IIBM DMS CASE STUDY SOLUTIONS PAPERS - The Regina Company„ one of the largest inakets of vacuum cleaners recent') had scv cfc ptollkins with the quality of its products.
IIBM DMS CASE STUDY SOLUTIONS PAPERS - The Regina Company„ one of the largest inakets of vacuum cleaners recent') had scv cfc ptollkins with the quality of its products.
IIBM DMS CASE STUDY SOLUTIONS PAPERS - The Regina Company„ one of the largest inakets of vacuum cleaners recent') had scv cfc ptollkins with the quality of its products.
For
answersheets contact
info.answersheets@gmail.com
+91 95030-94040
Managerial
Economics
Multiple
choice:
I. Demand is
determined by
a) Price of the product
b) Relative prices of other goods
c) Tastes and habits
d) All of the above
II. When a
firm’s average revenue is equal to its average cost, it gets
a) Super
profit
b) Normal
profit
c) Sub
normal profit
d) None of
the above
III.
Managerial economics generally refers to the integration of economic theory
with business
a) Ethics
b) Management
c) Practice
d) All of
the above
IV. Which of
the following was not immediate cause of 1991 economic crisis
a) Rapid growth of population
b) Severe inflation
c) Expanding Fiscal deficit
d) Rising
current account deficit
V. Money
functions refers to :
a) Store of value
b) Medium of Exchange
c) Standard of deferred payments
d) All of
the above
VI. Given
the price, if the cost of production increases because of higher price of raw
materials, the supply
a) Decreases
b) Increases
c) Remains same
d) Any of
the above
VII. Total Utility is maximum when
a. Marginal Utility is maximum
b. Marginal Utility is Zero
c. Both of the above
d. None Of The Above
VIII. Cardinal approach is related to
a. Equimarginal Curve
b. Law of diminishing returns
c. Indifference Curve
d. All of the above
IX. Marginal Utility curve of a
consumer is also his
a) Supply Curve
b) Demand Curve
c) Both of above
d) None of above
X. Government of India has replaced
FERA by
a) The competition Act
b) FRBMA
c) MRTP Act
d) FEMA
Part Two:
1. What is Managerial Economics? What
is its relevance to Engineers/Managers?
2. “Managerial Economics is economics
that is applied in decision making” Explain?
3. Differentiate b/w, Micro economics
vs. macroeconomics?
4. Factors Affecting Price Elasticity
of Demand?
Section B: Caselets (40 marks)
Caselet1
Dabur is among the top five FMCG
companies in India and is positioned successfully on the specialist herbal
platform. Dabur has proven its expertise in the fields of health care, personal
care, home care and foods. The company was founded by Dr. S. K. Burman in 1884
as small pharmacy in Calcutta (now Kolkata), India. And is now led by his great
grandson Vivek C. Burman, who is the Chairman of Dabur India Limited and the
senior most representative of the Burman family in the company. The company
headquarter is in Ghaziabad, India, near the Indian capital New Delhi, where it
is registered. The company has over 12 manufacturing units in India and abroad.
The international facilities are located in Nepal, Dubai, Bangladesh, Egypt and
Nigeria. S.K. Burman, the founder of Dabur, was trained as a physician. His
mission was to provide effective and affordable cure for ordinary people in
far-flung villages. Soon, he started preparing natural remedies based on
Ayurveda for diseases such as Cholera, Plague and Malaria. Due to his cheap and
effective remedies, he became to be known as ‘Daktar’ (Indian izedversion of
‘doctor’). And that is how his venture Dabur got its name—derived from Daktar
Burman. The company faces stiff competition from many multinational and
domestic companies. In the Branded and Packaged Food and Beverages segment
major companies that are active include Hindustan Lever, Nestle, Cadbury and
Dabur. In case of Ayurvedic medicines and products, the major competitors are
Baidyanath, Vicco, Jhandu, Himani and other pharmaceutical companies.
Vision statement of Dabur says that
the company is “dedicated to the health and wellbeing of every household”. The
objective is to “significantly accelerate profitable growth by providing
comfort to others”. For achieving this objective Dabur aims to:
Focus on growing core brands across
categories, reaching out to new geographies, within and outside India, and
improve operational efficiencies by leveraging technology.
Be the preferred company to meet
the health and personal grooming needs of target consumers with safe,
efficacious, natural solutions by synthesizing deep knowledge of Ayurveda and
herbs with modern science.
Be a professionally managed
employer of choice, attracting, developing and retaining quality personnel.
Be responsible citizen with a
commitment to environmental protection.
Provide superior returns, relative
to our peer group, to our shareholders.
Chairman of the company
Vivek C. Burman joined Dabur in 1954
after completing his graduation in Business Administration from the USA. In
1986 he was appointed as the Managing Director of Dabur and in 1998 he took
over as Chairman of the Company. IIBM Institute of Business Management
Examination Paper of Managerial
Economics Under Vivek
Burman’s leadership, Dabur has grown and evolved as a multi-crore business
house with a diverse product portfolio and a marketing network that traverses
the whole of India and more than 50 countries across the world. As a strong and
positive leader, Vivek C. Burman had motivated employees of Dabur to “do better
than their best”—a credo that gives Dabur its status as India’s most trusted
nature-based products company.
Leading brands
More than 300 diverse products in the FMCG,
Healthcare and Ayurveda segments are in the product line of Dabur. List of
products of the company include very successful brands like Vatika, Anmol,
Hajmola, Dabur Amla Chyawanprash, Dabur Honey and Lal Dant Manjan with turnover
of Rs.100 crores each.
Strategic positioning of Dabur Honey as food
product, lead to market leadership with over 40% market share in branded honey
market; Dabur Chyawanprash is the largest selling Ayurvedic medicine with over
65% market share. Dabur is a leader in herbal digestives with 90% market share.
Hajmola tablets are in command with 75% market share of digestive tablets
category. Dabur Lal Tail tops baby massage oil market with 35% of total share.
CHD (Consumer Health Division), dealing with
classical Ayurvedic medicines, has more than 250 products sold through
prescription as well as over the counter. Proprietary Ayurvedic medicines
developed by Dabur include Nature Care Isabgol, Madhuvaani and Trifgol.
However, some of the subsidiary units of Dabur
have proved to be low margin business; like Dabur Finance Limited. The
international units are also operating on low profit margin. The company also
produces several “me – too” products. At the same time the company is very
popular in the rural segment.
 |
| IIBM DMS CASE STUDY SOLUTIONS PAPERS - The Regina Company„ one of the largest inakets of vacuum cleaners recent') had scv cfc ptollkins with the quality of its products. |
Questions
1. What is the objective of Dabur? Is it profit
maximisation of growth maximisation?
2. Do you think the growth of Dabur from a small
pharmacy to a large multinational company is an indicator of the advantages of
joint stock company against the proprietorship form? Elaborate.
Caselet2
The Regina Company„ one of the largest inakets of
vacuum cleaners recent') had scv cfc ptollkins with the quality of its
products. The market responsc to this 1ak of quality caused financial problems
for Ow company. in late 1995. Regina began having return rates as high as 30 to
50 percent on some of its Housekeeper and Housekeeper Plus models. These models
were sold primarily through discount stores. Further, Regina's Spectrum vacuum
cleaner, an upgraded version sold in specialty stores, was introduced in 1995
with many quality problems. ef The specific problems identified for the
Housekeeper and Housekeeper Plus models were associated with faulty belts and
weak suction. In the Spectrum model, the agitator was melting; and making a
loud noise, the foot pedals were breaking, and the steel-encased motor (which
had been advertised as the IIBM
Institute of Business
Management
Examination Paper of Managerial
Economics
power source for the vacuum cleaner) had been
replaced with a less desirable. less reliable motor. As a result of these
problems, Target stores discontinued Regina's Housekeeper Plus model after
reporting that "at least half of those sold were returned." At
Starmart, which accounts for about a quarter of the Housekeeper sales, I. out
of every 5 machines sold was returned. To help service customer complaints,
Regina set up an 800 telephone number for customers to contact the firm.
directly. The sales returns caused Regina's shareholders to question the 1995
fiscal earnings report. Furthermore, both inventories and accounts receivable
doubled during the 1995 fiscal year. At the end of that period, Regina's
chairman and 40 percent stockholders
Resigned. The chairman’s resignation was closely
followed by a company announcement stating that the financial results reported
for the 1995 fiscal year were materially incorrect and had been withdrawn. This
announcement brought a suit from shareholders who had bought Reoina stock on
the basis of the 1995 camings report. It also prompted an audit of the 1995
results and a request to another accounting organization to work on Regina's
business and accounting controls. A few months later, Regina 'agreed to be
acquired by a unit of Magnum, a vacuum cleaner and Water-purification Company.
Under Magnum, Regina shut down production while engineers worked to solve the
problems inherent in the Housekeeper and Housekeeper Plus vacuums, particularly
the suction difficulties. In September 1998, Magnum and Regina decided to
separate the two companies again. Since then, Regina has been regaining market
share with its Housekeeper models. The 'vacuums are popular because they carry
on-board tools.
Questions:
1. What type of controls would you have
established to preclude the major returns experienced by Regina?
2. How would you have controlled the
finished-goods -inventory to avoid its growing to twice the size that it was in
the previous year.
Section C: Applied Theory (30 marks)
1. What is the importance of demand analysis in
business decision?
2. Explain individual demand function and market
demand function.
IIBM MBA CASE LET ANSWER SHEETS,
For
answersheets contact
info.answersheets@gmail.com
+91 95030-94040
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