Case I: CHEMCO CASE

Started in 1965, ChemCo is a leading manufacturer of car batteries in the U.K. market.
Since then, it has been under the charge of Mr. Jones, the founder-owner of the firm. In
1999, the company decided to go for a diversification by expanding the product line.
The new product was batteries for fork-lift trucks. At the same time, Mr. Marek was
appointed the Senior Vice President of marketing in the company. However, soon after
its successful diversification into fork-lift batteries, the sales in this segment began
dropping steadily. Mr. Marek wanted to introduce some radical changes in the
advertising and branding of the new business but the proposal was turned down by the
old-fashioned Mr. Jones.
At this juncture in 2002, the firm is losing heavily in the fork-lift batteries business and
its market share in car batteries is also on a decline. Mr. Jones has asked Mr. Marek to
show a turnaround in the company within a year. What steps should Mr. Marek take to
take the company out of its troubles?

Some of the facts on the case are:

 ChemCo is a quality leader in the U.K. car batteries market.

 Customer battery purchases in the automobile market are highly seasonal.
 The fork-lift business was added to utilize idle capacity during periods of
inactivity.
 This is a low-growth industry (1% annual growth over the last two years)
 Large customers are sophisticated and buy based on price and quality. Smaller
customers buy solely on price.
 There is a Spanish competitor in the market who offers low priced batteries of
inferior quality.

Situation Analysis:

Company

 Established player in car batteries

  Losing heavily in fork-lift truck batteries
 Old fashioned owner resistance to change

Competition

 Low priced competitors

Foreign competitors gaining market share Customers

 High quality product, but low end customers care more about price than quality

Problem Definition:

 Mismanaged product diversification in a price sensitive market

Alternatives:

 Alternative 1: Establish an Off-Brand for the fork-lift business

 Alternative 2: Educate the customer market about product quality
 Alternative 3: Exit the fork-lift battery business

Criteria for evaluation of alternatives:

 Establishing the firm's quality image

 Increase in market share
 Increase in sales
 Cost of the product

Evaluation of Alternatives:

Alternative 1

 Protect firm's quality image in the automobile industry

 Redesigned product to reduce the cost of manufacture
 Low price to enable it to compete with Spanish producer
Alternative 2

 Make use of the quality leadership in car batteries market

 Offer reliability testing, extended warranties etc. to promote quality image
 Set higher prices to extract surplus from these advantages

Alternative 3 and 4

 A passive strategy, not proactive

 Recommendations:
Alternative 1 is recommended in this case. Since the firm operates in an industry
which has low growth, hence it can expand market share and sales only by taking
the customers from other players. Hence, it needs to tackle the Spanish
competitor head-on by aggressively pricing its product. At the same time,
launching a low-priced product under the same brand name erodes the high
quality image in the car batteries market. Hence, the best option is to go for an
off-brand to target the fork-lift customers who are increasingly becoming price
sensitive. This will enable the company to ward off the threat in short-term and
build its position strongly in the long-term.
Case II: NAKAMURA LACQUER COMPANY

The Nakamura Lacquer Company (NLC) of Kyoto, Japan, employed several thousand
men and produced 500,000 pieces of lacquer tableware annually, with its
Chrysanthmum brand becoming Japan's best known and bestselling brand. The annual
profit from operations was $250,000.
The market for lacquerware in Japan seemed to have matured, with the production
steady at 500,000 pieces a year. NLC did practically no business outside Japan.
In May 2000, (much to your chagrin!) the ambitious and dynamic, Mr. Nakamura
(Chairman, NLC) received two offers from American companies wishing to sell lacquer
ware in America.
The first offer was from the National China Company. It was the largest manufacturer of
good quality dinnerware in the U.S., with their “Rose and Crown” brand accounting for
almost 30% of total sales. They were willing to give a firm order for three years for
annual purchases of 400,000 sets of lacquer dinnerware, delivered in Japan and at 5%
more than what the Japanese jobbers paid. However, Nakamura would have to forego
the Chrysanthemum trademark to “Rose and Crown” and also undertake not to sell
lacquer ware to anyone else in the U.S.
The second offer was from Sammelback, Sammelback and Whittacker (henceforth SSW),
Chicago, the largest supplier of hotel and restaurant supplies in the U.S. They perceived
a U.S. market of 600,000 sets a year, expecting it to go up to 2 million in around 5 years.
Since the Japanese government did not allow overseas investment, SSW was willing to
budget $1.5 million for the next two years towards introduction and promotion.
Nakamura would sell his “Chrysanthemum” brand but would have to give exclusive
representation to SSW for five years at standard commission rates and also forego his
profit margin toward paying back of the $ 1.5 million.

What should Mr. Nakamura do?:

Situational Analysis:

 The Nakamura Lacquer Company: The Nakamura Lacquer Company based in

Kyoto, Japan was one of the many small handicraft shops making lacquerware for
the daily table use of the Japanese people.
 Mr. Nakamura- the personality: In 1948, a young Mr. Nakamura took over his
family business. He saw an opportunity to cater to a new market of America, i.e.
GI's of the Occupation Army who had begun to buy lacquer ware as souvenirs.
However, he realized that the traditional handicraft methods were inadequate. He
was an innovator and introduced simple methods of processing and inspection
using machines. Four years later, when the Occupation Army left in 1952,
Nakamura employed several thousand men, and produced 500,000 pieces of
lacquers tableware each year for the Japanese mass consumer market. The profit
from operations was $250,000.
 The Brand: Nakamura named his brand “Chrysanthemum” after the national
flower of Japan, which showed his patriotic fervor. The brand became Japan's
best known and best selling brand, being synonymous with good quality, middle
class and dependability.
 The Market: The market for lacquerware in Japan seems to have matured, with
the production steady at 500,000 pieces a year. Nakamura did practically no
business outside of Japan. However, early in 1960, when the American interest in
Japanese products began to grow, Nakamura received two offers
 The Rose and Crown offer: The first offer was from Mr. Phil Rose, V.P Marketing
at the National China Company. They were the largest manufacturer of good
quality dinnerware in the U.S., with their “Rose and Crown” brand accounting for
almost 30% of total sales. They were willing to give a firm order for three eyes for
annual purchases of 400,000 sets of lacquer dinnerware, delivered in Japan and at
5% more than what the Japanese jobbers paid. However, Nakamura would have
to forego the Chrysanthemum trademark to “Rose and Crown” and also
undertaken to sell lacquer ware to anyone else the U.S. The offer promised
returns of $720,000 over three years (with net returns of $83,000), but with little
potential for the U.S. market on the Chrysanthemum brand beyond that period.
 The Semmelback offer: The second offer was from Mr. Walter Sammelback of
Sammelback, Sammelback and Whittacker, Chicago, the largest supplier of hotel
and restaurant supplies in the U.S. They perceived a U.S. market of 600,000 sets a
year, expecting it to go up to 2 million in around 5 years. Since the Japanese
government did not allow overseas investment, Sammelback was willing to
 budget $1.5 million. Although the offer implied negative returns of $467,000 over
the first five years, the offer had the potential to give a $1 million profit if sales
picked up as anticipated.
 Meeting the order: To meet the numbers requirement of the orders, Nakamura
would either have to expand capacity or cut down on the domestic market. If he
chose to expand capacity, the danger was of idle capacity in case the U.S. market
did not respond. If he cut down on the domestic market, the danger was of
losing out on a well-established market. Nakamura could also source part of the
supply from other vendors. However, this option would not find favor with either
of the American buyers since they had approached only Nakamura, realizing that
he was the best person to meet the order.
 Decision problem: Whether to accept any of the two offers and if yes, which one
of the two and under what terms of conditions?

Objectives:
Short Term:

 To expand into the U.S. market.

 To maintain and build upon their reputation of the “Chrysanthemum” brand

Long term:

 To increase profit volumes by tapping the U.S. market and as a result, increasing
scale of operations.
 To increase its share in the U.S. lacquerware market.

Criteria: (In descending order of priority):

 Profit Maximization criterion: The most important criterion in the long run is

profit maximization.
 Risk criterion: Since the demand in the U.S. market is not as much as in Japan.
  Brand identity criterion: Nakamura has painstakingly built up a brand name in
Japan. It is desirable for him to compete in the U.S. market under the same brand
name
 Flexibility criterion: The chosen option should offer Nakamura flexibility in
maneuvering the terms and conditions to his advantage. Additionally, Nakamura
should have bargaining power at the time of renewal of the contract.
 Short term returns: Nakamura should receive some returns on the investment
he makes on the new offers.However, this criterion may be compromised in favor
of profit maximization in the long run.?

Options:

 Reject both: React both the offers and concentrate on the domestic market
 Accept RC offer: Accept the Rose and Crown offer and supply the offer by cutting
down on supplies to the domestic market or through capacity expansion or both
 Accept SSW: offer; accept the SSW offer and meet it through cutting down on
supply to the domestic market or through capacity expansion or both. Negotiate
term of supply.M

Evaluation of Options:

 Reject both: This option would not meet the primary criterion of profit
maximization. Further, the objective of growth would also not be met. Hence, this
option is rejected.
 Accept RC offer: The RC offer would assure net returns of $283,000 over the
next three yeas. It also assures regular returns of $240,000 per year. However,
Nakamura would have no presence in the U.S. with its Chrysanthemum brand
name The RC offer would entail capacity expansion, as it would not be possible to
siphon of 275,000 pieces from the domestic market over three years without
adversely affecting operations there. At the end of three years, Nakamura would
have little bargaining power with RC as it would have an excess capacity of
275,000 pieces and excess labor which it would want to utilize. In this sense the
offer is risky. Further, the offer is not flexible. Long-term profit maximization is
 uncertain in this case a condition that can be controlled in the SSW offer. Hence,
this offer is rejected.
 Accept SSW offer: The SSW offer does not assure a firm order or any returns for
the period of contract. Although, in its present form the offer is risky if the market
in the U.S. does not pick up as expected, the offer is flexible. If Nakamura were to
exhibit caution initially by supplying only 300,000 instead of the anticipated
600,000 pieces, it could siphon off the 175,000 required from the domestic
market. If demand exists in the U.S., the capacity can be expanded. With this
offer, risk is minimized. Further, it would be competing on its own brand name.
Distribution would be taken care of and long-term profit maximization criterion
would be satisfied as this option has the potential of $1 million in profits per year.
At the time of renewal of the contract, Nakamura would have immense
bargaining power.

Recommendations:

 Negotiate terms of offer with SSW: The terms would be that NLC would supply
300,000 pieces in the first year. If market demand exists, NLC should expand
capacity to provide the expected demand.
 Action Plan: In the first phase, NLC would supply SSW with 300,000 pieces.
125,000 of these would be obtained by utilizing excess capacity, while the
remaining would be obtained from the domestic market. If the expected demand
for lacquer ware exists in the U.S., NLC would expand capacity to meet the
expected demand. The debt incurred would be paid off by the fifth year.
 Contingency Plan: In case the demand is not as expected in the first year, NLC
should not service the U.S. market and instead concentrate on increasing
penetration in the domestic market.
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 he 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. Secret Keeper, 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 organisation have started
losing faith in him. A senior person in the office complains to the VP that the Mr. Secret
Keeper 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?

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 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-à-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?

Example 1(Based on XLRI exam):

Marathe is a Vice President in a construction equipment company in the city of Mumbai. One day, his

subordinate Bhonsle requested that Kale, a project manager, be transferred to the Chennai office

from the Mumbai office. In Chennai, Kale would work alone as a researcher. Bhonsle gave the

following reasons for his request: “Kale is known to frequently fight with his colleagues. Kale is

conscientious and dedicated only when working alone. He is friendly with seniors, but refuses to work
with colleagues, in a team. He cannot accept criticism and feels hostile and rejected. He is over-

bearing and is generally a bad influence on the team”

Marathe called upon Gore, another project manager, and sought further information on Kale. Gore

recalled that a former colleague, Lakhote (who was also Kale’s former boss) had made a few remarks

on his appraisal report about Kale. In his opinion, Kale was not fit for further promotion as he was

emotionally unstable to work in groups though he had seven years of work experience. Lakhote had

described Kale as too authoritative to work under anyone. Lakhote had further told Gore that Kale

had an ailing wife, and an old mother, who does not want to stay with his wife.

Example 2 (Based on Case study at IIM Indore):

In a company C, a woman is facing some problem as she is the only working member in her home.

She takes frequent leaves and is quite insincere in her work. She is not able to deliver quality in her

work. Her husband is idle and does not support her and asks her to continue her job. She does

kitchen work, takes care of her kids and also works in the office. You are the manager of this

company, so how will you solve her problem.

Example 3 (Based on case study at IIM Indore):

Rameshwar has been working with ABC Co. Ltd. for the last five years and has been rated as one of

the efficient workers on the job. One day he is caught with a small value stolen item while leaving the

duty. The management is in a predicament. What should it do?

Example 4 (Based on caselet in IIM Ahmedabad):

A handicraft company is suffering heavy losses and its sales have dipped substantially. You are the

head of the team and have to discuss various reasons for the same. The team is also supposed to

suggest possible solution to the identified problems.

Example 5 (Based on XLRI exam):

It was the end of performance review cycle for the year 2012 when you asked your subordinates

about any problems they were facing. One of your subordinates named Natrajan told you that an

important member of his team, Vardarajan, who had also won the best performance award for the

year 2011, was not taking interest in work. Despite Natrajan's counseling, no change was noticed in

Vardarajan, rather his attitude deteriorated. You had also received such information from other

employees. You had not interfered hoping that Natrajan, an experienced hand, would be able to solve

the problem. But now that Natrajan himself brought this to your notice, you are supposed to solve it.

Q. What solution do you suggest with the appropriate course of action?