Solution of Case Studies Becomes Easy This Way
Students find attempting the case studies difficult normally, but if they attempt case studies after following the tips explained in previous articles, Case Studies Become Easy.
Here 14 Questions on Case Studies have been taken from Sample papers and previous year papers of CBSE, to illustrate the process of solving the case studies easily and score full marks.
Precaution: Always read the question of case study first, then read the case.
Analyze the question properly, to understand the requirement of the examination, before framing the answer.
Given after each question, are the hints and steps to attempt the answer.
Question 1:
The General manager of a reputed organisation, Mr. Agastaya Lokhande, made the following announcement at the Annual General Meeting of the company- “When we think of a brand, we think of reputation, but the reputation is made or broken by the quality of products and customer representation. If people are miserable, they can't give their best work and the brand suffers. On the contrary, positive results can be observed if there is job satisfaction, effective and efficient functioning.”
(I) Identify and explain the feature of management discussed by Mr Agastaya in his announcement.
(II) Explain any three reasons that make management important to any organisation.
Answer:
(I) Management is an intangible force - heading and explanation
(II) Importance of management - Any three points to be explained
Solution of Case Studies
Question 2:
From the following information regarding Aditya Ltd. which is in the business of manufacturing green tea, calculate the Return on Investment and Interest Coverage Ratio of the company: (Show working) Earnings before interest and tax ₹ 15,00,000, 10% debentures ₹ 12,00,000, Equity Share Capital (₹10 each) ₹ 18,00,000, Tax Rate 40%
Answer:
Calculation of Return on Investment (ROI) = 50% (With detailed working)
Calculation of Interest Coverage Ratio (ICR) = 12.5 times (With detailed working)
Solution of Case Studies
Question 3:
Mr Vivek Vaswani, a foodpreneur combined his passion for food with his entrepreneurial skills and started his innovative fast-food outlet OH CHILLI! in 2021. He had started his career as a food blogger and had noticed that numerous Indian consumers were looking for reasonable and pure vegetarian fast food options for dining out. The high-end restaurants were not opted by many as they were exorbitantly priced. Though many global fast-food chains were running across the country, yet not many outlets offered reasonable and healthy pure vegetarian fast food options to consumers. OH CHILLI! became a pioneer in offering a healthy and delicious variety of food.
What came as a surprise for consumers was that even without using onion or garlic in the pasta sauce, marinade and ketchup, the food could actually taste great. The company witnessed an increase in net profit of 26% in its second financial year and became a market leader.
(I) State the concept of business environment.
(II) Identify and explain in what way, a good understanding of business environment enabled Mr. Vivek Vaswani to improve the performance of the enterprise.
Answer:
(I) Business Environment - meaning
(II) It enables the firm to identify opportunities and getting the first mover advantage: Heading and explanation (From importance of Business Environment).
Solution of Case Studies
Question 4:
When Bhaanupriya joined as technical head of Logic Lotus Innovators, she was keen on increasing the productivity and profitability of the company. However, she observed that the employees were demotivated as no attention was given to their work. Also, the workers were given little freedom to make decisions. Bhaanupriya decided to stimulate the employees by giving each worker Tshirts with their name on it. She also decided to include workers in work committees. This helped in improving the performance of the workers.
(I) On the basis of the understanding of Maslow’s Need Hierarchy Theory of motivation, identify the human need that Bhaanupriya has recognized in order to make the subordinates act towards achievement of organizational goals.
(II) Identify and explain two incentives that have been provided by Bhanupriya to improve the performance of the employees.
Answer:
(I) Esteem Needs
(II) Two incentives provided by Bhanupriya:
(a) Employee Recognition programmes: heading and explanation.
(b) Employee Participation: heading and explanation.
Solution of Case Studies
Question 5:
When Chandrashekhar Shukla returned to India after completing a Certificate course in Food Quality Assurance and Quality Control from the Netherlands, he was convinced that he would fulfil his grandfather's dream of converting their 58 acres land into a fertile farm. He started by setting out specific goals and laid down related activities to be performed to achieve the goals. Soon he launched his own company ‘Food and Agribusiness Solutions Private Limited’. He sought to ensure that the future events effectively meet the best interest of the company. He prepared an annual statement for production and sales, based on sales forecasting. He noticed that the farmers grew only paddy due to which land remained idle for the subsequent 8 to 9 months of the year. He identified and assessed various alternatives through which farms could be utilised for the remaining months of the year. Through his accurate vision, judgement and systematic thinking based on analysis of the facts, he presented a scheme to the farmers where both paddy and vegetables could be grown.
Identify and explain the features of one of the functions of Management highlighted above.
Answer:
Function of management discussed here is Planning.
Features of Planning
(1) Planning focuses on achieving objectives: heading and explanation.
(2) Planning is futuristic: heading and explanation.
(3) Planning involves decision making: heading and explanation.
(4) Planning is a mental exercise: heading and explanation.
Solution of Case Studies
Question 6:
It was established by the Government of India on 12 April 1988 as an interim administrative body to promote orderly and healthy growth of the securities market and for investor protection. It was given statutory status in 1992 through an Act of Parliament.
(I) Identify the regulatory body which has been highlighted above.
(II) State the three objectives of the regulatory body identified in part (I).
(III) State any two functions that are performed for the development of the securities market by the regulatory body identified in part (I).
Answer:
(I) Securities Exchange Board of India (SEBI)
(II) Explanation of three objectives of SEBI.
(III) Two developmental functions of SEBI to be explained.
Solution of Case Studies
Question 7:
Leena has been appointed as the Operations Manager in a small trading company dealing in garments, with growing online sales. The company has recently rented space in a warehouse to store garments and mail out orders. In order to take over the responsibilities of order fulfilment, Leena promotes an associate, Kushagra to the post of Inventory and Order fulfilment Supervisor. Kushagra has been given the task to assess whether it is best to process orders as they come in or let them accumulate and then to process them in batches. He concludes that accumulating and then processing them in batches is the best way of fulfilling orders, in order to minimize cost and maximize customer satisfaction. Through several readings Leena finds that the standard time taken from the placement of order to the delivery of garments for a batch of 100 pieces is 72 hours. This helped her to determine the labour cost.
On the basis of the understanding of concepts of scientific management, identify and explain the techniques used by Leena and Kushagra to improve the performance of the employees.
Answer:
Various techniques used by Leena to improve the performance of her employees:
Method Study - Heading and explanation
Time Study - Heading and explanation
Case Studies in Previous year Question Papers
Question 8:
Two ambitious friends, Sana and Mihir, having passion for creating innovative software applications, established a tech startup named ‘Quick Solutions'. Their software was developed in such a way that it caters to the needs of all sections. Since its inception, 'Quick Solutions' was earning enough revenue to cover the costs. They faced countless challenges from competing with large and well-established companies. But they learned from their mistakes and continuously improved their product. Slowly, their software gained recognition for its quality and uniqueness and the company started making profits. It was a big incentive for Sana and Mihir for the continued successful operation of the enterprise. Within two years, the customer base increased manifold. Now, Sana and Mihir decided to make additional capital investment and hired more employees. They invested in research and development and expanded their product line to meet emerging market demands. ‘Quick Solutions' ultimately became the industry leader because of the tireless efforts of Sana and Mihir.
Quoting lines, identify and state the objectives of management discussed in the above case which 'Quick Solutions' seeks to achieve.
Answer:
Organizational Objectives
(i) Survival - ‘Since its inception, 'Quick Solutions' was earning enough revenue to cover the costs’ with explanation.
(ii) Profit - ‘Slowly, their software gained recognition for its quality and uniqueness and the company started making profits’
with explanation.
(iii) Growth - ‘Now, Sana and Mihir decided to make additional capital investment and hired more employees.’
OR
‘They invested in research and development and expanded their product line to meet emerging market demand’.
with explanation.
Solution of Case Studies
Question 9:
Neeraj Ltd. started an airline to provide good quality air services. For the same, he purchased ten aircrafts. Out of these, two aircrafts would be used to train the pilots. It will help them to achieve proficiency in handling the aircrafts before they would actually fly them.
(i) Identify and explain the method of training discussed above.
(ii) State any two advantages the pilots would get from this training.
Answer:
(i) Vestibule Training – Heading and explanation
(II) Two advantages of Vestibule Training.
Question 10:
Vibhas recently joined as a Human Resource Manager of Bajanta Enterprises'. The company had embarked on a special project for which Vibhas had appointed twenty new employees. After the employees underwent on-the-job training for a month and had been on the job for some time, there was a need to evaluate their performance against certain pre-determined standards. Not only this, 'Bajanta Enterprises' had to address the career related issues and promotional avenues for their employees. Vibhas was designing activities to serve their employees' long-term interests.
By doing this, 'Bajanta Enterprises' had completed the two important steps of staffing process. Identify and explain those steps.
Answer:
Two steps of staffing:
(i) Performance Appraisal – Heading and explanation.
(ii) Promotion and career planning - Heading and explanation.
Solution of Case Studies
Question 11:
‘Leno' is a reputed car manufacturing company, which is going to complete its 75 years in October 2024. The Chief Executive Officer of the company decided to take the company to a higher level. For this he called a meeting of all departmental heads of the company. In the meeting, the Chief Executive Officer proposed a target to increase sales by 10% and profits by 20% in its Platinum Jubilee year. The Human Resource Manager estimated that an increase of 500 workers would be required to achieve the target. The Finance Manager suggested that the company must hold adequate cash balances for various purposes, and he will prepare a statement showing the estimated cash inflows and outflows for this particular period.
Identify and explain two types of plans discussed in the above case.
Answer:
Two types of Plans are:
(i) Objectives - Heading and explanation.
(ii) Budget Heading and explanation.
Question 12:
Arushi successfully runs a bookstore 'Children's Delight' catering to children of the age group 5-15 years. They have the complete range of children's books like activity books, colouring books, fiction and much more. The books are of good quality and are highly appreciated by schools, parents and children. They have 16 stores all over India, where children can not only purchase the books, but can also come and read, and participate in quiz competitions and experience the joy of reading. They have their own well managed inventory management, storage, and warehousing to deliver books to locations all over India. The bookstore regularly communicates the availability, features, merits, etc. of the books to target customers and persuades them to buy the books.
Quoting lines in the situation, identify and explain the two elements of marketing mix in addition to 'Product' highlighted in the above case.
Answer:
In addition to Product here means, two other elements than Product…
(i) Place
‘They have 16 stores all over India’.
OR
‘They have their own well-managed inventory management, storage, and warehousing to deliver books to locations all over India’.
Explanation
(ii) Promotion
'The bookstore regularly communicates the availability, features, merits, etc. of the books to target customers and persuades them to buy the books’.
Explanation
Solution of Case Studies
Question 13:
Rewton Ltd. was a reputed computer software company providing unique software all over India. The turnover of the company was very high resulting in good profits. The Chief Executive Officer, Vihaan, was very strict and disciplined. He specified the boundaries of authority and responsibility for achieving organizational goals. There was systematic coordination among the various activities and specific relationships among various job positions. The company provided facilities like a canteen, a gym, a library, a music room, and a rest area for its employees, which they could use during rest intervals. Using these facilities, the employees developed friendships and discussed not only their personal, social and emotional issues, but also the official ones. The General Manager was of a different view. He told the Chief Executive Officer that there was no use providing these facilities to the employees as it is an extra financial burden on the organization on one hand and on the other hand, it encourages groupism and whenever any change is required in the organization, they all resist. He suggested that they should do away with these facilities. But the Chief Executive Officer, Vihaan, explained to the General Manager that this type of social interaction is necessary, and is in the best interest of the organization. These interactions among people at work give rise to a network of social relationships among employees and have many benefits.
(I) Identify and explain the type of organization whose existence the Chief Executive Officer felt was necessary.
(ii) State any two advantages and two disadvantages of the type of organization identified in (i) above.
Answer:
(i) Informal Organization
Explanation
Solution of Case Studies
Question 14:
Nishtha runs a chain of famous restaurants, 'Indian Kitchen', in different parts of Delhi. The restaurant chain was known for good quality food and quick service. 'Indian Kitchen' was generating good revenue and had goodwill in the market. Nishtha would take a weekly report from all the Restaurant Managers and take necessary action to resolve the problems, if any. Nishtha noticed a sudden decline in sales in one of the restaurants. She questioned the Restaurant Manager who mentioned that the restaurant is seeing a gradual decrease in the number of customers but could not provide a clear explanation for it. So, Nishtha formed a team to find out the causes of the declining customers as this is the key area for restaurant business and is critical to the success of business. By doing this, Nishtha is performing a step of the process of a function of management.
- i) Identify and explain the function of management discussed
- ii) Explain the step of the function identified in (i) above, followed by Nishtha to find out the causes of declining revenue.
iii) Explain the step Nishtha will take after she gets the report from the team formed to find out the causes of declining revenue.
Answer:
(i) Controlling – Heading and explanation
(ii) Analyzing Deviations - Detailed explanation
(iii) Taking Corrective Action - Detailed explanation
Following articles include more than 70 case studies from all the units of the syllabus.
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