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PROVIDED CASE STUDY SOLUTIONS, PROJECT REPORTS PROJECT GUIDANCES, ASSIGNMENT ANSWERS ETC… OF MBA – EMBA-MSW-BBA-BBM-BCOM ALL INDIAN & FOREIGN UNIVERSITIES UPES, IGNOU, ISBM, IIBM, KSBM, PSBM, ISMS ETC.. CONTACT: DR PRASANTH MBA PH.D. DME Mob: +91 9447965521 OR +91 9924764558

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PROVIDED CASE STUDY SOLUTIONS, PROJECT REPORTS PROJECT GUIDANCES, ASSIGNMENT ANSWERS ETC… OF MBA – EMBA-MSW-BBA-BBM-BCOM ALL INDIAN & FOREIGN UNIVERSITIES IGNOU, ISBM, IIBM, KSBM, PSBM, ISMS ETC.. CONTACT: DR PRASANTH MBA PH.D. DME Mob: +91 9447965521 OR +91 9924764558 Email: [email protected] Website: www.casestudyandprojectreports.com

TRANSCRIPT

Page 1: Case study solutions & project reports provided 06

PROVIDED CASE STUDY SOLUTIONS, PROJECT REPORTS

PROJECT GUIDANCES,

ASSIGNMENT ANSWERS ETC…

OF

MBA – EMBA-MSW-BBA-BBM-BCOM

ALL INDIAN & FOREIGN UNIVERSITIES

UPES, IGNOU, ISBM, IIBM, KSBM, PSBM, ISMS ETC..

CONTACT: DR PRASANTH MBA PH.D. DME

Mob: +91 9447965521 OR +91 9924764558

Email: [email protected]

Website: www.casestudyandprojectreports.com

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ASSIGNMENT – 1

FOR

Fundamentals of Petroleum Refining

(MBSO 804D)

Section A (20 Marks)

Write short notes on any four of the following

1. Petroleum products

2. Chemistry of petroleum

3. Methods for determination of salt content

4. Offsite facilities and its management

5. Hydrogen production plant

Section B (30 marks)

(Attempt any three)

1. Write notes on Indian Refining Industry – emerging scenario, future technological challenges and their special features.

2. Write notes on flash-point, pour-point, distillation, copper-corrosion, silver-corrosion, and sulphur.

3. Describe the Fluidised Catalytic Cracking (FCC), Petrochemical Process Plants and Polypropylene.4. Explain the process of Crude Distillation and Diesel Hydro-Treatment.

Section C (50 marks)

(Attempt all questions. Every question carries 10 marks)

Read the case “Reliance Refinery” and answer the following questions:

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Reliance Refinery

The Background

Jewel of India’s Business Community- Reliance Industries Limited operates one of India’s most ambitious and complicated engineering endeavours, its refinery complex in Jamnagar.

Situated on the northwest coast of India, the integrated refinery complex is located at Motikhavdi, Lalpur Taluka, Jamnagar District, in the state of Gujarat. The expanded facility is the world’s largest grassroots refinery, equipped to refine various types of crude oil and manufactures various grades of fuel from motor gasoline to Aviation Turbine Fuel (ATF).

The Challenge

In 2008, Motorola was tasked by Reliance Industries to recommend a comprehensive state-of-the-art radio communications network for its newly expanded site at the JERP refinery complex, for its every day mission critical use.

Over the next year, careful steps were taken to scope and detail the requirements of the TETRA network architecture and coverage so as to sufficiently address the various business and operational needs of a digital trunking communications within the refinery.

Heart of the Network

At the heart of the network, a scalable Mobile Switching Office (MSO), otherwise known as Scalable DimetraTM IP, was responsible for supporting dispatch and call processing, packet data, network and alarm management, and remote access. The control contains all the hardware tools and software applications necessary to carry out all these functions in a single unit, with minimal footprint.

Coupled with three MTS 4 base stations, the MSO manages all the communications requirements of various handheld devices, which include 1,200 units of Motorola’s ATEX-certified MTP750FM, MTP850Ex and MTM800E radios. The MSO and additional base stations ensured in-building coverage for JERP’s control room, the nerve centre of the refinery’s daily operations

The Benefits

Above and Beyond

Beyond the network equipment, the local Motorola team provided further onsite support and services, which included the interconnection of the PABX systems, Conventional Patching and Short Data Services. The value added services ensured the integrated communications network operated smoothly and seamlessly across all the users who relied on it to operate the refinery to the highest standards of efficiency, productivity and most importantly, safety.

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“Motorola has successfully provided a comprehensive, end-to-end TETRA solution for our refinery complex and were able to supply a compelling solution and offered an attractive value proposition for our communications needs.”

Rajbushan Manoharan, Vice President, Reliance Industries

As JERP continues to enjoy the robust communications network and higher level of efficiency at his plants since the TETRA installation, plans are already underway to further expand the system to other sites and the older sections of the mega Jamnagar refinery complex in the future.

Question:

1. Write short note on the background of Reliance refinery.2. What are the challenges for Reliance Industries?3. What is called heart of the network in the case-study?4. What is a scalable DimetraTM IP?5. What are the benefits discussed in the case-study?

ASSIGNMENT – 1

FOR

Understanding Petrochemical Business

(MDSO 805D)

Section A (20 Marks)

Write short notes on any four of the following

1. Developments in petrochemicals

2. Petrochemical feedstock from refineries

3. Properties and applications of engineering plastics

4. Process configurations

5. Polymer industry in India

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Section B (30 marks)

(Attempt any three)

1. What are the petrochemical products? Describe the uses of petrochemical products?

2. Describe corrugated packaging and paper packaging. Give their advantages and disadvantages

3. What is Crude Oil? What are the characteristics of crude oils? Explain crude oil quality and

refining economics.

4. What is Polypropylene? What are the physical and chemical properties of Polypropylene?

Section C (50 marks)

(Attempt all questions. Every question carries 10 marks)

Read the case “Failure in Metalized Polypropylene Capacitors” and answer the following questions.

FAILURE IN METALLIZED POLYPROPYLENE CAPACITORS

Metalized polypropylene capacitors are used extensively in fluorescent light fittings and on electric motors. The vast majority last for years without problem, but there are occasional incidents where they burst or even catch fire.

These types of capacitor possess a safety mechanism called “self-healing”. If an electrical breakdown occurs in the film, the charges on the capacitor electrodes in the vicinity of the fault flow to that point and are discharged. Considerable energy can be dissipated in the discharge.

This is usually limited by using a metal film that is so thin that the metal evaporates due to the high local current densities. The evaporation disconnects the fault from the rest of the film, so that the effects are limited. The event typically lasts for microseconds. Part of the film is lost and the capacitance is reduced, but the capacitor continues to be usable. A piece of film with a self-healing spot is shown Figure 1.

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Figure 1: SEM image of a group of breakdown points in a polypropylene plastic film at high magnification

Part of the design process for the capacitors consists of balancing the need for film thin enough for self-healing against the need to keep the series resistance low. After completing the manufacturing steps a selection of the capacitors are put on life tests to ensure that the weakest spots in the film are disconnected before the capacitors are put into service. The metal electrodes are sometimes composed of small islands of metal connected by narrow links. The links are easily broken by an excess current at a breakdown without disturbing the neighbouring islands.

Figure 2: Optical photograph of a burst polypropylene capacitor

The energy dissipated in the breakdown appears as heat and the temperature rises locally. The plastic film at the breakdown point is carbonised with the release of gas. If a series of breakdowns occur close together within the capacitor or closely spaced in time, the capacitor may not be able to dissipate the heat generated in the breakdown events. The temperature then rises locally with each breakdown and

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the gas accumulates. If sufficient breakdowns occur, the temperature raises high enough to melt the plastic film.

Then larger breakdowns can occur and significant amounts of gas are generated. The gas can blow out the side of the case or blow the case off entirely. Under extreme conditions the gas mixture can ignite. An example is shown in Figure 2. These blow-outs can damage neighbouring components.

A simplified thermal model has been used to estimate the temperature rise around a breakdown results of which are shown in Figure 3. There is a sharp peak which spreads out as time progresses. If another breakdown pulse occurs within milliseconds or tens of milliseconds and within tens of microns of the first one, the effects will add and the temperature will rise even higher. A sequence of similar pulses will raise the temperature hundreds of degrees centigrade. The external damage can be prevented but the additional complications results in extra cost.

Figure 3: A set of plots of the temperature as a function of distance from a breakdown in the form of a disc for a series of times after the event using a simplified thermal model.

FURTHER INFORMATION

Other common forms of failure in metallised film capacitors are partial discharges and ion migration to damage sites. ERA has examined many failed capacitors and batches of capacitors before and after use to assess the quality of construction. The pattern of the damage on the film can used to assess the processes involved in the failure. Sometimes it is found that there are batches of suspect capacitors.

Questions:

1. What is the problem discussed in the case-study?2. Discuss the meaning of “self-healing” in the case-study.

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3. Describe the safety mechanism used by metalized polypropylene capacitor. 4. Why polypropylene capacitor burst?5. Explain the estimation of temperature rise around a breakdown using a simplified thermal

model.

ASSIGNMENT – 1

FOR

Operations & Material Management

(MBCQ 722D)

Section A (20 Marks)

Write short notes on any four of the following

1. Production management functions

2. The era of scientific management

3. Optimal criteria for selecting a plant location

4. Basic production systems

5. Chance and assignable causes of variations

Section B (30 marks)

(Attempt any three)

1. Describe various POM-Models and schools of thought.2. Define productivity and wastivity also explain all factors for improving productivity.

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3. What are the major types of layouts? Describe the use of computers in modern production (operations) management.

4. What are the types of capacity? What are the needs for capacity planning? What are the factors for selection of material handling system?

Section C (50 marks)

(Attempt all questions. Every question carries 10 marks)

Read the case “Creature Care Animal Clinic” and answer the following questions.

Creature Care Animal Clinic

It has been three years since Dr. Julia Barr opened Creature Care Animal Clinic, a suburban veterinary clinic. Dr. Barr thought that by now she would be enjoying having her own practice. She had spent many years in college and worked to save money in order to start a business. Instead, she felt overwhelmed with business problems that were facing the clinic. She thought to herself: “I don’t produce anything. I just provide a service doing something I enjoy. How can this be so complicated?”

Company Background

Dr. Barr opened Creature Care Animal Clinic as a veterinary clinic specializing in the care of dogs and cats. The clinic was set to operate Monday through Friday during regular business hours, with half days on Saturday and extended hours on Wednesday evening. Dr. Barr hired another full-time veterinarian, Dr. Gene Yen, a staff of three nurses, an office manager, and an office assistant. Both doctors were to work during the week and rotate the shift for Wednesday evenings and Saturdays. A similar schedule was set up for the nurses. The office manager worked during regular business hours, and the assistant worked on Wednesday evenings and Saturdays. Dr. Barr set up this schedule based on a clinic she had observed as a resident and thought it sounded reasonable.

Since the clinic was small, Dr. Barr did not have a formal system of inventory management. All physicians and nurses were allowed to place purchase orders based on need. Initially this system worked well, but after a few months problems started developing. Frequently there was excess inventory of certain items and in many cases there were multiple brands of the same product. Sometimes medications passed their expiration dates and had to be thrown away. At the same time, the clinic often unexpectedly ran out of stock of certain supplies and rush orders had to be placed. On one occasion they ran so low on bandages that the assistant had to be sent to the local drug store.

Dr. Barr continued to rotate with Dr. Yen for coverage on Saturdays and Wednesday evenings. However, demand was increasing so rapidly on Saturdays that one doctor was not enough to provide needed coverage. Also, the Friday afternoon schedule was usually so packed that the staff frequently had to stay late in the evening. At the same time, there was little demand on Wednesday evenings and Dr. Barr found herself working on paperwork on those evenings, while the nurse and office assistant performed menial office tasks.

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Questions:6. Identify the problems that Dr. Barr is having at the clinic.7. The schedule Dr. Barr set up worked well at the clinic where she was a resident. What are some

of the reasons why it might not be working here?8. Identify some of the reasons why the clinic is having inventory problems.9. What should Dr. Barr have done differently to avoid some of the problems she is currently

experiencing?10. What suggestions would you make to Dr. Barr?

ASSIGNMENT – 1

FOR

Managing Individuals & Organization

(MB 101D)

Section A (20 Marks)

Write short notes on any four of the following:

1. Cognitive Dissonance Theory

2. Knapp Model of Development

3. Power vs. Authority

4. Electronic Recruitment

5. Leadership & Supervision

Section B (30 marks)

(Attempt any three)

1. What theory of motivation do you feel is the most accurate in explaining different levels of employee motivation found in organizations?

2. Discuss the process of Job analysis and Job evaluation.

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3. How managerial skills make an impact on functioning of the organization?4. How leadership styles affect the organizational effectiveness?

Section C (50 marks)

(Attempt all questions. Every question carries 10 marks)

Read the case “The Virgin Group: Structure, Leadership and Motivation” and answer the following questions:

Case Study – The Virgin Group: Structure, Leadership and Motivation

This essay analyses organizational structuring of the Virgin Group, with a view to understanding the dynamics that have helped create a global conglomerate. A critical assessment is undertaken on three areas: the hierarchical form of the company, the style of leadership exhibited by Sir Richard Branson, and the approach adopted by management to motivate employees.

Firstly, a comparative argument is made on whether the Virgin Group can be classified as a centralized or decentralized organization. These terms refer to division of power, capital, technical procedures and control in various units of a business. A centralized organization allows for minimal delegation to managers, with the chief executive retaining power over majority of the decisions. On the other end, a decentralized organization makes it possible for managers to exercise control without ownership oversight at each stage, provided goals and targets are met (Buchanan & Huczynski, 2007).

Secondly, the essay aims to determine the leadership style practiced by Sir Richard Branson, Virgin Group’s chief executive officer (CEO). Two styles of leadership are used as reference point: transactional and transformational. According to Bass & Bass (2009), transactional leaders work within the organizational culture as it exists, with an awareness of the link between effort and reward. They motivate their employees by setting goals, and enforce control through the use of punishment and sanctions. Transformational leaders change the organizational culture, arouse emotions in the workers, are proactive and set goals that are beyond self-interest.

The third area of discussion is the method initiated by company management to motivate employees. According to Forster (2005), motivation refers to processes that increase or decrease an individual’s desire and commitment to personal and organizational targets. Different theories put forward various reasons for the factors that motivate workers in an organizational environment. Fredrick Taylor attributed pay as the vital driving force in having a satisfied workforce, while Elton Mayo indicated the meeting of social needs as a better motivator, and the work of Abraham Maslow and Fredrick Herzberg focused on psychological needs of employees (Forster, 2005). Overall, the theories recognize that recognition and reward for performance create the foundation for motivating employees.

The Virgin Group

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From humble beginnings as a publishing venture in 1968, the Virgin Group has expanded into a global corporate entity with diverse interests. Products and services carrying the Virgin brand range from airlines to financial services to soft drinks (Grant, 2008). The key to the successful expansion of the group lies in founding a strong identity for the brand name, thereby creating interest from the onset of any business initiative.

Organizational Structure

Grant (2008) characterizes the Virgin Group’s organizational hierarchy to simulate an amalgamation between a brand franchising operation and the Japanese keiretsu system.

Brand franchising is synonymous with the business strategies of McDonalds, Subway and various other organizations, especially in the fast moving consumer goods (FMCG) sector. The term refers to the process of a single corporation using its identity as a purchasable asset, due to the strong recognition that the brand holds among consumers (Buchanan & Huczynski, 2007). Where the brand’s franchise value is high, its name becomes a substitute for the product category name itself in people’s conversations. The main benefit that brand franchising offers business owners is the opportunity to raise the price of their products, allowing more freedom from price wars with competitors. The other obvious benefit of strong brand value is ease in extending the business or diversifying into other sectors and products. But more importantly, high value of a brand franchise empowers a business with a strong marketing tool, with a high return on investment (Buchanan & Huczynski, 2007).

Keiretsu is a prototypical type of business group that is strongly illustrated in the Japanese business system (Whitley, 1992). It refers to the interlocking business relationship and shareholdings that exist between a set of companies. Each company holds some form of ownership in the other, thereby ensuring a direct effect of performance on each other. The business relationship can be that of supplier and buyer, with each company also having management control or supervisory overview. The common structure of a keiretsu centers on a bank which lends money to all companies in that group, in return for equity, a monitoring entity and the right of control. This creates a sense of reliance among the companies of the group on each other, and the reduction of any form of acquisition or takeover by competing firms. Examples of such a business in Japan include Mitsubishi, Mitsui and Fuyo, while outside Japan, UK’s Virgin Group and India’s Tata Group display similarities with the structure and business relationship (Whitley, 1992).

The Virgin Group comprises of around 150 units, or what Branson refers to as 150 small companies (Grant, 2008). While a shroud of secrecy is maintained over the financial and legal structure of the group through the intricate network of offshore-owned private holding companies, the operational structure remains loose and people-oriented. The employees of each company hold a stake in the success of the business, with the requirement that each company be self-sufficient. While each company carries the Virgin identity, the employee is responsible for the success of the business entity they are employed by. This means that while they are under the big umbrella of Virgin, they are one in fifty or one in a hundred of the employee count based on which entity they are employed by (Grant, 2008).

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With responsibility and control delegated to the management of each unit, the general impression of the organizational structure exhibited by the Virgin Group is decentralized. However, an in-depth analysis reveals the structure to be more an unorthodox version of centralized. This is evident from the role that the senior executives play in the group, according to Grant (2008), and the methods in which interactions take place.

First and foremost, the majorities of senior management with the Virgin Group are associates, friends or relatives of Richard Branson, and possess a business relationship with him due to their position within the organization. Secondly, while each member has complete control over the decision-making process and daily running of the unit they are heading, they also play an advisory role in Branson’s strategy planning, idea assessment and new appointment management team (Grant, 2008). Hence, while there is no formal structure assigned by the Virgin Group for the organization’s management, the long-term direction for the business and financial control of the group remains centralized with the CEO and his team of advisors and executives.

Leadership Style

In the modern business world, leaders need to be understanding of team work, as without any followers there will be no leader. It is no longer the case of total authoritative control by a single figurehead, but a case of the member of an organization who is in the best position to make the decision. The flexibility and openness that are the need of present day organizational networks, requires accomplished communication skills to express a relation with all groups of the corporate entity (Bass & Bass, 2009).

Richard Branson is normally referred to as the “hippie entrepreneur” (Grant, 2008). The creator of Virgin and its corporate culture, his informal approach and a general disregard for conventional processes have become the hallmark of his business dealings. Seen as a change agent in the Victorian values of the British society according to Grant (2008), Branson holds the ideology of work being fun and employees gaining pleasure from their roles as well as a sense of fulfillment from contributing towards a larger goal. In each of Virgin’s business ventures, Branson made it a philosophy to be involved in all the ins and outs, so as to gain a thorough understanding of all dimension, before handing over to a good managing director and financial controller.

A deep analysis of Branson’s leadership traits shows that it can be characterised as more transformational than transactional. A grounding factor to ascertain this determination is the actions displayed by Richard Branson in relation to Virgin employees.

Transactional leaders set up the organizational culture with a core focus on reward and punishment, especially in context to workers completing tasks. They believe in motivating members of the organization to achieve the goals and expectations of the leadership by offering incentives like salary increases or bonuses, while threatening failure with demotion and termination. On the other hand, the weapons at the disposal of transformational leadership are charisma and a collective vision for putting the organization ahead of self-interests. Such leaders are out to form a bond with the members of their

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organization, to use their vision to ensure that focus from the goals does not deviate, and that a better future is achieved for the organization (Kippenberger, 2002).

According to Grant (2008), Branson has experienced very few problems with Virgin employees, irrespective of paying modest salaries. His dislike for symbols of corporate success has resulted in an absence of a corporate head office, with him doing business from his family homes. His open approach and creation of a free culture within the Virgin Group has been to make employees feel at home, and establish a sense of belonging between them and the organization. With irreverence for authority, he has drawn heavily on the ideas and innovations from within the organization, being prepared to invest in new start-ups irrespective of market competition. His belief and attitude to business ventures is summed up is summed up by him with the following reflection “bigger the challenge, greater the fun” (Grant, 2008). A key example of internal idea that ended as a Virgin business venture is Virgin Bride. Suggested by a Virgin Atlantic employee, Branson used his marketing skills to launch the unit in what is considered an under-served consumer market.

The charisma and communication skills, coupled with his spirit of showmanship, and the desire to make all work as much as possible, has allowed Richard Branson to lead the Virgin Group from a single publishing venture to a desired brand, distinguishable through a variety of products and services. His ability to share his vision for each venture with all Virgin members, and motivate them to succeed as a collective family-unit, has helped foster strong sentiments of loyalty and dedication among the employees. It is evidence of a transformation of the traditional prestige of corporate culture and the breakdown of segmented consumer markets (Judge & Piccolo, 2004).

Approach to Employee Motivation

The hunger for achievement is captured in the following anecdote: “A Microsoft manager returned from a trade show and joyously sent out an email to his team, announcing their product had won nine out of ten possible awards. Within a day he had received forty emails back asking which award they had not won and why” (Forster, 2005). The need to satisfy one’s needs requires management of organizations to discover ways of motivating their employees, in order to be successful and reach goals.

Forster (2005) describes three of the more common theories of motivation, which can be evidenced in various organizations globally. These are: Fredrick Taylor’s theory of Scientific Management, Elton Mayo’s Human Relation School of thought, and Abraham Maslow’s & Frederick Herzberg’s Neo-Human Relations School.

According to Forster (2005), the crux of Taylor’s theory revolved around businesses offering higher pay as an incentive for employees to work harder and be more productive. But this approach was more linked to an autocratic management style, with its inception in the manufacturing sector. As it offered little to employees on the mental level of satisfaction, it became disliked among employees and resulted in numerous strikes. Mayo brought the idea that money should not be used as the only factor in motivating employees. Rather, management should have more involvement in the working lives of employees, introduce the concept of teamwork and improve the communication path. Maslow

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highlighted the need for a structured approach to the needs of employees, with each need being fulfilled in turn. The key idea behind this was to recognize the fact that all workers are not motivated in the same way, and hence require different set of incentive to help them achieve satisfaction and complete goals. Herzberg elaborated on this by introducing a two-factor theory, which labeled factors that directly motivated employees as motivators and those that would result in de-motivation due to their absence as hygiene factors. The underlying argument was to give workers interesting tasks that provided a sense of achievement, and delegate power to make decisions (Forster, 2005).

The Virgin Group embodies the theory proposed by Maslow and Herzberg. Employees are involved in the decision-making process, are motivated to achieve the goals and vision by being provided a sense of belonging. That, coupled with a charismatic and communicative leadership, open to ideas and innovation, has helped the Virgin Group motivate its employee by fulfilling their psychological needs like recognition and a thirst for success (Forster, 2005).

Final View

This essay has assessed the Virgin Group on three key areas of organizational behavior: the structure, the leadership and the management style towards motivation of employees. The argument that has resulted from the analysis undertaken is that an organization by employing a flexible structure, with a dynamic culture and charismatic leadership, and an understanding of employee needs can face up to challenges and grow to a great degree.

Richard Branson has instilled an open culture within the Virgin Group, differentiating it from the traditional image of a British corporation. With his flair for communication and belief in the products and services offered, he has been able to market more than the offerings; he has managed to create market and sell a brand. The ability to acknowledge ideas from all corners of the organization has resulted in the Virgin name possessing a diverse portfolio, with management motivation allowing workers to have a sense of belonging with the company and thereby, achieving satisfaction through the success of the various units of the Virgin Group (Forster, 2005).

An interlocked network of the various units of the group reflects the unorthodox centralization structure, giving decision-making power at various levels to unit management, while retaining overall group vision and strategy planning with the CEO and his advisors. The CEO’s personal interest in each venture portrays an interest in understanding the functionalities that staff would be dealing with on an everyday basis, and provides the workers with a strong sense of value in the tasks they undertake.

The Virgin Group is one of the few conglomerates in the world that has achieved success in diversifying its portfolio to a great degree in a short span of time, and possessed the ability in its workforce and processes to compete with more established competitors in various market sectors.

Questions:

11. To what extent would you argue that the Virgin Group as an organization is centralized or decentralized?

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12. With reference to transactional and transformational styles of leadership, how would you characterize Richard Branson’s style of leadership?

13. With reference to relevant theories, critically discuss the approach to employee motivation adopted within Virgin.

14. Analyze a case-study by developing a logical argument and line of reasoning and present that in a cogent and effective manner.

15. What are the three areas on the basis of which a critical assessment is undertaken?

ASSIGNMENT – 1

FOR

Marketing Management

(MBCM 771D)

Section A (20 Marks)

Write short notes on any four of the following

1. Value chain and Benchmarking2. Structure of Market Environment3. BCG Matrix4. Approaches of Marketing Strategies5. Buying Decision Process

Section B (30 marks)

(Attempt any three)

1. The lifetime of every product is typically divided into four stages. Describe those stages with the help of diagram.

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2. “Loyalty is at the heart of equity and a very important brand equity asset”. Elaborate this statement.

3. A company must carefully examine its situation before making a decision about adopting a certain branding approach. Explain the factors determining a particular branding approach.

4. Discuss various types of channels used for consumer products or industrial products.

Section C (50 marks)

(Attempt all questions. Every question carries 10 marks)

Read the case “Consumer Goods Pricing Strategy” and answer the following questions:

Consumer Goods Pricing Strategy - Case Study

Client Situation

In 2003 Pacific Strategy Partners assisted a client to develop a new pricing structure for a specific product line that removed significant complexity and provided incentives to drive preferred customer behavior. Subsequent to the introduction of the revised pricing structure, our client expanded their product range with the acquisition of a new range of related product.

Both product ranges had significantly different pricing structures:

1. List prices with trading terms and standard price positioning

2. Net / Contract pricing, no trading terms, high price positioning

Pacific Strategy Partners was engaged to integrate each of these product ranges into a holistic pricing structure under the one brand and to develop a plan to systematically introduce this structure for each customer segment.

Approach

A three step approach was taken:

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Assess Alternative Pricing Structures:

Profiled current pricing structures for respective product ranges (a fact base) Identified and assessed new pricing structures to transition to a holistic framework. The phase

assessed the high level financial impact of each option

Detailed Design of Preferred Option

Agreed upon preferred approach Detailed each lever of the preferred pricing structure and assessed the implications for each

product range and customer / segment

Implementation Planning

Defined each requirement to introduce the preferred pricing model for respective channels and customer segments

Prepared customer communication material

Impact

Our client implemented its new pricing structure and trading terms under the one brand. Management feedback was positive and it is understood that the new structure and its implementation has been a success.

Questions:1. Define the pricing structure used in the case study.2. Do you agree with the approach used in the above situation as a pricing approach? Support your

answer with relevant details.3. What factors a company had to face while implementing new pricing structure in an

organization?4. Discuss the price positioning concept.5. Explain the determinants which affect the pricing decision of a company.

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ASSIGNMENT – 1

FOR

Financial Management

(MBOF 912D)

Section A (20 Marks)

Write short notes on any four of the following:

6. Concept of EOQ and lot size measurement

7. Cash Before Delivery (CBD) and Cash After Delivery (COD)

8. Oil & Gas asset management tools

9. Liquidity management

10. Inventory orders

Section B (30 marks)

(Attempt any three)

1. XYZ Company sells goods on a gross profit of 25% depreciation is taken into account as a part of cost production. The following are the annual figures given to you:

Sale (Two month’s Credit) 18,00,000

Materials consumed (One month’s credit) 4,50,000

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Wages paid (One month lag in payment) 3,60,000

Cash manufacturing expenses (One month lag in payment) 4,80,000

Administration expenses (One month lag in payment) 1,20,000

Sales promotion expenses (Paid quarterly in advance) 60,000

Income tax payable in four installments of which one lies in the (next year) 1,50,000

The company keeps one month’s stock of both raw-materials and finished goods. It also keeps Rs. 1,00,000 in cash. You are required to estimate the working capital requirements of the company on cash cost basis assuming 10% safety margin.

2. KSBS Ltd. is planning to install a captive generator set at its plant. Its finance manager is asked to evaluate the alternatives either to purchase or acquire generator on lease basis.

Buying Initial cost Rs.5,00,000 Residual Value Rs.1,60,000

Leasing for 5 years Annual lease rentals Rs.1,50,000

Residual value Rs.90,000 returned to Lessee in 5 years time

Depreciation @ 20% p.a on written down value. Corporate tax rate 40%. After tax cost of debt is 14%. The time gap between the claiming of the tax allowance and receiving the benefit is one year. Evaluate the lease or buy decision based on the above information.

3. How does corporate disclosure and credit education contribute to success of credit rating of Oil & Gas industry?

4. Explain the legal framework of hire purchase in Oil & Gas industry?

Section C (50 marks)

(Attempt all questions. Every question carries 10 marks)

Read the case “RNS MOTORS LTD” and answer the following questions:

RNS MOTORS LTD

RNS Adwani, an ITI diploma holder had been working with M/s. RNS and workshop for the last ten years. He had joined as a technician. He was recognized as the best mechanic of Supreme Garage. A good number of clients preferred to get their cars repaired by RNS Adwani . In three years time, he was promoted as a supervisor. RNS Adwani then joined distance education programme of IGNOU and

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completed his graduation. He studied accounts and would assist the owner Mr. Gupta in maintaining the accounts. Mr. Gupta liked him very much and two years back, RNS Adwani was promoted as the manager of RNS and Workshop.

Gupta had set up this business about 18 years back when he had retired from the Indian Army due to a leg injury. Due to good customer relations and quality service, RNS and workshop had earned a very good reputation and was known as the best motor garage in the district. A large number of clients form the neighboring district would bring in their vehicles to Supreme Garage. The workshop was known for engine overhauling. It had an electrical section for auto electrical and an agency for Exide batteries. RNS specialized in denting and painting and maintained good relations with insurance companies. It maintained its own tow truck and did good business during accidents and break-downs. It presently employed ten full time mechanics, one supervisor besides RNS Adwani and Gupta who were manager and the owner respectively. During the rush season the workers worked overtime and additional casual labour was also employed to meet the delivery schedules.

Since past one year, Mrs. Gupta was not keeping well. Six months ago, she had a minor heart attack. Mrs. and Mr. Gupta decided to shift to USA and join their daughter, who was a heart specialist at Los Angles, USA. Gupta had no one to succeed him, he decided to sell the business. He wanted the buyer to run the business on similar lines and maintain its reputation.

He called RNS Adwani and made him an offer to sell his business. The initial offer was for Rs. 57.50 lakh. He also proposed to assist RNS in financing the purchase.

Gupta provided him with the information on past earnings with projections for five years. He also provided him with the Balance Sheet and Profit and Loss Accounts of RNS Motors as on 31st March 2000. He informed RNS that based upon the business flow, he had valued the goodwill as Rs. 15 lakh.

RNS was excited about the offer. He knew that the business was very profitable and its profits had been increasing over the years. It had never been at loss. He consulted a friend who was a banker and also a Chartered Accountant. He advised him differently. He knew there was a scope of negotiation over the price of the business. Now RNS now needs assistance.

Sales and Profit of Previous Years

Net sales

PBT

PAT

81,95,000

7,37,500

5,25,000

90,34,000

7,56,600

6,23,200

Summary of Projected sales and earnings

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Year 2001 2002 2003 2004 2005

Net Sales

PBT

PAT

11,00,000

8,65,000

7,00,000

120,00,000

9,50,000

7,80,000

125,00,000

10,50,000

8,60,000

130,00,000

12,00,000

9,30,000

135,00,000

12,50,000

9,75,000

RNS MOTORS

Balance sheet (As on 31.03.2000)

Liabilities Rs.

Capital 16,00,000

Retained profits 18,10,880

Building loan 26,99,200

Term loan 12,16,000

Current liabilities 8,14,400

Total liabilities 81,40,480

Assets

Gross block 66,56,000

Depreciation 14,22,720

Net blocks (at the end) 52,33,280

Current assets

Stocks 6,65,600

Receivables 13,31,200

Cash in hand 9,10,400

Total current assets 29,07,200

Total assets 81,40,440

Depreciation Schedule

Asset Gross Block Depreciation Net Block

Land Building 38,40,000 6,16,000 32,24,000

Plant Eqpt. 26,24,000 7,34,720 18,89,280

Other Assets 1,92,000 72,000 1,20,000

Total 66,56,000 14,22,726 55,33,280

RNS MOTORS

Profit & Loss Account (for the year ending 31.03.2000)

Rs.

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Net Sales 99,64,800

Direct Wages 30,78,400

Contract Materials 18,83,200

Supplies 2,36,800

Mix Costs 4,24,000

Cost of Sales 56,22,400

Gross Profit from Operation 43,42,400

Operating Expenses 26,35,200

Total Depreciation for the Year 3,76,272

Net Income before Interest and Taxes 13,30,928

Interest 4,97,440

Profit Before tax 8,33,488

Income tax 1,58,240

Net Profit after tax 6,75,248

Questions

1. Evaluate the value of RNS Motors using discounted cash flow and multiple earning method (Assume 20% required rate of return).

2. How do you think the banker will value this business? Discuss the method and calculate the value.

3. If you were the banker, will you finance?4. How would you evaluate the good will of RNS Motors.5. As a consultant would you advice Mr. RNS Adwani to buy RNS Motors or not? Explain with

reasons.

ASSIGNMENT – 2

FOR

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Marketing Management

(MBCM 771D)

Section A (20 Marks)

Write short notes on any four of the following

6. Outsourcing Physical Distribution7. Integrated Marketing Communication8. 5 M’s of Advertising9. Service Blueprinting10. Holistic Marketing

Section B (30 marks)

(Attempt any three)

5. “With the emergence of more and more multinational and domestic companies joining the tide, opportunities for marketing professional are abounding”. Elaborate this statement.

6. Discuss the different bases for classification of services.7. What are the components of Marketing Information System?8. Discuss the functions that are essential to achieve the organizational effectiveness.

Section C (50 marks)

(Attempt all questions. Every question carries 10 marks)

Read the case “Nivea Sun Protection Products” and answer the following questions:

Nivea Sun Protection Products: A Case Study in Market Segmentation

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A careful market segmentation is critical to successfully selling products; you need to understand what makes different consumers tick and how best to reach them. Skincare giant Nivea conducted an impressive market research campaign that can be modeled by other firms.First, a little background: Beiersdorf is an international skincare company with leading brands such as Nivea and Eucerin. They have expanded significantly in the UK market through effective segmentation that matches consumer needs. The company has become the value leader in the field, meaning people spend more on Nivea sun protection products than any other brand.One important product line for Nivea is sun-related skincare products, worth upwards of £173.6 million in the United Kingdom alone. Nivea’s reputation in this broad segment is bolstered by robust scientific research and development focused on providing the best protection possible from the sun’s skin-damaging rays.

The key was to further segment the sun protection products market by two important factors: Skin type and the climate where the products are used. Skin types include very light, fair, normal, dark and children (who tend to have thinner, lesser developed skin) while the climates include moderate, hot and very hot.  The level of protection is measured by SPF, which stands for Sun Protection Factor.  SPF 20 may be adequate protection for a fair-skinned person in the UK, but SPF 40 might be recommended for the same person if they were in a more tropical environment.

The company’s market research revealed significant demographic differences between men (who go for convenience), women (who gravitate towards more luxurious products) and children (a market reached through adult parents, mostly mothers).  Through the use of surveys and focus groups, Nivea was able to determine the attitudinal differences between distinct segments of consumers.

They discovered concerned consumers who were not at all concerned about getting a tan but instead were more focused on protection from sun damage. Sun avoiders don’t buy these products at all because they avoid high-exposure situations, although with education they may be convinced of the need for sun protection product purchases. Conscientious sun lovers love being out in the sun but are concerned about protection. Careless tanners, on the other hand, don’t worry about the sun at all and buy low-SPF products if they buy any at all. Finally, the naïve beauty conscious people are the ones who want to have a good tan but don’t adequately understand the relation between SPF and protection.Nivea used this research to develop their unique brand positioning that includes making sun care as simple as possible, providing education about the importance of protection and finding ways to reinforce that protection message. One product innovation that came from this research was a product that offered full and instant protection from both UVA and UVB sunrays because many consumers fail to apply such products in the necessary timeframe for effectiveness (20-30 minutes before exposure). Other product innovations have included sprays that are easy to apply, colorful products for children and water-resistant products for both children and adults. Advertising for children’s products targets the mothers of children with a protection message.

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Questions

1. Discuss the facts revealed by a company’s market research in context with the major demographic differences between men and women.

2. Explain the bases for segmenting the consumer market.3. Discuss the impact of research study on company’s unique brand positioning?4. How a firm develops an understanding of customer segments that take buying habits and

motivation in account?5. Give light on the role of segmentation in product development.

ASSIGNMENT – 2

FOR

Understanding Oil & Gas Business

(MDSO 801D

Section A (20 Marks)

Write short notes on any four of the following:

11. Crude Distillation

12. Catalytic Reforming

13. HAZID

14. Maintenance Management Software

15. Relationship between Oil Price & Gas Price

Section B (30 marks)

(Attempt any three)

5. Give a brief description on basics of Polymerization.

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6. What are the three main units used to generate the base petrochemicals?7. Discuss the causes and types of Hazards.8. Describe the role of Linear Programming Applications in Process Plant.

Section C (50 marks)

(Attempt all questions. Every question carries 10 marks)

Read the case “The Indian Oil pipelines” and answer the following questions:

Case Study: The Indian Oil pipelines

Allen Diesels has served the Indian Oil and Gas industry for fifty years. Our products have earned a reputation for reliability, efficiency and availability and have proved capable of operating effectively in hazardous conditions. Our engines are incredibly versatile and can operate on a variety of fuels (LSHS/furnace oil), crude oil, natural gas, dual fuel and even sewage gas.

• 71 Allen diesel engines have been supplied to the Indian Oil Corporation driving pumps on crude oil and finished product pipelines.

• 72 Allen diesel engines operate with Oil India Limited driving pumps and generating power on the Naharkatia to Baraundi crude oil pipeline, the largest single fleet of Allen engines.

Background

Incorporated in 1959, the Indian Oil Corporation Limited (IOCL) became a corporation in 1964 since when it has grown rapidly and has become the leading oil company in India in the areas of refining, pipeline transportation, and distribution as well as marketing and associated services. In addition, IOC also offers its expertise to other developing countries by way of consultancy services and joint ventures in the oil industry. For crude oil supplies to the Koyaliand Mathura refineries a new pipeline was built in the mid 1970's for which the Allen S37engine was chosen to drive the mainline pumping units. Running from Salaya, on the Gulf of Kutch, to the Mathura refinery, four Allen powered pumping stations were built in the first phase of the pipeline system. The system has a total length over 750 miles and an original capacity of 7.5 million tonnes per year to the Mathura refinery and 5 million tonnes per year to the Koyali refinery. The expansion for the increase in throughput to the existing refineries and additional refinery at Panipat will require an additional 6 million tonnes per year to be pumped through the pipeline, as far as Chaksu where the new spur pipeline will run to the additional refinery at Panipat.

Salaya pumping station

The first (mother) pumping station on the IOC pipeline is at Salaya in Gujarat and is the starting point for the long journey to the inland refineries. Using Allen speed increasing gearbox, the 3,000 rpm mainline pumps are driven by three separate 2,289 bhp 12-cylinder configuration Allen S37 engines, running at 600 rpm.

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All the components built or supplied for the station by Allen Diesels meet API standards for hazardous area operation. Control equipment on the engines is pneumatically operated and the pneumatic signals are converted to electrical signals by an interface panel installed in a safe area. The crude oil is first treated by centrifuging before delivery to the service tanks. These feed the engine fuel oil re-circulating system which maintains the correct viscosity and temperature of the fuel. Crude oil with widely differing characteristics are pumped in this pipeline and come from Middle East oil-fields, as well as Bombay High and require maximum versatility in heating and centrifuging equipment. Experience has led to the latest installations being equipped with larger automatically cleaned centrifuges because of the high level of sediment in the crude oils being pumped.

Viramgam, Abu Road and Sendra

At Viramgam, 100 miles inland, the pipeline is split. The first section, delivers 5 million tonnes per year to the Koyali refinery and terminal, while the second section pumps 9 million tonnes per year along the main pipeline to Mathura. In the first phase these were booster stations at Abu Road and Sendra. In 1987 additional intermediate booster stations at Sidhpur and Kot were installed and Sendra had two more engine pump units installed.

Supporting pipeline expansion

In 1995 a further 23 engine pumping units were supplied and installed over ten pumping stations to increase the capacity at the Salaya Mathura pipeline, to supply the new Panipat refinery. Pumping stations were established with Allen 6S37 or 8S37 units arranged as two duty and one standby. An additional pumping unit was installed and commissioned at the Salaya site in 1999 as part of an expansion to increase throughput to the Koyali refinery. Three more Allen 6S37 engine pumping units were installed at Bareja to increase throughput to 6.5 million per annum in 1999. All of these engines were arranged with single fuel systems burning the crude oil being pumped through the pipeline.

Simple operation on crude oil

Initial heating of the crude oil fuel is affected indirectly through a hot water system heated by electrical immersion heaters until the crude reaches correct temperature for fuel injection. Once the first engine is started and on load, engine jacket cooling water is used to heat the crude oil system. When up to temperature, with one or more of the engines always in operation, the crude oil system is maintained at the correct operating temperature and no external electric heating is necessary.

Starting and stopping of the engines on crude oil is similar to that now achieved in Allen heavy fuel oil systems. The fuel oil system is constantly operating and circulating heated crude oil through the engine fuel pumps. The fuel injector temperature control system remains on and maintains the correct operating temperature of the fuel injectors. The fuel oil centrifuge module, circulating module and service tanks all share heat from engine jacket water systems adding to the overall economy, readiness and efficiency of the station. The single fuel system eliminates the need for a changeover arrangement from one fuel to another in these IOC pumping stations.

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KBPL Product Pipeline

In 1994 nine Allen 8S37 engine driven pump sets were supplied and installed in three stations in the new Kandla Bhatinda Product Pipeline. This pipeline pumps High Speed Diesel, Light Diesel Oil (LDO), Kerosene and motor gasolines, from the Panipat refinery north to Bhatinda and south west to Kandla. Engines were arranged to operate fuelled by distillate or Light Diesel Oil (which has high wax, water and sulphur content requiring special handling. A further four Allen 8S37 engine driven pump sets are being installed in 1999 at two intermediate stations, Sidhpur and Sanganer to increase the capacity of the pipeline to 8.5million tonnes per annum. As Panipat grows further expansion is underway.

Update

Indian Oil Corporation quality initiatives have lead to over 55 of its units earning ISO9001/9002and Salaya Mathur pipeline has 14001 accreditation. SCADA systems installed during 1998 are now fully functional with the station at Chaksu incorporating leak detection at accuracy of 2 per cent of flow rate within three minutes.

Haldia-Barauni Crude Pipeline

IOCL completed commissioning of the new Haldia to Barauni crude oil pipeline in February 1999. This delivers up to 6.2 million tonnes per year of crude oil from Haldia port to the Barauni refinery. There are two pumping stations on the pipeline each with three 6-cylinder S37 engines developing 2,100 bhp at 750 rpm. In the summer of 2000, two additional engines were installed to increase the throughput to 7.5 million tonnes per year.

Ongoing commitment to product development

Allen Diesels has established a wealth of experience in pipeline applications through the design, manufacture, installation and operation of its Allen S37 type pipeline engine. Such experience has resulted in a continuous development programme for the S37 for the pipeline environment, resulting in a quite different engine from its early design. To reflect these important step changes in development, the upgraded Allen S37 has been issued with a new name: the Allen 4000 Series. Today, the Allen 4000 Series is one of the world's leading crude oil burning engines.

Questions:

16. Describe the brief description of IOCL establishment.17. “Today, the Allen 4000 Series is one of the world's leading crude oil burning engines.” Give your

views in context with the above said statement.18. Explain the KBPL Product Pipeline incorporation.19. Add your comments on “Simple operation on crude oil”.20. Discuss the future expansion and development plans of IOCL.

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ASSIGNMENT – 2

FOR

Managing Individuals & Organization

(MB 101D)

Section A (20 Marks)

Write short notes on any four of the following:

16. MBO- Appraisal System

17. Vestibule Training

18. Internal Mobility

19. Fringe Benefits

20. Design of Selection Interview

Section B (30 marks)

(Attempt any three)

9. A number of selection tests are used to access suitability of prospective employees. Explain.10. Discuss the relationship between HRM & HRD.11. Explain the four phases through which change passes.12. What are the major reasons for wage differential?

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Section C (50 marks)

(Attempt all questions. Every question carries 10 marks)

Read the case “Nestle: Training and Development” and answer the following questions:

Case Study of Nestle: Training and Development

Introduction

Nestlé is today the world’s leading food company, with a 135-year history and operations in virtually every country in the world. Nestlé’s principal assets are not office buildings, factories, or even brands. Rather, it is the fact that they are a global organization comprised of many nationalities, religions, and ethnic backgrounds all working together in one single unifying corporate culture.

Culture at Nestlé and Human Resources Policy

Nestlé culture unifies people on all continents. The most important parts of Nestlé’s business strategy and culture are the development of human capacity in each country where they operate. Learning is an integral part of Nestlé’s culture. This is firmly stated in The Nestlé Human Resources Policy, a totally new policy that encompasses the guidelines that constitute a sound basis for efficient and effective human resource management. People development is the driving force of the policy, which includes clear principles on non-discrimination, the right of collective bargaining as well as the strict prohibition of any form of harassment. The policy deals with recruitment, remuneration and training and development and emphasizes individual responsibility, strong leadership and a commitment to life-long learning as required characteristics for Nestlé managers.

Training Programs at Nestlé

The willingness to learn is therefore an essential condition to be employed by Nestlé. First and foremost, training is done on-the-job. Guiding and coaching is part of the responsibility of each manager and is crucial to make each one progress in his/her position. Formal training programs are generally purpose-oriented and designed to improve relevant skills and competencies. Therefore they are proposed in the framework of individual development programs and not as a reward.

Literacy Training

Most of Nestlé’s people development programs assume a good basic education on the part of employees. However, in a number of countries, we have decided to offer employees the opportunity to upgrade their essential literacy skills. A number of Nestlé companies have therefore set up special programs for those who, for one reason or another, missed a large part of their elementary schooling.

These programs are especially important as they introduce increasingly sophisticated production techniques into each country where they operate. As the level of technology in Nestlé factories has steadily risen, the need for training has increased at all levels. Much of this is on-the-job training to develop the specific skills to operate more advanced equipment. But it’s not only new technical abilities

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that are required. It’s sometimes new working practices. For example, more flexibility and more independence among work teams are sometimes needed if equipment is to operate at maximum efficiency. “Sometimes we have debates in class and we are afraid to stand up. But our facilitators tell us to stand up because one day we might be in the parliament!” (Maria Modiba, Production line worker, Babelegi factory, Nestlé South Africa).

Nestlé Apprenticeship Program

Apprenticeship programs have been an essential part of Nestlé training where the young trainees spent three days a week at work and two at school. Positive results observed but some of these soon ran into a problem. At the end of training, many students were hired away by other companies which provided no training of their own. “My two elder brothers worked here before me. Like them, for me the Nestlé Apprenticeship Program in Nigeria will not be the end of my training but it will provide me with the right base for further advancement. We should have more apprentices here as we are trained so well!” (John Edobor Eghoghon, Apprentice Mechanic, Agbara Factory, Nestlé Nigeria) “It’s not only a matter of learning bakery; we also learn about microbiology, finance, budgeting, costs, sales, how to treat the customer, and so on. That is the reason I think that this is really something that is going to give meaning to my life. It will be very useful for everything.” (Jair Andrés Santa, Apprentice Baker, La Rosa Factory Dosquebradas, Nestlé Columbia).

Two-thirds of all Nestlé employees work in factories, most of which organize continuous training to meet their specific needs. In addition, a number of Nestlé operating companies run their own residential training centres. The result is that local training is the largest component of Nestlé’s people development activities worldwide and a substantial majority of the company’s 240000 employees receive training every year. Ensuring appropriate and continuous training is an official part of every manager’s responsibilities and, in many cases; the manager is personally involved in the teaching. For this reason, part of the training structure in every company is focused on developing managers’ own coaching skills. Additional courses are held outside the factory when required, generally in connection with the operation of new technology.

The variety of programs is very extensive. They start with continuation training for ex-apprentices who have the potential to become supervisors or section leaders, and continue through several levels of technical, electrical and maintenance engineering as well as IT management. The degree to which factories develop “home-grown” specialists varies considerably, reflecting the availability of trained people on the job market in each country. On-the-job training is also a key element of career development in commercial and administrative positions. Here too, most courses are delivered in-house by Nestlé trainers but, as the level rises, collaboration with external institutes increases. “As part of the Young Managers’ Training Program I was sent to a different part of the country and began by selling small portions of our Maggi bouillon cubes to the street stalls, the ‘sari sari’ stores, in my country. Even though most of my main key accounts are now supermarkets, this early exposure were an invaluable learning experience and will help me all my life.” (Diane Jennifer Zabala, Key Account Specialist, Sales, Nestle Philippines). “Through its education and training program, Nestlé manifests its belief that people are the most important asset. In my case, I was fortunate to participate in Nestlé’s Young Managers

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Program at the start of my Nestlé career, in 1967. This foundation has sustained me all these years up to my present position of CEO of one of the top 12 Nestlé companies in the world.” (Juan Santos, CEO, Nestlé Philippines)

Virtually every national Nestlé company organizes management-training courses for new employees with High school or university qualifications. But their approaches vary considerably. In Japan, for example, they consist of a series of short courses typically lasting three days each. Subjects include human assessment skills, leadership and strategy as well as courses for new supervisors and new key staff. In Mexico, Nestlé set up a national training centre in 1965. In addition to those following regular training programs, some 100 people follow programs for young managers there every year. These are based on a series of modules that allows tailored courses to be offered to each participant. Nestlé Pakistan runs 12-month programs for management trainees in sales and marketing, finance and human resources, as well as in milk collection and agricultural services. These involve periods of fieldwork, not only to develop a broad range of skills but also to introduce new employees to company organization and systems. The scope of local training is expanding. The growing familiarity with information technology has enabled “distance learning” to become a valuable resource, and many Nestlé companies have appointed corporate training assistants in this area. It has the great advantage of allowing students to select courses that meet their individual needs and do the work at their own pace, at convenient times. In Singapore, to quote just one example, Staff is given financial help to take evening courses in job-related subjects. Fees and expenses are reimbursed for successfully following courses leading to a trade certificate, a high school diploma, university entrance qualifications, and a bachelor’s degree.

International Training

Nestlé’s success in growing local companies in each country has been highly influenced by the functioning of its international Training Centre, located near our company’s corporate headquarters in Switzerland. For over 30 years, the Rive-Reine International Training Centre has brought together managers from around the world to learn from senior Nestlé managers and from each other. Country managers decide who attends which course, although there is central screening for qualifications, and classes are carefully composed to include people with a range of geographic and functional backgrounds. Typically a class contains 15–20 nationalities. The Centre delivers some 70 courses, attended by about 1700 managers each year from over 80 countries. All course leaders are Nestlé managers with many years of experience in a range of countries. Only 25% of the teaching is done by outside professionals, as the primary faculty is the Nestlé senior management. The programs can be broadly divided into two groups:

Management courses: these account for about 66% of all courses at Rive-Reine. The participants have typically been with the company for four to five years. The intention is to develop a real appreciation of Nestlé values and business approaches. These courses focus on internal activities.

Executive courses: these classes often contain people who have attended a management course five to ten years earlier. The focus is on developing the ability to represent Nestlé externally and to work with outsiders. It emphasizes industry analysis, often asking: “What would you do if you were a competitor?”

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Conclusion

Nestlé’s overarching principle is that each employee should have the opportunity to develop to the maximum of his or her potential. Nestlé do this because they believe it pays off in the long run in their business results, and that sustainable long-term relationships with highly competent people and with the communities where they operate enhance their ability to make consistent profits. It is important to give people the opportunities for life-long learning as at Nestle that all employees are called upon to upgrade their skills in a fast-changing world. By offering opportunities to develop, they not only enrich themselves as a company, they also make themselves individually more autonomous, confident, and, in turn, more employable and open to new positions within the company. Enhancing this virtuous circle is the ultimate goal of their training efforts at many different levels through the thousands of training programs they run each year.

Questions:

21. What kind of training is provided by Nestle to their employees?22. “Ensuring appropriate and continuous training is an official part of every manager’s

responsibilities and, in many cases; the manager is personally involved in the teaching.” Elaborate this statement.

23. Define the human resource policy of Nestle.24. Discuss the features of Apprenticeship Program offered by Nestle to their young trainees.25. Give light on the courses offered by Nestle at international level.