Long Answer TypeChadha started ‘Bulls Eye’ a company for providing cyber security solutions to businesses. Its objective is to prevent, detect and respond to cyber attacks and protect critical data. He was a hardworking software engineer and an expert in cyber security. His reputation grew by leaps and bounds as he was not only a person of integrity but also did his work with utmost honesty and sincerity. The business started growing day by day. He was delighted when he was offered a big project by the Ministry of Defence. While working on the project, he found that the volume of work made it impractical for him to handle all the work by himself. He decided to expand the team. The company maintained a close liaison with a local engineering college. During a campus placement, Ishan and Vrinda were appointed to work for the new project.
He found the new employees capable, enthusiastic and trustworthy. Aman Chadha was thus, able to focus on objectives and with the help of Ishan and Vrinda, the project was completed on time. Not only this Aman Chadha was also able to extend his area of operations. On the other hand, Ishan and Vrinda also got opportunities to develop and exercise initiative.
(i) Identify and briefly explain the concept used by Aman Chadha in the above case which helped him in focusing on objectives.
(ii) Also, state any four points of importance of the concept identified in (i) above.
Indian Youth Organisation (IYO) organised a visit of its members to an old age home to inculcate the habit of social work among them. The visit revealed that the living conditions of the inmates of the old age home were not hygienic. So, the IYO members decided to clean the premises. During their cleanliness drive, they realised that the old age home also required pest control. But some of the inmates of old age home were reluctant for it because they believed that the pest control may create health problems for them. IYO, therefore decided to provide ethical, safe and odourless pest
control. They showed to the inmates of old age home a pamphlet of the proposed pest control product which promised easy, inexpensive and long lasting pest control. The inmates happily agreed and the pest control was carried out. It worked for a fortnight but to their dismay the effect started wearing off. IYO contacted the pest control company which kept on postponing their visit. After waiting for a month, IYO filed a case in the consumer court. The consumer court was satisfied about the genuineness of the complaint and issued necessary directions to the pest control company.
(a) State any six directions that might have been issued by the court.
(b) Also, identify any two values that are being communicated by IYO to the society.
Explain briefly any four factors which affect the choice of capital structure of a company.
Mediquip Ltd. is a company dealing in distribution of medical equipments. The company recently imported 15000 units of sugar testing machines to test the sugar levels without taking blood samples. For deciding the marketing strategy, the Chief Executive Officer of the company called a meeting of the marketing heads of different zones. In the meeting, Sandeep, the North Zone Marketing Head, suggested that since the machines were sophisticated they need to visit hospitals personally, to explain its working to the hospital staff who would be using the machines. He also suggested that additional trained people may be recruited for the same. Himanshu, another Zonal Head, added that since lot of money
had been spent on the import of the machines, the company was short of funds to pay to the additional staff as suggested by Sandeep. Rahul, a newly appointed Zonal Head of South Zone suggested that since the size of the order is not large, a detailed study of the factors determining the choice of channels of distribution is required before making the right choice.
(a) Identify the factors influencing the choice of channels of distribution which were discussed in the meeting.
(b) Also, explain briefly the other consideration to be taken care of in each factor identified in part (a).
(a) Factors influencing the choice of channels of distribution are:
i. Product related factors- As discussed in the paragraph ‘Machines were sophisticated they need to visit hospitals personally to explain its working to the hospital staff who would be using the machines.’
ii. Company characteristics- ‘The company was short of funds to pay the additional staff.’
iii. Market factors- “Size of the order was not large.’
(b) Consideration to be taken care in each factor would be:
i. Product-related factors- The decision regarding the channel of distribution largely depends upon the type of product. In this case, Machines are complex products requiring technical details. Thus, shorter channels of distribution would be more suitable.
ii. Company characteristics- The financial strength of the company determines the channel of distribution that can be used by it. Company which has a good financial strength should opt for Shorter channels of distribution. they can deploy spare funds in distribution and employing salesman, opening a different number of outlets etc. However, in the given case, the company is short of funds and thus would opt for indirect channels of distribution. Similarly, companies with shorter funds can choose longer channel of distribution and companies which have lesser control over their intermediaries can go for longer channel.
iii. Market factors- Factors such as the size of the market, present demand, changing the environment, geographical concentration of buyer also affects the choice of the distribution process.For example the if size of the order is small, the company should go for small channel of distribution and if order size is large then it should go with the larger channel of distribution.
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