Benchmarks Trailblaze

Team Name - ()ptima -- (where =sigma) Institute Name IIM Calcutta

Primary Contact email id akshayg2014@email.iimcal.ac.in

Team Member Names - Abhiyan Adhikari Abdul HANAN ANSARI Akshay Goel SAURABH SHRIVASTAVA HARI SHANKAR SHASHVAT

Caselet 1 Answer Given, P(actually correct/ marked erroneous)=0.01

P(actually erroneous/marked erroneous)=1- P(actually correct/ marked erroneous) P(actually erroneous/marked erroneous)=1-0.01 P(actually erroneous/marked erroneous)=0.99

Given, P(actually erroneous/ marked error free)=0.01

P(actually error free/marked error free)=1- P(actually erroneous/ marked error free) P(actually error free/marked error free)=1-0.01 P(actually error free/marked error free)=0.99

Caselet 2 Answer
Modern decision making approach most resembles the one suggested by Benjamin Franklin is Force Field Analysis. Points of Parity
Benjamin Franklin Method Force Field Analysis

Divide all the reasons into pros and cons on the left and right side of the paper respectively Estimates the respective weights of the pros and cons Helps in decision making in primitive way
Benjamin Franklin Method Strike out the pros and cons of similar weights e.g. if 2 pros and 3 cons balance each other, remove all 5 of them

Listing the forces for change(driving) and against change(restraining) on the left and right side of worksheet respectively Gives each driving and restraining force a numerical weight from 1(low) to 5(high) Helps in decision making involving change
Force Field Analysis Here driving forces are strengthened and restraining forces are weakened instead striking out all the balancing forces

Points of Difference

As Force Field structurally resembles most with the Franklin method and as both helps in managerial decision making, we have selected Force Field method

Caselet 3 Answer
Using a static model instead of dynamic one that could have included recency and frequency

The above answer is the severest limitation of CLV because of the following reasons: Some negative CLVs can be turned into positive(increasing recency and frequency) with aggressive marketing efforts and novel products. In static model, company loses the flexibility to abandon a customer at any point of time CLV should be a dynamic concept e.g., let's say marketing is effective retention rates increases), average CLV should increase Segment size or characteristic changes over time,hence static segmentation model can make wrong predictions in terms of targeted marketing strategy FMCG products are low involvement products, so word-of-mouth and other referrals will play lesser role, thus the firm should be able to judge customer value

VISION

Caselet 4 Answer
Using Balance Scorecard for alignment in consumer durable Company

TACTICS

GOAL MISSION Results

Measures

STRATEGY

Strategic Planning Mission and Vision Balanced Scorecard

EXECUTION
Mission & Vision Desired state Differentiating activities How to implement strategy Measuring success of strategy

Financial

Strategy Goals Internal Service Process Objective in each perspective

Customer Relations

Vision and Strategy

Learning, Innovation & Growth

Measures in each perspective

Balanced Scorecard bridge the gap between strategy & action

MISSION Why we exist
VALUES Whats important to us VISION What we want to be STRATEGY Our game plan BALANCED SCORECARD Implementation & Focus STRATEGIC INITIATIVES What we need to do

PERSONAL OBJECTIVES What I need to do

STRATEGIC OUTCOMES Satisfied SHAREHOLDERS

Delighted CUSTOMERS

Efficient and Effective PROCESSES

Motivated & Prepared WORKFORCE

Strategy Map for Consumer Durable Company

1. Enhance profitable revenues 2. Grow volume share in key segments 3. Enter new product segments 4. Improve capacity utilization 5. Reduce cost of product

Financial perspective

Internal perspective

1. Integrate product R&D with market requirements 2. Implement an end-to-end marketing strategy 3. Develop brand alliance 4. Leverage customer care processes significantly better 5. Re-engineer critical business processes 1. Re-define organization structure 2. Implement performance management system 3. Enhance competency of sales by training 4. Develop business management skills 5. Enhance mix quality across units. 1. Contemporary, reliable and good value products 2. Prompt and reliable customer care 3. Range of product that gives relevant choice 4. Healthy returns 5. Values relationship

Learning & Growth

Customer perspective

Mapping Balance score card with Lean six sigma

Financial results Learning & Growth Operational Performance Customer Satisfaction Key drivers of value, satisfaction & loyalty
Driver A Driver B Driver C Satisfaction Loyalty

Operational scorecard for driver

Reduction in defect rates Lowered cost Employee Growth Increased satisfaction

Lean six sigma project to eliminate waste for driver

Caselet 5 Answer
a) Total cost incurred: Development cost+ Expected trial cost+ Expected Marketing cost = (50 + 20 + P(X>=20)*80) = (50 + 20 + 0.9*80)=Rs. 142 crores P(X>=20)=0.9; X =No. of customers fully cured of dandruff problems out of 100 randomly selected. Contribution=Rs. 600/customer Total customers required for breakeven=1420000000/600=5.92% of customer base P(share>=5.92%)=0.9192 Ans. b) For profit of Rs. 20 Crore , extra customers required= 200000000/600= 0.83% of customer base. Hence required share=5.92%+0.83% =6.75% P(share>=6.75%)= 0.7324 Ans.