Intercontinental Business Manufacturing (IBM) Caselet

XAT 2014 · DM · Medium · Decision Making

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Read the following case - let and answer the questions that follow

Intercontinental Business Manufacturing (IBM) was doing a roaring business. Demand of the products was high and supply of raw - material was abundant. IBM was manufacturing three different products. Some customers bought two types of products and some bought only one. The three products were "quickie - quick", "run - of - the - mill", and "maxi - max". Customers were not complaining loudly. Ram, the product manager, was confused! Demand for "quickie - quick "was increasing .Raw material suppliers wanted to supply lower quality at cheaper price. It was profitable for the company to increase production .Quality department was not happy with the product. Ram met Rahim, the CEO, who, as always, wanted higher profits. He said that IBM will set up a committee for improving the quality.

Question 1 of 3

What must not be done by Ram?

  1. A.

    Only produce "quickie - quick" as it gives highest profits.

  2. B.

    Increase the production for "quickie - quick" and ask the supplier for better quality raw material.

  3. C.

    Maintain the level of production for "quickie - quick" and ask the supplier for better quality raw material.

  4. D.

    Reduce the production of "quickie - quick" till committee submits its report.

  5. E.

    Stop production of "quickie - quick" till committee submits its report.

Question 2 of 3

Rahim set up a "brand" committee comprising of a few selected managers, headed by Robert. The committee proposed that IBM should continue to manufacture the three differently branded products. It also proposed to recruit a new brand manager for improving brand image of the products. It agreed with Rahim that the company should increase the price. Rocket Singh, head of sales, was confused because he realized that customers were miffed with "run - of - the - mill" and "maxi - max". What should Rocket Singh do?

  1. A.

    Launch one more product to increase sales.

  2. B.

    Stop production of quickie - quick.

  3. C.

    Launch a campaign on social media to increase awareness about company's products.

  4. D.

    Send an anonymous email to all the employees highlighting customer dissatisfaction.

  5. E.

    Conduct a research study to find out the reason for customer's dissatisfaction.

Question 3 of 3

Some of the managers in production department were discussing the problems faced in shipping products in time. They complained that they had to undertake responsibility of creating financial and marketing plans in addition to responsibility of production planning. At the same time, finance and marketing managers were to be involved in preparing production plans. It was expected that this will reduce customer complaints. It was rumored that these changes were initiated by the managers educated in the U.S.

Which of the following is the best possible course of action available to the affected managers?

  1. A.

    Create a union to safeguard their rights.

  2. B.

    File a law suit against the company.

  3. C.

    Create a forum for discussion and resolution of issues.

  4. D.

    Register a complaint with the human rights body.

  5. E.

    Go for further education to the U.S.

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