Cases for Practice Long

The Exotic Melons:

You are the manager (Worldwide Sales Cock and Bull Melons) in a Dubai-based
company that deals in selling exotic fruits. Cock and Bull Melons are a special
variety of melons that can be cultivated only on the sandy dunes surrounding the
Cock and Bull oasis in the Sahara desert. Worldwide demand and supply have been
quite stable so far at 100 melons a year, with the supply being just sufficient to
cover the demand.
Cock and Bull Melons have traditionally been sold to the sheikhs in the Middle East,
and Hollywood and Bollywood actors and actresses. Their exorbitant prices take
them out of reach of common people.
In January 2002, the research centre at Punjab Agricultural University (PAU), India
discovers that Cock and Bull melons can cure the fatal MarGaya syndrome in
pregnant women, which kills both the mother and the child. Also, it can cure the
fatal MaraGaya syndrome in diabetic patients. Both these symptoms are very rare.
Unfortunately for you, in May 2002, the MaraGaya syndrome strikes 2000 people in
America and the MarGaya syndrome strikes 1000 pregnant women in Sweden. 100
Cock and Bull melons are required to cure the 1000 cases in America while 100 are
required to cure the Swedish problem. You know that the patients in both the
countries cannot afford the high cost of Cock and Bull melon treatment. You also
know that the revenues from treating patients would be much lower than selling
them to sheikhs and film stars.
You are in a real dilemma. What would you do?
Confidential Information?
Mr. SecretKeeper is a Corporate Head (HR) in a company. He is very nice and gets
along well with all people. People often consult him for help and advice. One person
(named Mr. A) approaches him for a job because he is right now jobless. Mr.
SecretKeeper takes the guy's qualifications and asks him to come after a week
however, since no job available. He keeps frequently postponing the job offer. Mr. A
keeps visiting the HR head, Mr. SecretKeeper, often and becomes his close friend.
Then, one day, Mr. A confides with the HR Head I was in prison for 18 years for a

crime that I had not committed. With two years remaining of the sentence, I ran
away from jail. Even now, police is in look out for me. Mr. SecretKeeper tells the
person to go home and that he would give him a job. However as soon as he leaves,
Mr. SecretKeeper calls up the police and gives the details of Mr. A and asks them to
arrest Mr. A.
Because of this betrayal of trust by the HR head, people in the organization have
started losing faith in him. A senior person in the office complains to the VP that the
Mr. SecretKeeper has broken faith, so others could not come to him.
Assume that you are the VP of the company. What would you do about the
situation?

In a fix!
You are the young dynamic, blue-eyed boy (girl) in a firm, which is a known leader in
the industrial oils business. Under your leadership, the company has done
extremely well in a slow, sluggish, mature market and has also effectively warded
off competition from the superior industrial oil segment.
However, as a young blooded individual, you decide that the company should
branch into something more glamorous and contemporary. You manage to convince
the top management to get into the film-making business.
The film-making business is started as another division, where the systems and
processes are kept the same to have uniformity across businesses. You manage to
hire top talent in this field Mr. A, Mr. B and Mr. C from different competitors. You
have big hopes from the trio as these people have come together as a team for the
first time. You grant every freedom to these people to recruit their own
subordinates.
Barely a month after the film-making business has started, you are in a fix! Mr. B
throws his cap, sheds a zillion tears and tells you in a choked voice that he would
rather die than continue with your business. A couple of months later Mr. C blames
your policies and quits.
Your six monthly profit and loss statement shows that film-making business had
been a horrific disaster. The only remaining member of the star trio, Mr. A says that
the business is slightly out of form and that he might deliver if you grant him
complete freedom.
You can now see your own future as dark as the industrial oils your company
specializes in. You are wondering what went wrong and what should you do now?
Tension on the job:
Sujit Bhattacharyya (Bhola) had been an exceptionally bright student throughout his
studies at IIT-Kharagpur. He devoted four years in pursuit of academic excellence.
He had very few friends. Few peers liked him, but he was the darling of all his
professors. Bhola joined TELCO from the campus as production supervisor in charge
of vehicle assembly. Bhola used to manage shop floor operations consisting of truck
assembly and in a shift 30-33 operator used to report to him. The IQ level of a

typical operator could be compared to that of a class VIII student, but years of
experience had made them confident about their job.
The operators, by virtue of doing the same job for so many years, had developed a
highly robotic style of functioning and were highly resistant to change. The trade
union was powerful and exercised a lot of leverage with the management, to secure
incentives and overtime payment, which were fixed at a uniform rate across the
departments.
Nilesh was an operator in charge of front axle assembly. The number of trucks that
rolled out of the factory was equal to the number of axles assembled. Thus, Nilesh
was looking after a highly sensitive assembly operation. Nilesh, lately, had lost a lot
of money in the stock market, had frequent quarrels with his wife and many times
used to come drunk to the shop floor. His abrasive behavior had caused a lot of
worry to Bhola. Nilesh also started absenting himself from duty and became casual
in his approach. Subsequently, Nilesh was transferred to the quality control
department to reduce his physical workload. Bhola found it very difficult to find a
suitable replacement for Nilesh in the assembly area. He had to frequently
interchange workers who were unable to cope with the high pressure work at the
axle assembly. They deliberately started going slow, and thereby, affected
productivity. Bhola did his best to pinpoint the problem. He was under tremendous
pressure from the top to increase productivity to previous levels.
The workers started demanding additional incentives and overtime payments. The
management, on the other hand, was opposed to any change in the incentive
structure. Bhola was helpless. He tried his best and at times did the work himself.
The workers, sensing that Bhola had little control over them, became more
aggressive and further slowed their work. Bhola suffered an emotional breakdown
and had to stay away from work for two months.
Discuss what the main issues in the case are and what would be your approach in
this situation.
Tuna-Tuna Lactuna!:
The Minicoy Canning Factory (henceforth MCF) was set up by the Lakshadweep
administration in 1969 with an aim to step up fishery production, provide
employment and enable fishermen to sell their excess fish for better returns. MCF

could produce only up to 150,000 cans per year because of labour constraint.
However, due to excess production, by September 2001, MCF had accumulated an
unsold inventory of 150,000 cans amounting to Rs. 12,807,700. In 2001, 64,322
cans were sold resulting in a turnover of Rs. 6,302,500 and a profit of Rs. 810,380.
Competition for MCF came from Integrated Fisheries Project (henceforth IFP), a
government undertaking set up with an aim to introduce and popularize diversified
fishery products in rural and urban markets. MCF canned a type of tuna called
Skipjack tuna, whose meat was harder and different in taste as compared to Yellow
fin tuna canned by IFP. The distributors felt that higher price of Skipjack tuna was
the culprit for lower sales vis--vis IFP. The higher price was on account of higher
overheads for MCF attributed to lower volumes. IFP also had a stronger dealer
network and a much larger promotion budget.
The demand for canned tuna is concentrated in upcountry areas. However, the sale
of MCF's tuna to these regions has been low. Sales enquiries had also been received
from the Middle East, but no action had been taken on them. Markets other than the
retail market were also being explored.
The management of MCF was pondering over what the problem was and what could
be done to resolve it amicably, both in the short term as well as in the longer term.
Et tu Brutus!:
Yahan Gadbad Inc. is a reputed multinational that specialized in organizing beauty
pageants. The protagonists of this piece, besides you (of course), are Mr. Bhartus,
the HR Manager and Mr. BigMouth, the flamboyant hospitality manager. Mr.
BigMouth has been in Yahan Gadbad Inc. for over a decade now, during which he
has successfully organized half a dozen pageants at exotic locales around the world.
People in Yahan Gadbad swear by his integrity and professionalism and he has been
the role model in the company for the last decade.
Mr. Bhartus and Mr. BigMouth were good friends. One day after they had had a drink
too many, Mr. BigMouth said to Mr. Bhartus, Bhartu, I have something to confess to
you. Bhartu dear, please listen to me as a friend and not as an HR manager. Of
course Biggie! said Mr. Bhartus, I have big stomach. I can digest any secret. Mr.
BigMouth then said, Do you remember the pageant we had in Polynesian Islands?
You know, Bhartu the human heart is frail. I kind of got bowled over by a contestant.
We had a week of debauchery. I rigged the contest to help her get the second

runners up title.
In spite of the promise made to Mr. BigMouth, Mr. Bhartus comes to you (President,
Yahan Gadbad Inc.) with the information. You think aloud, Damn! What do I do
now? The HR department handles confidential information and this fool could not
keep a secret. On the other hand God! Please guide me!
Student's BIG problem:
In an institute AIM, the students' council is selected by a voting wherein each
student is allocated a vote for each position in the council. The council is supposed
to undertake activities of students' interests. Each student pays Rs. 50 per year
towards council dues. Extending the brief of the council, it decides to add
responsibilities and projects. As a first, it introduces a scheme for students wherein
it provides them stationary and hosiery at a subsidized price. This is to be done on a
no-profit no-loss basis. Initially, it is done only for a select group of students as a
pilot exercise.
Extending in the first month, the council has a sale of Rs.3500. They make a profit
of Rs. 300. Seeing this, the council decides to expand its store for the complete
instituted. They buy goods worth Rs.15000 for the first time and Rs 10000 the
second time. In order to buy these goods, it takes loan of Rs.8000 at an interest of
18% per annum. Rumors of bungling of money start floating around the campus.
Some council members are alleged to have taken money from the store and the
council funds. As a result of these rumors, some students begin to boycott the
council and start to doubts its intentions. In addition, they allege that the store was
supposed to be on a no profit no-loss basis, but still it aimed at earning profits.
On complaints to the institute authorities, the store is closed for business till further
notice, pending an internal investigation into the matter. As a result of the store
closure, the council is left with stocks of Rs.13500. In addition, the council also has
to repay Rs. 8000 plus interest to the financial institution.
In the present scenario, what could be the possible solutions?
The Video Games Case
You are the CEO of a large, diversified entertainment company. A division of your
firm manufactures video games. The division is the third largest manufacturer of

hardware in the industry and has a 10% market share, with the top two having 40%
and 35% respectively. The industry growth has been strong, though over the last
few months, the overall industry sales growth has slowed a bit.
The division's sales have increased rapidly over the last year from a relatively small
base. Current estimate is annual sales of 500,000 units for your division. The selling
price of the basic Video Game unit (hardware) is Rs. 1000. The current cost of
manufacturing a unit is Rs. 700, excluding the marketing costs. The top two
competitors are estimated to have a 10 to 15% cost advantage currently. The
division currently exceeds corporate return requirements; however, margins have
recently been falling.
The product features are constantly developed (e.g., new type of remote joy stick),
to appeal to the segments of the market. However, the division estimates much of
the initial target market (young families) has now purchased the video game
hardware. No large new user segments have been identified.
Recently, a request has come to you, the CEO, for approval of Rs. 20 Cr. for tripling
the division's capacity. The requested expansion will also reduce the cost of
manufacture by 5 to 7 % from the present value. Should you approve the
expansion?
Bow Bow!
You are the General Manager (Procurement) in a large, international trading firm,
Idhar Udhar Inc. Your current responsibilities involve procurement of rats, dogs and
cats from the dark interiors of Africa and selling them at a profit in developed
countries as pets. Of these products, dogs are extremely seasonal, being available
only from the middle of May to the end of August. You are expecting a bumper
season this time around. Also, the price of dogs in the developed countries being at
an all time high, you are expecting record profits which would, in a swift move, also
put your career on the fast track.
Bang in the middle of the procurement season, an internal audit reveals that Mr.
Ghotala Doggy, your star manager (Procurement Dogs) has siphoned off Rs. 20,000
from company funds. Mr. Doggy has excellent relations with the suppliers and you
know that it would be impossible to meet targets without him. On your questioning,

Mr. Doggy reveals that he had taken the money for paying the medical bills of his
daughter, Ms. Bitchy Doggy, who was seriously ill.
Following this incident, audits were conducted in other divisions and irregularities
were found there also. However, since your division was the first where such an
incident took place, people are looking at you to set a precedent. Your company lays
extreme emphasis on personal integrity and this is the first time in the company's
century old history that such an incident has occurred. What would you do?
The Dilemma!
You are the GM (HR) of a small firm involved in manufacturing and selling AM/FM
radios. Of late, sales of radios have declined due to emergence of TV, Cable etc. The
main departments are the production, marketing and accounting.
Bharat is a clerk in the accounting department. He has been with the company for
15 years now. He knows the job well, but of late, is increasingly coming late for
work. He is married with two children and he cites family problems as the cause of
late arrival on job. Every time he promises to mend his ways, but has not done so
till date.
Om is the production supervisor. He has been with the company since its inception
30 years ago and commands a lot of respect from his workers. But, age is catching
up on him fast. Also, the much younger workers are increasingly questioning and
resisting his authority. If chucked out of the job, it might be difficult for him to find
another job at his age. He is due to retire in another two years. Jai is a young MBA in
marketing from a major B-School. He joined the company a year ago and started
new advertising and marketing campaigns, at a tremendous cost to the company.
His plans met with initial success, but then the sales were back to its initial levels.
He handles the company's dealers in the northern region. But, his initial success
seems to have gone to his head. He increasingly feels discontented when some of
his new ideas are turned down by the higher management.
Jagdish is a marketing executive with the company for the last 6 years. Though not
an MBA, he was still hired for the job due to his sharp acumen. In the years to
follow, with an increasing mumber of MBA's joining the company, he was denied
promotion last year. This caused bouts of deep depression, from which he recovered

after two months. After that, he has been complacent in his work and sometimes
even rude to the customers.
In a desperate cost-cutting measure, your company decides that it must reduce the
workforce as a first measure. These four are the possible candidates for job
termination. You, as a group, have to decide how many you will sack, which ones,
and why?
CASES FOR PRACTICE SHORT

In a public sector company, the workers are very lazy and do not do their
allotted jobs in the stipulated time. The vice-president calls the manager and
questions him about the situation. The manger says that the workers are bored with
their jobs and their salary is not adequate. He is not willing to take a decision. What
should the V.P. do? Who is at fault? Devise a solution.

A software company was entering a new area of MIS. This company had a
good reputation in the software areas. The company won a contract for MIS for a
pharmaceutical company. The project was scheduled for completion in one year. But
after 8 months a large part of the project was incomplete. Not completing the
project on schedule will bring loss of face and litigation for the company. What
should be the company do?

Mr. A works in a multinational firm where he is Senior Manager (Production).

Recently, Ms. B was appointed Vice President of the company, with Mr. A reporting
to Ms. B. Due to some problem in the production line, Ms. B requests a late evening
meeting with Mr. A. When Mr. A goes for the meeting, Ms. B makes some
inappropriate advances on him. Mr. A promptly reports the matter to company HR
manager. The HR manager finds it hard to believe Mr. A's story and along with Ms.
B, accuses him of inappropriate conduct. The matter has leaked to the press and is
causing bad publicity for the company. What should the company do?

A person with software skills gets a job in a hardware firm, on a temporary

basis. He is not doing well and is feared to be sacked within one year. His boss gives
him letters of recommendation to apply elsewhere. At the end of the year, when is

to be thrown out, he files a case against the firm, showing the recommendation
letters. How will the company come out of this mess?

Mr. X has a distinguished academic record and excels in sports and other
extra-curricular activities since childhood. He joined ABC as salesman. In the
company it was noticed he was conceited and his interaction with other people was
not exactly cordial. He was indifferent to suggestions from superiors and
subordinates. However, he was a star performer as salesmen and always crossed
targets, in the time he had spent with the company. The company needs a new
regional sales manager to improve the performance of a loss-making region, should
they appoint him?

The M.D.'s driver had been with the company for 25 years. He was very good
at his job. One day he took the car home after dropping the M.D. late at night. While
driving him, he accidentally kills a girl crossing the road. Although it was not his
mistake, the court punishes him. The personnel officer in the company recommends
dismissal. What should the company do? Retain him or fire him?

A restaurant owner is currently setting up a new restaurant. For the restroom,

he has three options: paper towels, roller towels and hot air dryers. Dryers have an
initial cost of Rs. 500 each and monthly service charges of Rs. 100. Paper towels
cost 5 paisa and the number of paper towels used varies directly with the number of
customers. Toweling rolls cost Rs. 5 per roll and will be changed daily. Which option
should the owner go for considering this is going to be a posh restaurant?

Mr. A buys a two-storied house which already has two tenants residing in it.
The tenants refuse to vacate the premises even after notices and reminders. On
court's order, the ground floor is vacated to enable Mr. A to shift to his new house.
However, the tenants on upper floor have made life a living hell for Mr. A. The upper
floor tenants have secured a stay order in the case. Mr. A's lawyers, in connivance
with the tenants, have suggested him to reach for a out-of-court settlement by
paying hefty amount to the tenants. Mr. A is unable to pay such a huge amount.
What should Mr. A do?

John was the personnel executive of a reputed bank and had been working
there for 15 years. During this period he had developed a good rapport with the
subordinates. The subordinates commonly sought his help for their personal
problems. Frank was a clerk and had been working with the bank for the past 20

years. One day, Frank went to John and confessed to him an event of his past. He
said that when he was a teenager, he was caught stealing and had been sentenced
to prison for 2 years. But he escaped from the prison, when 6 months were left. This
had been a secret since, but he often had nightmares and he asked John to help
him. John expelled Frank from the bank and handed him over the police. When the
Vice-President came to know about John's actions, he sacked John on the grounds
that he had breached the faith of the employee. John wrote a letter to the President
explaining that he was not a priest and so cannot be expected to remain
confidential. Since Frank was a runaway convict he had done his social duty by
handing him over to the police. Moreover, it was company's policy not to employ
any ex-convicts. Since all his actions were justified, he should be reinstated. What
should the president do?

Illingworth is a engineer in forging division of BAB, an engineering company.

He has been working in the organization for the last 6 years and has been
consistently rated as one of the most innovative employees of the organization.
Illingworth came out with a proposal to import 2 forges from Germany which could
save a lot of money and increase productivity of the organization. The management
gives an in principle approval. Illingworth goes ahead and orders for the import. At
the close of financial year, Mr. Rarely the chairman gets to know that the financial
position of the company is not sound and that he has to curtail unnecessary
expenditure. Mr. Rarely calls Illingworth and says that the management is not
supporting his project which is going to cost the company 4.5 Cr. Illingworth is held
responsible for the decision to import the forges. What happens to the project
initiated by Illingworth?

Litson, a textile company is relocated from Murray to Fairley due to high

labour costs. It Advertises for posts at the new location and gets around 500
applications out which 260 were selected. Three other companies in the same
region lose their competent employees to Litson. They accuse Litson of foul
practices. One of the three companies which have lost its employees to Litson is a
customer of Litson and accounts for 18% of the market share of Litson's products.
This company threatens to cancel all its orders to Litson, if he doesn't restrain from
poaching people from the company. What should Litson do?

Co. A is the manufacturer of large jet engines in the U.S. with a 40% market
share. The major purchasers of jet engines are the commercial airlines. There is one
major U.S. competitor and a potential Japanese competitor who will not be able to

enter the industry for another 10 years. The. U.S competitor's prices are below Co.
A's but it delivers the engines in 3 months while Co. A does it in 2 months. Co. A is
going into losses. What should the higher management do?

A South India based food retailer is looking to expand into North India. The
retailer has 15% market share in South India, with three major competitors having
10-12% shares each. The rest of industry is fragmented amongst smaller players.
Two of the competitors already have operations in North India. Our company has no
experience of retailing n North India and a minimal knowledge of the region. Should
the company open stores in North India too?

A lady by the name of Lata has been working in an insurance company for
the last 5 years, joins a fast moving consumer goods company. She is a very bright
prospect and does outstandingly well in her training period of one year and her
colleagues during that period also vouch for that fact. After one year of training, she
is given charge of a small territory in which she does very well and is again praised
by her colleagues and supervisors alike. She is then given charge of a much larger
territory after a few months. Her supervisor after a time complains to the senior
management that Lata has not been good at her job and is finding it difficult to
handle her customers. Even the person in charge of overseeing Lata's training
personally, reports that she is not performing well. Lata in turn complains that her
job is going on perfectly well and if there are any complaints it's because she is
being victimized in the male dominated atmosphere. The matter is then reported to
the head office. What should head office do?

M. Soft is a software co. established 6 years ago by PCC (a construction firm).

PCC cannot give a very high salary as it would not be consistent with their other
business. The ultimate aim of MSoft is to enter the export market but in 6 years
they do well in the domestic market. MSoft decides to hire a firm SYSQS to start a
training program and to improve their business operations. SYSQS does a good job
and MSoft starts to reap the benefits in the form of several prestigious projects.
MSoft employs 15 new people. Then in the middle of a crucial project, two senior
executives leave for better remuneration. What should the GM of MSoft do?

A fertilizer company, Pizza and Urea, is located near a village,

Payamudirsholai on the banks of river Pamba. One day, the villagers find fish dying
due to fluid waste from the fertilizer plant. The community makes a representation
to the Govt. through their local MLA and fishing being the main source of income for

these villagers, Govt. issues an order whereby the fertilizer company is to be closed
down and they also have to pay compensation to the villagers, while the fertilizer
company's contention is that it is not due to their fault. The company manages to
get a stay order on the govt. ruling from the High Court. While, the social activists
go to Supreme Court and hope for justice, common villagers suffer due to the death
of fish. Suggest a solution to the problem in the case.

Chemco is a subsidiary of an engineering company with a turnover of Rs 75

Crores and a 15% bottomline. It initiated implementation of an enterprise wide
integrated software and systems solution and hired the best consultant - Dramco.
The scheduled budget was Rs. 2.5 crores and time frame was 2 years. At the end of
2 yrs, a committee was formed to review the implementation part. The MD found
that the project was only 40% complete and facing serious cost and time overruns.
The top management blames the consultant and the plant level managers and
workers for the delay. On the other hand, the consultant blames top management.
Identify the problem and discuss the course of action.

A bindaas group of eight Dil Hai University students plan to go on a motorbike

expedition to the nearby hill station, Smile, on a three day break. On the way to the
hill station, they have to go through a village hamlet. One of the two vehicles, which
were cruising ahead of the other two, runs over a village kid and flees from the spot.
Meanwhile, elders in the village come to know about the incident and decide to
search for the culprits. For the students this is the only route to get back to their
home town. The group has four girls whose safety had to be taken care of. If you are
the members of this bindaas group, what would you do?

Over the past few years, a retail bank has moved from 10 branches in one
state to 100 branches in 8 states. All the branches are operated autonomously and
the company as a whole is losing money. Specifically, the branches in four of the
backward areas are losing money. But, government regulations state that it must
have some branches in backward areas too. In the past, the bank has tried to
mandate cost reductions and had formed committees with representatives from
each branch, but to no avail. What should the bank do now?

There is a private rail company 'Aage Nahin Jayenge'. Its trains aren't running
on time. So, there is lot of criticism in newspapers. The manager appoints a person
as in-charge of a 'Punctuality Cell' and gives him all the powers and asks him to
deliver the results. The person tries to coordinate everything. Drivers who don't run

the train on time are asked to report to the manager. But the drivers and station
masters say that its not their fault. The tracks are bad and motor engines used are
quite old. What is the manager supposed to do?

Gwalior Rooyi is to setting up a textile plant in a Nivunakinapalli, which

doesn't have too many skilled workers. When this plant starts recruiting, they end
up with people already employed in the (only) 3 other existing industries. They are
accused of buying out people and threatened with loss of market share due to
losing out on present customers.

A major airline with a reservation system is thinking about working with a

software developer to add a feature to its system which can track fraud by travel
agents. The primary fraud perpetrated by travel agents is backdating of tickets, e.g.
issuing 14 day advance purchase ticket 10 days before the actual flight. How should
the airline evaluate whether they should add this feature or not?

A student gets admission to a premier engineering college securing a very

high rank in the entrance test. However, his performance in the first year is very
bad and he fails in two subjects. Simultaneously, a rumor starts floating around in
the engineering college that this student cheated in the entrance test to secure
very good marks. This loss of repute for the examination procedures is putting
pressure on the Principal to quell the issue. However, some students are demanding
a high level enquiry, which would lead to a high drop in institute's reputation. What
should the Principal of the engineering college do?

New Media is an Internet Service Provider that has had two continuous years
of high profits. However, this quarter, the profits have fallen by 50%. What can be
the possible causes for this? As a group, work out an action plan to save the
company based on the causes of decline in profits.