Facts of Obesity

Facts About Obesity in the United States
Fact: Obesity rates are soaring in the U.S.
• Between 1980 and 2000, obesity rates doubled among adults. About 60
million adults, or 30% of the adult population, are now obese.
• Similarly since 1980, overweight rates have doubled among children and
tripled among adolescents – increasing the number of years they are
exposed to the health risks of obesity.
Fact: Obesity is already having an adverse impact on young people
• Type 2 diabetes – once believed to affect only adults – is now being
diagnosed among young people.
• In some communities almost half of the pediatric diabetes cases are type 2,
when in the past the total was close to zero. Although childhood-onset
Type 2 diabetes is still a rare condition, overweight children with this
disease are at risk of suffering the serious complications of diabetes as
adults, such as kidney disease, blindness, and amputations.
• Sixty-one percent of overweight 5- to10-year-olds already have at least
one risk factor for heart disease, and 26% have two or more risk factors.
Fact: Most people still do not practice healthy behaviors that can prevent obesity
The primary behaviors causing the obesity epidemic are well known and
preventable: physical inactivity and unhealthy diet. Despite this knowledge:
• Only about 25% of U.S. adults eat the recommended five or more servings
of fruits and vegetables each day.
• Less than 25% of adolescents eat the recommended five or more servings
of fruits and vegetables each day.
• More than 50% of American adults do not get the recommended amount
of physical activity to provide health benefits.
• More than a third of young people in grades 9–12 do not regularly engage
in vigorous physical activity.
Fact: Obesity-related costs place a huge burden on the U.S. economy
Direct health costs attributable to obesity have been estimated at $52 billion in
1995 and $75 billion in 2003.
Among children and adolescents, annual hospital costs related to overweight and
obesity more than tripled over the past two decades – rising to $127 million
during 1997–1999 (in 2001 constant U.S. dollars), up from $35 million during
1979–1981. Among adults in 1996, one study found that $31 billion of the treatment costs (in
year 2000 dollars) for cardiovascular disease – 17% of direct medical costs – were
related to overweight and obesity.

Unit - 1

Concept of Management:

Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources.

Because organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. This view opens the opportunity to 'manage' oneself, a pre-requisite to attempting to manage others.

Management as a Process

As a process, management refers to a series of inter - related functions. It is the process by which management creates, operates and directs purposive organization through systematic, coordinated and co-operated human efforts, according to George R. Terry, “Management is a distinct process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish stated objective by the use of human beings and other resources”. As a process, management consists of three aspects:

1. Management is a social process - Since human factor is most important among the other factors, therefore management is concerned with developing relationship among people. It is the duty of management to make interaction between people - productive and useful for obtaining organizational goals.
   
   
2. Management is an integrating process - Management undertakes the job of bringing together human physical and financial resources so as to achieve organizational purpose. Therefore, is an important function to bring harmony between various factors.
   
   
3. Management is a continuous process - It is a never ending process. It is concerned with constantly identifying the problem and solving them by taking adequate steps. It is an on-going process.

Management as an Activity

Like various other activities performed by human beings such as writing, playing, eating, cooking etc, management is also an activity because a manager is one who accomplishes the objectives by directing the efforts of others. According to Koontz, “Management is what a manager does”. Management as an activity includes -

1. Informational activities - In the functioning of business enterprise, the manager constantly has to receive and give information orally or in written. A communication link has to be maintained with subordinates as well as superiors for effective functioning of an enterprise.
   
   
2. Decisional activities - Practically all types of managerial activities are based on one or the other types of decisions. Therefore, managers are continuously involved in decisions of different kinds since the decision made by one manager becomes the basis of action to be taken by other managers. (E.g. Sales Manager is deciding the media & content of advertising).
   
   
3. Inter-personal activities - Management involves achieving goals through people. Therefore, managers have to interact with superiors as well as the sub-ordinates. They must maintain good relations with them. The inter-personal activities include with the sub-ordinates and taking care of the problem. (E.g. Bonuses to be given to the sub-ordinates).

Management as a Discipline

Management as a discipline refers to that branch of knowledge which is connected to study of principles & practices of basic administration. It specifies certain code of conduct to be followed by the manager & also various methods for managing resources efficiently.

Management as a discipline specifies certain code of conduct for managers & indicates various methods of managing an enterprise. Management is a course of study which is now formally being taught in the institutes and universities after completing a prescribed course or by obtaining degree or diploma in management, a person can get employment as a manager.

Any branch of knowledge that fulfils following two requirements is known as discipline:

1. There must be scholars & thinkers who communicate relevant knowledge through research and publications.
2. The knowledge should be formally imparted by education and training programmes.

Since management satisfies both these problems, therefore it qualifies to be a discipline. Though it is comparatively a new discipline but it is growing at a faster pace.

Management as a Group

Management as a group refers to all those persons who perform the task of managing an enterprise. When we say that management of ABC & Co. is good, we are referring to a group of people those who are managing. Thus as a group technically speaking, management will include all managers from chief executive to the first - line managers (lower-level managers). But in common practice management includes only top management i.e. Chief Executive, Chairman, General Manager, Board of Directors etc. In other words, those who are concerned with making important decisions, these persons enjoy the authorities to use resources to accomplish organizational objectives & also responsibility to for their efficient utilization

Management as a group may be looked upon in 2 different ways:

1. All managers taken together.
2. Only the top management

The interpretation depends upon the context in which these terms are used. Broadly speaking, there are 3 types of managers -

1. Patrimonial / Family Manager: Those who have become managers by virtue of their being owners or relatives of the owners of company.
   
   
2. Professional Managers: Those who have been appointed on account of their specialized knowledge and degree.
   
   
3. Political Managers / Civil Servants: Those who manage public sector undertakings.

Managers have become a part of elite group of society as they enjoy higher standard of living in the society.

Management as a Science

Science is a systematic body of knowledge pertaining to a specific field of study that contains general facts which explains a phenomenon. It establishes cause and effect relationship between two or more variables and underlines the principles governing their relationship. These principles are developed through scientific method of observation and verification through testing.

Science is characterized by following main features:

1. Universally acceptance principles - Scientific principles represents basic truth about a particular field of enquiry. These principles may be applied in all situations, at all time & at all places. E.g. - law of gravitation which can be applied in all countries irrespective of the time.

Management also contains some fundamental principles which can be applied universally like the Principle of Unity of Command i.e. one man, one boss. This principle is applicable to all type of organization - business or non business.

2. Experimentation & Observation - Scientific principles are derived through scientific investigation & researching i.e. they are based on logic. E.g. the principle that earth goes round the sun has been scientifically proved.

Management principles are also based on scientific enquiry & observation and not only on the opinion of Henry Fayol. They have been developed through experiments & practical experiences of large no. of managers. E.g. it is observed that fair remuneration to personal helps in creating a satisfied work force.

3. Cause & Effect Relationship - Principles of science lay down cause and effect relationship between various variables. E.g. when metals are heated, they are expanded. The cause is heating & result is expansion.

The same is true for management, therefore it also establishes cause and effect relationship. E.g. lack of parity (balance) between authority & responsibility will lead to ineffectiveness. If you know the cause i.e. lack of balance, the effect can be ascertained easily i.e. in effectiveness. Similarly if workers are given bonuses, fair wages they will work hard but when not treated in fair and just manner, reduces productivity of organization.

4. Test of Validity & Predictability - Validity of scientific principles can be tested at any time or any number of times i.e. they stand the test of time. Each time these tests will give same result. Moreover future events can be predicted with reasonable accuracy by using scientific principles. E.g. H₂ & O₂ will always give H₂O. Principles of management can also be tested for validity. E.g. principle of unity of command can be tested by comparing two persons - one having single boss and one having 2 bosses. The performance of 1st person will be better than 2nd.

It cannot be denied that management is a systematic body of knowledge but it is not as exact as that of other physical sciences like biology, physics, and chemistry etc. The main reason for the inexactness of science of management is that it deals with human beings and it is very difficult to predict their behavior accurately. Since it is a social process, therefore it falls in the area of social sciences. It is a flexible science & that is why its theories and principles may produce different results at different times and therefore it is a behavior science. Ernest Dale has called it as a Soft Science.

Management as an Art

Art implies application of knowledge & skill to trying about desired results. An art may be defined as personalized application of general theoretical principles for achieving best possible results. Art has the following characters -

1. Practical Knowledge: Every art requires practical knowledge therefore learning of theory is not sufficient. It is very important to know practical application of theoretical principles. E.g. to become a good painter, the person may not only be knowing different colour and brushes but different designs, dimensions, situations etc to use them appropriately. A manager can never be successful just by obtaining degree or diploma in management; he must have also know how to apply various principles in real situations by functioning in capacity of manager.
   
   
2. Personal Skill: Although theoretical base may be same for every artist, but each one has his own style and approach towards his job. That is why the level of success and quality of performance differs from one person to another. E.g. there are several qualified painters but M.F. Hussain is recognized for his style. Similarly management as an art is also personalized. Every manager has his own way of managing things based on his knowledge, experience and personality, that is why some managers are known as good managers (like Aditya Birla, Rahul Bajaj) whereas others as bad.
   
   
3. Creativity: Every artist has an element of creativity in line. That is why he aims at producing something that has never existed before which requires combination of intelligence & imagination. Management is also creative in nature like any other art. It combines human and non-human resources in useful way so as to achieve desired results. It tries to produce sweet music by combining chords in an efficient manner.
   
   
4. Perfection through practice: Practice makes a man perfect. Every artist becomes more and more proficient through constant practice. Similarly managers learn through an art of trial and error initially but application of management principles over the years makes them perfect in the job of managing.
5. Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results. In the same manner, management is also directed towards accomplishment of pre-determined goals. Managers use various resources like men, money, material, machinery & methods to promote growth of an organization.

Thus, we can say that management is an art therefore it requires application of certain principles rather it is an art of highest order because it deals with moulding the attitude and behavior of people at work towards desired goals.

Management as both Science and Art

Management is both an art and a science. The above mentioned points clearly reveals that management combines features of both science as well as art. It is considered as a science because it has an organized body of knowledge which contains certain universal truth. It is called an art because managing requires certain skills which are personal possessions of managers. Science provides the knowledge & art deals with the application of knowledge and skills.

A manager to be successful in his profession must acquire the knowledge of science & the art of applying it. Therefore management is a judicious blend of science as well as an art because it proves the principles and the way these principles are applied is a matter of art. Science teaches to ’know’ and art teaches to ’do’. E.g. a person cannot become a good singer unless he has knowledge about various ragas & he also applies his personal skill in the art of singing. Same way it is not sufficient for manager to first know the principles but he must also apply them in solving various managerial problems that is why, science and art are not mutually exclusive but they are complementary to each other (like tea and biscuit, bread and butter etc.).

The old saying that “Manager are Born” has been rejected in favor of “Managers are Made”. It has been aptly remarked that management is the oldest of art and youngest of science. To conclude, we can say that science is the root and art is the fruit.

Management as a Profession

Over a large few decades, factors such as growing size of business unit, separation of ownership from management, growing competition etc have led to an increased demand for professionally qualified managers. The task of manager has been quite specialized. As a result of these developments the management has reached a stage where everything is to be managed professionally.

A profession may be defined as an occupation that requires specialized knowledge and intensive academic preparations to which entry is regulated by a representative body. The essentials of a profession are:

1. Specialized Knowledge - A profession must have a systematic body of knowledge that can be used for development of professionals. Every professional must make deliberate efforts to acquire expertise in the principles and techniques. Similarly a manager must have devotion and involvement to acquire expertise in the science of management.
   
   
2. Formal Education & Training - There are no. of institutes and universities to impart education & training for a profession. No one can practice a profession without going through a prescribed course. Many institutes of management have been set up for imparting education and training. For example, a CA cannot audit the A/C’s unless he has acquired a degree or diploma for the same but no minimum qualifications and a course of study has been prescribed for managers by law. For example, MBA may be preferred but not necessary.
   
   
3. Social Obligations - Profession is a source of livelihood but professionals are primarily motivated by the desire to serve the society. Their actions are influenced by social norms and values. Similarly a manager is responsible not only to its owners but also to the society and therefore he is expected to provide quality goods at reasonable prices to the society.
   
   
4. Code of Conduct - Members of a profession have to abide by a code of conduct which contains certain rules and regulations, norms of honesty, integrity and special ethics. A code of conduct is enforced by a representative association to ensure self discipline among its members. Any member violating the code of conduct can be punished and his membership can be withdrawn. The AIMA has prescribed a code of conduct for managers but it has no right to take legal action against any manager who violates it.
   
   
5. Representative Association - For the regulation of profession, existance of a representative body is a must. For example, an institute of Charted Accountants of India establishes and administers standards of competence for the auditors but the AIMA however does not have any statuary powers to regulate the activities of managers.

From above discussion, it is quite clear that management fulfills several essentials of a profession, even then it is not a full fledged profession because: -

1. It does not restrict the entry in managerial jobs for account of one standard or other.
2. No minimum qualifications have been prescribed for managers.
3. No management association has the authority to grant a certificate of practice to various managers.
4. All managers are supposed to abide by the code formulated by AIMA,
5. Competent education and training facilities do not exist. .
6. Managers are responsible to many groups such as shareholders, employees and society. A regulatory code may curtail their freedom.
7. Managers are known by their performance and not mere degrees.
8. The ultimate goal of business is to maximize profit and not social welfare. That is why Haymes has rightly remarked, “The slogan for management is becoming - ’He who serves best, also profits most’.

Features of Management

Management is an activity concerned with guiding human and physical resources such that organizational goals can be achieved. Nature of management can be highlighted as: -

1. Management is a continuous & never ending process

Management is a Process. It includes four main functions, viz., Planning, Organising, Directing and Controlling. The manager has to Plan and Organise all the activities. He had to give proper Directions to his subordinates. He also has to Control all the activities. The manager has to perform these functions continuously. Therefore, management is a continuous and never ending process.

2. Management is Goal-Oriented: The success of any management activity is accessed by its achievement of the predetermined goals or objective. Management is a purposeful activity. It is a tool which helps use of human & physical resources to fulfill the pre-determined goals. For example, the goal of an enterprise is maximum consumer satisfaction by producing quality goods and at reasonable prices. This can be achieved by employing efficient persons and making better use of scarce resources

3. Management is getting things done through people

The managers do not do the work themselves. They get the work done through the workers. The workers should not be treated like slaves. They should not be tricked, threatened or forced to do the work. A favourable work environment should be created and maintained.

4. Management is a result oriented science and art

Management is result oriented because it gives a lot of importance to "Results". Examples of Results like, increase in market share, increase in profits, etc. Management always wants to get the best results at all times.

5. Management is multidisciplinary in nature

Management has to get the work done through people. It has to manage people. This is a very difficult job because different people have different emotions, feelings, aspirations, etc. Similarly, the same person may have different emotions at different times. So, management is a very complex job. Therefore, management uses knowledge from many different subjects such as Economics, Information Technology, Psychology, Sociology, etc. Therefore, it is multidisciplinary in nature.

6. Management is a group and not an individual activity

Management is not an individual activity. It is a group activity. It uses group (employees) efforts to achieve group (owners) objectives. It tries to satisfy the needs and wants of a group (consumers). Nowadays, importance is given to the team (group) and not to individuals.

7. Management follows established principles or rules

Management follows established principles, such as division of work, discipline, unity of command, etc. These principles help to prevent and solve the problems in the organisation.

8. Management is aided but not replaced by computers

Nowadays, all managers use computers. Computers help the managers to take accurate decisions. However, computers can only help management. Computers cannot replace management. This is because management takes the final responsibility. Thus Management is aided (i.e. helped) but not replaced by computers.

9. Management is situational in nature

Management makes plans, policies and decisions according to the situation. It changes its style according to the situation. It uses different plans, policies, decisions and styles for different situations.

The manager first studies the full present situation. Then he draws conclusions about the situation. Then he makes plans, decisions, etc., which are best for the present situation. This is called Situational Management.

10. Management need not be an ownership

In small organisations, management and ownership are one and the same. However, in large organisations, management is separate from ownership. The managers are highly qualified professionals who are hired from outside. The owners are the shareholders of the company.

11. Management is both an art and science

Management is result-oriented. Therefore, it is an Art. Management conducts continuous research. Thus, it is also a Science.

12. Management is all pervasive

Management is necessary for running a business. It is also essential for running business, educational, charitable and religious institutions. Management is a must for all activities, and therefore, it is all pervasive.

13. Management is intangible i.e. not seen but realised

Management is intangible, i.e. it cannot be seen and touched, but it can be felt and realised by its results. The success or failure of management can be judged only by its results. If there is good discipline, good productivity, good profits, etc., then the management is successful and vice-versa.

14. Management use a professional approach in work

Managers use a professional approach for getting the work done from their subordinates. They delegate (i.e. give) authority to their subordinates. They ask their subordinates to give suggestions for improving their work. They also encourage subordinates to take the initiative. Initiative means to do the right thing at the right time without being guided or helped by the superior.

15. Management is also dynamic in nature

Management is dynamic in nature. That is, management is creative and innovative. An organisation will survive and succeed only if it is dynamic. It must continuously bring in new and creative ideas, new products, new product features, new ads, new marketing techniques, etc.

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Management Concepts – The Four Functions of Management

For any kind of organization to run smoothly in achieving their set goals and objectives they need to implement management concepts. To plan for it, there are four basic management concepts that allow any organization to handle planned, tactical and set decisions. What are those plans? The answer lies here…

Any organization, whether new or old, whether small or big need to run smoothly and achieve the goals and objectives which it has set forth. For this they had developed and implemented their own management concepts. There are basically four management concepts that allow any organization to handle the tactical, planned and set decisions. The four basic functions of the management are just to have a controlled plan over the preventive measure.

The four functions of management are:

The base function is to: Plan
It is the foundation area of management. It is the base upon which the all the areas of management should be built. Planning requires administration to assess; where the company is presently set, and where it would be in the upcoming. From there an appropriate course of action is determined and implemented to attain the company’s goals and objectives

Planning is unending course of action. There may be sudden strategies where companies have to face. Sometimes they are uncontrollable. You can say that they are external factors that constantly affect a company both optimistically and pessimistically. Depending on the conditions, a company may have to alter its course of action in accomplishing certain goals. This kind of preparation, arrangement is known as strategic planning. In strategic planning, management analyzes inside and outside factors that may affect the company and so objectives and goals. Here they should have a study of strengths and weaknesses, opportunities and threats. For management to do this efficiently, it has to be very practical and ample.

The subsequent function is to: Organize
The second function of the management is getting prepared, getting organized. Management must organize all its resources well before in hand to put into practice the course of action to decide that has been planned in the base function. Through this process, management will now determine the inside directorial configuration; establish and maintain relationships, and also assign required resources.

While determining the inside directorial configuration, management ought to look at the different divisions or departments. They also see to the harmonization of staff, and try to find out the best way to handle the important tasks and expenditure of information within the company. Management determines the division of work according to its need. It also has to decide for suitable departments to hand over authority and responsibilities.

The third function is to: Direct
Directing is the third function of the management. Working under this function helps the management to control and supervise the actions of the staff. This helps them to assist the staff in achieving the company’s goals and also accomplishing their personal or career goals which can be powered by motivation, communication, department dynamics, and department leadership.

Employees those which are highly provoked generally surpass in their job performance and also play important role in achieving the company’s goal. And here lies the reason why managers focus on motivating their employees. They come about with prize and incentive programs based on job performance and geared in the direction of the employees requirements.

It is very important to maintain a productive working environment, building positive interpersonal relationships, and problem solving. And this can be done only with Effective communication. Understanding the communication process and working on area that need improvement, help managers to become more effective communicators. The finest technique of finding the areas that requires improvement is to ask themselves and others at regular intervals, how well they are doing. This leads to better relationship and helps the managers for better directing plans.

The final function is to: Control
Control, the last of four functions of management, includes establishing performance standards which are of course based on the company’s objectives. It also involves evaluating and reporting of actual job performance. When these points are studied by the management then it is necessary to compare both the things. This study on comparision of both decides further corrective and preventive actions.

In an effort of solving performance problems, management should higher standards. They should straightforwardly speak to the employee or department having problem. On the contrary, if there are inadequate resources or disallow other external factors standards from being attained, management had to lower their standards as per requirement. The controlling processes as in comparison with other three, is unending process or say continuous process. With this management can make out any probable problems. It helps them in taking necessary preventive measures against the consequences. Management can also recognize any further developing problems that need corrective actions.

Effective and efficient management leads to success, the success where it attains the objectives and goals of the organizations. Of course for achieving the ultimate goal and aim management need to work creatively in problem solving in all the four functions. Management not only has to see the needs of accomplishing the goals but also has to look in to the process that their way is feasible for the company.

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Levels of Management

The term “Levels of Management’ refers to a line of demarcation between various managerial positions in an organization. The number of levels in management increases when the size of the business and work force increases and vice versa. The level of management determines a chain of command, the amount of authority & status enjoyed by any managerial position. The levels of management can be classified in three broad categories: -

1. Top level / Administrative level

2. Middle level / Executory

3. Low level / Supervisory / Operative / First-line managers

Managers at all these levels perform different functions. The role of managers at all the three levels is discussed below:

LEVELS OF MANAGEMENT

1. Top Level of Management

It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions.

The role of the top management can be summarized as follows -

a. Top management lays down the objectives and broad policies of the enterprise.

b. It issues necessary instructions for preparation of department budgets, procedures, schedules etc.

c. It prepares strategic plans & policies for the enterprise.

d. It appoints the executive for middle level i.e. departmental managers.

e. It controls & coordinates the activities of all the departments.

f. It is also responsible for maintaining a contact with the outside world.

g. It provides guidance and direction.

h. The top management is also responsible towards the shareholders for the performance of the enterprise.

2. Middle Level of Management

The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior middle level management. Their role can be emphasized as -

a. They execute the plans of the organization in accordance with the policies and directives of the top management.

b. They make plans for the sub-units of the organization.

c. They participate in employment & training of lower level management.

d. They interpret and explain policies from top level management to lower level.

e. They are responsible for coordinating the activities within the division or department.

f. It also sends important reports and other important data to top level management.

g. They evaluate performance of junior managers.

h. They are also responsible for inspiring lower level managers towards better performance.

3. Lower Level of Management

Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, “Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees”. In other words, they are concerned with direction and controlling function of management. Their activities include -

a. Assigning of jobs and tasks to various workers.

b. They guide and instruct workers for day to day activities.

c. They are responsible for the quality as well as quantity of production.

d. They are also entrusted with the responsibility of maintaining good relation in the organization.

e. They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers.

f. They help to solve the grievances of the workers.

g. They supervise & guide the sub-ordinates.

h. They are responsible for providing training to the workers.

i. They arrange necessary materials, machines, tools etc for getting the things done.

j. They prepare periodical reports about the performance of the workers.

k. They ensure discipline in the enterprise.

l. They motivate workers.

m. They are the image builders of the enterprise because they are in direct contact with the workers.

Business Studies II, unit - 1

Business case studies

Human Resource and Organization Behavior Case Studies

1.Employee Motivation and Retention Strategies at Microsoft Corporation

The case examines the employee motivation and retention strategies of the US based Microsoft Corporation (Microsoft). Since its inception, Microsoft was appreciated for its employee-friendly HR practices. However, during the late 1990s, as the company was growing rapidly in size, it lost the popular elements of its work culture. Moreover, several racial discrimination lawsuits and antitrust proceedings affected the company's corporate image and financial performance adversely. In the early 2000s, in order to improve its profit margins, Microsoft started cutting several employee benefits, which demotivated its employees. To boost the employee morale, in 2006, Steve Ballmer, the then CEO of Microsoft, appointed Lisa Brummel as the Senior Vice-president of HR.

After taking charge, Brummel announced a plan to significantly revamp some of the existing HR management practices at the company. She announced a plan named 'myMicrosoft,' which included developing appropriate systems to enhance communication between the employees and the HR department, making changes in the company's performance review system, introducing several new employee benefits, and designing new workplaces in an effort to attract and retain employees. The case analyzes in detail the HR initiatives taken by Brummel. It ends with a discussion on the benefits realized from the initiatives implemented by her.

Issues:

» Study the corporate culture and HR practices at Microsoft.

» Analyze the problems faced by Microsoft on HR front during the late 1990s and early 2000s.

» Evaluate the measures taken by Brummel to motivate employees.

» Discuss the benefits of the strategies implemented by Brummel.

» Appreciate the importance of recruiting the right people for a particular job.

Key Words:

Microsoft Corporation, Employee Value Proposition, myMicrosoft Program, Work Culture, Performance Review System, Racial Discrimination, Class Action Lawsuit, Antitrust Trial, Stock Option Program, Employee Benefits, One Microsoft Way, Employee Communication, Career Development, Management Training, Compensation System, Forced Curve System, Commitment Rating, Workplace Advantage Strategy, Workplace Design Lab

2.Success at What Cost? - A Case Study in Managerial Ethics & Compliance

Abstract:

This case study is about SuperDrugz, a mid-sized pharmaceutical company in India. Initially starting off as an entrepreneurial venture, the company had been put in the hands of a professional management group. The new team strove to cultivate a performance culture through strong results-based controls and weeding out non-performers. However, a whistle-blower brought out into the open serious ethical lapses in the company. Shortly after joining as an Area Manager in the country's North Eastern Region, the person found that the team (including his seniors) was adopting unethical/illegal means to meet the high sales targets.

Faced with the dilemma of whether to conform to the team or comply with law, he chose the later. Now the founder of the company had to put in place mechanisms to ensure that everyone in the company complied with the company's code of ethics and the law of the land.

Issues:

» Understand the issue in managerial ethics and challenges in ensuring compliance.

» Understand the factors that influence ethical behavior.

» Understand the mechanisms for ethical control and compliance.

Keywords:

Training & Development, Sales training, Coaching, Return on investment (ROI), Line and Staff conflict, On-the-job training (OJT), Classroom training, Implementation, Transfer of learning, Individual development plans

3.Improve Performance through Change Management

Abstract:

These caselets deal with the issue of change management. Caselet 1 discusses how the implementation of change management in an organization can bring about dramatic improvement in profits and help it become a market leader. It also highlights the role played by management and employees of an organization in implementing planned change. Caselet 2 discusses the importance of changing employee behavior and managerial practices for change programs to be successful in organizations. Caselet 3 examines the difficulties encountered by management in merging two unequal

organizations and the steps to be taken to overcome employee resistance to change.

Issues:

» How managerial practices and employee behavior can affect the organizational performance, the role of management and employees of an organization in facilitating planned change, significance and advantages of implementation of change program in organizations

Keywords:

Change management, implementation, dramatic improvement, profits, market leader, planned change, employee behavior, managerial practices, unequal organizations, employee resistance

4.Parquesoft - A Unique Social Entrepreneurship Initiative

Abstract:

Colombia based ParqueSoft is a social entrepreneurship initiative by Orlando Rincón Bonilla (Orlando). ParqueSoft is a network of science and technology parks. It acts as incubators for young entrepreneurs from marginalized communities of Colombia. ParqueSoft's incubation business model is unique as it required an entrepreneur to have an innovative product or solution to be eligible for availing its services. Entrepreneurs are provided with basic infrastructure and seed capital to start their organization within ParqueSoft. An informal work environment was maintained and organizations within ParqueSoft interacted with each other to solve their problems. Organizations are provided with services like marketing, legal, finance management, market research etc. which are non-core activities for a technology company.

All the products developed in the company are branded as ParqueSoft's products to cut costs of branding individual organizations. The company operated on a ‘pay-it-forward' model where the major part of profits earned by the organizations in ParqueSoft is used to support new entrepreneurs and incubate more companies.

Issues:

» Get insights on a low cost model of incubating companies.
» Study an innovative social entrepreneurship initiative.
» Appreciate the importance of a sustainable business model for social entrepreneurs.
» Examine the benefits of collaborative approach in IT ventures.

Keywords:

ParqueSoft, Social Entrepreneurship, Sustainable Business Model, Orlando Rincón Bonilla, Schwab Foundation, Marginalized Communities, Business Incubator, Social Inclusion, Very Small Enterprises, OpenManga, Pay-it-Forward Model, Business Philosophy, Strategic Alliances, Enterprise Development, E-Learning, Software Quality Assurance, Financial Strength, Venture Capital, Strategic Marketing Plan, Conceptualization of Opportunities, Colombian IT Sector, Colombian Economy

ParqueSoft is a social initiative that happens to use science and technology as a vehicle. Its objective is to stimulate democracy and social justice through the inclusion of previously marginalized young people living in low-income communities, transforming them into protagonists of their own enterprises, not employees." ¹

- Orlando Rincón Bonilla, Founder, ParqueSoft, in March 2008.

"I saw more creativity in Colombia than I've seen in India. ParqueSoft is a national asset. They are leading a revolution." ²

- William Musgrave Jr., President and CEO, The Enterprise Network³, in April 2006.

Introduction In November 2008, Colombia-based non-profit organization ParqueSoft, a network of science and technology parks, announced that it aimed to incubate a total of 1000 micro-enterprises by 2012. With the number of companies incubated since its inception in December 1999 till November 2008 standing at 270, industry observers wondered whether ParqueSoft's aim was a little too ambitious. ParqueSoft was recognized as one of the most innovative business models in the field of IT in Colombia and had received several awards at national and international forums.

Economics Case Studies

The Economic Consequences of Population Aging

Population aging is an unintended outcome of human development and with more countries showing economic progress, the phenomenon is expected to become more widespread. The case discusses the impact of aging populations on the economies of some developed countries. It examines the reasons for the phenomenon of aging populations and describes some of the measures that can be taken to counter its effects. The case also discusses some of the initiatives taken by governments to increase birth rates, and expand the workforce, and ends with a discussion on the future challenges facing countries with aging populations.

Issues:

The case has the following objectives

» Understand the phenomenon of an aging population.

» Learn more about the reasons for an aging population.

» Analyze the possible economic effects of aging populations.

» Evaluate policy measures to tackle the economic consequences of population aging.

This case is meant for MBA/PGDBM students and is designed to be a part of their Economics or Business Environment curriculum.

Keywords:

Aging Population, Age Structure, Low Birth Rate, High Life Expectancy, Economic Effects of Aging Population, Pension Reforms, Change in Consumption Patterns, Dependency Ratio, Saving and Investment, Female participation in workforce

The Economic Consequences of Population Aging

A substantial degree of population aging is expected over the next few decades in all regions of the world. Ideally, policy responses should be put in place ahead of time to ease adaptation to these long-term demographic changes." ¹

- An excerpt from the World Economic and Social Survey 2007, United Nations Department of Economic and Social Affairs, released in June 2007.

"People are living longer and, in some parts of the world, healthier lives…. Societal aging may affect economic growth and many other issues, including the sustainability of families, [and] the ability of states and communities to provide resources for older citizens." ²

- An excerpt from a report presented at the Summit on Global Aging³ in March 2007.

Introduction

In July 2007, Japan's Ministry of Internal Affairs and Communications published a report on the changing demographics in the country. According to the report, the proportion of people aged 65 or over had grown to around 21 percent in 2007, from 17.3 percent in April 2000.4 With this, Japan displaced Italy to become the country with the highest percent of aged people5. The report added that if current trends continued, the population of elderly people in Japan would account for 40.5 percent of the total population by 2055 - and there would only be 1.3 people of working age (15-64 years) to support each person over the age of 65 years in 2055 (down from more than 3 people of working age6 in 2007).

The report predicted average life span of 90.34 years for women and 83.67 years for men⁷ by 2055 (Refer Exhibit I for the projected life expectancy of the Japanese). In recent times, aging populations – characterized by an increase in the mean or the median age of the population, and a decline in the proportion of those aged 15 or lower and a rise in the proportion of those aged 65 or over in the total population – and their consequences have become an area of focus for economists, marketers, sociologists, and policy makers.

The phenomenon was expected to affect almost all countries, whether developed or developing. However, developed countries would experience it sooner than others or were already experiencing it. Countries with large and growing young populations - referred to as the 'youth bulge' - could, for the present, enjoy the benefits of a young population; but, with time, these countries too would have aging populations. The aging of populations occurred primarily for two reasons – declines in the birth rate and increases in life expectancy

A substantial degree of population aging is expected over the next few decades in all regions of the world. Ideally, policy responses should be put in place ahead of time to ease adaptation to these long-term demographic changes." ¹

- An excerpt from the World Economic and Social Survey 2007, United Nations Department of Economic and Social Affairs, released in June 2007.

"People are living longer and, in some parts of the world, healthier lives…. Societal aging may affect economic growth and many other issues, including the sustainability of families, [and] the ability of states and communities to provide resources for older citizens." ²

- An excerpt from a report presented at the Summit on Global Aging³ in March 2007.

Introduction

In July 2007, Japan's Ministry of Internal Affairs and Communications published a report on the changing demographics in the country. According to the report, the proportion of people aged 65 or over had grown to around 21 percent in 2007, from 17.3 percent in April 2000.4 With this, Japan displaced Italy to become the country with the highest percent of aged people5. The report added that if current trends continued, the population of elderly people in Japan would account for 40.5 percent of the total population by 2055 - and there would only be 1.3 people of working age (15-64 years) to support each person over the age of 65 years in 2055 (down from more than 3 people of working age6 in 2007).

The report predicted average life span of 90.34 years for women and 83.67 years for men⁷ by 2055 (Refer Exhibit I for the projected life expectancy of the Japanese). In recent times, aging populations – characterized by an increase in the mean or the median age of the population, and a decline in the proportion of those aged 15 or lower and a rise in the proportion of those aged 65 or over in the total population – and their consequences have become an area of focus for economists, marketers, sociologists, and policy makers.

The phenomenon was expected to affect almost all countries, whether developed or developing. However, developed countries would experience it sooner than others or were already experiencing it. Countries with large and growing young populations - referred to as the 'youth bulge' - could, for the present, enjoy the benefits of a young population; but, with time, these countries too would have aging populations. The aging of populations occurred primarily for two reasons – declines in the birth rate and increases in life expectancy

The Nordic Economic Model

The Nordic economic model, characterized by market-based economies and generous welfare systems, seemed to be working well, with the countries in the region figuring at the top of various lists that ranked countries on the basis of human development, per capita income, economic freedom, etc. The case discusses the history of the Nordic economies over the years. It then explains the main features of the Nordic economic model and goes on to examine some of the reasons behind the global competitiveness of the Nordic economies.

The case also recounts some challenges that these countries face as well as the criticisms of the welfare model adopted by these countries. The case ends with a brief discussion on the outlook for these countries.

Issues:

» Understand the evolution of Nordic economies.

» Analyze the reasons behind the competitiveness of the Nordic economies.

» Evaluate the sustainability of the welfare policies adopted by Nordic economies.

» Analyze the future of the Nordic region in the light of challenges such as aging populations, globalization, etc.

Contents:

Keywords:

Nordic economic model, Welfare state, Competitiveness of Nations, Government policy, High tax rates and economic growth, Pension reforms, Aging population, Denmark, Norway, Sweden, Finland, Iceland

Introduction :---

The September 2007 issue of Reader's Digest, a general interest magazine, ranked 141 countries on the basis of quality of life. The Nordic countries topped the list, with Finland taking the first place followed by Iceland, Norway, and Sweden. Denmark was placed tenth. The ranking was based on statistics derived from the Human Development Index⁵ and the Environmental Sustainability Index⁶.

The Nordic countries had consistently figured at the top of such lists during the previous decade. Economists credited these countries' economic model for their success as measured by important social and economic indicators such as per capita GDP, employment levels, etc.

The Nordic economic model was characterized by high taxes, a large public sector, and moderate market regulation. These countries were welfare states, with healthcare, education, and other social services provided free for all citizens. Negating the commonly held belief that high tax rates curtailed growth, the Nordic countries showed growth despite high taxes mainly because they were able to achieve efficiency and bring about innovation in the public sector. Besides, with the Nordic economies being only slightly less liberal than Anglo-Saxon economies such as the UK and Ireland, foreign investment was high in these countries.

Also, these economies had benefited from the absence of corruption and red tape.

However, there were challenges. With globalization, immigration, and aging populations, there was increasing pressure on the welfare model. The Nordic countries had responded by introducing reforms in pension and healthcare in the early 2000s. As of 2007, though the Nordic economies were among the best performers globally, reforms to sustain growth and support government expenditure were still being conceptualized and implemented.

Volkswagen's Marketing Strategy in India

Abstract:

The case examines the marketing strategies of Volkswagen Group India, the Indian subsidiary of German automobile manufacturer, Volkswagen AG (Volkswagen). Volkswagen entered the Indian passenger car market in 2001 by launching its car brand - Skoda. In 2007, two of its other brands Audi and Volkswagen, were also launched in India. Volkswagen Group India emphasized on all aspects of marketing mix including product, price, place and promotion. The company offered three brands including Audi, Skoda and Volkswagen that together comprised of 15 different models as of late 2009. Volkswagen Group India mainly catered to the luxury segment of the Indian car market. The company had established presence in India through separate distribution channels for each of its brands.

In its initial years, Volkswagen Group India primarily used the print media to promote its products. However, considering the growth potential of India's automobile market, the company started using electronic, digital and out of home media along with print media. In November 2009, the company launched an integrated marketing campaign to strengthen its brand image. The case describes the marketing campaign and ends with a discussion on the growth prospects of the company in future.

Issues:

» Understand the dynamics of the Indian passenger car market.

» Examine the growth strategies of Volkswagen Group India over the years.

» Analyze the marketing strategies of Volkswagen Group India.

» Study the future prospects of Volkswagen Group India.

Contents:

	Page No.
Introduction	1
About Volkswagen	2
Marketing Strategy in India	3
Promotion	5
The Road Ahead	9
Exhibits	11

Keywords:

Volkswagen Group India, Volkswagen India Private Limited, Indian Passenger Car Industry, Marketing Mix, Brand Awareness, Beetle, Skoda, Audi, Product Positioning, Promotional Campaigns, Volkswagen Group Sales India Private Limited, Skoda Auto India Private Limited, Pricing, Print Ad Campaign, Television Commercials, Corporate Branding Strategy, Integrated Marketing Campaign, Roadblock, Iconic Brand Campaigns, Out Of the Home Campaign, Curves are Back

Introduction Contd...

Raj Sawant, Business Head of Automark Motors, a Volkswagen dealer in Ahmedabad, Gujarat, India, said, "There are already over 170 advance bookings across India, and we have started delivering the cars as well. Going by the initial euphoria, we expect to sell around 300 Beetles in 2010."3 Volkswagen Group India, the Indian subsidiary of leading automobile manufacturer, Volkswagen AG (Volkswagen), based in Wolfsburg, Germany, had entered the Indian passenger car market in 2001 by launching its car brand - Skoda. In 2007, two of its other brands Audi and Volkswagen, were also launched in India.

Over the years, Volkswagen Group India not only launched several products, but also ensured that its brands were well known among the Indian consumers. Although, the company had had a presence in the Indian car market since 2001 and the Skoda and Audi branded cars were well known among consumers, the Volkswagen brand was not well recognized in the country.

Therefore, in November 2009, the company launched an integrated marketing campaign to build its brand image. It also launched a marketing campaign for its iconic model, the Beetle. Volkswagen India expected that with its brand building exercise, it would be able to increase its sales and capture a significant market share in the Indian car market...

Kraft Foods' Mobile Marketing Strategy

Abstract:

This case is about US-based Consumer Packaged Goods (CPG) Company Kraft Foods' (Kraft) mobile marketing strategy. Due to a reduction in consumer spending on packaged goods, Kraft decided to tap the mobile channel to promote its products as this channel had the capacity to enable value-added marketing. The company's mobile marketing campaigns were designed to meet the needs of customers and to help them integrate the company's brands into their everyday lives. The case discusses the mobile marketing campaigns launched by Kraft Foods and their objectives. In 2008, Kraft launched a mobile campaign in Germany to promote the launch of its new instant coffee brand called Jacobs 2in1.

It was the first large-scale European product launch which used a mobile sampling campaign to enhance brand awareness. The campaign was integrated with traditional media and allowed customers to request samples and order products from their mobile phones. This was followed by the launch of a mobile cooking application for iPhone users called the iFood Assistant in December 2008. The application allowed customers to search for and download recipes, manage their shopping lists, and locate local stores thereby delivering value to the customer while at the same time promoting the company's products. The case also talks about the mobile website created by Kraft to facilitate consumer engagement on mobile devices, and how Kraft was taking its mobile marketing initiative further in countries such as Germany and the UK.

The case discusses whether the campaigns were successful in enhancing brand awareness and consumer involvement. It concludes by providing the reactions of analysts to Kraft Foods' mobile marketing campaigns. Analysts were of the view that the mobile marketing initiatives adopted by Kraft would serve the purpose of establishing a direct dialogue with customers as the mobile phone was a powerful communications device with respect to mobility, reach, and immediacy. Marketers should take advantage of the mobile medium and adopt it as part of their channel mix to gain a competitive edge, they said.

Issues:

» Study the mobile marketing strategy of Kraft Foods
» Understand the issues and challenges in creating and rolling out a mobile advertising campaign.
» Analyze the mobile marketing campaigns launched by Kraft Foods.
» Discuss and debate whether the mobile marketing campaigns of Kraft Foods would be able to achieve their objectives.
» Explore ways in which the company could make its mobile marketing campaigns more effective.

Introduction Contd...

Based in Northfield, Illinois, Kraft is the largest food company in North America with sales in more than 150 countries worldwide. Some of its well-known brands are Kraft cheeses and dressings, Maxwell House coffees, Oscar Mayer meats, Philadelphia cream cheeses, Nabisco cookies and crackers, Toblerone and Milka chocolates, and Tang powdered beverages. For the year 2008, the company reported US$ 42 billion in annual revenues. Since the early 2000s, marketing through mobile phones had gained in popularity because of the value it delivered to the end consumers.

CPG companies embraced mobile marketing and employed elements such as SMS alerts, mobile banner ads on targeted sites, mobile coupons, and mobile loyalty programs to promote their products.

At Kraft, the strategy was to demonstrate the values and attributes of Kraft's brands in an interactive way and provide consumers with relevant information such as recipes and nutrition information. The motive behind mobile marketing was to involve consumers and help them integrate the company's brands into their everyday lives.

In 2008, to respond to a reduction in consumer spending on packaged goods, Kraft adopted interactive marketing and decided to get onto the mobile Web by launching a mobile campaign in Germany in January 2008, to promote the launch of its new instant coffee brand called Jacobs 2in1. This was the first large-scale European product launch to use a mobile sampling campaign. The campaign was integrated with traditional media and allowed customers to request for samples and order products through their mobile phones...

Tourism Kamloops

Abstract:

The case discusses the promotion of Kamloops city as a vacation destination and the initiatives taken by Tourism Kamloops to transform the city into a favorable tourist destination. Over the years, the tourism industry in Kamloops had been growing steadily and had played a major role in contributing to the local economy. The case discusses the growth of Kamloops as the 'Tournament capital of Canada'. Sport tourism is one of the fastest growing segments of the tourism sector in Kamloops and the city has actively developed and promoted sports facilities for tournaments and hosted some major sporting events. The case also discusses the marketing campaign with TV personality and meteorologist Mark Madryga as brand ambassador to promote Kamloops as a vacation destination. The case talks about some of the challenges faced by Tourism Kamloops and how they might affect the tourism sector in Kamloops in the future.

Issues:

» Analyze the tourism industry in Kamloops and study the factors which contributed to the growth of the tourism industry in the region.

» Understand the role played by marketing, particularly the promotional campaigns, in developing the tourism industry of a country.

» Analyze the initiatives taken by Tourism Kamloops to promote the city of Kamloops as a vacation destination.

» Explore the strategies that Tourism Kamloops could adopt to develop the tourist sector in the region.

Introduction

In November 2009, Tourism Kamloops' 'Hometown Boy' advertising campaign won the Innovative Marketing Campaign Award at the first-ever tourism summit organized by the Canada-based Thompson Okanagan Tourism Association1 (TOTA). The campaign was given the award for successfully using various advertising mediums such as TV, print, direct mail, and online advertising to attract tourists to the city of Kamloops. Talking about the campaign, TOTA chairman, Michael Ballingall (Ballingall), said, "This campaign has been a huge success on many levels. It matches a likeable personality with the Tourism Kamloops brand, which presents Kamloops as a place that blends energizing recreational opportunities with a culture of warm, welcoming people, allowing visitors to let loose and just play."2

Kamloops, a city in south central British Columbia³, Canada, is considered as British Columbia's Friendliest City. It is famous for its spectacular landscapes, fresh water lakes, abundant wildlife, and pleasant climate.

The region draws visitors from around the world because of its established reputation for water sports and fishing. Golf, mountain biking, and hiking are other popular outdoor activities for tourists in Kamloops. To promote the tourism sector in the region, the tourism association of British Columbia started Tourism Kamloops in 2005. Tourism Kamloops is one of the largest destination marketing organizations of British Columbia and has as its objective the marketing of Kamloops as a major tourist destination. Over the years, the tourism industry in Kamloops had been growing steadily and had played a major role in contributing to the local economy.

In 2008, about 5 million tourists visited Kamloops from all over the world. In order to develop Kamloops as the preferred tourist destination in British Columbia, Tourism Kamloops planned to come out with more innovative advertising strategies in the future.

However, analysts expected the provincial government's move to dissolve Tourism British Columbia⁴ and integrate it with the Ministry of Tourism, Culture, and the Arts to have a profound affect on the functioning and investments of the Tourism Kamloops...

Scorpio - Marketing an Automobile Brand

Abstract:

The case examines the marketing strategies adopted by Mahindra & Mahindra (M&M), leading Indian automobile manufacturer, for its newly launched sports utility vehicle 'Scorpio' in the early 21st century. It traces M&M's evolution from being just another Mahindra Group company into a major Indian business conglomerate. The reasons for the decision to develop the Scorpio are explained and details on the efforts that went into the creation of the vehicle are provided. Thereafter, the case discusses the marketing strategies (positioning, advertising, pricing and promotion) adopted by M&M for Scorpio. The case not only examines M&M's strategies for popularizing Scorpio, it also explores the increasing competition in the Indian SUV market.

Issues:

• Understand how changing market dynamics can force an industry leader to restructure its strategies (in terms of modifying the product mix and entering new segments)

Scorpio - Charging Ahead

In June 2003, 'Scorpio,' a sports utility vehicle (SUV3) from Mahindra and Mahindra Ltd. (M&M), a leading Indian automobile company, celebrated the first anniversary of its launch. This one year journey had been quite fruitful for Scorpio, which had impressed many industry observers and customers. A year ago, within the first eight days of its launch, Scorpio had attracted over 10,000 customers to its dealer showrooms and over 3,000 customer enquiries, resulting in 1000 order bookings. According to company sources, by the time it completed its first birthday, Scorpio had sold 15,000 units across India.

Media reports, automobile enthusiasts and industry analysts had all given the SUV extremely positive reports. With demand for the vehicle growing steadily, M&M even had to increase its production from 1,800 units per month in 2002 to 2,000 per month in June 2003, and 2,500 per month by late 2003.

Thanks to the high decibel advertising support, Scorpio had acquired high brand recall among consumers. In fact, it was said to be one of the very few automobile brands in India that successfully boosted the image of their parent companies (in this case M&M) as well. Since its launch, Scorpio had won many prestigious awards, such as 'Car of the Year 2003' from Business Standard Motoring, BBC World Wheels and CNBC Autocar. Besides improving M&M's image as an automobile company, Scorpio was reported to have played a major part in increasing the company's revenues for the financial year 2002-03.

The company's automotive segment witnessed a 37% increase in revenues, up from Rs 18.28 billion in 2001-2002 to Rs 25.11 billion in 2002-2003.

Also, M&M's automobile sales increased by 16% in 2002-2003 (68,852 units) over the previous year's sales (55,920 units).

The most important aspect of Scorpio's growing popularity was the impact it seemed to be having on the country's automobile market.

Scorpio had made other automotive manufacturers look afresh at the utility vehicles segment, which till now was believed to have little scope for growth in India.