739
.12757
1.56813
With ‘AGE CODE’ dependent
.16000
.07332
2.14834
Goodman & Kruskal Tau:
With ‘DRINK CODE’ dependent
.12432
.03912
.08412*2
With ‘AGE CODE’ dependent
.12152
.02580
.08580*2
*1 Pearson Chi-square probability
*2 Based on Chi-square approximation
Number of Missing Observations: 0
Analysis
In a Chi-square test, for a 90 per cent confidence level, if the significance level is greater than or equal to 0.1, it signifies that there is no association between the two variables in the cross-tabulation and if significance level is less than 0.1, then it signifies that there is a significance relationship between the selected variables.
A fictitious data set consisting of thirty
The result of the cross-tabulation
From the output tables, the Chi-square test read a significance level of 0.08325 at 90 percent confidence level. For 90 per cent, significance level is 0.1, that is (1─0.9), so the above result shows that at 0.08 (which is less than 0.1), there is a significant relationship between the two variables. At 95 per cent confidence level, significance level being 0.05, and the above output giving a significance level of 0.08 which is greater than 0.05, there is no relationship between the variables:
If contingency coefficient value is greater than +0.5 then the variables are strongly associated. In the above case the contingency coefficient value being 0.6 which is greater than 0.5, hence the variables are strongly associated.
The asymmetric lambda value (with DRINKCODE dependent) 0.21739 means that 21.7% of error is reduced in predicting brand preference when age is known.
From the above result we can conclude that there is a significant relationship between AGE (independent variable) and BRAND PREFERENCE (dependent variable), of the respondents.
Thus we can conclude that the age of the respondent plays an important role in the purchasing intention of a particular brand of soft drink.
Question
Case 2: Conduct Chi-square test to cross-tabulate and to understand the relationship between the independent and the dependent variable. Also calculate contingency coefficient and the lambda asymmetric coefficient to find the strength of the associationbetween the two variables. Take Sample size as thirty. Analysis of cross-tabulation using SPSS software package would be required.
A fictitious data set consisting of thirty respondents was created. The data was mainly constructed to find the relationship between the dependent and independent variable.
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To discuss the challenges faced by Harley-Davidson since 2007
To discuss the challenges faced by Harley-Davidson since 2007
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CASE – 3
Tthe Just-in-Time (JIT) implementation at Harley-Davidson Motor Company (Harley-Davidson), a US-based motorcycle manufacturing company. JIT, a philosophy developed by Japanese companies, aims at reducing inventory and advocates the production of only what is needed when needed and no more. After World War II, Harley-Davidson faced fierce competition from Japanese automobile companies which were able to produce better quality motorcycles at comparatively lower cost.
Harley-Davidson visited some of the Japanese companies and found that Japanese companies were following three main practices: employee involvement, use of statistical process control, and JIT. The company soon realized that in order to beat Japanese competition, it had to implement these practices as well. The company successfully implemented JIT practices and reaped several benefits. After spectacular growth in the 1990s and the early 2000s, Harley-Davidson again faced hard times from 2007. The case also looks at the challenges faced by the company in the latter part of the first decade of the new millennium, and how it was trying to focus on ‘continuous improvement’ in a bid to bring itself back into profits.
To discuss the challenges faced by Harley-Davidson since 2007
Question:
To understand Just-in-time philosophy and its importance in reducing overall production cost and enhancing product quality.
To understand how the JIT philosophy requires the alignment of operational strategies to achieve the goal.
To understand the important role of having a stable supplier network for achieving JIT.
To understand that besides the use of statistical techniques in achieving JIT, employees’ involvement is equally important.
To discuss the challenges faced by Harley-Davidson since 2007.
To explore operational strategies that Harley-Davidson can adopt to overcome those strategies.
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Appreciate the difficulties before the project managers due to the fragile geology
Appreciate the difficulties before the project managers due to the fragile geology
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Attempt All Case Study
CASE – 1
The Indian Railways’ ambitious Kashmir Railway Project. This was one of its most important and difficult projects as it aimed to build a railroad connection through the Himalayan foothills linking Kashmir with the rest of India. The main objective of this project was to provide an alternative and more reliable mode of transportation system to the people of Kashmir than the existing mode of travel by road. Officially, this track was named as the Jammu-Udhampur-Katra-Qazigund-Baramulla link (JUSBRL). The unique features of this line, according to observers, were the presence of a major earthquake zone, extreme environmental conditions in terms of temperature, and the most extreme geological profile throughout the entire terrain.
Some experts lauded the Indian Railway’s initiatives and how it had overcome some of the challenges associated with the project and said that once accomplished it would be an engineering miracle. However, it was also criticized on many fronts and some experts believed that the project had been bungled at the planning stage itself.
Understand issues and challenges in executing a large infrastructure project by studying the ambitious Kashmir Railway Project which once accomplished would be an engineering miracle.
Appreciate the difficulties before the project managers due to the fragile geology and steep topography – presence of a major earthquake zone, extreme environmental conditions in terms of temperature, etc.
Appreciate the difficulties involved in the execution of large infrastructure projects in developing countries, and how these can be overcome
Appreciate the difficulties before the project managers
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Is the management right in insisting on ‘good conduct’ certificate
Is the management right in insisting on ‘good conduct’ certificate
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LABOR LAW
CASE –II
The employees of ABC Company started resorting to work to rule, go slow and other covert agitational methods because they (the employees) thought that the management had unilaterally revised the prices of canteen items without consulting the canteen committee. The management view was that since the recognizes union’s registration was cancelled due to non-submission return, therefore the management was not obliged to consult the employees. Consequently, the management also felt that the canteen constituted with the nominees of the then recognized union ceased to be are preventative body. He management entered into an MOU with another registered union.
The management constituted a canteen committee with the cooperation of the registered, but not recognized union. During the strike there were some disturbances and an accident in which an apprentice died. The management did not agree to pay compensation on the plea that the deceased person was not an employee of the company. This led to further unrest. The management applied to the appropriate government to allow them a lockout on the pretext of threat to company’s property and personnel. In the meantime they also insisted that unless employees sign a ‘good conduct’ certificate the workers will not be allowed to enter the factory for work. A section of the workers were willing to sign but the other refused to do so and dubbed the management as indulging in unfair labor practice.
Is the management right in insisting on âgood conductâ certificate
Is the management right in insisting on ‘good conduct’
Questions:
a) Did the management resort to unfair labor Practices, Explain?
b) Is the management correct in creating the recognition as cancelled when the union’s registration was cancelled due to some technical reasons and constituting another canteen committee and holding discussions and signing MOU with another union?
c) Is this a case of strike or lock-out? Explain.
d) Is the management right in insisting on ‘good conduct’ certificate? Are the workers right in protesting against their signing a ‘good conduct’ certificate as a prerequisite for entering factory premises for work?
Is the management right in insisting on ‘good conduct’
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Examine some of the unique features of the master franchise model of Domino’s
Examine some of the unique features of the master franchise model of Domino’s
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CASE – 4
The case discusses the master franchise model of the US-based Domino’s Pizza Inc (Domino’s). Domino’s, which was started in the 1960s, expanded in international markets mainly through its master franchise model. Under this model, the franchisees were provided with exclusive rights to operate stores, or to sub-franchise them in a particular area. Domino’s recruited franchisees with business experience and knowledge of local markets as master franchisees, and was able to mitigate the risks associated with entering and operating in international markets. Under master franchising, in markets where there was high potential for development, Domino’s transferred market exclusivity to an individual/company, who had a significant presence and knowledge about the local markets.
These individuals/companies in turn invested in establishing the master franchise, whose responsibilities include building stores, sub-franchising, operating distribution system, etc. The case discusses in detail the store operations of Domino’s and the benefits of its master franchise system.
Examine some of the unique features of the master franchise model of Domino’s
Question:
Understand the master franchise model of Domino’s and its advantages.
Examine some of the unique features of the master franchise model of Domino’s.
Analyze the store operations of Domino’s.
Examine the training/support provided by Domino’s to the franchisees.
Understand how the master franchise model helped Domino’s in facing the adverse impact of global economic slowdown successfully.
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