AFTERSCHOOOL

CENTRE FOR SOCIAL ENTREPRENEURSHIP

S IVA KAMU V E TE R IN A RY HOS P I TAL ROAD
BIKAER 334001
W W W. A F T E R S C H O O O L . T K

S M AL L C AS E S T UD I E S
ON
E N T RE P RE N E U RS H I P
BO O K NO. 4
CASE STUDIES FOR THE STUDENTS OF
SOCIAL ETREPRENEURSHIP

PREPARED BY : DR. T.K. JAIN

HONORARY CHIEF MENTOR, AFTERSCHOOOL
© : AFTERSCHOOL CAREER GUIDANCE TRUST.

NOTE : THE PURPOSE OF THIS CASE STUDY IS NOT TO SHOW THE RIGHT OR
WRONG METHOD OF DOING SOMETHING. THE CONTENTS OF THESE CASE
STUDIES ARE HYPOTHETICAL AND THEIR SIMILARITIES TO SOMETHING REAL
IS BY CHANCE. THE PURPOSE OF THESE CASE STUDIES IS TO PROMOTE
ACADEMIC DISCUSSION AMONG PGPSE PARTICIPANTS OF AFTERSCHOOOL.
PGPSE IS THE PROGRAMME TO PROMOTE SOCIAL ENTREPRENEURSHIP THIS
PROGRAMME IS AVAILABLE FREE OF COST FOR ANY PERSON WHO WANTS TO
PLAY AN IMPACT MAKING ROLE IN SOCIAL TRANSFORMATION.
 Small Business Cases
TABLE OF CONTENTS

( R E A D A S P E R P G P S E P R O G R A M M E S Y L L A B US )

1. Achievemnt Motivation Training

2. Fight for the right to information
3. Mahipal’s dilemma
4. Goti’s Aatta Chakki
5. Job Designing
6. GD on Reliance Retail
7. Product Positioning
8. Bothra & co.
9. bhanwarlal Bus Designer
10.Bangalore Movement
11.Worldgo
12.P&G v/s HUL
13.Board meeting of an NGO
 ACHIEVEMENT MOTIVATION TRAINING

Being euphoric is always good as you can change the people. Ask
people for positive dreams and create positive dreams in the minds of
people and see how people reach there. People reach the limits of their
dreams. When there are no dreams, there are no achievements. Great
achievements take place in a row as people start thinking about
dreams and ideas. When there is one invention, there are a series of
inventions. When there is one discovery, there are a series of
discoveries. The world is created by fantasies and we have to shape
these fantasies. Religious leaders are able to create a society greater
than what we are able to fabricate, because they are able to create a
god and that god makes people work in a direction. The world consists
of herds – as 90 percent people move in herd mentality. You can create
a few leaders – if you can. These are the leaders who can transform
the world. Vivekanand asserted that he needs only 100 leaders to
change the whole world. You can also see similar instances in the
world. Atrocities and troubles add to the fuels for achievements.
Wherever, we had atrocities, troubles and challenges, the real mettle
inside the persons rose up and gave a true testimony of infinite
capability that people possess. Look at Jews, when Hitler crushed
them, they rose to even greater heights by showing their talents in
varied field. Look at refugees all over the world. Refugees create great
entrepreneurs and extraordinary workers wherever they go.

The world consists of two types of persons – one intrinsic – who believe
in self and create their own world. They believe in their dreams and
actualize these dreams.
The second types of persons are extrinsic – they believe in fate or God
or other such things and fail to do anything on their own. They keep on
praying – but not actually doing anything. Do your duty – the
statement that every religion tells you – because even religious leaders
know that if every person becomes extrinsic, there will be no
entrepreneurs or leaders.

Mr. Verma was a born intrinsic. He used to shout at the persons

who used to sit idle and wait for luck to unfold. He was a staunch
supporter and follower of Kabir. Mr. Verma used to exert persons
to do something on their own. He started a business consultancy
firm. He used to give 4 advices to every person:
1. start small
2. start with big dreams

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3. start early – no point in waiting – you learn more by

doing
4. Start with others – those who work in groups learn faster
than those who do it alone.

He went to Morbi district in Gujarat and talked to many unemployed

youth in the city. His ideas worked and people decided to do
something. These persons were encouraged by possibilities of rising
industrial demand and low production in India. Huge demand and lack
of availability of products created an opportunity for entrepreneurship.
A group of 19 volunteers visited Bikaner on request by Mr. Verma and
vested ceramics units in Bikaner. Each of these persons contributed
Rs. 1 lakh and thus they started a new unit in Morbi. They had no loan
(at that time there was no scheme from government and it was not
easy to take loan from the government). Each of these persons took
different role – one person was accountant, one person was marketing
officer and other persons also took similar roles. Soon their business
took off.

Taking lessons from the entrepreneurs of Bikaner, these entrepreneurs

didn’t depend on government support, but worked hard to innovate in
terms of quality, production facilities and creativity. They were all
moderately educated, religious persons, who became intrinsic persons
in contact with Mr. Verma. Now each of them had only one dream and
one goal – to be number one in the country in ceramics. They started
making glazed tiles and started competing with leaders like Somany,
etc. Soon there were many other groups of youth, who jumped in
business with similar ideas. These youth were bubbling with energy
and ideas. The business in Morbi started creating pulses across the
country. Morbi was soon the hub of the country in ceramics. In 2008
Morbi was making 80% of the entire country;s production. Morbi has
production base as high as 5000 tonnes per day. Now the government
of Gujarat was also after them to give them full support.

Truly luck favours them, who follow their own ideals.

Morbi success story completely changed the scenario of life for many
people and made them billionairs.

The challenge is however with Mr. Verma. He finds that people in other
cities didn’t pick up his ideas. He preached the same ideas to every
person, but in Morbi, people picked up. In other cities, people still rely

LET US CHANGE THE WORLD

on luck, fate and other similar things. Mr. Verma wants to know from
you as to how to create true entrepreneurial spirit, how to create
achievement motivation and how to really create a true burning desire
for success? e

FIGHT FOR THE RIGHT TO INFORMATION

This is the story about how she took the fight to the ultimate level and
ultimately won the battle. She had seen public systems. She had seen how
poor people face the problems while working with government departments.
She had seen how government departments were working in India. She was
convinced that in order to revamp the system, massive changes were
required in public institutions. She had seen that were ever government
departments were transparent and working in open environment, there was
less corruption and real developmental work could take place.

There were three important challenges:

1. raise voice for transparency in government bodies
2. raise the system of governance and improve the working of
public systems
3. Raise public voice and unite people against the inefficient
government institutions.
In her strategy for achieving these goals, she decided to raise public
opinion and use political pressure for achieving the objectives. She wrote
articles on these issues, which were published by daily newspapers. She
gave speeches on these issues and these speeches helped her in raising
the public opinion. Brining any new idea to public is not very easy task.
People generally don’t accept new ideas, even if they are in their favour.
People don’t support for radical moves. She didn’t receive the kind of
support that she deserved. She relentlessly pursued her objectives. She
traveled from place to place and talked with civil society workers, MPs,

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MLAs, local representatives and media for raising voice for greater
transparency and greater accountability in government bodies.

In one such travel, she came down to Bikaner and organized a programme
at a well known NGO, in which public came to listen to her. She raises her
demands and asked for the rights of people regarding information from
the public bodies.

When she had started the move, most people were not convinced about
the programme. Those who had working in government departments,
reacted that it would never happen. Some government officials were
skeptical about her moves and said these steps would be misused by
people.

She however, continued her efforts and was able to gather a group of
supporters all over India. All of them collectively were raising demand at
national and international demand for transparency in government
departments. World over, there was a demand for transparency and
accountability in government bodies.

Ultimately she succeeded and government of India enacted a new law –

the right to information act 2005. This was a big victory for concerted
initiatives by the NGOs.

Analyze the impacts of these moves over a period of time. What are other
such sectors, where you can raise public opinion and bring dramatic
change in our environment? Think over the issues confronting common
persons and think about different possibilities that exists regarding these
matters. Explore these matters and also suggest your priorities and your
course of action for bringing about a change in public policies.

LET US CHANGE THE WORLD

 MAHIPAL’S DILEMMA

Mahipal was little bit confused about different business possibilities

that existed before him. He wanted to take up a business in his home
town, but options created problems as he was not sure which option to
go for. You are requested to help him out in picking up the right
options:

1. There are 250 Plaster of Paris (PoP) units in Bikaner – each

producing 15 tones of PoP every day – there is huge
demand and the product sells like a commodity. With likely
boom in construction industry, this industry will have a
golden time in the years to come. In this sector, Mahipal can
sell goods all over India. Out of 250 units, no unit has been
able to establish brand or differentiation. No unit is able to

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claim high quality orientation. No unit is able to differentiate

or work as massive production level. If mahipal can
establish brand and go for mass production, the profit
possibilities are huge. There are immense profit
possibilities. If Mahipal can only capture the market of NCR
(Delhi and surrounding regions), he can easily sell 20 Tones
per day at a margin of 40% against cash payments. Thus
there are minimum risks and maximum profitability. This
business doesn’t require any specialized inputs. Workers are
available from Bihar, who come and work on contract basis.
The contractor takes all the responsibilities regarding work
and is paid as per work. What is required is a focus on
marketing. It involves industrial marketing – as the goods
have to be sold to big contractors, large scale
manufacturers etc. it all requires skills in negotiation,
presentation and quality assurance. Mahipal believes that
he can delivers all these and reach upto the levels of top
scale.

2. the second business possibility is regarding food items.

Over 2 lakhs KG of food items like Bhujia, Papad etc. is
produced in Bikaner, but the demand is huge. Bikaner name
itself is sufficient to create confidence in the minds of
people. Bikaji is the only player from Bikaner, which has
been able to establish brand and positioning. Hahipal can
also think in these lines and go for this business. With
aggressive marketing and huge potential, he can easily
achieve huge volumes with at least 25% margins.

3. third business possibility is regarding art craft and jewellery.

These are the things which are sold for their aesthetic value
and for their unique appeal. They are sold at premium
prices, if they are rare. Bikaner has many such artists who
can produce virtually rare products, which can never be
duplicated. These products can then be sold to the elite
class of the world at prices beyond imagination. If properly
marketed and exhibited, mahipal can have margins as high
as 1000% per piece. But here volumes will not be much.
Further, it will require extensive traveling, and very high
level of expertise in marketing. Mahipal has the capability to
use his connections across the globe for organisng displays
and exhibitions in the finest display centres in the world.

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 4. The forth business possibility is in the insulator business.
Bikaner is world’s leader in insulator producing small towns.
Bikaner alone produces 40% insulators produced in India. Its
unique strengths are inavailabiliiy of raw material and skills
here. There are 40 units in Bikaner, which are making
insulators. However, none of the unit has been able to
become a global player as yet. None of these units has been
able to establish a powerful institutional marketing /
industrial marketing network. None of these units has been
able to exploit the huge potential of large scale production
at lower costs. None of the units has been able to negotiate
with the government for confessional facilities due to scales
of operations.

Mahipal is little bit confused out of all these possibilities. He believes

that he has to take up a business, which can continue for a long time
without competition and which has scalability (which can be increased
in volume to infinite limits). Mahipal has 10etrusted friends, each of
whom is willing to invest between 2 to 10 lakhs rupees and each of
these is willing to work with Mahipal in his business. Thus there is no
need to look for employees or loans. Mahipal is sure about business
acumen and capability of these 10 persons and he believes that
working in a team, he can truly establish a worldclass business.

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GOTI’S AATTA CHAKKI

Goti is planning to start manufacture of Aatta-Chakki. In order to

finalise his marketing plan, he organizes a brainstorming session
among marketing professionals. The discussion is as under :

Vipin: we should target market lower middle class and we should

highlight the quality (functional value) of the product. In our
advertisement, we can show a lady from middle class using this Aata
Chakki. There is a huge middle class in India, and this will be our target
market. Ladies from upper class are never going to use this product.
Ladies in middle class and lower middle class want to save money and
they are also willing to give good quality food at their home, so they
will go for it.

Dhairya : “I belive that this product should be abandoned. Life style is

changing. People are no longer getting time to cook food and eat it at
their home. They eat junk food / ready to eat food. Thus this product
will be flop. There is no point in marketing Aata chakki. If you want to
sell, then make a new machine which can make pizza in a few seconds
or which can make chow-min in a few seconds. So throw away all these
plans in dustbins.

Ankit : “No it is not so, we still have a lot of scope in the market. We
had carried out a survey and found that out of 100 ladies, 80 are
interested in buying a good Aata chhakki. There is no big player in the
market. We will be able to establish our brand. We can market our
product well. In fact, we don’t have any fixed costs also. We are
getting our products made in Rajkot and putting our logo and brand on
the product and sell it out. We can also modify the product as per the
change the taste of the product.
Gautam : “ask fundamental question – why should a person buy this
product? What is the functional or emotional benefit that you are
offering to that person. It is not going to be a status symbol product, so
why should a person be prepared to pay for this.”
Ravina : “I think we should have a systematic market survey and test
marketing before we launch this product. There must be some reason
why big companies are not making Atta Chhakis”.

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Goti is little bit confused now. What should he do and how ? Can you
prepare a marketing plan for Goti?

JOB DESIGNING

Can job designing really contribute? Can we really have interesting and
fruitful jobs. Can we really have jobs, which can help persons in
achieving their personal goals and organizational goals? Job designing
is challenging and interesting aspect.

Companies are designing jobs in such a way that jobs really become
interesting and challenging. People spend 80% of their most
constructive time working in the companies and therefore jobs must be
interesting, challenging, and making it meaningful. People want to
work hard and progress. Jobs give the people the opportunity to learn,
grow and show their capabilities. Thus if people are not working, it is
due to lack of proper job contents / job designing. Thus we need to
have better job designs.

Take HP for example. The chairman of HP Lew Platt suffered a tragedy.

His wife died and he had to look after his two daughters. He realized
some lessons out of it. The job designing process in HP was completely
changed due to this. In late 80s and 90s, Lew Platt forced the HR
department to change the job designs. Instead of rigit job designs, HP
had adopted flexible and convenient work designs. Workers were
permitted to adopt part time work structure or flexible timings. Earlier,
HP had very high employee turnover rate. After job designing
exercises, employee turnover stopped. Workers didn’t resign any
more. Women workers were the most beneficiaries. Women workers
could not have greater flexibility regarding managing their homes. Lew
Platt realized it when he himself had to look after his family. Thus
sometimes tragedies also contribute to something good. HP now has a
very people friendly HR Policies, employees are given freedom to work
as per their schedule. Some workers can work together as team and
divide their work among themselves. For example in HP, two female

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executives Elva and Maria work together – 3 days each in a week and
share their salaries by dividing it between them. They together have
50 hours of work in a week. This helps them to help each others. They
can also look after their family responsibilities. There are many male
workers also who take 4 day week - in order to shoulder their family
responsibilities on the other 3 days.

The ultimate purpose of the organization is to give people an

opportunity to have better life, better working conditions and better
opportunities to grow. CMC in India understands this. CMC tries to give
its workers flexible timings. Workers can schedule their work timings
as per their personal and organizational commitments. CMC also takes
care of some personal responsibilities of the workers – for example for
booking of Gas, the employee has to inform it in the office and
someone from the office will do it on behalf of the employee.

Organizations are also realizing the power of teamwork. M&M has

started group work systems. Workers are grouped in self managed
teams where workers are grouped together in self managed teams and
the workers are given the freedom to manager their work. They can
schedule it also.

Thus we see many such cases where organizations are able to benefit
from job designing.
Should we have time flexibility and should have complete freedom to
the worker?

Can we really reduce employee turnover rate by job designing?

How can we add elements of recognition, autonomy, flexibility,

feedback, growth in each job? What are the limitations in such
initiatives?

Can you identify the issues which would be critical issues in job
designing?

LET US CHANGE THE WORLD

 GD ON RELIANCE RETAIL

It is the seen of a heated discussion about foray of Reliance group in

retail segment. The scene is that of AFTERSCHOOOL discussion hall,
where everyone is excited about Reliance group. Everyone loves
reliance group, therefore they are all emotionally charged.

Ajay: “India is the world’s fastest growing market. Everyone knows that
Indian retail industry is worth $350 billion and everyone of us knows
that this is a big industry. Reliance should naturally enter into this
field.”
Sudha : “I believe that Reliance should not enter into this field. It is
risky. There is no merit in entry into retail segment. Reliance should
continue to expand in its traditional stronghold segments like oil
exploration, petrochemicals, chemical, textiles, and other related
business segments. You all know that Reliance is world’s largest
manufacturer of Polyester and it should take advantage of this.

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Reliance should try to become world’s largest oil company in the years
to come.”

Monika: “I believe that Reliance should enter into this business

segment. You must be aware that Reliance is planning to open over
1500 procurement centres called reliance mandies. These mandis will
change life of farmers. These mandies will enable the farmers to have
better life. We all know that farmers are the backbone of our country
and thus reliance’s new venture is for the benefit of our country.
Further Reliance has state of the art logistics management set up. It
will use Airplane in moving goods from one place to another. It already
has 40 fleet of cargo planes. The mentality of people is changing. They
don’t have time. They want to go to a retail store where everything is
available in one shop. The customers will get benefit and the company
will also get benefit. Reliance will add jobs to India.”

Pankaj: “Reliance should definitely enter into retail segment. This is

one of the fastest growing segments in our country. Retail segment is
growing @ 10% per annum. Further, due to change in life style, middle
class is switching over from unorganized kirana stores to organized
hyper marts. Thus reliance will benefit out of this change in the
lifestyle of the people. Reliance should try to take advantages out of
this.”
Ajay: “I again assert that this will be disastrous. Reliance is having
surplus cash inflows of $2.5 billion every year, while cash flows
required for retail segments would be over $5 billion per annum, where
will this money come from? Reliance should focus on infrastructure and
construction segments – if it wants to diversify. Instead of this model, it
should go for e-commerce model only. People can buy from their
home.”

Pratibha: “Reliance should enter into basic sectors like infrastructure

etc. this will benefit our country.”
Swati: “I firmly belive that this is a good move. In vegetables and food
industry, there are 50% losses in transportation and storage only.
Reliance will be able to save this by efficient system of logistics and
transportation management. I believe that Reliance will be having
huge margins even if it sells less than the market prices. Reliance will
have huge margins in other sectors like apparels, FMCG, etc. Reliance
has a big name and it will achieve lower cost of operations.”

Priyank : “I have heard that reliance is building over 100 million sq.
feet of retail space in India, which will be the 3rd in the world much

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higher than the space of many large retail companies like Carrefour,
toys4u etc. thus Reliance will soon be able to become a large global
retail company. Brand of reliance does matter. People will buy
mangoes – if it is written Reliance Mango. However, if it is not able to
maintain quality, reliance will face problem. Further reliance is also
setting up ecommerce setup, which will make it similar to Wal-Mart
etc. and it will be albe to capture ecommerce business in India, which
is going to increase manifold in India. However, I believe that Reliance
should also focus on what it is doing. It will not be able to maintain
quality in every business segment. It is also starting cultivation of
Alfenso mangoes in Maharastra. How ill it retain its quality focus? It is
not necessary that if a firm succeeds in one industry, it will succeed in
other segments also. ”

Vivek: “ I have read in portfolio management that every company

should divert its funds from cash cow segment to question marks and
stars. Reliance is one such example. Further, in case of reliance, we do
find that reliance is also following upper echelon theory of
management. Mukesh Ambani himself worked day and night and made
reliance refinery in record time of 2 months and at very low cost.
Mukesh Ambani has the charisma which makes him a unique and a
great entrepreneur. He has the capability to bring profit from every
business. Further, this company follows social conditioning theory as
all the employees are working for a long time and they have created
common values. Most of the employees are known to Ambani family
and they are not going to quit the company. They are big asset of the
company. Thus this company can take up any venture and it will
succeed.”

Ajay : “I reiterate, business is not done from emotions. Once MNCs are
permitted, they will enter into India and reliance will find it difficult to
survive in competition to them. Reliance should think over. It is
acquiring land and properties all over India and it is opening over
10000 retail outlets in over 784 cities. It is going at a large scale. I am
doubtful whether it is economically viable or not. It should remember
that in India, unorganized sector will prevail. No one can compete with
them. They avoid taxes and they are able to sell lower. Reliance will
also be paying huge amount as land prices or rents. Thus it is not a
very profitable venture. Do reconsider your views and reconsider your
ideas.”

Dhaval: “I believe that Reliance is the type of growth model that we

look for. They have identified a market segment, where there is a
vacuum and reliance can easily fill this vacuum. Reliance will be able
to use its model : from farmers to customer – in profitable manner.”

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Jitendra: “Retail industry has many business formats – like hyper

marts, discounters, factory outlets, specialty stores etc. Reliance is
using a mix of these – particularly hyper marts and departmental
stores. Its business model is really nice. I like its business model. I
believe that it will be able to survive and grow. By 2011 it will be able
to reach 1/6 of India’s 100 billion populations and will be able to give
jobs to over 2 million people. Thus this is going to be good for Indian
society also. Certainly, the small Kirana walas (we have over 12 million
Kirana walas) and vegetable vendors will face some problems. We
should think about some options for them.”

Whose ideas do you like the most and why?

LET US CHANGE THE WORLD

 PRODUCT POSITIONING

Ajay had set up a tractor company. He imported Chinese components and

assembles them and sold out tractors in India. His brand was FIELDFORCE. He
popularized his brands through village fairs, trade displays, exhibitions in
fairs etc. He didn’t give any advertisement, but he used to organize Kushti
competitions in villages. He sponsored a national Kushti competition, which
was telecast on TV also. Ajay believed that his customers were farmers, so he
needed to reach the farmers. He wanted to match the expectations of the
farmers. Ajay also used a mascot as his logo. The mascot displayed an
elephant. Ajay symbolized power, rough and tough tractors through his
publicity media.

However, Ajay realized that the sales were not coming up. Ajay hired an
advertisement and media company to give suggestion. The company gave a
presentation that the sale of tractors in India had reached a maturity level. As
per the media company, farmers in India no longer buy small tractors (which
Ajay was selling). The media company suggested Ajay to switch over to big
tractors. Ajay said to them that it was not possible for him to switch over to
higher horse power tractors. Ajay this time asked a student from MBA to
prepare a dissertation report on new products to launch. Ajay asked her to
prepare a report and identity business segments with very high growth
potential, high growth rate and future scope. The student suggested to Ajay
to launch a moped for college girls. At that time there was only one brand of
moped available. Ajay realized that there was great scope in this business.
This was the product, which would sell in huge number. Its market segment
was well defined. Its target customers were increasing in number. There was
not much competition. The existing producer was neither making a moped
which neither had style nor performance (as per Ajay).

Ajay launched the moped for college girls. This moped was launched with his
existing brandname (as the brand was already popular). The advertising
agency of Ajay got agonized on this. They said that perception of people

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about the brand was that of rugged product. The said that product must be
positioned appropriately. They suggested that Ajay should carefully design an
appropriate brand personality and then launch a new brand. Ajay however,
was adamant. He wanted the existing brand to be used. He said that our
brand can be modified as per the new situation. He suggested that instead of
Kushti, now he will sponsor some other events that will attract the attention
of college girls.

Ajay believed that every product passes through four stages: 1. introduction,
2. growth 3. Maturity, 4. Decline. Ajay believed that his product was in
introduction stage and there was lot of scope in the future.

You are requested to prepare appropriate strategy for Ajay.

BOTHRA & COMPANY

Bothra & Co. is a famous law firm in Bikaner. They specialize in

taxation and related matters. In order to expand their business, they
have decided to open offices in other cities also. They have decided to
recruit people for other cities. In a hurry 30 persons were recruited.
The firm does not have any departmentation. There are just 3 persons
at present and now there are 33 persons. These 30 persons were given
a quick orientation programme in which the new employees were
given following information:
1. Brief history of their company
2. narration of the achievement of the company
2. brief description of the work to be performed
3. Brief narration of the legal processes involved.
4. Description of the core values of the organization – like
honesty in dealing with clients etc.

All these new recruits were law graduates with at least 3 years
experience. Now they were positioned in different locations. These
persons started working in different locations. Bothra & company
was able to get lots of customers in different locations. Most of

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 these customers were those who had taken services of this firm at
some or other time or they were branch offices of the main firm
which was taking services of this firm.

However, in the next one year 50% employees resigned from their
positions. It was realized that these people didn’t leave due to
salary reasons. These people were also not dissatisfied due to the
policies of the company. However, there was a lack of system in the
organization. Most of these people were not able to take decisions.
They didn’t know how to proceed. There was also a lack of HR policy
in the company. The company also didn’t have thorough training for
these persons. These persons were not competent to handle
difficult issues on their own. They were not able to resolve the
matter and found lack of confidence in handling tricky issues.

The performance of other branches was also poor. The organization

had to move forward, but the real question was how to start and
grow the organization. The growth of the organization could be
possible only when we can be sure that everyone in the
organization is knowledge driven, learning focused and capability
oriented. The firm is sure that it is the time it has to grow and
expand and slowly become a global company. The company is
confident about its values, and its core competency. It still needs
guidance about how to expand the business. Can you really shape a
business model for this firm?

BHANWARLAL BUS DESIGNER

When Sony Company was started, it was a small company. It was just a
repairing company. The company was able to grow, only due to
innovations and innovations. This company launched small radio for
the first time in the world. This company also launched Walkman for
the first time in the world. This company also introduced many
electronic products for the first time in the world. Due to its ability to
introduce innovative products at lower cost, this company became
market leader.

Sony was also the first Japanese company to be listed on New York
Exchange. It was also the first Japanese company to have made

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aggressive growth by inorganic growth through acquisitions in the USA.

It acquired Columbia Pictures and many other companies in the USA.

Sony word is derived from a Latin word, which means sound. Thus
Sony had a very clear vision to be in the sounds sector. When there is
sound, there is Sony – be it radio, or walkman, or anything else.

However, later Sony also entered into camera products. Its camera
products were also very successful. From a small repairing shop to a
giant MNC – the growth is amazing.
Chhabaria is known for car designing in India. Chhabaria prepares car
bodies and sells it. The cars designed by Chhabaria are considered
very premium products. They command premium prices. Chhabaria
designs beautiful and comfortable cars. They only design the body of
the car (retaining the engine of the original car).

Now we come to Bhanwarlal. Mr. Bhanwarlal is basically a carpenter

from village Bhamatsar near Nokha village in Bikaner. He changed
many professions (from carpenter to electrician to mechanic) before he
jumped into Bus body designing. He has heard about Chhabarias.
Chhabaria is known for car designing. Bhanwarlal is known for Truck
and Bus body designing. He designs trucks and bus body and prepares
it and sells it. He has set up plant with machines from Rajkot and now
operates it to prepare about 30 trucks / Buses every month. He is able
to establish his identity among travel companies of North –Western
India so that he gets some orders always. He has converted his small
farm house into a factory, where there is some or other work going on
constantly.

His total investment in plant and machinery is about Rs. 20 lakhs. He

has 6 assistants with him, who assist him in his task. At any time, you
can find 10 to 20 buses under preparation with him. He is able to save
between 5000 to 30000 per body.

Is there any way that Bhanwarlal can also grow to the heights of Sony
or the heights of Chhabaria? What is the difference in business models
of Chhabaria and Sony, which model is better for Bhanwarlal and why?

LET US CHANGE THE WORLD

 BANGALORE MOVEMENT

It all started when I was doing my doctoral research. I went to

Bangalore municipality to collect their financial data. I requested them
to provide last year’s balance sheet. I was asked to come next day. I
visited the next day – and kept on visiting the department – but for no
use. I was totally tired of my usual visits to the Municipality. One Day

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while was sipping a cup of tea and gossiping with a person outside the
municipality, I came to know that the Municipality was in shambles and
had not prepared balance sheets for last 4 years. Their system of
accounting was in very poor condition. I didn’t know about my research
work (which was on budgeting and financial planning in Bangalore
Municipality) but now I had a new plan buzzing in my mind. Why not do
something to rectify the situation. I could see a better picture of
Bangalore municipality in my dreams. I decided to raise voice against
the systems.

Meanwhile I heard about movements by Aruna Roy. She was asking for
information from the government departments and transparency in
government department. I decided to go for this direction. I organized
a meeting of activists and civil society volunteers. We decided to raise
our collective voice against the prevailing system in Bangalore
Municipality. When we submitted our application to the Bangalore
Municipality, we were told that all over India same situation exists. We
were told that we should know that government departments don’t
work like private organizations. The work takes place at its own
systems.

We approached the chief minister and other ministers with our

request. We also submitted our copies to local media and other
international bodies which were having their offices in Bangalore.

International Budget Project gave us a favorable response and agreed

to sponsor our campaign for transparency. They agreed to support us if
we organize a campaign to bring transparency in governance. Our
efforts were now better organized. With support from International
Budget Project, we organized many seminars and conferences to
discuss transparency in governance and particularly in Bangalore
Municipality.

I also approached one leading IT company of the city. This was also
global leader in system implementation. This company agreed that if
Bangalore Municipality wants, they can implement latest information
system in Bangalore Municipality at very low prices. I presented this to
the chief minister.

The chief minister was also annoyed with continuous media reports
regarding Bangalore municipality. He got the chairman, director and
dy. Director of Bangalore municipality transferred. Now there was a
new head. The new head was willing to do something.

LET US CHANGE THE WORLD

Our group again met with the new head and requested that we wanted
better information system in Bangalore municipality. This time we got
better response. A committee was constituted to improve the system.

Next 6 months witness massive changes in the Bangalore Municipality.

Our movement is now in golden words in the history of organized
initiatives for better governance. Our efforts culminated in a series of
changes. Bangalore Municipality is now one of the best Municipalities
in India. It is having best information systems in place. You can retrieve
information about latest situation. The result is a series of changes in
other municipalities. Subsequent to this, other municipalities also
started implementing organizational restructuring and development
initiatives.

These changes have resulted in a series of initiatives for improvement

in public systems.

We wish that these initiatives should be taken by other concerned

citizens also. Our initiatives will go a long way in improving public
systems in our country.

Ahmedabad Municipality took huge leaps subsequent to us. They even

went for public issues and revamped their systems.

Thus we can say that people still have power in our system and the
system of governance can be revamped.

Questions:
Looking at the above case, do you think that there is a need of
organized movement throughout the country for revamping public
systems in our country?

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P&G V/S HUL

P & G is known for its marketing skills. it has introduced many new
products
In the last few decades, it has a few basic strategies:

Multi branding: it introduces 2-3 brands in the same product

category. Each brand is targeted to a particular class of customers.
For example, in laundry category it has introduced Arial and Tide -
one for upper middle class and one for lower middle class. Both
products are having different psychological connotations and
perceptual spaces.

Category extension: it introduces a product in one category and

then launches another category of products in that brand. Take for
example Old spice. From shaving cream to a number of other
products like deodorants etc.

In some way P & G is in direct competition with HUL. Both the

companies are having similar strategies. Both the companies are
now having similar battle grounds.

When you look at Surf, you have Arial fighting with it. When you look
at wheel, you have tide fighting against it. There are product against
product - for each of the product, they have come up with different
products.

Both the companies are having extensive advertising budgets,

extensive promotions and brand building. Both the companies are
having extensive sales force to supplement their marketing efforts.

P & G has now realized that HUL is very aggressive in its rural
marketing front. HUL has been able to create a wide spread

LET US CHANGE THE WORLD

distribution network in rural areas. You go in any village; you can
find products like rin (product of HUL). Thus the challenge for P & G
is take the battle beyond marketing and do something more
important.

People across the country are today having a favorable image

towards HUL and P&G is comparatively less known. P & G has
established its brands world over as very quality driven, socially
responsible and accountable company. Its brand values have been
so powerful that while other companies are increasing their sales
promotion campaigns, P & G is continuously reducing its sales
Promotions campaigns. It is now establishing its networking with
companies like Wal-Mart and introducing schemes like everyday low
prices (rather than sales promotions).

P& G has now launched Shiksha project in India - the project which
will enable this company to fulfill its social commitment. Earnings
from the sale of the products will go towards Shiksha project. Thus
consumers will also be happy that by using P & G products, they are
able to contribute to nation building. P & G has extensively
marketed its Shiksha project all over India. At retails outlets, you can
find details of different brands of P & G and Shiksha project - there is
a slogan written - "by purchasing these products, you contribute to
nation building - through shiksha project"

P & G has the worldwide record of having close to 25% market share
in each of its products that it introduces. However, in India, it has
yet to achieve these levels.

You are required to compare the strategies of P&G and HUL and
suggest appropriate marketing strategies for P&G and study Shiksha
project and how this project can contribute to nation building in our
country.

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WORLDGO

WorldGo Airlines is in deep red. It is having various difficult times. It

was started with the objectives of having profitable ventures using less
frequent routes. However, the idea didn’t pick up. WorldGo has
adopted the following plans:
1. it offers 80% discount if booking is done 6 months earlier
2. it offers 20% discount if booking is done 3 months in
advance
3. Occasionally it offers some free tickets also – the primary
objective is to have media attention and attention of
prospective flyers.
4. It offers 20% discount under its frequent flyer programme.

World go has estimated that its annual fixed costs (including

maintenance of airplanes) is 200 millions. If there is 100% occupancy
in one flight, it can save Rs. 20 lakhs per flight. If however, there is
20% occupancy, then the company would not be able to recover its

LET US CHANGE THE WORLD

costs –not even variable costs. The challenge is to have at least 20%
occupancy. The airlines company has seen a good response from
customers due to its frequent announcements regarding free tickets /
discount tickets. Travel agents and travel companies are given 15%
commission by this company. The company has tried to establish its
brand personality as a very sophisticated lady offering utmost care and
sincere services. In all the advertisements of this company, you can
find the smiling lady offering sincere services. WorldGo has also
established agreements with an institution (which gives training to
flight stewards) to have their trainees work with WorldGo. WorldGo
offers them stipend, which is 20% of usual salaries offered to other
permanent staff in similar airlines. WorldGo has the practice of
recruiting only Pilots and Technical staff in its permanent core staff. It
offers highest salary in the industry for pilots. It has no permanent
service staff. All its service staff are on contract and most are working
as trainees (on stipend).

This company is also known for its innovative practices in the airlines
industry. This company has routes, which are uncommon and different
from other airline companies. WorldGo now plans to launch some
innovative schemes to attract more travelers. It is planning to offer
free travel passes to international film stars, and international
celebrities. It wishes to attract them. It also has the plan to launch an
innovative contest in each of its flights. However, these plans have yet
to work out.
The company also has the practice of selling out its airplanes just after
3 years of use. The company has been able to maintain accident free
record till date.

Due to many innovative practices like this. The company has been able
to survive (although, the CEO realizes that due to world wide recession,
it is difficult to continue any more).
The company has now plans to train its HR department for
institutionalizing innovation across the organization. The company is
having a plan to have a comprehensive training programme for its
staff. The already struggling company has the plans to have 5 day
training programme. This type of training programmes is having huge
costs. The debate is whether to go for such training programmes or
not? Some executives of the company claim that these costs should be
avoided. The company on the other hand wants to have innovative
practices across the company to save costs and to bring distinct
advantages in comparison to other company. HR department argues
that due to recession, this is the best time to send the employees for
training, later it would be difficult for the company to have such
training as the employees would get less time to spare. The number of
flights is continuously reduced due to lack of bookings. In such critical

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period, do you think that the company should continue to go ahead for
its training programmes? What are the precautions that you can
suggest to this company to tide over the difficulties that it may face?

BOARD MEETING OF AN NGO

LET US CHANGE THE WORLD

It is the scene of the board meeting of an NGO. The organization wants
to launch a nation wide campaign to promote blood donation and
organ donation among the youth. The NGO wants that youth should
come forward and donate blood and other body organs (like eyes). The
NGO also wants to launch its services on these matters. The question
is how to launch it.

Ajay: “I believe that we have to see here how companies launch the
products. Recently Tata Motors has launched Tata Ace. This is a
product which was designed after undertaking market survey. People
told they want a minitruck. The traditional trucks are not suitable for
narrow streets of India. Therefore Tata group designed a new mini-
truck and it was priced little above auto-rikshaw (over Rs. 3 lakh) and it
became a very successful and it doesn’t have any competition. The
reason for its success is that it is a product, which fulfills the vacuum.
There was a vacuum and Tata Motors filled this vacuum. You can’t sell
a product which is not required by people. If you are launching any
product or service, you have to first survey people and identify their
requirements and thereafter you have to introduce the product. NGOs
also have to follow this model.”

Sudha : “I disagree to this. There is no need of any survey. We have to

build a brand – no doubt about it. I believe that NGOs are offering
services and therefore they have to look into the feelings of people. If
people believe in something, they will do it. We have to touch the
emotions of the people. Even in products also, companies follow this as
their marketing strategy. Look at Nike, it offered its shoes to athletes,
sportspersons like Michael Jordon etc. Its products became popular
among masses because people thought that this product is for those
who are tough and thus this product became successful. Look at many
services, which have become vary popular. They are popular, because
people associate them with those who are the leaders / opinion
leaders. Thus we have to introduce our services in piecemeal
approach; it will percolate down from top to the bottom.”
Monika: “Services are intangible, inseparable, and perishable. If you
are launching any services, you have to understand that people must
believe in your brand and trust your company. People will not trust our
company. Look at Pulls Polio campaign. It used services of Amitabh
Bachhan, and it worked. People believe in what Amitabh says. We
should also use similar approach of celebrity endorsement. I do agree
to what Ajay and Sudha say, but I believe that being a change agent,
we have to use some celebrity, who will endorse what we say.”
Swati : “Being from science background, I believe that people will
accept what is scientifically convincing. Let us tell them the truth that

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donating small amount of blood doesn’t cause them any harm. This will
work. People are ignorant. Most of the people are influenced by
rumors. If we communicate facts, it will work.”
Pankaj: “ We have to launch a campaign. Only those campaigns work,
which are able to take masses. Masses have herd mentality. If people
will do something, everyone will do it. What we need is to create a
mass movement. Look at Mumbai Marathon. Those people who cant
run even 100 meters, start participating in the Mumbai Marathon. This
is what we call as mass appeal. People adopt ideas in groups. Let us
think over this matter and create a creative campaign for bringing
masses with us.”

After reading the ideas of all these speakers, you have to present your
ideas.
Ram: “There is no need of any brand ambassador here. We have to
undertake puppet shows for this We should go from mohalla to
mohalla.”

Dhaval: “people work on emotions. People donate blood on some

emotional reasons. People will donate blood on some anniversary.
People will easily donate blood on Gandhi Jayanti etc.”

Pankaj: “We need to carry out a survey and identify about the
perception of people.”
Swati : “Survey is necessary, when we will go to the people and come
to know about why people are skeptical. When we come to know about
their thinking, we can convince them about importance of this work.”
Vivek : “people want to donate blood. We have to form voluntary
groups, which will go from home to home and they should make others
members of this group. Members of this group should donate once in 3
month. This group will expand and thus we will be able to form a big
group for this social cause.”

Pratibha: “People donate blood on their own. We have to organize

camps for this and people will come and donate.”

Ajay : “We will carry out survey and identify why people don’t donate
blood. We will also ensure that people come to see the blood donation
process and this will work.”

Whose ideas are most convincing to you and why ?

LET US CHANGE THE WORLD

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