Transcript
Page 1: BUSINESS MANAGEMENT Dn. B. R. AMBEDKAR OPEN …DR. B. R. AMBEDKAR OPEN UNIVERSITY DTPINTMENT OF BUSINESS MANA.CEMENT P. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME PGDMM _ 1: ORGANISATION

DEPARTMENT OF BUSINESS MANAGEMENTDn. B. R. AMBEDKAR OPEN UNMRSITY

ROAD NO. 46, JUBILEE HILLS, HYDERABAD - 500 033

Dear Student,

We are enclosing two assignments in each course, for ALL courses, including optional

courses, of Post-Graduate Diploma in Marketing Management Program (2018-19 Batch).

Please note the following points while answering these assignments:

1. Assignments are compulsory for PGDMM Program. They have a weight age of 30o/o in

each course.

2. You have to submit both the assignments compulsorily. You will not be allowed to

appear for the year-end examination for any course if you do not submit the specified

number of assignments in time for that course.

3. Each assignment carries a maximum of 15 marks and you have to get a minimum of 40%

of marks, i.e.,6 out of 15, to qualify in that assignment. If you fail to get the minimum

marks in any assignment, you have to resubmit that particular assignment. Repetition ofthe same assignment will not be allowed more than once'

4. The maximum marks for each course at the year-end examination are 70 and you have to

get a minimum of 40% i.e.,28 out of 70.

5. Division will be awarded on the basis of the aggregate marks obtained in assignments as

well as in the year-end examinations.

6. Dates of submission for the assignments are:

All the Six Courses

FIRST ASSIGNMENT & SECOND ASSIGNMENT: 15.0s.2019

ASSIGNMENTS SUBMITTED AFTER THE DUE DATE WILL NOT BE ACCEPTED.

7. If, under unavoidable circumstances, you fail to submit the assignments within the

stipulated time, your results will be declared only after the submission and evaluation

of all the assignments.8. If any student fails to submit all the assignments within the stipulated time, he/she has

to answer the set of assignments that are sent to the batch in progress at that time.

g. You have to submit your assignments in the Study Centre to which you are attached.

Page 2: BUSINESS MANAGEMENT Dn. B. R. AMBEDKAR OPEN …DR. B. R. AMBEDKAR OPEN UNIVERSITY DTPINTMENT OF BUSINESS MANA.CEMENT P. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME PGDMM _ 1: ORGANISATION

10. The first page of your response sheet should be in the following format.

Student's Enrolment No.

Name of the Student

Address

Course Code

Course Title

Assignment No.

Question Nos.

Study Centre (Name & Code )

Date of Submission

Signature of the Student

1 l. Please go through the relevant course units thoroughly before you answer assignments.

12. If the assignment is of a problem model, you have to answer it in the proper format.You should give working notes also wherever necessary.

13. Before submitting the assignment, check it up carefully to make sure that you haveattempted all the main points of the question.

14. You are required to use only foolscap size paper for your response. Allow somemargin on the left in order to facilitate the evaluator to record his comments.

15. You have to answer the assignments in your own words. Kindly do not borrowsentences or paragraphs directly from the course material.

16. Do not copy from the response sheets of other students. If copying is noticed, theassignments of all such students will be rejected.

17. Start each assignment on separate sheets of paper.

18. You can consult your counsellors and clarify your doubts, if any, while answering theassignments.

19. The assignments should be neatly hand written. Typed or Computerizedassignments will not be accepted.

20. You have to prepare your responses in duplicate, submit the original at your studycentre and file the second copy with you as a record.

Page 3: BUSINESS MANAGEMENT Dn. B. R. AMBEDKAR OPEN …DR. B. R. AMBEDKAR OPEN UNIVERSITY DTPINTMENT OF BUSINESS MANA.CEMENT P. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME PGDMM _ 1: ORGANISATION

2l . You can collect back the evaluated assignments from your study centre, if you want.

22.In case you request for a change of study centre, you should submit your assignments

only to ihe original study centre until the University effects the change of the study

centre.

23. Further corespondence should be made to the following address:

The Director (SSB)Dr. B. R. Ambedkar Open UniversitYProf. G. Ram Reddy Marg,Road No.46, Jubilee Hills,Hyderabad - 500 033.

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Page 4: BUSINESS MANAGEMENT Dn. B. R. AMBEDKAR OPEN …DR. B. R. AMBEDKAR OPEN UNIVERSITY DTPINTMENT OF BUSINESS MANA.CEMENT P. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME PGDMM _ 1: ORGANISATION

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DR. B. R. AMBEDKAR OPEN UNIVERSITY

DTPINTMENT OF BUSINESS MANA.CEMENTP. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME

PGDMM _ 1: ORGANISATION AND MANAGEMENT PROCESS(2018-f9 BArcH)

ASSIGNMENT _ IANSWER ALL QUESTIONS

ALL QUESTIONS CARRY EQUAL MARKS

(MARKS:15)

"Management is a blend of various functions which are independent as well

as interdependent" - Critically examine the statement.

Explain lucidly what MBO is meant by, and also give its evolution, need and

the process involved in it.

Write a short note on organizalional culture and climate. Discuss briefly

about the common dimensions of organizational culture and climate.

ASSIGNMENT _ IIANSER ALL QUESTIONS

ALL QUESTIONS CARRY EQUAL MARKS

(Mlnxs: 15)

"Planning and control are complementary to each other." - Elaborate this

statement giving sufficient and pertinent examples.

Define 'managerial communication'. Explain the purpose and significance of' effective managerial communication'.

3. Analyze the following case and answer the questions given at the end:

Mehul is the Sales Manager of a reputed firm. He has 30 employees in

his team. All the employees are paid commission on the basis of sales in

their territories. For the past three years, the market for the firm's goods has

been steadily growing and the majority of Mehul's staff has met this growth

with increased sales. However, one employee in specific, Narayan Rao, has

not kept up with the pace.

1.

2.

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Narayan Rao has been with this firm for over 20 years and is now 55

years old. Narayan Rao is a friendly man and is liked by his peers and those

to whom he sells the firm's production on a regular basis. The firm has

always considered Narayan Rao dependable and Loyal. Through the years

Narayan Rao has been considered as an asset to the firm. But at the age of56, he has gone into state of semi-retirement. Narayan Rao's sales have not

increased as the other employees have in the organization, and he does not

have determination to achieve a significant increase in sales. Mehul wishes

to change this situation. He wants to motivate Narayan Rao to increase his

sales to match the sales of his younger peers. To accomplish this Narayan

Rao must begin to do more than put in his time, but Mehul is not sure as to

how to go about trying to motivate him. Unlike, the majority of the new

employees, Narayan Rao is an old man, who within five years will retire. Ifyou were Mehul, what would you do?

Questions:i) Would you threaten to fire Narayan Rao?

ii) Does your solution involve the feeling of others in your staff?

iii)Would you increase Narayan Rao's commission?iv) Would you offer to increase Narayan Rao's retirement benefit rather?

v) Would you offer Narayan Rao higher status in the way of a new

designation or a new car from the firm?vi) Is there some way in terms of appraisal and reward to motivate Narayan

Rao? Give any other motivational measure you would feel appropriate.

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Page 6: BUSINESS MANAGEMENT Dn. B. R. AMBEDKAR OPEN …DR. B. R. AMBEDKAR OPEN UNIVERSITY DTPINTMENT OF BUSINESS MANA.CEMENT P. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME PGDMM _ 1: ORGANISATION

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DR. B. R. AMBEDKAR OPEN UNIVERSITY

DTPARTMENT OF BUSINESS M,q.NA.CEMENT

P. G. DIPLOMA IN MARKETING MANAGEMBNT PROGRAMME

PGDMM _ 2: QUANTITATIVE MBTHODS(2018-19 Bnrcu)

ASSIGNMENT-I (Mlnrs:15)ANSWER ALL QUESTIONS

ALL QUESTIONS CARRY EQUAL MARKS

1. a) "statistics is the science of averages." - Comment.

b) Solve the following equations using 'Gauss - Jordon Method':

i) 8x * x:0;16x + 2x:0, and

ii)2x-4x+6x:0;4x+ 10x+ 12x:0.

2. a) Find the derivative of r/1tOx+:O) from first principles.

b) Differentiate w.r.t. 'x':.tJ + 3.ul -,1

t-

3. a) Find graphically the value of Median, D7 erd Pzz from the following:

Age (Years) 20-25 25-30 30-35 35-40 40-45 45-50 50-55

No. of Students inan Open University

60 80 100 160 ls0 100 150

b) Calculate the Mean Deviation from Mean and Median, and their

respective Coefficient of Mean Deviation for the following data:

Course Code 1 2-lJ 4 5 6 7 8 9

No of Students (X) 54 7l 57 52 49 45 72 57 47

Page 7: BUSINESS MANAGEMENT Dn. B. R. AMBEDKAR OPEN …DR. B. R. AMBEDKAR OPEN UNIVERSITY DTPINTMENT OF BUSINESS MANA.CEMENT P. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME PGDMM _ 1: ORGANISATION

ASSIGNMENT - II (Mlnxs: 15)

ANSWER ALL QUESTIONSALL QUESTIONS CARRY EQUAL MARKS

1. A survey result of radio listeners' preference for different types of music

under various age groups is as follows:

Type of Music PreferredAge Group

t8-25 26-3s Above 36

National 80 60 9

Foreign 2r0 325 44

Indifferent t6 45 132

Is preference for type of music influenced by age? Test and comment.(Table Value:9.488)

2. In a bakery, the average number of a popular brand's 100% wheat breads

sold is 30 per day. Due to starting a new hospital in the vicinity, the sales

increased during first 27 days and these are found to be:

Discuss that the sales of burgers have increased.

3. Calculate the Karl Pearson's coefficient of correlation from the followingdata:

Now, each value of P is multiplied by 2 and then it is added with 6.

Similarly, each value of Q is multiplied by 3 and 2 is subtracted from it.What will be the correlation coefficient between the new series of P and Q?

:k ,r rr rk ik

31 32 32 32 JJ 34 34 35 35

36 32 34 34 30 32 3Z 33 34

39 28 31 27 29 32 32 aaJJ 31

P t2 9 8 l0 l1 13 7

a t4 8 6 9 11 I2 -}J

Page 8: BUSINESS MANAGEMENT Dn. B. R. AMBEDKAR OPEN …DR. B. R. AMBEDKAR OPEN UNIVERSITY DTPINTMENT OF BUSINESS MANA.CEMENT P. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME PGDMM _ 1: ORGANISATION

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DR. B. R. AMBEDKAR OPEN UNIVERSITY

DNPANTMENT OT BUSINESS MAN^q.CEMENT

P. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMMB

PGDMM - 3: MARKETING MANAGEMENT(2018-19 BArcH)

ASSIGNMENT-t (Mlnrs:15)ANSWER ALL QUESTIONS

ALL QUESTIONS CARRY EQUAL MARKS

l. "Marketing is nothing but selling stuff. Anybody can do that without taking

a course." - Do you agree with this statement? Substantiate your answer

with some suitable examples.

2. Explain the following:

i) Market-Oriented Organization, and

ii) Applications of Marketing Research.

3. Discuss briefly the following, in the context of understanding Hindustan

consumers:a) 'Buyer' verses '(Jser', and

b) Psychological factors influencing consumer behaviour.

ASSIGNMENT - II (MARKS: 15)

ANSWER ALL QUESTIONSALL QUESTIONS CARRY EQUAL MARKS

l. a) Define the term 'branding'? Explain the various branding strategies

available to present day management.b) What is packing? Explain its importance.

2. Enumerate briefly the stages, according to Paul E. J. Gerhald, thatadvertising moves through before accomplishing its purpose of performingthe various marketing and communication functions.

Page 9: BUSINESS MANAGEMENT Dn. B. R. AMBEDKAR OPEN …DR. B. R. AMBEDKAR OPEN UNIVERSITY DTPINTMENT OF BUSINESS MANA.CEMENT P. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME PGDMM _ 1: ORGANISATION

3. Analyze the case given below and answer the questions following it:

Macrona Biscuits, Secunderabad, are in the field for little over six years.

During this time, they have consistently increased their sales. This was

possible mainly due to good quality of biscuits, a good distribution network

and promotion policy. The company has shown innovative ability by

bringing out variety of biscuits to cater to varioOus tastes in the consumer

market.

A study made on the biscuit industry by the Hindustan Biscuit

Manufacturers' Association highlighted that out of the total consumption ofbiscuits; almost 2lYo are consumed by children below the age of 1 1. The

management of company decided to develop special biscuits to cater to this

market segment. After working out different possibilities, it was finallydecided that biscuits made in different animal shapes would be introduced

which would certainly appeal to the younger generation. As such, samples

were prepared. The company carried out a small exercise in test marketing

the biscuits in their home town. A sample size of 200 was selected for this

purpose. Majority of the sample consumers showed their interest and

informed that the children have liked the products.

With a lot of publicity, the company introduced this new range of biscuits

in all the four metropolitan cities and its home town. The results for first six

months were encouraging. The results from the seventh month, the sales

started declining. In the twelfth month the total sales of this type of biscuits

were reported only at 25 per cent of the peak reached. The quality was

maintained. The price right from the beginning was 10 per cent higher than

the other types of same weight.

Questions:i) What caused the downward trend of sales for animals shaped biscuits?

ii) What remedial actions would you suggest to maintain the sales at a

particular level?

?k ?k ,r rr ,r

Page 10: BUSINESS MANAGEMENT Dn. B. R. AMBEDKAR OPEN …DR. B. R. AMBEDKAR OPEN UNIVERSITY DTPINTMENT OF BUSINESS MANA.CEMENT P. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME PGDMM _ 1: ORGANISATION

DR. B. R. AMBEDKAR OPEN UNIVERSITY

DBPA.RTMENT OT BUSTNESS MNNACEMENT

P. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME

PGDMM _ 4: CONSUMER BEHAVIOUR AND MARKETINGRESEARCH

(2018-19 BATCH)

ASSIGNMENT - IANSWER ALL QUESTIONS

ALL QUESTIONS CARRY EQUAL MARKS

(MARKS: 15)

1. What is meant by 'Consumer Behaviour'? Discuss the emerging trends in

contemporary Indian markets with reference to changing consumer

behaviour.

2. Define and compare I contrast between:a. Consumer Attitude and Alternative Evaluation, and

b. Consumer Behaviour and Life Style.

3. a) In the context of marketing, can personality be viewed as having some

distinct characteristics? If yes, explain them.

b) Write a brief note on Social Class and Social Stratification.

ASSIGNMENT - IIANSWER ALL QUESTIONS

ALL QUESTIONS CARRY EQUAL MARKS

(Mlnxs:15)

1. What is meant by Questionnaire? Differentiate between a questionnaire

and a schedule. What type of marketing information can be collected withthe help of a questionnaire? State clearly, as to when an unstructured

questionnaire can be used in marketing studies.

2. Write the meaning and importance of 'Research Design'. Explain brieflythe four types of research design, viz., the explanatory, the descriptive,quasi-experimental and the experimental research designs.

3. Analyze the case given below and answer the questions asked at the end:

M/s. Param Pvt. Ltd. manufactures and sells silver articles since 1947.

Silver business has been aristocratic. It emphasized design, craftsmanship

Page 11: BUSINESS MANAGEMENT Dn. B. R. AMBEDKAR OPEN …DR. B. R. AMBEDKAR OPEN UNIVERSITY DTPINTMENT OF BUSINESS MANA.CEMENT P. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME PGDMM _ 1: ORGANISATION

and aimed its products at the Wealth Patrons of exclusive stores. In 2005,

it acquired another Company named Sakshi Silver Co. Mr. Nag Rajan,

the self-made entrepreneur of Sakshi Silver Co. became the Managing

Director of Param Pvt. Ltd. Param's strong financial position allowed Mr.Nag Rajan to borrow for the acquisitions that have changed it from

merely a silver manufacturing unit to a giftware manufacturing unit also,

selling china, crystal, cutlery and silk flowers.

With such diversification, came the spectacular growth. The Sales in

2OlO were around Rs. 300 Crores compared to Rs.98 Crores in 2006. The

Sales tumover by 201 I was expected to rise at the rate of Twenty Percent.

Mr. Nag Rajan firmly believed that middle class house wives want to livelike rich, well-to-do wives. With this in mind, he began mass

merchandising of Silver to the general public. As the prices of silver rose

the competitors found themselves selling luxury products to a privilegedgroup whose members were thinning at an alarming rate. Meanwhile,

Param Pvt. Ltd., with its inexpensive and attractive silverware, was

making steady in road into mass markets. Today, Param Pvt. Ltd. is the

acknowledge company for leadership in silver sales. It has near monopolyin the market for silver plated dishes known as hollow-ware. Selling ofsilver plated flatware at affordable prices to general population was the

key to Param's success. The competitors constantly claim that Param's

products are shoddy - that plating on the hollow - ware is thin, and the

polishing and welding crude. The competitive products were believed to

stand up 100 years of polishing, wear and tear.

However, the general public desiring to enjoy silverware is notinterested in 100 years life. If they can afford it and use it for a few years

that is all they cared for. So the sales of Param went on growing. Param

used a policy of deep discounts on its sliver products. Its advertisement

emphasized intricate workmanship and long history of designs. The

Recent promotional campaigns of the company offered silver products at

a 600/o suggested discount with a free microwave oven with a purchase ofan entire set of silver ware. The rest of the industry decried the practice

but grudgingly followed Param's footsteps.

Questions:i) What factors of Consumer Behaviour were taken into consideration by

IWs. Param Pvt. Ltd.?ii) What is your opinion and evaluation of Param's Marketing Strategy?

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Page 12: BUSINESS MANAGEMENT Dn. B. R. AMBEDKAR OPEN …DR. B. R. AMBEDKAR OPEN UNIVERSITY DTPINTMENT OF BUSINESS MANA.CEMENT P. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME PGDMM _ 1: ORGANISATION

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DR. B. R. AMBEDKAR OPEN UNIVERSITY

DBpanTMENT or BUSINESS M.IN,q.cEMENTP. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME

PGDMM _ 5: SALES AND DISTRIBUTION MANAGEMENT(2018-19 BArctI)

ASSIGNMENT-l (MARKS:15)ANSWER ALL QUESTIONS

ALL QUESTIONS CARRY EQUAL MARKS

1. a) What is meant by 'Sales Management'? Elucidate the processes involved

in designing of sales strategY.

b) Write short notes on:i) 'Personal Selling', and

ii) 'Field Sales Organization'.

2. "The selling process is a complex communication and learning process for

sales personal and the prospective customer." - You are required to substantiate

the statement by enumerating the various steps involved in 'Sales Process'.

3. a) What is 'Sales Force Monitoring'? Explain in brief its needs and

objectives.b) Write a note on 'Types of Sales Display''

ASSIGNMENT - II (MARKS: 15)

ANSWER ALL QUESTIONSALL QUESTIONS CARRY EQUAL MARKS

l. a) Discuss briefly the techniques in sales forecasting and the practices

relating to sales quotas.

b) Write a short note on 'Territory Management'.

2.a) How do you assess the distribution task performed in India? Explain

lucidly.b) Taking a product of your choice as an example, elaborate on the various

aspects involved in its physical distribution process in India.

3. Describe briefly the various tools of control used for channel intermediaries.

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Page 13: BUSINESS MANAGEMENT Dn. B. R. AMBEDKAR OPEN …DR. B. R. AMBEDKAR OPEN UNIVERSITY DTPINTMENT OF BUSINESS MANA.CEMENT P. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME PGDMM _ 1: ORGANISATION

Dn. B. R. AMBEDKAR OPEN UNMRSITY

DnpaRTMENT op BUSINESS MaN,q,cEMENT

P. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME

PGDMM _ 6: PRODUCT AND ADVERTISING MANAGBMENT(2018-19 BATCH)

ASSIGNMENT-l (Menxs: 15)

ANSWER ALL QUESTIONSALL QUESTIONS CARRY EQUAL MARKS

1. What is meant by 'Product Life Cycle (PLC)'? How PLC can be used as

an aid in designing new product development strategies and thereafter inplanning market share strategies. Explain concisely.

2. Compare and Contrast:a.'Adoption' and'Diffusion';b. 'Diffusion in the consumer field' and 'Diffusion in the industrial

field'.

3. Elevate the concept and art of packaging, and also bring out its importance

in the contemporary competitive environment.

ASSIGNMENT - II (MARKS: 15)

ANSWER ALL QUESTIONSALL QUESTIONS CARRY EQUAL MARKS

1. Explain in detail the concept of 'Advertising Tasks', giving few examples.

Also discuss the present trends in detail in Indian Advertising Companies.

2. Discuss the rationale, inputs and process for the promotional media selection

in India.

Page 14: BUSINESS MANAGEMENT Dn. B. R. AMBEDKAR OPEN …DR. B. R. AMBEDKAR OPEN UNIVERSITY DTPINTMENT OF BUSINESS MANA.CEMENT P. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME PGDMM _ 1: ORGANISATION

3. Analyze the case given below and offer your comments and suggestions.

Mulkji Sajan is a well known Florist at Jambagh in Hyderabad. He has

been keeping a close relationship with his customers and has developed

the practice of offering specific Flower Bouquets to his customer,

according to their specific requirement and preferences.

As he is running his flower shop in a metropolitan city like

Hyderabad, he has a profound sense of modernity. This is reflected in the

display of his Flower-shop, his promotion methods, ultra cleanliness,

packing of flowers, garlands, bouquets, etc.

Now, he is thinking of creating a website on internet. His marketing

ideas are always creative and innovative as his profile is far different

from other Florists. He is fond of reading Psychological Books. He had

completed his M.Sc. (Psychology) eighteen years ago. Besides, it is his

practice to discuss and confirm his marketing ideas with a professional

consultant, also his client.

He would like to get your suggestions on using website for marketing.

Offer your suggestions to Mulkji Sajan about display of pictures,

customer comments/feedback, information, etc. and how he can use

internet as business opportunity.

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Page 15: BUSINESS MANAGEMENT Dn. B. R. AMBEDKAR OPEN …DR. B. R. AMBEDKAR OPEN UNIVERSITY DTPINTMENT OF BUSINESS MANA.CEMENT P. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME PGDMM _ 1: ORGANISATION

DR. B. R. AMBEDKAR OPEN UNIVERSITY

DNPARTMENT OF BUSINESS MNNACEMENT

P. G. DIPLOMA IN MARKETING MANAGBMENT PROGRAMME

PGDMM _ 7: INTERNATIONAL MARKETING(2018-19 BATCH)

ASSIGNMENT-T (MENTS:15)ANSWER ALL QUESTIONS

ALL QUESTIONS CARRY EQUAL MARKS

1. Distinguish between domestic and international marketing. Also explain the

trends in international marketing. A swagruha (Home-made Telangana

Foods) foods small scale Indian baker and confectioner is planning to enter

US market. Suggest a suitable strategy for him.

2. How do the following affect international marketing decisions? Write a page

on each of them:a) Cultural Analysis,b) Political Analysis,c) GATT, andd) International Law.

3. Explain briefly the following in the context of international business in a

paragraph or two:i) Marine Insurance Policy I Certificate;

ii) Letter of Credit;

iii) Combined Transport Document (CTD); and

iv) Shipping Order and Mate Receipt.

ASSIGNMENT - II (Mlnxs: 15)

ANSWER ALL QUESTIONSALL QUESTIONS CARRY EQUAL MARKS

l. Discuss the role played by branding, labeling and packaging in internationalproduct planning. Also discuss the problems and prospects of using Indianbrands in foreign markets.

2. Describe briefly the scope, procedures and techniques of internationalmarketing research.

Page 16: BUSINESS MANAGEMENT Dn. B. R. AMBEDKAR OPEN …DR. B. R. AMBEDKAR OPEN UNIVERSITY DTPINTMENT OF BUSINESS MANA.CEMENT P. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME PGDMM _ 1: ORGANISATION

3. Analyze the following case and answer the questions given at the end:

Bharat Petro-oil Corporation (BPC) is the largest commercial undertaking

in India. As part of its internationalization strategy, it has entered foreign

markets by using the following entry methods'

Exporting; BPC exports Psepo Lubricants and other petroleum products

to a numb.. of overseas markets including Bangladesh and Sri Lanka.

Turnkey Projects: In September 2004, BPC set up a wholly owned

subsidiary - M/s. Bharat Oil Tanking Limited, Mauritius, to construct a port

oil terminal on a turnkey basis at Mer Rouge.

Strategic Alliance: For providing aviation fuel and refueling facilities at

SSR international airport in Mauritius, Bharat Petro-oil Mauritius Limited

(BpML) has fashioned a strategic alliance with existing players, such a

Shell, Caltex and ESSO.

Joint Venture: BPC is also negotiating with Caltex to enter into a joint

venture for installing a bottling plant and also for marketing LPG under a

common brand name 'Bhama Gas' in Mauritius.

Wholly Owned Subsidiaries.' BPC has set up a wholly owned subsidiary

in Mauritius - Bharat Petro-oil Mauritius Limited (BPML) - with a huge

projected investment. The company is setting up a state-of-the-art bulk

rtoiug. terminal at Mer Rouge to stock 26 thousand metric tons of vital

petroleum products, auxiliary and bunkering facilities, and 26 modern petrol

(and gas) stations. BPML is also in the process of building infrastructure for

storage, bottling and distribution of Bharte LPG. It is also planning to market

its Pepso Lubricants in Mauritius.

Besides, BPC has also formed a wholly owned subsidiary in Sri Lanka

known as Lanka BPC Private Limited (LBPC). LBPC acquired 100 retail

outlets owned by the Ceylon Petroleum Corporation in ldar 2004. It is the

only private company besides state owned Ceylon Petroleum Corporation

(CPC), to operate retail petrol stations in Sri Lanka. Besides building and

operating storage facilities at Trincomolu Tank Farm, LBPC is also involved

in bottle supply to industrial consumers.

In order to facilitate the operations of LBPC, the government of Sri

Lanka has extended the following concessions.

a) A tripartite agreement signed between the Sri Lankan Government, CPC,

and LBPC guarantees that only three retail players (including CPC and

LBPC) will operate in the Sri Lankan market for the next six years.

Page 17: BUSINESS MANAGEMENT Dn. B. R. AMBEDKAR OPEN …DR. B. R. AMBEDKAR OPEN UNIVERSITY DTPINTMENT OF BUSINESS MANA.CEMENT P. G. DIPLOMA IN MARKETING MANAGEMENT PROGRAMME PGDMM _ 1: ORGANISATION

b) LBPC has also been allowed income tax exemption for 12 years from the

date of commencement of operations, and a concessional tax of l4o/o

thereafter against the then prevailing rate of corporate income tax'

c) LBPC has also been granted customs duty exemption for import ofproject-related plant, machinery, and equipment during the project

i.pl.-.ntation period of six years, besides free transfer of dividend /

income to India.

As a strategic perspective, BPC is moving towards globalizing its

markets.

Questions:

l. Identify the main reasons behind BPC's expansion into global markets.

2. BPC has adapted a mix of entry modes for approaching international

markets. Critically evaluate the factors affecting BPC's selection of these

entry modes.

3. In view of the emerging economic and political scenario, evaluate BPC's

entry into Sri Lanka as a wholly owned subsidiary.

**rF


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