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Marketing strategy June 2019
1.
Founded in 1971 in Seattle, Washington, USA, Starbucks is a well-known
international brand with presence in more than 20,000 locations. Tata Starbucks
is a 50:50 joint venture between Starbucks and Tata Global Beverages (TGBL) in
India. Tata Starbucks opened its first store in India in Oct-2012, and as of
Feb-2019 had 135 stores in India. “We look at activating more stores roll out
in the next few years” – L Krishnakumar, Group CFO, TGBL (source: Business
Today, 10- Feb-2019). Recently, the brand has started accepting orders via food
delivery firms (e.g. Swiggy). The team is open to new product categories and
new stores for such products (and/or existing products). There is no plan to
raise funds from external sources, except for inorganic growth through
acquisitions. You work as a Marketing Strategy consultant, and have been hired
to develop the expansion strategy plan for the brand, which would help them
increase the sales 5 times by 2025 (relative to sales in financial year ending
Mar-2018). Provide your recommendations regarding the Marketing Strategy and
Marketing Mix along with explanations.
Answer: The
marketing decisions must fit into the overall strategy of the companyand the
budget allocated to marketing. So it is important for marketingmanagers to
analyse all the constituent elements before arriving atmarketing decisions or
strategies. This analysis helps to prepare the coursefor the launch of
marketing strategy of the organisation. Such an analysiswhich outlines the
route map for the marketing strategy is called as“Marketing Planning”.
Marketing
planning is a business level planning and assists the marketing manager in the
following ways –
a. Helps to look internally
or inwards into the organisation so as to analysethe organisation’s strengths
and weaknesses and competitiveadvantages of the product.
b. Aids in understanding the
past marketing decisions and learn from thepast mistakes, if any.
c. Helps to look outwards so
as to understand the dynamics of the market.
d. Aids in setting future
2.
Customer buying behaviour plays an important role in Marketing Strategy, and is
affected by four key factors/influences/characteristics. You are working as a
Marketing Strategy Consultant. Help your clients by identifying and explaining
the major influences on buying behaviour with reasons for application in brand
communication/ promotion for the following products/brands: (1) Mercedes India,
(2) Narayana Hrudayalaya, (3) Netflix India, and (4) Byju’s.
Answer: The
consumer decision process explains the internal process as well as individual
behaviour for making product or service based decisions. Theconsumption process
is influenced by external factors such as cultural, social, personal, and
psychological factors. When the marketing and other stimuli come in contact
with buyers, their decision process is initiated. The marketers have to
correctly read buyers’ conscious or unconscious behaviour to generate positive
response. Every person has his/her distinct set of standards of judgment.The
consumers follow a decision process characterised by problem recognition,
information search, alternative evaluation, purchase decision and post-purchase
behaviour.
Major
influences on buying behaviour- Mercedes India
Cultural
factors:
Culture is the complex way of living of individuals. It represents the way consumers
live and grow to acquire cultural values and norms.Culture may include values,
beliefs and attitudes etc. People who believe in living lavish lifestyle and
expect to raise their standard of living all the time,
3.
Founded in 1976, Brompton (www.brompton.com) is an international folding
bicycle brand. Madhav, a first generation entrepreneur founded XYZ in 2019 with
a vision to build and launch the first Indian folding bicycle brand, and and
feature among top 3 international premium folding bicycle brands by 2025.
Madhav wants to launch the product by Aug-2019. Madhav has hired you as a
consultant.
a.
Explain various stages and their characteristics in an industry life cycle,
with specific comments regarding the current stage of the industry in India
b.
There are 5 key ways to choose competitive advantage(s) as a part of
differentiation and positioning strategy; explain these ways in which XYZ can
differentiate its offering and finalise a unique positioning strategy for XYZ.
Answer: a) Industry life cycle
Initial
stage:
This is the very first stage of an industry where the development and early
marketing of a product is involved. Innovators often create new businesses to
enable the production and proliferation of the new offering.In this phase,
there are limited companies in the industry and demand is also unknown so
companies spend lots of time in research and development. Consumers do not have
much idea of the new products launched in the industry as those products are
still in developing stage. In this stage, participants or companies should not
expect profit as they have to spend lot on developing the product and the
market and revenues are also very low.
Growth
phase:
This is the second and most rewarding phase of the industry. In this phase,
consumers come to understand the value of the new offering, and demand grows
rapidly. A handful of important players usually become apparent, and they
compete to establish a share of the new market.Here, companies go for geographical
expansion and improve their business processes as well. Once the newly launched
product is successful among the customers, big companies also enter the
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Course: Operations Management
1. What
motivations typically cause firms to initiate a facilities location or
relocation project?Select an Indian company and discuss its facility location
strategies.
Answer:
Facility location decisions are strategic, long term and
non-repetitive in nature. Without sound and careful location planning in the
beginning itself, the new facility may pose continuous operating disadvantages,
for the future operations. Location decisions are affected by many factors,
both internal and external to the organisation's operations. Internal factors
include the technology used, the capacity, the financial position, and the work
force required. External factors include the economic political and social
conditions in the various localities. Most of the fixed and some of the
variable costs are determined by the location decision. The efficiency,
effectiveness, productivity and profitability of the facility are also affected
by the location decision. The facilities location problem is concerned
primarily with the best (or optimal!) location depending on appropriate
criteria of effectiveness. Location decisions are based on a host of factors,
some subjective, qualitative
2. Discus
the benefits and limitations of the product layout and process layout. Select
anyautomotive company and explain its plant layout. (10 Marks)
Answer:
What is
Product Layout?
The product layout is an assembly line. The required tools and
supplies are located at each section of the assembly line, based on where the
product is in production.
ADVANTAGES OF PRODUCT LAYOUT
The
following are the advantages of product layout:
1. Smooth flow of production: The entire production
process is integrated. Therefore the possibility of stoppage of production at
different stages of production is eliminated. So smooth flow of production is
ensured.
2. Lower material handling costs: Since machines are
arranged based on the sequence of operations, there is no
3.
JSW steel implemented Total Quality Management (TQM) at its
Vijaynagar unit as part of its journey towards quality excellence. The company
sources said TQM implementation enabled JSW steel, over the past five years, to
drive operational efficiency and strengthen its customer service operations.
In October 2018, JSW Steel’s Vijayanagar works
unit was awarded the highest global quality honour, "The Deming
Prize", for its TQM practices. The company now intends to implement TQM
across all its steel manufacturing units, the officials said adding that TQM
implementation at its Salem works in Tamil Nadu is on track and its
implementation at Dolvi works in Maharashtra is expected to be completed by
2020. (Source:https://www.firstpost.com/business/jsw-steel-plans-to-ramp-up-production-capacity-firm-mulls-to-implement-total-quality-management-in-all-units-5599111.html)
a. What is TQM? Explain
the benefits of implementing TQM at JSW steel.
(5 Marks)
Answer:
Total quality management is viewed
from many angles – as a philosophy, as an approach and as a journey towards
excellence. The main thrust is to achieve customer satisfaction by involving
everybody in the organisation, across all functions with continuous improvement
driving all activities. Total quality management systems are designed to
prevent defects from occurring.
The following steps are implemented
to achieve total
b. Discuss the various
requirements for implementing TQM at JSW steel.
Answer:
The Six Cs required for proper implementation of a TQM are
given below.
- There must be a
quality improvement commitment from all employees of the organization.
- Organization must
follow a modern quality
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ORGANIZATION THEORY, STRUCTUREAND
DESIGN
1. Value for Money is a modern-day Fintech company with a
work force of 300 people. The promoters have been stalwarts of the banking
sector with a work experience of more than 30 years. The company has a lot of
millennials and promoters are worried about creating a sustainable and
productive work culture. Which are the factors that would affect organizational
culture at Value for Money? What benefit will Value for money derive from a
strong culture?
Answer:Organizational culture affects each of us every day, yet it
is intangible and difficult to define. Understanding this component of a
workplace requires taking a step back and analyzing the different factors
affecting organizational culture on a daily basis. No single person or
group of people defines the culture where you work
Factors that would affect organizational culture at Value for
Money:
1.
LEADERSHIP
2. Hitech Solutions Ltd. is an upcoming IT solutions company.
Their performance for past 3 years has been good, however performance has
dipped this year. The CEO wants the strategy team to carry out a VRIO analysis.
Which type of technique is VRIO? Conduct a VRIO for Hitech. Make assumptions
where ever necessary. in spite of challenging market conditions. If the
management decides to use the Historical analysis, which type of tool are they
considering?
Answer 2:
VRIO framework is the tool
used to analyze firm’s internal resources and capabilities to find out if they
can be a source of sustained competitive advantage. VRIO analysis stands for four questions that ask if a resource is:
valuable? rare? costly to imitate? And is a firm organized to capture the value
of the resources? A resource or capability that meets all four requirements can
bring sustained competitive advantage for the company.
Conducting the VRIO framework at Hitech:
Valuable
The first question of the
The first question of the
Q.3. a. Explain any 4 types of organizational structures with
an example.
Answer: There cannot be a single ideal structure for all
organisations as different organisations have different size, environment,
resources, technologies, and goals. There are many different ways in which
people can be organised to work on projects.
Line
Organization
It the basic
3b: Give an example of any organisation that has gone through
the phases of organizational Life Cycle.
Organizational
life cycle (OLC) is a model that proposes that businesses, over time, progress
through a fairly predictable sequence of developmental stages. This model is
linked to the study of organizational
growth and development. It is based on a biological metaphor of
living organisms, which
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Retail Banking June 2019
1. Rural areas as still majorly an untapped market for
various sectors. This is especially true for the Banking Sector What are the
need /reasons for commercial banks to open branch operations in a rural area?
Discuss the various retail banking products these banks can offer in a rural
area, considering the lower level of financial literacy.
Answer:
Need /reasons for commercial banks to
open branch operations in a rural area
We all understand the need and
importance of bank and banking facilities in our daily lives and it is very
much convenient for us whenever we make any financial transaction. It seems
very common to us having a bank or ATM in our area but there are still
thousands of rural areas which are unbanked even now. The underbanked is a
characteristic describing people or organizations who do not have sufficient
access to mainstream financial services and products typically offered by
retail banks and thus often deprived of banking services such as credit cards
or loans. According to the World Bank, around 2 Billion people don’t use formal
financial services and more than 50% of adults in the poorest households are unbanked.
To solve this issue, Reserve Bank of
India mandated scheduled commercial banks to open branches in rural areas and
contribute in financial inclusion. Financial inclusion in the Indian context
has been defined as the provision of affordable financial services, viz.,
access to payments and remittance facilities, savings, loans and insurance
services by the formal financial system to those
2. The Banking sector has seen tremendous competition off
late, with every major bank offering similar and all kinds of services. This
makes it critical for them to make themselves visible and reach out to
customers. What are the different Marketing modes and the different
Distribution channels available for commercial banks to be able to reach
customers and service them extensively? Discuss the Marketing mode and
Distribution channels for a commercial bank if it has to open branch operations
in a rural area.
Answer:
The main focus of marketing is to understand the customer needs. A company
should not market what they manufacture but manufacture what the customer needs
in the market. Marketing is one of the key functions for an organisation to
succeed. Marketing and marketing research in an
organisation provide the required
data for any product to thrive in the market.
Marketing modes to be used while opening bank branch in
rural area
● Advertising: One of the most common forms of marketing communications is
advertising, which involves a paid message you create and place in a specific
media. This is the most basic and still effective mode of promotion and
marketing. In rural areas people still listen to the
3. The Retail Banking environment has seen a tremendous
change in the past few years. This is especially true in the case of Urban
markets where the entry of private and foreign banks has given the Retail
Banking customers any options to choose from. With reference to this dynamic
changes in retail banking in the urban market discuss the aspects as given
below
a. What are the recent trends seen in the Retail Banking
scenario adopted by banks to provide better products as well as enhance their
operations?
b. Discuss the various possible ways in which retail banks
improve their operational efficiency, provide better customer service and at
the same time generate better revenues/profits.
Answer:
a) Development in telecommunication and computer technologies have created
marked changes in business strategies. Implementation of technology has removed
the constraints of space and time and increased the profitability of business.
Similarly, implementation of technology in banking has impacted the banking
business in a big way. Customers of the bank are able to access their accounts
at any time, from anywhere through Internet banking and mobile banking.
Customers are able to withdraw cash throughout the day through ATMs.
Nowadays, the physical branch of a
bank serves as a channel for sale and delivery of banking services as alternate
channels of banking have come up like ATM, Internet banking etc. thus, reducing
foot falls in the
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Taxation Direct and Indirect June
2019
1. Government imposes direct taxes on the income earned and
generated by businesses. Are these taxes burden on the public or these taxes
are an instrument of social and economic policy in the hands on government.
Express your opinion with suitable examples.
Answer:
Taxes are broadly of two kinds: direct and indirect. While direct taxes are
taxes on the income earned by a person, indirect taxes are taxes on the
products and services produced and sold.
Direct taxes are taxes on income or
profits. Everyone who earns ‘taxable income’ i.e. income above the exempted
level has to calculate the amount earned during the financial year, and the tax
payable thereon. He should remit the tax to the government in the manner and at
the time specified. The most well-known direct tax is income tax. Other direct
taxes are wealth tax, interest tax and dividend tax. The income from business
and profession are the profits and gains arrived at by deducting the expenses
incurred from the revenues earned. The Income Tax Act defines in some detail
the revenues to be recognised and expenses allowed to be deducted, to arrive at
the next taxable business income.
Taxes are the basic source of
2. “One nation one tax.” Goods and service tax is a
comprehensive, multistage and value added tax which is collected by both, the
Central as well as State Government. GST replaced several taxes levied and
collected in the nation over a period of time. Prepare a presentation
mentioning briefly explaining, pattern of tax before GST, the types of taxes
replaced by GST and salient features of GST.
Answer:
GST is an Indirect Tax which has replaced many Indirect Taxes in India. The
Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The
Act came into effect on 1st July 2017; Goods & Services Tax Law in India is
a comprehensive, multi-stage, destination-based tax that is levied on every
value addition. In simple words, Goods and Service Tax (GST) is an indirect tax
levied on the supply of goods and services. This law has replaced many indirect
tax laws that previously existed in India. GST is one indirect tax for the
entire country.
The much awaited GST (Goods and
service tax) has been implemented in our country from July 2017 and it simply
means more GDP (gross domestic product), more revenue for the government,
better transparency, less confusion in taxation etc. In short, GST will help to
boost our Indian economy and ultimately develop our nation in a better way.
Initially, many dealers, retailers and even consumers were against the
implementation of GST but later on they realize its importance and its
relevance in current scenario. Now, we all know that
3. Mr. Amolak, aged 52 years furnishes the following
information relation to premium on mediclaim policy paid by cheque for the year
ending 31.3.2019
●
For self- Rs10000
●
For spouse, aged 48
years Rs 9500
●
For dependent mother
aged 72 years- Rs7500
●
For dependent mother in
law, aged 64 years- Rs 5000
●
Cash paid for preventive
health checkup of self and spouse – Rs 8000
●
Medical expenditure for
dependent father aged 83 years- Rs30000
a. Compute the deduction under section 80D of the Act.
b. What if, the above premium was paid in cash, would your
answer be different? Also, discuss the provisions mentioned under Section 80 D
of the Act
Answer:
a) Calculation of deduction under
section 80D for the assessment year 2019-20
Particulars
|
Amount
Paid
|
Eligibility
|
Deduction
allowed
|
a) For individual and his family
|
|||
Self mediclaim premium
|
10000
|
YES
|
10000
|
Spouse mediclaim
premium
|
9500
|
YES
|
9500
|
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