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BUSINESS ENVRONMENT

ASSIGNMENT

SUBMITTED BY:
ARUN S
NAREN KAPOOR
PRANJAL JAIN

CONTENTS

MANSI KUMARI
1

S.NO

CONTENT

PAGE NO

INTRODUCTION

INTRODUCTION
OF CASE
POSSIBLE
SOLUTION TO
THE PROBLEM
QUESTION
DISCUSSION

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4

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INTRODUCTION

TELCO (Tata Engineering And Locomotive Company) is an Indian


multinational automotive manufacturing company headquartered in
Mumbai , Maharashtra and is a subsidiary of Tata group .
Its products include passenger cars, trucks, vans, coaches, buses,
construction equipment and military vehicles.
It is the world's 5th-largest motor vehicle manufacturing company,
fourth-largest truck manufacturer, and second-largest bus manufacturer
by volume.

INTRODUCTION TO THE CASE


(A Question of Ethics)
The case is all about the delay in the delivery schedules of TELCO
manufactured Indica in the late 90s .
The company was unable to match the overwhelming response of the
customers as they were unable to provide the timely delivery of the
vehicle to its customers.

This caused an upset amongst the customers of the vehicle that led to
posing a question for the company on the delay of the car .
There was an ethical issue involved as Subros , who were the AC kit
suppliers to TELCO , were being pressurised by the competitor ( Maruti
Suzuki ) to delay the supply of the kits .
Also, Maruti Suzuki was 50 percent Government owned,
so there was certainly a political influence as well on
Subros to make the delay in order to eliminate
competition.
TELCO was unable to handle the problem posed by the
external environment that included its competitors and
the government as well that led to the delay of the
product.
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POSSIBLE SOLUTION TO THE PROBLEM


TELCO should have contacted Voltas to supply the AC kits of the DLE
version as well along with the DLX version.
The company must have maintained good relations with other AC kit
suppliers in the market.
They should have been proactive and must have switched to other
suppliers immediately in order to eliminate the delay and retain their
customer fan base.
If TELCO would have maintained good relations with the Government,
they would certainly have been reluctant in damaging the customer base
of the company by delaying the delivery of the car.

QUESTION DISCUSSION
1. Why did TELCO land itself in the problem?
Missing of backup plan.
They must have an alternative source for the supply of AC kits.
The company did not possess a proactive nature.

2. If the allegation on the supplier is right , what will be its implications ?


If SUBROS are forced by the competitors to carry unethical means
of business, they must take action against them so that there is no
such situation in the future.
Subros will lose its customers as they will lose their reputation in
the market.

The company may incur losses due to unsatisfied customers that


may lead to closure of the company in the near future.
3. Evaluate the ethical issues involved.
The external pressure on the AC kit suppliers to delay the delivery
schedule is a highly unethical element involved.
Moreover the ownership of Government in Maruti Suzuki means
there was certainly a political pressure on the supplier to delay the
supply that may cause distrust among the population in the
Government.
Maruti Suzuki are also ought to lose its customers when they
become aware the unethical means of conducting business by the
company.
The customers might think that the product manufactured by
Maruti is not competitive , that is why they require such means to
reduce competition.
Unethical manner to reduce competition. Totally unacceptable.

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