Case Studies Unit 1

Case 1

XYZ power Ltd . set up a factory for manufacturing solar lanterns in a remote village as
there was no reliable supply of electricity in rural areas. The revenue earned by the company
was sufficient to cover the costs and the risks the demand of lanterns was increasing day by
day ,so the company decided to increase production to generate higher sales . For this they
decided to employ people from the nearby village as very few job opportunities were
available in that area. The company also decided to open schools and crèches for the children
of its employees.

i. Identity and explain the objectives of management discussed above.

Case 2

ABC handlooms Ltd. Set up a factory for manufacturing jute bags in a remote village as
therewas no raw materials available. The revenue earned by the company was sufficient to
cover the costs and the risks. The demand of bags was increasing day by day, so the company
decided toincrease production to generate higher sales. For this they decided to employ
people from the nearby villages as very few job opportunities were available in that area. The
company alsodecided to open schools and creches for the children of its employees.

A) Identify and explain the objectives of management discussed above.

Case 3

Anju and Manju are good friends. Considering the fact that the activities involved in
managing an enterprise are common to all organisations, after completing their masters in
business management, both of them take up a job at managerial level in different
organisations as per their individual areas of interest. Anju takes up a marketing job in a retail
company and strives to increase sales whereas Manju joins an NGO and works diligently to
realize its objective related to providing employment to specially abled persons. Both of them
have to perform a series of continuous, composite, but separate functions. On some days,
Anju spend more time in planning a future display layout and on another day, she may spend
time in sorting out an employee’s problem. Both Anju and Manju make conscious efforts to
build a feeling of team spirit and coordination among diverse individuals with different needs
to build a feeling of team spirit and coordination among diverse individuals with different
needs who work under them. The effect of their management is noticeable in their respective
departments as the targets are met according to plans, employees are happy and satisfied, and
there is orderliness in its functioning rather than chaos. In context of the above case:

1. Identify the various features of management highlighted in the above paragraph by quoting
lines from it.

Case 4

Ganesh Ltd. is a highly reputed company. Different functions are performed by different
individuals in this company, who are bound together in a hierarchy of relationships. Every
individual in the hierarchy is responsible for successful completion of a particular task. Mr.
Sagar responsible for the welfare and survival of the organisation. He formulates overall
organization goals and strategies for their achievement. Mr. Bharat ensures that quality of
output is maintained, wastage of materials is minimized and safety standards are maintained.
Mr. Nagar assigns necessary duties and responsibilities to the personnel and motivates them
to achieve desired objects.

At what levels of management are Mr. Sagar, Mr. Bharat and Mr. Nagar working in Ganesh
Ltd.? Justify your answer

Case 5

Pratap works as a head mechanic in M/s Royal Industries (machine assembling industry). He
requires a number of tools while assembling the machine. For getting the tools, Pratap has to
move frequently to the tool room, which is situated away from the work places. Such
frequent movements leads to wastage of lot of time and no steps are taken by the factory
manager to eliminate such unnecessary movements of Pratap and his co-workers.

1) Which method of Taylor is over looked by the factory manager?

2) How can the frequent movements be avoided?

3) What kind of benefits will accrue to M/s Royal Industries after avoiding such unnecessary
movements?
 Case 6

Two years ago, Madhu completed her degree in food technology. She worked for some time
in a company manufacturing chutneys , pickles and murabbas. She was not happy in the
company and decided to have her own organic food processing unit for the same. She set the
objectives and the targets and formulated action plan to achieve the same. One of her
objectives was to earn 10% profit on the amount invested in the first year. It was decided that
raw materials like fruits, vegetables, spices etc. will be purchased on three months credit from
farmers cultivating organic crops only. She also decided to follow the steps required for
marketing of the products through her own outlets. She appointed Mohan as a Production
Manager who decided the exact manner in which the production activities are to be carried
out. Mohan also prepared a statement showing the number of workers that will be required in
the factory throughout the year. Madhu informed Mohan about her sales target for different
products, area wise for the forthcoming quarter. While working on the production table, a
penalty of Rs. 100 per day for not wearing the caps, gloves and apron was announced.

Quoting lines from the above para, identity and explain the different types of plans discussed

Case 7

An electronic company is facing a problem of declining market share due to increased

1} Prepare a model business plan for this company. Specify which type of plan you are
preparing.

2} Identify the limitations of such plans.