EMBA ISMS CASE STUDY ANSWER SHEETS – What role do the non-financial incentives play in motivating the workers and minimizing the rate of absenteeism

What role do the non-financial incentives play in motivating the workers and minimizing the rate of absenteeism
 
What role do the non-financial incentives play in motivating the workers and minimizing the rate of absenteeism
 

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Human Resource Management

 
CASE IV
 
FRAGRANCE COMPANY LIMITED
Petals Company Limited (PCL) was initiated in the year 1919. Since then, it had produced a number of brands which enjoyed customer loyalty. It had adapted well with the changing environment and had entered into a strategic alliance with the S & G Limited, the producer of personal care products. The new company Fragrance Company Limited Was formed as a result in 1993 with equity participation from S& G and Petals Company Limited. This company marketed the products manufactured by the PCL. This alliance had given PCL access to the latest international technology in soaps and detergents. Thus, Fragrance Company Limited was now ideally placed to offer high value, international quality products at competitive prices. It was already an exporter of toilet soaps, detergents and cosmetics. It was a private organisation headed by Dharamchand, with its company’s headquarters at Mumbai and seven units all over the country with one of the units at Faridabad. The turnover of the company was Rs 900 crores. The company marketed the products using the latest international technology in soaps and detergents.
The organization structure was traditionally hierarchical with the senior vice president at the top of the management, the supervisory heads at the middle level and the workers at the shop floor. The company had 450 permanent workers, and 150 contract workers, with an average age of 32 years. The recruitment policy framed was to employ freshers. The various departments in the organization were: purchase, finance, systems, engineering services, excise and dispatch, operations and personnel department. The personnel and administration department were headed by Gyanchand and the functions of the personnel administration department were: recruitment, selection, training, counseling, performance appraisal, internal mobility of employees, negotiation With workers, fixation and implementation of rules and regulations regarding wages, salary, allowances and benefits to the workers. The philosophy of the company was based on Total Quality Management (TQM) and Kaizen. The company was highly environment-friendly and was oriented towards customer’s satisfaction.
Fragrance was facing an acute crisis due to high rate of absenteeism among its permanent workers. The losses were soaring high. There was loss in production, and high expenses and indiscipline were also observed. The personnel administration department conducted a survey in the year 1998. They found that the rate of absenteeism was about 20% on an average. The rules and regulations regarding leave were-12-17 days of leave with pay, 7 days casual leave with pay, 5 day sick leave with pay, extra leave without any pay. The benefits were provided as per the Employees State Insurance Act. The data collected revealed that 36% of the absenteeism was due to transportation problem, 48% was because of the workers staying away from their families, 52% due to festivals, 32% due to farming, 48% on account of alcholism, 80% on account of social occasions/marriages and 76% due to sickness of family members.
The other findings were that approximately 80% of the workers were married and they had children to look after and hence had a greater tendency towards taking leave, 8% of workers possessed dual jobs ,e.g., driving for others, mechanic work etc., so they felt that they could earn more on a particular day by remaining absent; 96% of the workers did not like night shifts and they remained absent from duty; 28% of the workers were not satisfied with the working conditions i.e. canteen facilities, drinking water, social and cultural activities and cleanliness. In 1998, the company tried to reduce absenteeism by introducing conveyance allowance for attendance and night shift allowance. The scheme called Inaam; was launched in which a worker who did not avail leave in three months, received Rs 200 per month. In­house training was imparted to workers In order to educate them about the consequences of absenteeism. They were also sent for 3-6 months training to the Central Board of Workers Education on rotation.
Counseling sessions were held for the workers in order to increase their awareness. The company also introduced the philosophy of workers participation in the management to increase their involvement and commitment towards the work. The practice of organizing picnics, festival celebration, informal get-togethers, and sports activities were also adopted to increase the commitment. Regularity was made an important component of performance appraisal and promotion. After one year, Gyanchand was highly perplexed to see only a negligible improvement in the report of the survey conducted by the personnel administration department. The rate of absenteeism had dropped by only 3%, i.e. from. 20% to 17% in spite of introducing the aforesaid schemes.
 
QUESTIONS:
1) What role do the non-financial incentives play in motivating the workers and minimizing the rate of absenteeism?
2)What innovative solutions would you suggest to minimize the rate of absenteeism?
 
What role do the non-financial incentives play in motivating the workers and minimizing the rate of absenteeism
What role do the non-financial incentives play in motivating the workers and minimizing the rate of absenteeism

 

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ISMS DMS ANSWER SHEETS – What recommendations would you make to senior marketing executives going forward? What should they be sure to do with its marketing

What recommendations would you make to senior marketing executives going forward? What should they be sure to do with its marketing
What recommendations would you make to senior marketing executives going forward? What should they be sure to do with its marketing

 

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Marketing Management

 
Case NO. 3
MARKETING SPOTLIGHT- HSBC
HSBC is known as the “world’s local bank.’’ Originally called the Hong Kong and Shanghai Banking Corporation Limited, HSBC was established in 1865 to finance the growing trade between China and the United Kingdom. HSBC is now the second-largest bank in the world, serving 100 million customers through 9,500 branches in 79 countries. The company is organized by business line (personal financial services; consumer finance; commercial banking; corporate investment banking and markets; private banking), as well as by geographic segment (Asia-Pacific, U.K./Eurozone, North America/NAFTA, South America, Middle East).
            Despite operating in 79 different countries, the bank works hard to maintain a local feel and local knowledge in each area. HSBC’s fundamental operating strategy is to remain close to its customers. As HSBC chairman Sir John Bond said in November 2003, ‘’Our position as the world’s local bank enables us to approach each country uniquely, blending local knowledge with a world-wise operating platform.’’
            For example, consider HSBC’s local marketing efforts in New York City. To prove to jaded New Yorkers that the London-based financial behemoth was ‘’the world’s local bank, “HSBC held a ‘’New York City’s Most Knowledgeable Cabbie’’ contest. The winning cabbie gets paid to drive full-time for HSBC for the year and HSBC customers win, too. Any customer showing an HSBC bankcard, checkbook, or bank statement can get a free ride in the HSBC-branded Bankcab. The campaign demonstrates HSBC’s local knowledge. ‘’In order to make New Yorkers believe you’re local, you have to act local,’’ said Renegade Marketing Group’s CEO Drew Neisser.
            Across the world in Hong Kong, HSBC undertook a different campaign. In the region hit hard by the Severe Acute Respiratory Syndrome, (SARS) outbreak, HSBC launched a program to revitalize the local economy. HSBC’’ plowed back interest payments’’ to customers who worked in industries most affected SARS (cinemas, hotels, restaurants, and travel agencies). The program eased its customer’s financial burden. The bank also promoted Hong Kong’s commercial sector by offering discounts and rebates for customers who use an HSBC credit card when shopping and dining out, to help businesses affected by the downturn. More than 1, 5000 local merchants participated in the promotion.
            In addition to local marketing, HSBC does niche marketing. For example, it found a little-known product area that was growing at 125 percent a year: pet insurance. In December 2003 it announced that it will distribute nationwide pet insurance through its HSBC Insurance agency, making the insurance available to its depositors.
            HSBC also segments demographically. In the United States, the bank will target the immigrant population, particularly Hispanics, now that it has acquired Bital in Mexico, where many migrants to the United States deposit money.
            Overall, the bank has been consciously pulling together its worldwide businesses under a single global brand with the ‘’world’s local bank’’ slogan. The aim is to link its international size with close relationships in each of the countries in which it operates. The company spends $600 million annually on global marketing and will likely consolidate and use fewer ad agencies. HSBC will decide who gets the account by giving each agency a ‘’brand-strategy exercise.’’ Agencies will by vying for the account by improving on HSBC’s number 37 global brand ranking.
Discussion Questions
 
  1. What have been the key success factors for HSBC?
 
  1. Where is HSBC vulnerable? What should it watch out for?
 
  1. What recommendations would you make to senior marketing executives going forward? What should they be sure to do with its marketing?
What recommendations would you make to senior marketing executives going forward? What should they be sure to do with its marketing
What recommendations would you make to senior marketing executives going forward? What should they be sure to do with its marketing

 

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DBM ISMS CASE STUDY PAPERS – What recommendations would you make to senior marketing executives going forward? What should the company be sure to do with its marketing

What recommendations would you make to senior marketing executives going forward? What should the company be sure to do with its marketing
 
What recommendations would you make to senior marketing executives going forward? What should the company be sure to do with its marketing
 

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Marketing Management

 
Case NO. 6
 
MARKETING SPOTLIGHT- WAL-MART  
Wal-Mart Stores, Inc., is the largest retailer in the world, with sales of $259 billion in 2003, 1.5 million employees, and 4,300 facilities. Each week, over 100 million customers visit a Wal-Mart store. Sam Walton founded the company in 1962 with a simple goal: Offer low prices to everyone. His notions of hard work and thrift continue to permeate Wal-Mart today, although he died in 1992. Employees see their jobs as a mission ‘’to lower the world’s cost of living.’’ Wall –Mart’s philosophy is to enable people of average means to buy more of the same products that were previously available only to rich folks. The company works hard at being efficient and using its buying clout to extract lower prices from suppliers, and then passes those savings on to customers.
            Wal-Mart succeeds in the competitive American retail market for several reasons. First, its low prices, vast selection, and superior service keep the customers coming in the door. But one of Wal-Mart’s biggest strengths is not even inside the store. Its unrivaled logistics ensure that it can keep prices low while keeping the right goods on the shelves. As the biggest retailer in the United States. Wal-Mart’s logistics demands are considerable. The company must coordinate with more than 85,000 suppliers, manage billions in inventory in its warehouses, and bring that inventory to its retail shelves.
            To streamline these tasks, Wal-Mart set up a ‘’hub-and-spoke’’ network of 103 massive distribution centers (DC). Strategically spaced across the country, no store location is more than a day’s drive away from a DC. Wal-Mart is known as ‘’the king of store logistics’’ for its ability to effectively manage such a vast network.
            Sam Walton was something of a visionary when it came to logistics. He had the foresight to realize, as early as the 1960s, that his goals for company growth required advanced information systems to manage high volumes of merchandise. The key to low-cost retail is knowing what goods would sell and in what quantities – ensuring that store shelves never have too much or too little of any item. In 1966, Walton hired the top graduate of an IBM school and assigned him the task of computerizing Wal-Mart’s operations. As a result of this forward-looking move, Wal-Mart grew to be the icon of just-in-time inventory control and sophisticated logistics. By 1998, Wal-Mart’s computer database was second only to the Pentagon’s in terms of capacity.
            Wal-Mart’s logistics success is astounding considering its size: Over 100 million items per day must get to the right store at the right time. To accomplish this goal, Wal-Mart developed several IT systems that work together. It all begins at the cash register or point-of-sale (POS) terminal. Every time an item is scanned, the information is relayed to headquarters via satellite data links. Using up-to-the-minute sales information, Wal-Mart’s Inventory Management System calculates the rate of sales, factors in seasonal and promotional elements, and automatically places replenishment orders to distribution centers and vendor partners.
            Wal-Mart uses its information systems for more than just logistics. Suppliers can use its voluminous POS database to analyze customers’ regional buying habits. For example, Proctor & Gamble learned that liquid Tide sells better in the North and Northeast while Tide powder sells better in the South and Southwest. P & G uses information such as this to tailor its product availability to specific local regions. This means that it delivers different Tide products to different Wal-Mart locations based on local customer preferences. Wal-Mart’s may look the same on the outside, but the company uses its information systems and logistics to customize the offerings inside each store to suit regional demand.
            Wal-Mart continues to grow. Despite already having 3,200 stores in the united States, Wal-Mart plans to add another 220-230 Super centers, 50-55 discount stores, 35-40 Sam’s Clubs, and 25-30 Neighborhood Markets in the United States alone, and an additional 130 units internationally. If Wal-Mart maintains the average growth rate of the past 10 years, it could become the world’s first trillion-dollar company.
Discussion Questions
 
  1. What have been the key success factors for Wal-Mart?
 
  1. Where is Wal-Mart vulnerable? What should it watch out for?
 
  1. What recommendations would you make to senior marketing executives going forward? What should the company be sure to do with its marketing?
What recommendations would you make to senior marketing executives going forward? What should the company be sure to do with its marketing
What recommendations would you make to senior marketing executives going forward? What should the company be sure to do with its marketing

 

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DBM ISMS CASE STUDY PAPERS – What potential conflicts could arise between the Japanese managers/trainers and the French employees? Explain.

What potential conflicts could arise between the Japanese managers/trainers and the French employees? Explain.
What potential conflicts could arise between the Japanese managers/trainers and the French employees? Explain.
 

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Human Resource Management

 
Case 5 :-
Toyota in France: Culture Clash?
Hiroaki Watanabe, the Japanese general manager of the first major Toyota plant in Valenciennes, France (and in continental Europe), has a lot at stake. He is in charge of a modern and efficient $570 million Toyota Motor factory designed to manufacture the Yaris, a subcompact car. The plant was designed to employ 2,000 workers. Currently, there are about 200 Japanese managers and 150 Japanese trainers on staff. The remaining employees are mostly French. Culturally speaking, there were many potential areas of conflict between the Japanese and French customs. For example, the plant holds calisthenics at 8:00 A.M. every morning to avoid starting off the day “cold” and being more prone to injuries. This is a common Japanese practice that is not frequently done in France. Also, the plant does not serve wine at lunch, a common practice in other French organizations. As is common in other Japanese firms, blue and gray windbreaker jackets are made available with the word “Toyota” on the back and the employee’s name on the front.
          To help bridge these and other potential cultural gaps, the leadership of the venture needs to understand the potential cultural clashes that these issues can cause. How did Mr. Watanabe prepare himself for this high-profile assignment? Although fluent in English, he decided that he would learn French and as much about French culture as possible. After all, the vast majority of workers at the plant would be from northern France. To prepare himself, he traveled to France as a tourist and visited the Toyota plant in Canada. He conducted interviews in French, with assistance of an interpreter, in order to improve his language skills.
          Are his efforts succeeding? Toyota had high hopes for this first major undertaking in continental Europe. Its goal was to increase its market share that was 3.7 percent in 2001, less than half its share in the United States in that year. In 2004, Toyota surpassed this goal by achieving a 5.3 percent market share in Europe, higher than both Mercedes and Audi. The French employees at the Toyota plant have a lot at stake when one considers that the Valenciennes area, a former coal and steel region, suffers from high unemployment with closing of many companies in heavy industry over the past 20 years. To underscore the importance of Toyota to this region, more than 30,000 people applied for the 2,000 jobs at the factory when it first opened its doors.    
Questions
  1. What potential conflicts could arise between the Japanese managers/trainers and the French employees? Explain.
  2. What do you think of Mr. Watanabe’s approach to preparing himself for French culture? Do you think that his approach would be useful for American managers? Why or Why not?
  3. What kind of organizational culture did Mr. Watanabe want to establish at the factory in Valenciennes, France? Do you think he’ll try to manage the plant just like a Toyota factory in Tokyo? Why or Why not?
  4. What implications are there for the French employees of the plant if its good fortune takes a turn for the worse, and the factory consequently shuts its doors? Explain.
What potential conflicts could arise between the Japanese managers/trainers and the French employees? Explain.
What potential conflicts could arise between the Japanese managers/trainers and the French employees? Explain.

 

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We keep the quality measures for all papers which mean we will provide best essays. Our editing services are also excellent. Before submitting any essays, we will check whether the papers writer well or not. The high standards of academic writing will exceed your expectations. With our quality service, we have satisfied more number of people across the world and also work with different universities in Australia, UK, USA, Dubai, Oman, etc.
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ISMS DMS ANSWER SHEETS – What opportunities are therefore Rollerblade managers to see FOR themselves as selling services, instead of simply roller skates

What opportunities are therefore Rollerblade managers to see FOR themselves as selling services, instead of simply roller skates
 
What opportunities are therefore Rollerblade managers to see FOR themselves as selling services, instead of simply roller skates
 

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General Management

 
Case VI
HIGH-TECH ANSWERS TO DISTRIBUTION PROBLEMS AT ROLLERBLADE
When a manger finds that demand exceeds inventory, the answer lies in making more goods. When a manager finds that inventory exceeds demand, the answer lies in making fewer goods.  But what if a company management finds that they just do not know which situation applies?
              This is the situation that recently confronted management at Rollerblade, the popular skate manufacturer based in Minnetonka, Minnesota. Rollerblade has been one of the leading firms in the fast growing high performance roller skate marketplace, it matters a great deal for Rollerblade managers whether demand and inventory are in balance, or not.
            Rollerblade was in a bind.  The product literally could not be shipped out the door.  The managers found that workers were not able to ship products because, as a result of poor storage structures, they could not find the products.  Once they were found, overcrowded aisles, in addition to other space constraints, still prevented efficient shipping because the workers could barely manage to get the products out the door.  “We were out of control because we didn’t know how to use space and didn’t have enough of it,” said Ian Ellis, director for facilities and safety.  “Basically, there was no more useable space left in the warehouse, a severe backlog of customer orders, and picking errors were clearly in the unacceptable range,” added Ram Krishnan, Principal of NRM Systems, based in St. Paul, Minnesota.
            The answer for Rollerblade was found in technology.  High-tech companies have introduced a collection of computer simulations, ranging in cost roughly from $10,000 to $30,000, that assist managers in generating effective facility designs.  With the help of layout Master IV simulation software, developed by NRM, Rollerblade Management was able to implement a new distribution design.  As a result of the distribution improvement, Rollerblade was able to increase the number of customer orders processed daily from140 to 410 and eliminate order backlog.  “Now we have a different business,” says Ellis. “The new layout has taken us from being in a crunch, to being able to plan.
Questions:
 
  1. With retailers as their primary customers, what customer competitive imperatives could be affected by Rollerblade’s inventory problems?
 
  1. How appropriate might a just – in – time inventory system be for a product such as roller skates?”
 
  1. What opportunities are therefore Rollerblade managers to see FOR themselves as selling services, instead of simply roller skates?
What opportunities are therefore Rollerblade managers to see FOR themselves as selling services, instead of simply roller skates
What opportunities are therefore Rollerblade managers to see FOR themselves as selling services, instead of simply roller skates

 

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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.
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ISMS DMS CASE STUDY ANSWER SHEETS – What negatives, if any, can you envision resulting from CIP

What negatives, if any, can you envision resulting from CIP
 
What negatives, if any, can you envision resulting from CIP
 

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Organizational Behaviour

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

 

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EMBA ISMS CASE STUDY ANSWER SHEETS – What lessons one can draw from this incident for better management of technology transfers

What lessons one can draw from this incident for better management of technology transfers
 
What lessons one can draw from this incident for better management of technology transfers

 

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International Business Management

 

CASE VI
THE ABB PBS JOINT VENTURE IN OPERATION
 
ABB Prvni Brnenska Strojirna Brno, Ltd. (ABB-PBS), Czechoslovakia was a joint venture in which ABB has a 67 per cent stake and PBS a.s. has a 33 per cent stake. This PBS share was determined nominally by the value of the land, plant and equipment, employees, and goodwill, ABB contributed cash and specified technologies and assumed some of the debt of PBS. The new company started operations on April 15, 1993.
            Business for the joint venture in its first two full years was good in most aspects. Orders received in 1994, the first full year of the joint venture’s operation, were higher than ever in the history of PBS. Orders received in 1995 were 21/2 times those in 1994. The company was profitable in 1995 and ahead of 1994s results with a rate of return on assets of 2.3 per cent and a rate of return on sales of 4.5 per cent.
            The 1995 results showed substantial progress towards meeting the joint venture’s strategic goals adopted in 1994 as part of a five-year plan. One of the goals was that exports should account for half of the total orders by 1999. (Exports had accounted for more than a quarter of the PBS business before 1989, but most of this business disappeared when the Soviet Union collapsed), In 1995 exports increased as a share of total orders to 28 per cent up from 16 per cent the year before.
            The external service business, organized and functioning as a separate business for the first time in 1995, did not meet expectations. It accounted for five per cent of all orders and revenues in 1995, below the 10 per cent goal set for it. The retrofitting business, which was expected to be a major part of the service business, was disappointing for ABB-PBS, partly because many other small companies began to provide this service in 1994, including some started by former PBS employees who took their knowledge of PBS-built power plants with them. However, ABB-PBS managers hoped that as the company introduced new technologies, these former employees would gradually lose their ability to perform these services, and the retrofit and repair service business would return to ABB-PBS.
            ABB-PBS dominated the Czech boiler business with 70 per cent of the Czech market in 1995, but managers expected this share to go down in the future as new domestic and foreign competitors emerged. Furthermore, the west European boiler market was actually declining because environmental laws caused a surge of retrofitting to occur in the mid-1980s, leaving less business in the 1990s. Accordingly ABB-PBS boiler orders were flat in 1995.
            Top managers at ABB-PBS regarded business results to date as respectable, but they were not satisfied with the company’s performance. Cash flow was not as good as expected. Cost reduction had to go further. “The more we succeed, the more we see our shortcomings”, said one official.
Restructuring
            The first round of restructuring was largely completed in 1995, the last year of the three-year restructuring plan. Plant logistics, information systems, and other physical capital improvements were in place. The restructing included :
  • Renovating and reconstructing workshops and engineering facilities
  • Achieving ISO 9001 for all four ABB-PBS divisions (awarded in 1995)
  • Transfer of technology from ABB (this was an ongoing project)
  • Installation of an information system
  • Management training, especially in total quality assurance and English language
  • Implementing a project management approach.
            A notable achievement of importance of top management in 1995 was a 50 per cent increase in labour productivity, measured as value added per payroll crown. However, in the future ABB-PBS expected its wage rates to go up faster than west European wage rates (Czech wages were increasing about 15 per cent per year) so it would be difficult to maintain the ABB-PBS unit cost advantage over west European unit cost.
The  Technology Role for ABB-PBS
The joint venture was expected from the beginning to play an important role in technology development for part of ABB’s power generation business worldwide. PBS a.s. had engineering capability in coal-fired steam boilers, and that capability was expected to be especially useful to ABB as more countries became concerned about air quality. (When asked if PBS really did have leading technology here, a boiler engineering manager remarked, “Of course we do. We burn so much dirty coal in this country, we have to have better technology”).
However, the envisioned technology leadership role for ABB-PBS had not been realised by mid-1996. Richard Kuba, the ABB-PBS managing director, realised the slowness with which the technology role was being fulfilled, and he offered his interpretation of events :
“ABB did not promise to make the joint venture its steam technology leader. The main point we wanted to achieve in the joint venture agreement was for ABB-PBS to be recognised as a full-fledged company, not just a factory. We were slowed down on our technology plans because we had a problem keeping our good, young engineers. The annual employee turnover rate for companies in the Czech Republic is 15 or 20 per cent, and the unemployment rate is zero. Our engineers have many other good entrepreneurial opportunities. Now we’ve begun to stabilise our engineering workforce. The restructuring helped. We have better equipment and a clean and safer work environment. We also had another problem which is a good problem to have. The domestic power plant business turned out to be better than we expected, so just meeting the needs of our regular customers forced some postponement of new technology initiatives.”
ABB-PBS had benefited technologically from its relationship with ABB. One example was the development of a new steam turbine line. This project was a cooperative effort among ABB-PBS and two other ABB companies, one in Sweden and one in Germany. Nevertheless, technology transfer was not the most important early benefit of ABB relationship. Rather, one of the most important gains was the opportunity to benchmark the joint venture’s performance against other established western ABB companies on variables such as productivity, inventory, and receivables.
Questions
 
  1. Where does the joint venture meet the needs of both the partners? Where does it fall short?
 
  1. Why had ABB-PBS failed to realized its technology leadership?
 
 
  1. What lessons one can draw from this incident for better management of technology transfers?
What lessons one can draw from this incident for better management of technology transfers
What lessons one can draw from this incident for better management of technology transfers

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EMBA ISMS CASE STUDY ANSWER SHEETS – What lessons can other MNCs learn from the experience of McDonald’s

What lessons can other MNCs learn from the experience of McDonald’s
 
What lessons can other MNCs learn from the experience of McDonald’s

 

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International Business Management

 
CASE III
AT THE RECEIVING END ! 
Spread over 121 countries with 30,000 restaurants, and serving 46 million customers each day with the help of more than 400,000 employees, the reach of McDonald’s is amazing. It all started in 1948 when two brothers, Richard and Maurice ‘Mac’ McDonald, built several hamburger stands, with golden arches in southern California. One day a traveling salesman, Ray Kroc, came to sell milkshake mixers. The popularity of their $O. 15 hamburgers impressed him, so he bought the world franchise rights from them and spread the golden arches around the globe.
McDonald’s depends on its overseas restaurants for revenue. In fact, 60 percent of its revenues are generated outside of the United States. The key to the company’s success is its ability to standardize the formula of quality, service, cleanliness and value, and apply it everywhere.
The company, well known for its golden arches, is not the world’s largest company. Its system wide sales are only about one-fifth of Exxon Mobil or Wal-Mart stores. However, it owns one of the world’s best known brands, and the golden arches are familiar to more people than the Christian cross. This prominence, and its conquest of global markets, makes the company a focal point for inquiry and criticism.
McDonald is a frequent target of criticism by anti-globalization protesters. In France, a pipe-smoking sheep farmer named Jose Bove shot to fame by leading a campaign against the fast food chain. McDonald’s is a symbol of American trade hegemony and economic globalization. Jose Bove organized fellow sheep farmers in France, and the group led by him drove tractors to the construction site of a new McDonald’s restaurants and ransacked it. Bove was jailed for 20 days, and almost overnight an international anti-globalisation star was borne. Bove, who resembles the irrelevant French comic book hero Asterix, traveled to Seattle in 1999, as part of the French delegation to lead the protest against commercialization of food crops promoted by the WTO. Food, according to him, is too vital a part of life to be trusted to the vagaries of the world trade. In Seattle, he led a demonstration in which some ski-masked protestors transhed at McDonald’s/ As Bove explained, his movement was for small farmers against industrial farming, brought about by globalization. For them, McDonald’s was a symbol of globalization, implying the standardization of food through industrial farming. If this was allowed to go on, he said, there would no longer be need for farmers. “For us”, he declared, “McDonald’s is a symbol of what WTO and the big companies want to do with the world”. Ironically, for all of Bove’s fulminations against McDonald’s, the fast food chain counts its French operations among its most profitable in 121 countries. As employer of about 35,000 workers, in 2006, McDonald’s was also one of France’s biggest foreign employers.
Bove’s and his followers are not the only critics of McDonald’s. Leftists, anarchists, nationalists, farmers, labor unions, environmentalists, consumer advocates, protectors of animal rights, religious orders and intellectuals are equally critical of the fast food chain. For these and others, McDonald’s represents an evil America. Within hours after US bombers began to pound Afghanistan in 2001, angry Pakistanis damaged McDonald’s restaurants in Islamabad and an Indonesian mob burned an American flag.
McDonald entered India in the late 1990s. On its entry, the company encountered a unique situation.  Majority of the Indians did not eat beef but the company’s preparations contained cow’s meat nor could the company use pork as Muslims were against eating it.  This left chicken and mutton.  McDonald’s came out with ‘Maharaja Mac’, which is made from mutton and ‘McAloo Tikki Burger’ with chicken potato as the main input.  Food items were segregated into vegetarian and non-vegetarian categories.
            Though it worked for sometimes, this arrangement did not last long.  In 2001, three Indian businessmen settled in Seattle sued McDonald’s for fraudulently concealing the existence of beef in its French fries.  The company admitted its guilt of mixing miniscule quantity of beef extract in the oil. The company settled the suit for $10 million and tendered an apology too.  Further, the company pledged to label the ingredients of its food items, and to find a substitute for the beef extract used in its oil.
            McDonald’s succeeded in spreading American culture in the East Asian countries.  In Hong Kong and Taiwan, the company’s clean restrooms and kitchens set a new standard that elevated expectations throughout those countries.  In Hong Kong, children’s birthdays had traditionally gone unrecognized, but McDonald’s introduced the practice of birthday parties in its restaurants, and now such parties have become popular among the public.   A journalist set forth a ‘Golden Arches Theory of Conflict Prevention’ based on the notion that countries with McDonald’s restaurants do not go to war with each other.  A British magazine, The Economist, paints an yearly ‘Big Mac Index’ that uses the price of a Big Mac in different foreign currencies to access exchange rate distortions.
Questions :
 
  1. What lessons can other MNCs learn from the experience of McDonald’s?
 
  1. Aware of the food habits of Indians, why did McDonald’s err in mixing beef extract in the oil used for fries?
 
  1. How far has McDonald’s succeeded in strategizing and meeting local cultures and needs?
What lessons can other MNCs learn from the experience of McDonald’s
What lessons can other MNCs learn from the experience of McDonald’s

 

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ISMS DMS ANSWER SHEETS – What lessons can other Indain business learn from the experience of Arvind Mills

What lessons can other Indain business learn from the experience of Arvind Mills
 
What lessons can other Indain business learn from the experience of Arvind Mills

 

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International Business Management

 
CASE II
ARROW AND THE APPAREL INDUSTRY
Ten years ago, Arvind Clothing Ltd., a subsidery of Arvind Brands Ltd., a member of the Ahmedabad based Lalbhai Group, signed up with the 150-year old Arrow Company, a division of Cutlet Peabody & Co. Inc., US, for licensed manufacture of  Arrow shirts in India. What this brought to India was not just another premium dress shirt brand but new manufacturing philosophy to its garment industry which combined high productivity, stringent in-line quality control, and a conducive factory ambience.
                        Arrow’s first plant, with a 55,000 sq. ft. area and capacity to make 3,000 to 4,000 shirts a day, was established at Bangalore in 1993 with an investment of Rs. 18 crore. The conditions inside – with good lighting on the workbenches, high ceilings, ample elbow room for each worker, and plenty of ventilation, were a decided contrast to the poky, crowded, and confined sweatshops characterizing the usual Indian apparel factory in those days. It employed a computer system for translating the designed shirt’s dimensions to automatically mark the master pattern for initial cutting of the fabric layers. This was installed, not to save labour but to ensure cutting accuracy and low wastage of cloth.
                        The over two-dozen quality checkpoints during the conversion of fabric to finished shirt was unique to the industry. It is among the very few plants in the world that makes shirts with 2 ply 140s and 3 ply 100s cotton fabrics using 16 to 18 stitches per inch. In March 2003, the Bangalore plant could produce stain-repellant shirts based on nanotechnology.
                        The reputation of this plant has spread far and wide and now it is loaded mostly with export orders from renowed global brands such as GAR, Next, Espiri, and the like. Recently the plant was identified by Tommy Hilfiger to make its brand of shirts for the Indian market. As a result, Arvind Brands has had to take over four other factories in Bangalore on wet lease to make the Arrow brand of garments for the domestic market.
                        In fact, the demand pressure from global brands which want to out outscore from Arvind Brands, is so great that the company has had to set up another large for export jobs on the outskirts of Bangalore. The new unit of 75,000 sq. ft. has cost Rs. 16 crore and can turn out 8,000 to 9,000 shirts per day. The technical collaborates are the renowned C&F Italia of Italy.
                        Among the cutting edge technologies deployed here are a Gerber make CNC fabric cutting machine, automatic collar and cuff stitching machines, pneumatic holding for tasks like shoulder joining, threat trimming and bottom hemming, a special machine to attach and edge stitch the back yoke, foam finishers which use air and steam to remove creases in the finished garment, and many others. The stitching machines in this plant can deliver up to 25 stitches per inch. A continuous monitoring of the production process in the entire factory is done through a computerized apparel production management system, which is hooked to every machine. Because of the use of such technology, this plant will need only 800 persons for a capacity which is three that of the first plant which employs 580 persons.
                        Exports of garments made for global brands fetched Arvind Brands over Rs. 60 crore in 2002, and this can double in the next few years, when the new factory goes on full stream. In fact, with the lifting of the country-wise quota regime in 2005, there will be a surge in demand for high quality garments from India and Arvind is already considering setting up two more such high tech export-oriented factories.
                        It is not just in the area of manufacture but also retailing that the arrow brand brought a wind of change on the Indian scene. Prior to its coming, the usual Indian shirt shop used to be a clutter of racks with little by way of display. What Arvind Brands did was to set up exclusive showrooms for Arrow shirts in which the functional was combined with the aesthetic. Stuffed racks and clutter were eschewed. The products were displayed in such a manner that the customer could spot their qualities from a distance. Of course, today this has become standard practice with many other brands in the country, but Arrow showed the way. Arrow today has the largest network of 64 exclusive outlets across India. It is also present in 30 retail chains. It branched into multi-brand outlets in 2001, and is present in over 200 select outlets.
                        From just formal dress shirts in the beginning, the product range of Arvind Brands has expanded in the last ten years to include casual shirts, T-shirts, and trousers. In the pipeline are light jackets and jeans engineered for the middle age paunch. Arrow also tied up with the renowed Italian designer, Renato Grande, who has worked with names like Versace and Marlboro, to design its Spring / Summer Collection 2003. The company has also announced its intention to license the Arrow brand for other lifestyle accessories like footwear, watches, undergarments, fragrances, and leather goods. According to Darshan Mehta, President, Arvind Brands Ltd., the current turnover at retail price of the Arrow brand in India is about Rs. 85 crore. He expects the turnover to cross Rs. 100 crore in the next few years, of which about 15 per cent will be from the licensed non-clothing products.
                        In 2005, Arvind Brands launched a major retail initiative fir all its brands. Arvind Brands licensed brands (Arrow, Lee and Wrangler) had grown at a healthy 35 per cent rate in 2004 and the company planned to sustain the growth by increasing their retail presence. Arvind Brands also widened the geographical presence of its home-grown brands, such as Newport and Ruf-n-Tuf, targeting small towns across India. The company planned to increase the number of outlets where its domestic brands would be available, and draw in new customers for readymades. To improve its presence in the high – end market, the firm started negotiating with an international brand and is likely to launch the brand.
                        The company has plans to expand its retail presence of Newport Jeans, from 1200 outlets across 480 towns to 3000 outlets covering 800 towns.
                        For a company ranked as one of the world’s largest manufacturers of denim cloth and owners of world famous brands, the future looks bright certain for Arvind Brands Ltd.
Company Profile
Name of the Company
:
Arvind Mills
Year of Establishments
:
1931
Promoters
:
Three brothers – Katurbhai, Narottam Bhai and Chimnabhai
Divisions
:
Arvind Mills was spilt in 1993 into three units – textiles, telecom and garments. Arvind Brands Ltd. (textile unit) is 100 per cent subsidiary of Arvind Mills.
Growth Strategy
:
Arvind Mills has grown through buying – up of sick units, going global and acquisition of Germanand US brand names.
Questions
  1. Why did Arvind Mills choose globalization as major route to achieve growth when domestic market was huge?
  2. How does lifting of Country-wise quota regime’ help Arvind Mills?
  3. What lessons can other Indain business learn from the experience of Arvind Mills?
What lessons can other Indain business learn from the experience of Arvind Mills
What lessons can other Indain business learn from the experience of Arvind Mills

 

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ISMS MBA CASE STUDY ANSWER SHEETS – What lessons about management in a rapidly changing marketplace can be learned from the experience of Cin – Made

What lessons about management in a rapidly changing marketplace can be learned from the experience of Cin – Made
 
What lessons about management in a rapidly changing marketplace can be learned from the experience of Cin – Made

 

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General Management

 
Case V
 “THAT’S NOT MY JOB” – LEARNING DELEGATION AT CIN-MADE
When Robert Frey purchased Cin – Made in 1984, the company was near ruin.  The Cincinnati, Ohi-based manufacturer of paper packaging had not altered its product line in 20 years.  Labor costs had hit the ceiling, while profits were falling through the floor.  A solid quarter of the company’s shipments were late and absenteeism was high.  Management and workers were at each other’s throats.
            Ten years later, Cin – Made is producing a new assortment of highly differentiated composite cans, and pre-tax profits have increased more than five times.  The Cin – Made workforce is both flexible and deeply committed to the success of the company.  On-time delivery of products has reached 98 percent, and absenteeism has virtually disappeared.  There are even plans to form two spin – off companies to be owned and operated by Cin-Made employees.  In fact, at the one day “Future of the American Workforce” conference held in July 1993, Cin-Made was recognized by President Clinton as one of the best – run companies in the United States.
            “ How did we achieve this startling turnaround ?”  mused Frey.  “Employee empowerment is one part of the answer.  Profit sharing is another.”
            In the late spring of 1986, relations between management and labor had reached rock bottom.  Having recently suffered a pay cut, employees at Cin- Made came to work each day, performed the duties required of their particular positions, and returned home-nothing more.  Frey could see that his company was suffering.  “To survive we needed to stop being worthy adversaries and start being worthy partners,” he realized.  Toward this end, Frey decided to call a meeting with the union.  He offered to restore worker pay to its previous level by the end of the year.  On top of that, he offered something no one expected: a 15 percent share of Cin-Made’s pre-tax profits. “I do not choose to own a company that has an adversarial relationship with its employees.” Frey proclaimed at the meeting.  He therefore proposed a new arrangement that would encourage a collaborative employee-management relationship “Employee participation will play an essential role in management.”
            Managers within the company were among the first people to oppose Frey’s new idea of employee involvement.  “My three managers felt they were paid to be worthy adversaries of the unions.”  Frey recalled.  It’s what they’d been trained for.  It’s what made them good managers.  Moreover, they were not used to participation in any form, certainly not in decision making.”  The workers also resisted the idea of extending themselves beyond the written requirements of their jobs.  “ (Employees) wanted generous wages and benefits, of course, but they did not want to take responsibility for anything more than doing their own jobs the way they had always done them,” Frey noted.  Employees were therefore skeptical of Frey’s overtures toward “employee participation.”   “We thought he was trying to rip us off and shaft us,” explained Ocelia Williams, one of many Cin-Made employees who distrusted Frey’s plans.
            Frey, however, did not give up, and he eventually convinced the union to agree to his terms.  “ I wouldn’t take no for an answer,” he asserted.  “Once I had made my two grand pronouncements, I was determined to press ahead and make them come true.”  But still ahead lay the considerable challenge of convincing employees to take charge  :
            I made people meet with me, then instead Of telling them what to do, I asked them.     They resisted.
            “ How can we cut the waste on his run ?” I’d    say, or “How are we going to allocate the  overtime on this order ?” 
“That’s not my job,” they’d say.  “But I need your input,” I’d say.  “How in the World can we have participative management             If you won’t participate?
 “I don’t know,” they’d say.  “Because that’s      not my job either.  That’s your job. ?” Gradually, Frey made progress.  Managers began sharing more information with employees.  Frey was able slowly to expand the responsibilities workers would carry.  Managers who were unable to work with employees left, and union relations began to improve.  Empowerment began to happen.  By 1993, Cin Made employees were taking responsibility for numerous tasks.  Williams, for example, used to operate a tin-slitting machine on the company’s factory floor.  She still runs that same machine, but now is also responsible for ordering almost $ 100,000 in supplies.
            Williams is just one example of how job roles and duties have been redefined throughout Cin-Made.  Joyce Bell, president of the local union, still runs the punch press she always has, but now also serves as Cin- Made’s corporate safety director.  The company’s scheduling team, composed of one manager and five lead workers from various plant areas, is charged with setting hours, designating layoffs, and deciding when temporary help is needed.  The hiring review team, staffed by three hourly employees and two managers, is responsible for interviewing applicants and deciding whom to hire.  An employee committee performs both short – and long – term planning of labor, materials, equipment, production runs, packing, and delivery.  Employees even meet daily in order to set their own production schedules.  “We empower employees to make decisions, not just have input,” Frey remarked. “I just coach.”
            Under Frey’s new management regime, company secrets have virtually disappeared.  All Cin-Made employees, from entry-level employees all the way to the top, take part in running the company.  In fact, Frey has delegated so much of the company’s operations to its workers that he now feels little in the dark. “I now know very little about what’s going on, on a day-to-day basis,” he confessed.
            At Cin-Made, empowerment and delegation are more than mere buzzwords; they are the way of doing business – good business. “We, as workers, have a lot of opportunities,” said Williams. “If we want to take leadership, it’s offered to us.”
Questions:
 
  1. How were principles of delegation and decentralization incorporated into Cine – Made operations?
 
  1. What are the sources and uses of power at Cin – Made?
 
  1. What were some of the barriers to delegation and empowerment at Cin –Made?
 
  1. What lessons about management in a rapidly changing marketplace can be learned from the experience of Cin – Made?
What lessons about management in a rapidly changing marketplace can be learned from the experience of Cin – Made
What lessons about management in a rapidly changing marketplace can be learned from the experience of Cin – Made

 

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